If I told you an ASX stock has rocketed more than 140% in just over a year, would you buy it?
Many investors would avoid it, thinking that it's had its run.
But the reality is that shares have no memory.
That stock doesn't care that it has grown 140%. All that matters is whether the business performance justifies further stock price rises.
There is one ASX stock out there in this exact situation, which multiple experts are still recommending as buys.
Let's see what they have to say:
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'Industry is expected to remain undersupplied'
MMA Offshore Ltd (ASX: MRM) shares have indeed risen 142% since 9 December 2022.
And the analysts at Celeste Funds pointed out that just last month the marine services provider enjoyed an 18% boost in its valuation.
In a memo to clients, they said the company was basking in "favourable conditions" for its offerings.
"In a recent trading update, MMA Offshore guided to 1h24 EBITDA to be in the range of $55 million to $60 million, representing a 55.4% upgrade to consensus expectations."
"The company pointed to the vessels, subsea and project logistics divisions all delivering higher than expected earnings for the first four months of the year."
But that's not the end of the fun.
The Celeste team reckons the backlog of demand for the marine sector will keep the shares pumping along.
"As the offshore service vessel industry is expected to remain undersupplied, we are of the view MMA Offshore will continue to benefit from higher vessel [utilisation] and output prices over the medium term."
Unanimous love for this ASX stock
It seems everyone's a fan.
According to CMC Invest, all five analysts that cover MMA Offshore agree with the Celeste team, rating the stock as a strong buy.
The analysts at LSN are also bullish, revealing in their memo to clients that they have held onto MMA Offshore shares rather than cashing in the winnings.
"With net cash on their balance sheets and compelling valuations at the time of investment, these share prices enjoyed significant gains from both earnings upgrades and multiple expansion."
