Experts are always looking for opportunities for investors to buy. ASX shares that have a lot of potential upside could be ideas to consider.
The two companies below are ones that experts think could rise significantly. They are both growing revenue at a double-digit rate and have plans for international growth.
With that in mind, here are two ASX shares that are rated as potential opportunities:
Baby Bunting Group Ltd (ASX: BBN)
Baby Bunting is a retailer of baby products such as prams, furniture, clothes, toys and so on. It has 64 stores and plans for more than 100 stores around Australia in various formats.
In the first half of FY22, Morgan Stanley noted that the company outperformed compared to expectations.
That half-year report showed total sales growth of 10% to $239.1 million, with online sales being 23.8% of sales. The gross profit margin increased 192 basis points to 39.3%. Pro forma net profit after tax (NPAT) increased by 16.4% to $12.5 million. The board increased its interim dividend by 13.8% to 6.6 cents.
The company expects to open its first Baby Bunting store in New Zealand early in the financial year 2023, and plans to open a network of at least 10 stores in the country.
The ASX share's management is assessing the broader $5.1 billion baby goods market for future long-term growth opportunities, relative to its current $2.5 billion addressable market.
Morgan Stanley currently rates Baby Bunting a buy with a price target of $6.90. That implies a potential upside of around 40%. The Baby Bunting share price is valued at around 21x FY22's estimated earnings.
Airtasker Ltd (ASX: ART)
Airtasker describes itself as "Australia's leading online marketplace for local services, connecting people and businesses who need work done with people who want to work". It says that it has enabled more than $1.7 billion in working opportunities and served more than 1.2 million unique paying customers.
Despite the FY22 first half being impacted by lockdowns in Melbourne and Sydney, the company achieved revenue growth of 10.4% year on year.
The ASX share sees business opportunities in the larger potential markets of the United Kingdom and the United States. Despite starting from a small base, Airtasker is growing quickly in both markets.
In the second quarter of FY22, Airtasker's US marketplace saw posted task growth of 71% quarter on quarter. So far, the company is focusing on four key cities in the US: Atlanta, Kansas City, Dallas and Miami. However, the company is seeing additional Airtasker marketplaces emerging in 'non-core cities'.
In the UK, Airtasker's second-quarter gross marketplace volume (GMV) was up 121% year on year. It's seeing both demand and supply increase in its marketplace. In the second quarter, posted tasks in the UK increased by 106% year on year.
Airtasker is currently rated as a buy by the broker Morgans, with a price target of $1.25. That implies a possible upside of around 120%. The broker thinks that the company has lots of long-term growth potential.
