Everyone loves a great turnaround story.
But it's natural to love it just that little bit more if you saw it coming and bought ASX shares in the company before everyone else woke up to it.
Wilson Asset Management analysts have a couple of examples that they rate as a buy right now:
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New boss set to turn this ship around
Boral Limited (ASX: BLD) has been around for almost 80 years, so the brand is pretty well known in Australia for its construction materials.
But Wilson senior equity analyst Sam Koch pointed out it's struggled in recent times.
"It's been plagued with a lot of operational inefficiencies over the last couple of years," he said in a Wilson video.
Indeed the share price performance reflects this crisis, having halved since July 2021.
Koch would buy the stock now, as Boral is ready to put that period behind it.
"Their new CEO Vik Bansal, we think, is a great fit. He has the operational capability to deliver a turnaround plan."
He added that the revival strategy should involve "decentralising accountability, decision-making, focusing on revitalising the network, and realising the inherent value within the property [assets]".
"If you back out over a $1 billion in property from the valuation, it's actually trading in line with the sector average.
"We believe there's a materially better outlook for this business versus its peers."
The investor day in May will provide more information about Bansal's turnaround plans, which Koch believes could prove to be a stock price catalyst.
Former cash-burning tech company could be profitable very soon
Family security software Life360 Inc (ASX: 360) saw its share price shockingly freefall 81% in just seven months to June last year.
It was a prototypical victim of the market's move away from cash-burning growth businesses as interest rates rose.
The Californian company acknowledged that message and embarked on a cost-cutting program, which the market has rewarded with a 97% rocket in its share price since 17 June.
Wilson senior equity analyst Shaun Weick rates it as a buy, noting the communications Life360 has sent to investors.
"They've issued very strong calendar year 2023 guidance," he said.
"They've brought forward the point of profitability to the second quarter of this year, and that's often a key catalyst for technology stocks driving a re-rating — particularly in this environment."
Goldman Sachs analysts agree with Weick on Life360, this week setting a share price target of $7.85. This implies a more than 58% upside to the current levels.
