Brokers are always on the lookout for ASX shares that could be opportunities to buy. And, certainly, August could be the month to pounce on the ideas that have just been named as buys.
Share prices are always changing and updates are regularly flowing from businesses. This can change whether experts think they are a buy, hold, or sell.
No one can truly know what a share price is going to do next week or next month. But, investors can make a judgement of whether they believe a share price is undervalued or not.
Brokers like to put a 'price target' on a business. That's where the broker thinks the share price will be in 12 months' time.
Image source: Getty Images
Audinate Group Ltd (ASX: AD8)
Audinate is a business that offers the Dante IP networking solution. It's described as the worldwide leader and is "used extensively in the professional live sound, commercial installation, broadcast, public address and recording industries". Dante replaces traditional analogue cables by transmitting synchronised AV signals across large distances to multiple locations at once, using just an ethernet cable.
The broker Morgan Stanley currently rates Audinate as a buy, with a price target of $9. It also wants to see the company's full FY22 result.
But it noted the preliminary numbers for FY22 from the ASX share and believes this bodes well for FY23.
Audinate reported that revenue was up 33.4% to US$33.4 million. The gross profit margin was 74.7%. FY22 earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be between A$3.8 million to $4.3 million (up from $3 million in FY21).
Improved chip supplies allowed unmet demand from the FY22 third quarter to be delivered in the FY22 fourth quarter, the company said.
Corporate Travel Management Ltd (ASX: CTD)
Corporate Travel is one of the world's largest businesses specialising in corporate travel.
The broker Macquarie recently rated the ASX share as 'outperform' with a price target of $20.80. That's a potential upside of around 10%.
Macquarie recognises the sector is recovering from COVID-19 impacts. However, there are also some issues such as more expensive plane tickets and airlines reducing their number of flights.
The broker thinks that the ASX share has a significant number of clients, such as in healthcare and government, that should continue to need the company's services.
Macquarie thinks that Corporate Travel Management's earnings are going to jump in FY23.
Based on the profit estimate for the 2023 financial year, the Corporate Travel share price is valued at 25 times FY23's estimated earnings, according to Macquarie.
