The team at Bell Potter has been running the rule over a number of ASX shares and has named its top picks for 2022.
Among its picks are the three ASX 200 shares below. Here's why it thinks these are three of the best buys for 2022:
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A2 Milk Company Ltd (ASX: A2M)
A bit of a controversial pick given its abject performance over the last 12 months, but Bell Potter believes it could be well worth sticking with this infant formula company. It currently has a buy rating and $7.70 price target on its shares.
Bell Potter explained: "We see the scope for EPS to double by FY26e, if A2M can execute on the China offline expansion strategy, while recovering 50% of the lost sales (from FY20-21) in English label IMF. The catalyst to regaining lost English label sales is likely to be boarder reopening and the return of international students. Exiting the loss making US assets or navigating a turnaround at the MVM asset would likely accelerate this turnaround. We do not see the current share price as reflecting this potential."
Life360 Inc (ASX: 360)
In the tech sector, Bell Potter rates Life360 very highly and has a buy rating and $16.25 price target on its shares. The broker likes Life360's freemium model and ability to convert its huge user base into paying subscribers.
Bell Potter commented: "The company has also recently announced two acquisitions – Jiobit and Tile – so that now it not only connects and protects people but also pets and things. Yes Life360 is currently not profitable but the unique positioning of the company means it is well placed to disrupt the safety and security market and so achieve strong top line growth for years to come."
Regis Resources Limited (ASX: RRL)
In the resources sector, the broker is bullish on ASX 200 gold miner Regis Resources. It believes its shares could double over the next 12 months. Bell Potter has a buy rating and $3.81 price target on them.
Its analysts said: "RRL's share price has continued to drift on a forecast slow start to FY22 and a lack of conviction on the gold price. However, RRL continues to be competitive with peers on operating and cost metrics and is relatively cheap on a number of valuation metrics. [..] RRL offers exposure to a long-life, low-cost asset base and the opportunity of organic growth at McPhillamys lifting group production to ~700kozpa. On a risk-reward basis, at these levels, we view RRL is a standout in the sector."
