With the market under significant pressure this month, a good number of shares are trading at 52-week lows.
While this is disappointing, analysts appear to believe it could be a buying opportunity for some of them. Here are three beaten down shares that brokers rate as buys:
Cochlear Limited (ASX: COH)
The Cochlear share price was out of form and sank to a 52-week low of $178.55 today before recovering slightly to end the session at $182.06.
The team at Credit Suisse are likely to see this recent share price weakness as a buying opportunity for investors. Earlier this week, the broker upgraded the hearing solutions company’s shares to an outperform rating with a $235.00 price target. Based on the current Cochlear share price, this implies potential upside of 29% over the next 12 months.
Harvey Norman Holdings Limited (ASX: HVN)
The Harvey Norman share price got caught up in the market selloff and tumbled to a 52-week low of $4.57 on Thursday before ending the day at $4.67.
Goldman Sachs believes there’s material upside for the retail giant’s shares from this level. The broker currently has a buy rating and $6.00 price target on its shares. This implies a potential return of 28% before dividends. Speaking of which, the broker is forecasting fully franked dividends yields of 7.7% over the next three financial years.
NEXTC Ltd (ASX: NXT)
The NEXTDC share price dropped to a 52-week low of $9.74 on Thursday before recovering slightly to $9.82.
This share price weakness could also be a buying opportunity for investors according to Goldman Sachs. Its analysts currently have a conviction buy rating and $14.40 price target on the data centre operator’s shares. This implies potential upside of 48% for investors over the next 12 months.