Brokers are always on the lookout for ASX share opportunities. The two stocks in this article could be two compelling ideas that have been identified as buys.
Share prices change every trading day. Over the weeks, a business can become significantly cheaper (or more expensive). This can open up opportunities for investors.
The below businesses are ones that brokers have rated as buys.
Kelsian Group Ltd (ASX: KLS)
Kelsian used to be called SeaLink Travel. It describes itself as Australia's largest integrated land and marine, tourism and public transport service provider with established international operations in London and Singapore.
It operates around 4000 buses, 120 ferries and 24 light rail vehicles, carrying over 207 million customers, according to Kelsian.
The ASX share is currently rated as a buy by at least three brokers, including UBS with a price target of $10. This implies a potential upside of around 30%. The broker is attracted to the constant demand of the bus operations.
When it released its FY22 half-year result, the company said that "essential services continue to run on a full schedule, while the marine and tourism portfolio is poised to take advantage of the return of interstate and international visitors."
In the medium-to-long term, the company said it's in a position to take advantage of the extensive pipeline of organic growth opportunities in its contracted businesses. It's also exploring acquisition opportunities in international markets.
UBS thinks Kelsian is valued at approximately 20x FY23's estimated earnings.
Serko Ltd (ASX: SKO)
Serko says that it's transforming the world of business travel and expense, using technology, predictive workflows and a marketplace.
It's currently rated as a buy by the broker Citi, with a price target of $5.75. That implies a potential rise of around 20% over the next year.
The broker is attracted to the quality of Serko's offering as well as the potential for Serko to benefit from a travel restart. Serko's partnership with Booking Holdings Inc (NASDAQ: BKNG) is seen as an important area to grow value for the business.
In February 2022, Serko gave a 'trading conditions update'.
The ASX share said that the rapid spread of the COVID-19 Omicron variant and related restrictions reduced business travel volumes in key markets and expected revenue for the result for the 12 months to 31 March 2022.
Due to that disruption, the company reduced its revenue guidance range for the year to between NZ$18 million to NZ$20.5 million, down from NZ$21 million to NZ$25 million. The low end of that range assumes the volumes in each market in February and March would be materially lower than the volumes in the last week of January.
The high end of the range assumes a gradual continuing of the improving trend in transaction volumes driven by normal seasonality. It also assumes a recovery of business volumes from Booking.com and within the Australian market as COVID-19 disruptions reduce.
The company's expectation was that the recovery in booking volumes would be partially offset by lower New Zealand bookings. The ASX share was seeing some "early signs of recovery" in Australia when it updated the market, but demand in New Zealand had been significantly affected.
