The S&P/ASX 200 Index (ASX: XJO) could be the place to look for shares that are leaders in their industry, while also being good value.
But which ASX shares should investors go for? The broker Ord Minnett has named some companies it thinks are opportunities to buy.
Recent volatility makes it tricky to know which shares are the best value. However, brokers like to name share price targets, which is their best guess about where a share price will be in 12 months.
While a share price target is certainly not a guarantee of returns, it can indicate how much potential an ASX share may have in the broker's eyes.
These two are rated as buys by Ord Minnett and seemingly have good upside potential.
ResMed Inc (ASX: RMD)
ResMed is an expert in helping people with sleep apnea. The company says it has innovative solutions that treat and keep people out of hospital, empowering them to live healthier, higher-quality lives.
It says it has digital health technologies and cloud-connected medical devices that can transform care for people with sleep apnea, chronic obstructive pulmonary disease (COPD), and other chronic diseases. It operates in more than 140 countries.
Ord Minnett recently focused on the news that the ASX 200 share will acquire Medifox Dan for approximately US$1 billion. This company specialises in software solutions for professional and non-professional care, therapeutic practices and child, family and youth welfare facilities. It also has digital solutions for modern training and education management.
Medifox Dan made pro forma net revenue of US$83 million in 2021, with pro forma adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $35 million.
While Ord Minnett rates ResMed as a buy with a price target of $35, it thought the acquisition price was high considering what's going on globally with the decline of share prices.
At the time of writing, the ResMed share price is up 0.8% at $31.05.
Hub24 Ltd (ASX: HUB)
Hub24 is a platform business in the financial technology (fintech) world. It has different segments including Hub24, Xplore, HUBconnect and Class.
The company boasts that it is Australia's fastest-growing platform provider. Hub24's market share has grown to around 5%, with an ongoing strong share of net flows.
It aims to lead the wealth industry as the best provider of an integrated platform, technology and data solutions.
The ASX 200 share is growing quickly. In the quarter for the three months to 31 March 2022, it saw net inflows of $2.6 billion, which was an increase of 36.4% year on year. Total funds under administration (FUA) was $68.3 billion at 31 March 2022 – platform FUA of $51 billion was up 43.3% year on year.
The financials are showing rapid growth. FY22 first-half platform segment revenue rose 76% to $77.3 million, while underlying net profit after tax (NPAT) went up 103% to $14.2 million.
It's currently rated as a buy by Ord Minnett, with a price target of $30. The broker thinks Hub24 has an attractive long-term future and can continue to achieve attractive inflows.
The Hub24 share price is up 0.59% to $20.41 in early trading on Thursday.
