Experts have rated some ASX shares as impressive opportunities in March 2022.
These are businesses with long-term growth plans and management teams motivated to achieve those goals.
Whilst brokers don't always get everything right, they like to keep a keen eye on business valuations to find ideas.
These are two ASX shares that experts like right now:
Bubs Australia Ltd (ASX: BUB)
Bubs is one of the leading Australian infant formula companies currently seeing a lot of growth with plans for a lot more.
Citi rates Bubs as a buy with a price target of $0.73 – that's around 70% higher than where it is today.
The broker pointed to several positives from the Bubs half-year result, including US distribution expansion and Australia's international borders opening up, providing a tailwind to sales.
In the first six months of FY22, Bubs reported positive underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.2 million, after 84% year-on-year growth of group revenue to $33.6 million. There was also a "significant improvement" in the gross profit margin to 38%.
One of the key highlights was that the ASX share's corporate daigou gross revenue was at a record high, exceeding pre-COVID levels, rising by 276%. There was also 53% growth of Chinese cross-border e-commerce gross revenue.
Bubs revealed that it's now listed with the three largest US national food distributors. It has also secured ranging at Southern California's largest food retailer.
Citi thinks that Bubs could start making a positive net profit after tax (NPAT) in FY23.
ELMO Software Ltd (ASX: ELO)
ELMO is a provider of HR and payroll software to small and medium businesses in Australia and the UK.
Morgan Stanley currently rates the share as a buy with a price target of $7.80. That suggests a possible upside of around 110% over the next year, if the broker ends up being right.
The first half of FY22 showed a significant growth for the business and it increased its FY22 guidance, but that seemingly wasn't enough for the market to be positive about the result.
ELMO said that annualised recurring revenue (ARR) of $98.3 million was an increase of 35% compared to 30 June 2021. Revenue rose by 41% to $43.1 million.
The ASX share generated a positive earnings before interest, tax, depreciation and amortisation (EBITDA). Half-year EBITDA rose by $0.9 million to $0.3 million. ARR guidance was increased to a range of $107 million to $113 million for FY22.
ELMO revealed that operating leverage continues to improve with a reduction in key spending ratios across the business. This has driven the positive EBITDA result and reduced the monthly operating cash burn by 36%.
The company launches new modules to make itself more useful for clients and increase the possible value of each client to ELMO, if they sign up. This can make the client even more sticky as well.
Management also noted that the UK acquisitions are performing "exceptionally well" and provide a solid foundation to increase its market share in the region.
