One ASX share surged more than 52% last month, but a bullish fund manager still reckons it has another 40% movement in it yet.
Wilson Asset Management portfolio manager Tobias Yao told a company webinar that Ardent Leisure Group Ltd (ASX: ALG) had a sensational reporting season.
In fact, it was the third-best performing ASX stock over the month of August.
"We still believe there is further upside … driven by continued momentum in the US with its Main Event entertainment centres," he said.
According to Yao, the business is doing more than 25% same-store growth compared to pre-COVID 2019 numbers.
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Major beneficiary as Australia opens up
Ardent stocks are up 104.9% already this year on the back of the booming US post-pandemic trade. The closing price Thursday was $1.445.
But Yao sees the company now cashing in similarly in Australia.
"Over the next 6 months … we believe domestic tourism will flourish, which will benefit Ardent's Australian assets."
The company owns venues such as Dreamworld and Skypoint on the Gold Coast in Queensland.
This reopening trade in its home country will push the stock higher, according to Yao, despite its recent golden run.
"In terms of catalysts, we think this business can continue to eke out earnings upgrades over time. We think the sum of the parts continues to be very appealing," he said.
"I think there's another 40% upside to the current share price."
He tried to tell you earlier
As a credit to Yao, he also told investors to buy Ardent back in June, when the ASX share was almost 30% cheaper.
"Our view is that at the current share price, you're not paying anything for the theme parks division, which is over $100 million on the balance sheet," he said at the time.
Solely on the morning that Ardent's bumper results were released, the share rocketed up 25%.
Yao is not the only analyst bullish on Ardent. At the start of this month, JP Morgan upgraded its rating to overweight, slapping on a $1.75 price target.
