Experts are always on the lookout for ASX shares that offer investors a lot of potential upside.
When several brokers simultaneously like a business, that may suggest that there's an opportunity. Or all of those experts could be wrong at the same time.
With that in mind, here are two potential opportunities:
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Universal Store Holdings Ltd (ASX: UNI)
Universal Store is an ASX retail share. It's a specialty retailer of youth casual apparel with 73 stores across Australia. It also has an online store.
The Universal Store share price has fallen heavily over the last six months.
The company suffered in the first half of FY22 as many of its stores in NSW and Victoria were closed because of COVID-19 restrictions. It lost about a quarter of its potential trading days. Despite that, it still managed to generate $108.3 million of sales and $13.5 million of statutory net profit after tax (NPAT).
It opened nine new stores late in the first half and expects to open up to three new stores in the "next six months". It has a long-term target of at least 100 stores across Australia and New Zealand.
It's currently rated as a buy by at least three brokers, including UBS. The broker has a price target on the business of $7.75. UBS thinks that it has a good longer-term outlook with an attractive ability to open more stores.
On UBS's numbers, the Universal Store share price is valued at around 15x FY23's estimated earnings.
City Chic Collective Ltd (ASX: CCX)
City Chic is another ASX retail share that is highly rated by several brokers. It currently has at least five buy ratings.
The business sells plus-size clothing, accessories, and footwear to women.
Morgan Stanley thinks that the company looks cheap after the steep fall of the City Chic share price since the start of the year.
The broker thinks that investors may start liking the company again if second-half trading impresses or if it makes another acquisition.
City Chic has made a number of acquisitions to increase its scale over the last few years. It has bought Avenue in the US, Evans in the UK, and Navabi in the EU.
The first half of FY22 saw a lot of top-line growth, with sales rising by 49.8% to $178.3 million. In the first eight weeks of the second half of FY22, the company said that it had delivered strong online sales growth. The UK and EU markets showed signs of recovery.
Based on Morgan Stanley's numbers, the City Chic share price is valued at 21x FY23's estimated earnings.
