Recent volatility means that a number of ASX shares are trading notably lower than their 52-week highs. While this doesn’t make all of them buys, two that brokers believe are in the buy zone now are listed below.
Here’s what you need to know about these beaten down ASX shares:
Costa Group Holdings Ltd (ASX: CGC)
The first beaten down ASX share to look at is this horticulture company. The Costa share price was fetching $2.88 at yesterday’s close, which is down 40% from its 52-week high. This was driven partly by a subdued performance during the first half of FY 2021 which saw Costa report flat revenue and a 3% lift in net profit.
Despite its soft performance, Bell Potter continues to see a lot of value in the company’s shares at the current level. This week the broker retained its buy rating but trimmed its price target to $3.85. This implies potential upside of almost 34% over the next 12 months.
The broker said: “Our Buy remains unchanged. Our favourable view on CGC is driven by: (1) expansion and maturation of the international berry operations; (2) expansion and maturation of the avocado orchards; (3) non-recurrence of hail impacting citrus and grape operations in CY21e; and (4) further investment in capacity (avocado, citrus and tomato) to grow earnings beyond CY22e.”
CSL Limited (ASX: CSL)
Another beaten down ASX share to consider is this leading biotechnology company. The CSL share price is currently trading almost 20% lower than its 52-week high. This has been driven by market volatility, plasma collection concerns, and its recent capital raising.
The team at Morgans appears to see this as a buying opportunity for investors. The broker recently put an add rating and $334.70 price target on its shares. This implies potential upside of almost 30% over the next 12 months.
It commented: “We view CSL as a core holding and best positioned among its peers to meet growing patient demand.”