It’s getting closer to the end of the 2022 financial year. Experts are considering whether some previous ASX share market darlings are compelling investments after all of the volatility this year.
Lower share prices mean that investors can now buy slices of businesses for a cheaper price.
While current uncertainty is weighing on the market, with things like supply chain difficulties and the flow-on effects of the Russian invasion of Ukraine, experts have identified some businesses that look like opportunities.
Audinate Group Ltd (ASX: AD8)
Audinate is one of the ASX shares that is well-liked by brokers. Broker UBS rates the business as a buy, with a price target of $9.85. That implies a possible rise of more than 35% over the next year.
The business developed Dante, an IP (internet protocol) networking solution that replaces traditional analogue cables with a single ethernet cable. It’s used by sectors like professional live sound, commercial installation, broadcast, public address, and recording industries.
The business has seen its share price crumble in 2022, dropping by around 20%.
However, the company’s recent trading update spoke of positive signs.
At the end of April 2022 it reported that demand for Dante products remained strong. So much so, it expects sales orders to be fulfilled throughout the rest of FY22 and FY23. The total backlog of sales orders has increased. And the company’s ability to fulfil orders is improving due to an increase in the supply of key chips.
Audinate recently said that trading conditions experienced in March and April (mentioned above) had continued in May. The ASX share was expecting revenue for FY22 to exceed US$30 million. However, it continues to manage a challenging supply chain environment.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Pinnacle is a business that invests in funds management businesses. It helps them grow by allowing the fund manager to focus on the investing side of things.
The ASX share provides services like seed funds under management (FUM) and working capital, distribution and client services, compliance, finance, legal, technology and other business infrastructure.
The Pinnacle share price has dropped by over 50% since the start of 2022. Brokers believe this valuation represents good value for investors, including UBS with a price target of $12.65. That suggests a possible rise of more than 60%.
The broker thinks that despite the challenges facing the investment industry, the business looks attractive over the long term.
Its latest quarterly update for the three months to 31 March 2022 showed FUM of $91.4 billion. That’s an increase of 2.2% from $89.4 billion.
The ASX share is looking to add new asset classes and investment strategies to its portfolio, diversifying sources of revenue and helping further growth.
Pinnacle said that it’s prepared for, and seeking, further expansion opportunities. It’s committed to taking advantage of the “significant” offshore opportunity to evolve into a global multi-affiliate by exporting its model.
According to UBS, the Pinnacle share price is valued at 19x FY22’s estimated earnings.