If you're looking for investment options, then the two ASX shares listed below could be worth considering.
Analysts currently rate these shares as buys and see potential for them to climb materially higher from current levels. Here's what you need to know:
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Altium Limited (ASX: ALU)
The first ASX share to look at is Altium. It is the electronic design software company behind the Altium Designer and Altium 365 platforms, the NEXUS team-based PCB workflow solution, and the Octopart electronic parts search engine.
Thanks to their exposure to the rapidly growing Internet of Things (IoT) and artificial intelligence (AI) markets, demand for this offering is expected to increase materially over the coming years. In fact, management is targeting revenue of US$500 million by 2025-2026. This is more than double its FY 2022 revenue guidance of US$213 million to US$217 million. It is also targeting market dominance in electronic design software with a massive 100,000 subscribers by 2026. This compares to 55,978 at the end of the first half.
One leading broker that believes the Altium share price is great value at the current level is Bell Potter. It recently reiterated its buy rating and $41.25 price target on the company's shares. Based on the current Altium share price of $27.00, this implies potential upside of 53%.
Baby Bunting Group Ltd (ASX: BBN)
Another ASX share that could be in the buy zone is leading baby products retailer Baby Bunting.
It has been tipped as a buy due to its positive growth outlook, exposure to less discretionary spending, and its strong market position. The latter is expected to strengthen further in the coming years as its store network expansion continues.
For example, at present the company has 60 national superstores across Australia. However, analysts at Citi expect this to hit 68 at the end of FY 2022 and then sees scope for over 110 stores in the future. In addition, the broker sees other growth opportunities from "exclusive/private label growth and supply chain efficiencies."
At present, Citi has a buy rating and $6.22 price target on the company's shares. Based on the current Baby Bunting share price of $4.21, this suggests of 48% for investors over the next 12 months.
