If you're wondering which ASX 300 shares to buy ahead of earnings season, then you may want to listen to what Goldman Sachs is saying about the four listed below.
The broker has been running the rule over the small to mid-cap space and has picked out these ASX 300 shares as the ones deliver strong updates.
Which ASX 300 shares are on watch?
The four ASX 300 shares that Goldman is tipping to perform strongly are data centre operator Macquarie Technology Group Ltd (ASX: MAQ), location technology company Life360 Inc (ASX: 360), IT solutions company Data#3 Limited (ASX: DTL), and residential land lease communities company Lifestyle Communities Ltd (ASX: LIC).
In respect to Macquarie Technology, the broker sees "minimal earnings risk given guidance reiterated at time of June equity raising."
It also feels investors should be looking out for the next catalyst, which is "likely to be DA approval of IC3W which will help investors frame the next step change in MAQ's earnings profile."
For Lifestyle Communities, the broker said that "slightly softer near-term settlements do not diminish our confidence in the structural growth of Land Lease over the medium-to-long term." It also feels that "any concerns over balance sheet or FY24 settlements at the result could present further buying opportunity."
As for Data#3, its analysts expect "the demand environment to surprise to the upside driven by strength in digital transformation spending, with earnings supported by high-margin backlog conversion and mix shift towards Infrastructure / Services."
Finally, Goldman Sachs believes that Life360's "EBITDA guidance has room for upside assuming revenue guidance is met."
In addition, it highlights that "with operating leverage shifting 360 from the non-profitable to profitable tech basket" a "valuation re-rating" could be on the way.
Ratings
Here are the ratings that Goldman has on these ASX 300 shares:
- Data#3 – Buy rating and $9.30 price target
- Life360 – Buy rating and $9.20 price target
- Lifestyle Communities – Conviction buy rating and $25.25 price target
- Macquarie Technology – Conviction buy rating and $77.20 price target
