While the market volatility has been disappointing for investors over the last 12 months, it has potentially created some great buying opportunities for investors.
Two ASX shares that have fallen heavily and could be worth considering are listed below. Here's what experts are saying about them:
Domino's Pizza Enterprises Ltd (ASX: DMP)
The first beaten down ASX share to look at is Domino's. This pizza chain operator's shares have lost 40% of their value over the last 12 months.
This has been driven by concerns over the impact of inflationary pressures on both consumers and its margins.
The team at Morgans appears to believe that this is a temporary issue and remains very positive on the long term. Particularly given the company's bold expansion plans. In light of this, the broker has put an add rating and $90.00 price target on its shares.
Morgans commented:
Cost inflation and adverse FX movements present significant challenges to earnings at present, as evidenced by EBIT margins, which fell from 13.4% in FY21 to 11.5% in FY22. […] We believe these pressures are transitory in nature. In our opinion, now is the best time to consider an investment in a quality business like DMP that is facing headwinds that will reverse in time.
Temple & Webster Group Ltd (ASX: TPW)
The Temple & Webster share price has been hammered over the last 12 months and has lost over half of its value. This has been driven by a de-rating of tech shares amid rising interest rates and global economic growth concerns.
Goldman Sachs appears to believe this has left the online furniture and homewares retailer's shares trading at a very attractive level. In fact, it has put a buy rating and $7.50 price target on the company's shares, which implies over 50% upside.
Thanks to the shift online and its strong market position, Goldman is expecting Temple & Webster to grow its EBITDA at a rapid rate over the next decade. It commented:
We view TPW as one of the strongest long term structural growth opportunities in our coverage and forecast a +22% EBITDA CAGR over the next 10 years. Despite the pull forward in online penetration, TPW still only has c.3.5% population penetration and c.2% share of the total category which provides a long term runway for growth. We believe the market is underestimating the long term potential of this business given near term macro headwinds across the category.
