3 ASX shares you've never heard of that experts love

You have to be different from the herd if you want to do better than average. Here are some suggestions from Shaw and Partners analysts.

If you're investing in ASX shares and want to outperform the average punter, or indeed the index, you need to do something different.

So it's sometimes worthwhile opening your horizons and considering businesses that don't make daily headlines in the newspapers (or websites).

Here are 3 examples of such ASX shares that the team at Market Matters reckons are ripe for buying:

a woman holds a cup to her ear and leans in with a wide mouthed expression on her face as though she is listening to interesting and perhaps surprising information.

Image source: Getty Images

Can this software firm return to its glory days?

Shares for software maker Gentrack Group Ltd (ASX: GTK) traded in the $6s and high $5s only a couple of years ago.

As of Wednesday's close, they were going for $1.755.

Shaw and Partners analyst Jules Cooper reckons Gentrack is "a quality business led by a credible team" that can return to glory.

"It is the darkest hour, and the stock is capitalising that into its valuation," he told a Market Matters video.

"We think this stock can more than double."

The resurrection may have already started, with a positive financial update a fortnight ago pushing the shares up 7.6% on the day.

Market Matters chief James Gerrish agreed with Cooper.

"We like this pick and believe you can play Gentrack with less than 10% risk, which is fairly conservative at this end of town."

All this data isn't going to hold itself

Global Data Centre Investment Fund (ASX: GDC) has much going for it, not least the worldwide thirst for data and the demand for physical locations to house it all.

But the share price has gone nowhere since listing in late 2019, trading at $1.85 as at Wednesday's close.

Shaw and Partners senior analyst Jonathan Higgins revealed that his team rates the stock as a "buy" with a price target of $3.03.

"We think it's one of the clearest valuation arbitrages in the market," he said.

"In the data centre space, we're seeing significant tailwinds. We're seeing the likes of the Googles, the Amazons, the Facebooks and the Microsofts of the world growing in this space anywhere from 40% to 50% per annum." 

According to Gerrish, the market has been reluctant to "push the stock too hard too fast".

"We like the thesis but would be nervous if the stock failed to hold the $1.75 area."

This ASX share has already rocketed since these comments

Audinate Group Ltd (ASX: AD8) makes audio networking technology, which has a flagship product named Dante.

Dante is fast becoming the default networking protocol pre-installed into audio equipment such as musical instruments.

According to Gerrish, such a lead in the industry is a great omen for the future.

"The $695 million business holds a comforting $65 million in cash and enjoys gross margins above 75%," he said.

"It certainly looks poised to go from strength to strength during the COVID re-opening period."

His team likes it as a buy around the $9 mark.

"But we would question what was unfolding under the hood if the stock fell under $7.50," he said. 

"We recently bought Audinate in the Emerging Companies portfolio at $8.93."

Audinate shares have exploded almost 8% in the past 48 hours to close at $9.72 on Wednesday.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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