If you're looking for shares with major upside potential, then you may want to check out the ones listed below.
Earlier today, brokers gave their verdict on these shares and, pleasingly for investors, they are feeling very bullish. Here's what you need to know:
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Atomos Ltd (ASX: AMS)
Morgans is very positive on this video equipment developer. This morning the broker responded to its half year results by retaining its add rating but slightly trimming its price target to $1.87. This implies almost 100% upside for the Atomos share price from current levels.
The broker commented: "AMS' 1H22 result saw a beat on EBITDA (A$3.2m vs A$2.5m MorgansE) although further upside was impacted by higher variable freight costs and supply chain disruptions – no surprise there given the global operating environment."
"While it appears the market continues to question AMS' ability to hit FY22 guidance, we look to a period of lower promotional activity, pull-through of demand from out-of-stock devices in 1H, higher contribution from 100% margin software sales, and the release of Series 2 (S2) products (higher margin) within the period, off a largely fixed cost base. We are comfortable with guidance at the lower end. We have made only marginal changes to forecasts and remain comfortable with our forecasts," it added.
Lifestyle Communities Limited (ASX: LIC)
This retirement communities company's shares could be in the buy zone according to the team at Goldman Sachs. In response to its half year update, the broker retained its conviction buy rating and lifted its price target to $24.50.
This suggests potential upside of 33% from the current Lifestyle Communities share price of $18.46.
Goldman commented: "Overall, we saw the result as very solid: LIC delivered a settlement number in line with our expectations despite ongoing lockdown conditions through the half and the number of resales continues to grow YoY. In our view, the business is well capitalised to organically increase its development pace to support a higher settlement number: although gearing reached 40% in the half, this should unwind as a number of communities move from development phase to settlement phase."
Outside this, the broker expects the company to outperform for three reasons. These are a step up in the pace of land acquisitions, structural growth in demand for land lease, and fundamental valuation support for cap rates.
