The retail sector has been a tough place to invest this year. Concerns about how the cost of living crisis is weighing on consumer spending has sent many ASX 300 retail shares deep into the red.
While this is disappointing, one leading broker believes this recent weakness may have created a buying opportunity for investors.
Which ASX 300 retail shares could be buys?
According to a note out of Bell Potter, its analysts believe that investors should be buying Accent Group Ltd (ASX: AX1) and Lovisa Holdings Ltd (ASX: LOV) shares.
In respect to the former, the broker has a buy rating and $2.50 price target on its shares. This implies potential upside of approximately 48% for investors over the next 12 months.
Bell Potter believes that this ASX 300 share is trading at an attractive level given its positive long-term outlook.
As for Lovisa, the broker has a buy rating and $30.50 price target on its shares. This suggests potential upside of 68% for investors from current levels.
Why is it bullish?
The broker summarised why it is bullish on these ASX 300 retail shares. It said:
We maintain our BUY ratings on AX1 and LOV as we remain constructive on the two investment themes. AX1 remains a key pick with its exposure to a diversified customer demographic in their core brands and overweight position in footwear which we believe would be supported by continuing casual footwear trends in the industry and as sports, fitness & wellness related spending remains a priority. We also view LOV as a key pick in our Retail sector coverage with its ability to execute on the large global roll-out opportunity as a strong player in the fashion jewellery market while remaining relatively better immune to consumer spend pressures given the accessibility of the product from a price point perspective, once comps normalise.
