Brokers have identified some leading ASX share opportunities to buy in March 2022.
There has been plenty of volatility in recent weeks as investors react to the Russian invasion of Ukraine as well as concerns that fast inflation could spark rapid interest rate increases.
If multiple brokers all rate a business as a buy then it could indicate to investors that there is an opportunity to buy. Of course, it's possible that all of those analysts are wrong at the same time as well.
With that in mind, these two ASX shares are rated as a buy:
Wagners Holding Company Ltd (ASX: WGN)
Over the last 10 months, the Wagners share price has fallen more than 40%. But brokers now think that it is an opportunity. It's rated as a buy by at least three brokers including Credit Suisse.
The broker's price target is $1.90. That's almost 40% higher than where it is today.
If you haven't heard of Wagners before, it's a major producer of construction materials and services for Australian and international markets.
The recent FY22 half-year result saw revenue rise by approximately 10%, thanks to growth from cement, concrete, steel and composite fibre technologies (CFT).
Operating earnings before interest and tax (EBIT) increased from $11.6 million to $12.6 million. The company continues to experience costs as it seeks to expand in the USA. Concrete margins are also seeing pressure, leading to a "disappointing" contribution from fixed concrete plans.
In the second half of FY22, it plans to start manufacturing CFT at its Texas facility and begin manufacturing 'earth friendly concrete' in outer London, which is currently under construction.
Credit Suisse thinks that the second half could see stronger performance. It's keeping an eye on the margins though.
BWX Limited (ASX: BWX)
BWX is a natural beauty business with plenty of brands including Sukin and Go-To Skincare. The ASX share also owns e-commerce platforms like Nourished Life and Flora & Fauna.
The BWX share price has fallen 45% since the start of the year.
Brokers see this sell-off as a buying opportunity, with at least three buy ratings. UBS has a buy rating on the business with a price target of $5.50. That implies a possible upside of more than 130% over the next 12 months. It was trading close to that level at the end of June 2021.
The broker noted that both revenue and spending were lower than expected in the first half of FY22, leading to the business generating a bit more profit than expected. But the lower-than-expected sales were a disappointment, with like for like growth of 5%.
BWX said that its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 26.2% to $14.3 million and underlying net profit after tax (NPAT) grew by 22.1% to $4.7 million. But it made a statutory net loss of $2.3 million with a $3.5 million expense related to the cost of an equity-linked strategic partnership with Chemist Warehouse. There were also $3 million of one-off acquisition costs.
The ASX share said that it's expecting "strong" underlying revenue and EBITDA growth in the second half of FY22. Sales momentum seen in the FY22 second quarter is continuing into the third quarter.
UBS thinks it's trading at 13x FY23's estimated earnings.
