With earnings season behind us, Goldman Sachs has been looking at how ASX shares have performed since the release of their results.
It highlights that seven ASX shares have underperformed despite delivering stronger than expected results last month.
In light of this, the broker believes an opportunity has opened up for investors to snap up these shares now. They are as follows:
James Hardie Industries plc (ASX: JHX)
Goldman believes this building materials company is a buy with a $39.50 price target. It highlights that its "share price is implying an EBIT of US$681m vs GSe FY24e of US$716m."
Judo Capital Holdings Ltd (ASX: JDO)
The broker has a buy rating and $1.79 price target on this lender's shares. Its shares are down 12% despite reporting "cash earnings +28% higher than" than its estimate.
Jumbo Interactive Ltd (ASX: JIN)
Its analysts have a buy rating and $15.50 price target on this lottery ticket seller's shares. It believes recent share price weakness is "unwarranted" given its solid half-year results.
Lifestyle Communities Ltd (ASX: LIC)
Goldman has this retirement communities company's shares on its conviction list with a buy rating and $26.50 price target. This is despite Goldman believing that its full-year guidance is "achievable" even in the face of housing market pressures.
Qantas Airways Limited (ASX: QAN)
Another ASX share on Goldman's conviction list is Qantas with a buy rating and $8.30 price target. It believes "the -7% share price reaction on results day (and the current share price) does not reflect the group's improved earnings capacity."
REA Group Ltd (ASX: REA)
Also on its conviction list with a buy rating and $158.00 price target on this property listings company. Goldman believes "the market continues to underappreciate the quality of REA."
Readytech Holdings Ltd (ASX: RDY)
Goldman Sachs has a buy rating and $4.40 price target on this enterprise software provider's shares. It highlights that "RDY is now trading at ~17x FY24 P/E while delivering ~20% FY23-25E EBITDA CAGR, supported by its defensive public sector end-markets."
Universal Store Holdings Ltd (ASX: UNI)
A final ASX share that Goldman believes the market is being too negative on is Universal Store. It has a buy rating and $8.05 price target on its shares. It notes that "UNI has largely retraced its gains after reporting a strong 1H23 result (+12% vs. GSe EBIT)." The broker believes "the market may be discounting the sustainability of UNI's earnings growth." However, Goldman disagrees and is forecasting a +17.2% FY 2023-2025 earnings compound annual growth rate.
