Experts are always on the lookout for ASX shares in the All Ordinaries Index (ASX: XAO) that could be attractively priced opportunities.
As ASX share prices and company updates constantly change, so too do brokers modify their recommendations. It largely depends on a company's progress and if the share price is at a sizeable discount or premium to the broker's estimated value of that business.
After some recent company announcements, brokers released their latest views on these two growing All Ords ASX shares.
Bubs Australia Ltd (ASX: BUB)
Bubs is an infant formula business that sells goat infant formula, cow milk formula, toddler snacks and adult goat milk products.
The broker Citi recently reiterated its buy rating on Bubs, with a price target of $0.77. That implies a possible rise of around 26% over the next 12 months.
Citi pointed to the company's quarterly update, which showed progress in China and the United States markets.
In the three months to June 2022, China's revenue increased by 523% year on year, contributing 64% of quarterly sales. Corporate daigou sales were up 1,201% year on year and cross-border e-commerce sales rose by 20%.
Bubs noted that the Alpha Group equity-linked strategic partnership and the China launch of the Bubs A2 product had proven "highly successful" and remained its most profitable channel.
In the US, the All Ords ASX share was one of the first infant formula manufacturers to apply for and receive FDA temporary approval. Within 24 days, the first air cargo shipment appeared on major US retailer shelves.
Bubs advised that around 540,000 tins had been delivered to more than 5,400 US stores, with additional shipments and retailers planned in the near term.
The company will invest money to accelerate expansion, build inventory to mitigate the current logistics environment, build its presence in the US and triple the capacity of its processing and canning facility.
Megaport Ltd (ASX: MP1)
Megaport is a tech company that enables digital infrastructure to move into the cloud.
Broker UBS likes the company's longer-term future and rates Megaport as a buy. The broker has set a price target of $16, which implies the Megaport share price could rise by around 90% over the next 12 months.
In its quarterly update for the three months to June 2022, Megaport reported $1 million of 'normalised' earnings before interest, tax, depreciation and amortisation (EBITDA). This is an increase of 126% quarter on quarter. It also made $1.6 million in positive operating cash flow (up 125%).
The All Ords ASX share also reported that monthly recurring revenue (MRR) rose by 13% quarter on quarter to $10.7 million for June 2022. Customer numbers increased 4% quarter on quarter to 2,643. Total ports also rose 6% quarter on quarter to 9,545, and average revenue per port went up by 6.8% quarter on quarter to $1,120.
Megaport CEO Vincent English said about the company's outlook:
Closing fiscal year 2022 with a solid fourth quarter performance across all operating metrics provides excellent momentum going into fiscal year 2023. We have aligned our business to reduce cash burn and have a clear runway to profitability with a proven business plan.
We have a strong cash position with more than $80 million available. With a record of successfully executing on our plans, we have a high degree of confidence in FY23 and will continue to stay out front as the leading global network as a service provider.
