Analysts name 2 ASX shares to buy with ~50% upside potential

These ASX shares could have major upside potential according to analysts…

| More on:
Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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:

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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. The Motley Fool Australia has recommended Baby Bunting. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

A happy woman raises her face in celebration, indicating positive share price movement on the ASX
Growth Shares

Analysts say these ASX growth shares have huge upside potential

These growth shares could have heaps of upside...

Read more »

a graph indicating escalating results
Opinions

Where to find value in growth? Here are 2 ASX shares I’d buy in July

Both of these ASX shares could achieve good things in the future.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Growth Shares

Analysts tip big returns from these ASX growth shares

Here are two ASX growth shares analysts expect big returns from...

Read more »

happy investor, share price rise, increase, up
Growth Shares

Here’s why brokers rate these ASX growth shares as buys

Here's why these growth shares could be buys next week...

Read more »

Woman smashes dollar sign for dividend share investment
Growth Shares

2 beaten down ASX shares named as buys by experts

Here are two beaten down shares that could be buys...

Read more »

smiling man holding phone technology
Growth Shares

Analysts name 2 excellent ASX shares to buy and hold

These ASX shares could be top buy and hold options...

Read more »

The hands of three people are cupped around soil holding three small seedling plants that are grouped together in the centre of the shot with the arms of the people extending into the edges of the picture representing ASX growth shares and it being a good time to buy for future gains
Opinions

Why I think these 2 ASX shares are ideal for growth investors

This current volatile period could be a great time to go hunting for compelling businesses with strong growth potential.

Read more »

happy investor, share price rise, increase, up
Growth Shares

Here’s where I’d invest $3,000 into ASX growth shares today

Some ASX growth shares are looking really good value, in my opinion.

Read more »