Prior to the end of the year, analysts at Bell Potter were busy picking out the shares to buy in 2022.
Among the 30+ shares that the broker named were the two listed below. Here's why it thinks they could have a great year:
Cooper Energy Ltd (ASX: COE)
In the energy sector, Bell Potter has named Cooper Energy as an ASX share to buy in 2022. The broker has put a buy rating and 38 cents price target on its shares. This compares favourably to the current Cooper Energy share price of 28 cents.
Bell Potter believes the company is well-placed to benefit from supply deficits in Australia's south east coast market.
It commented: "Supply deficits in Australia's south east coast market should support gas prices over the medium to long term and COE has a portfolio of conventional gas assets leveraged to this theme. Upgrades at the Orbost Gas Processing Plant in the March 2022 quarter will provide a step-change in production and earnings in FY23."
"In the Otways, cutover to the larger, low cost Athena gas plant in late 2021 will provide uninterruptable gas processing and spare capacity for potential new Otway Basin discoveries. An upgrade to prospective Otway gas resource estimates is expected in the March 2022 quarter," it concluded.
Money3 Corporation Limited (ASX: MNY)
In the Industrials sector, the broker has picked out this automotive-focused consumer finance provider. It has put a buy rating and $4.35 price target on its shares, which compares to the latest Money3 share price of $3.45.
Bell Potter believes the company is well-positioned to hit its guidance in FY 2022 and for further solid growth in the coming years.
It explained: "MNY is a beneficiary of favourable macro conditions for loan book growth, evidenced by strong originations in Nov'21 which are likely to accelerate into CY22 as VIC/NSW and NZ emerge from lockdowns. With ample funding headroom to support its strong outlook and greater book leverage, we believe MNY is well placed for its FY22 NPAT Guidance of $50m."
"Having built a solid platform for growth, and improved ROE over the medium term, we believe MNY is well placed to deliver double digit forecast EPS growth over the next 3 years, and we see value in the business at its current PER of ~14x FY22e & ~11x FY23e, with a FY22e dividend yield of ~3.6% ff (~5.2% grossed up)," the broker added.
