Analysts are always on the search for ASX shares that are opportunities which are good value right now and have attractive longer-term potential.
Not every business has a lot of attractive attributes. However, analysts have found some very promising stocks.
These two ASX shares are well liked by analysts:
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster sells over 200,000 products from hundreds of suppliers. It runs a drop-shipping model where its products are sent directly to customers by suppliers, enabling faster delivery times and reducing the need for Temple & Webster to hold inventory, allowing for a larger product range.
The ASX share also has a growing private label range which is sourced directly by Temple & Webster from overseas suppliers.
It's currently rated as a buy by the broker UBS with a price target of $12.20. That's a potential rise of more than 10% over the next year.
The broker thinks that the business can win from the tailwind of consumers shifting to buying home products online.
UBS thinks that Temple & Webster could make useful acquisitions to boost its growth potential, as well as adding more product categories to its overall offering. The business is seeing positive trends with its customers who are spending more per order, ordering more often and more likely to return.
In the longer-term, UBS expects the ASX share might be able to reach an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of at least 10%.
Superloop Ltd (ASX: SLC)
Superloop describes itself as an independent provider of connectivity services designing, constructing and operating networks throughout the Asia Pacific metro region. It has extensive carrier-grade, metro fibre networks in Australia, as well as fixed wireless networks.
It's currently rated as a buy by the broker Morgan Stanley with a price target of $1.45. That's more than 20% higher than where it is today.
The broker thinks that Superloop is making things better again. It likes the acquisition of Exetel as well as selling non-core assets.
The ASX share has ambitions to grow the number of consumers and revenue from its consumer segment. It also wants to grow its revenue significantly for the business segment and the wholesale segment. The company is aiming to generate good margins from these businesses.
Superloop thinks that there is a path to reaching a market share of between 4% to 5%, delivering attractive EBITDA growth. Achieving operating leverage is an important part of the puzzle, by leveraging its owned network and infrastructure economics.
Management think that the company has the products, sales channel and service model to take market share.
