Sitting on $500 and aren't sure what to do with it? Well, you could look at turning it into something more substantial by investing it into a top Australian stock.
But which ones could be worth considering for a $500 investment?
Two that analysts believe could generate big returns for investors are listed below. Here's what they are saying about them:
DroneShield Ltd (ASX: DRO)
Bell Potter believes that this counterdrone technology company could be in the buy zone. Its analysts highlight that 2023 has been a "transformative year" for Droneshield and appear to believe it is onwards and upwards from here thanks to its growing market opportunity. It said:
The company is leveraged to the current trend of global rearmament and the addressable market for counter-drone technology is expected to exceed $7.62 billion USD over the next decade. CY23 has been a transformative year for DroneShield, with BPe forecasting the company to record $69.9 million in revenue for the year, approximately 4x the CY22 result ($16.9 million), and achieve profitability for the first time (BPe NPAT $15.2 million). The company currently has a sales pipeline of ~$400 million.
The broker has a buy rating and 50 cents price target on this top Australian stock. This implies a potential upside of 52% for investors.
Liontown Resources Ltd (ASX: LTR)
This lithium developer's shares have been hammered over the last six months. While this is disappointing, the team at Bell Potter believe it could have created a mouth-watering buying opportunity.
So much so, that the broker recently named it as one of its top Australian stocks to buy in December. It commented:
LTR owns the Kathleen Valley (KV) lithium project in Western Australia. KV is in development and set to commence production in mid-2024, supplying into Ford, Tesla and LG Energy Solution offtake agreements. The company is funded to complete KV and has a strong cash buffer over and above remaining development and working capital requirements. We expect lithium market sentiment to improve into 2024 as EV supply chain inventories normalise. KV is highly strategic in terms of being large scale and located in a stable mining jurisdiction.
Bell Potter has a speculative buy rating and a $2.75 price target on Liontown's shares. This suggests that its shares could double in value in 12 months.
