S&P/ASX 200 Index (ASX: XJO) share prices are always changing, which can open up compelling buying opportunities with the right businesses at the right price.
In this article, I'm going to examine where one leading fund manager is seeing value amid recent volatility and shifting valuations.
Audinate Group Ltd (ASX: AD8)
This is the company behind Dante, a media networking solution that's used in the professional audio-visual industry. It is used for numerous purposes including universities, conferences, recording studios, amusement parks, zoos, houses of worship, arenas and stadiums, theatres and so on.
Fund manager Philippe Bui from Medallion Financial Group wrote on The Bull that Audinate is a buy because this ASX tech share "still appears to be in the early stages of a long-term growth trajectory."
Bui points out the ASX 200 share is "growing quickly" in the video segment of the market, yet the Audinate share price has fallen close to 30% since March 2024. He thinks it's at an "attractive entry point" after the decline and the "strong" report it revealed in February.
In that FY24 half-year result, revenue rose by 47.7% to US$30.4 million, while net profit after tax (NPAT) grew from A$5.1 million to A$4.7 million.
The fund manager revealed that Audinate is the top holding in its ASX shares growth fund.
Challenger Ltd (ASX: CGF)
Challenger is an ASX 200 financial share which is the largest provider of annuities in Australia.
After a difficult period when interest rates were close to 0%, Challenger is recovering. It's now able to offer annuities with more appealing yields to older Australians who want an income stream with interest rates now being much higher. Challenger says 2.5 million Australians are set to retire over the next 10 years, which could drive demand for annuities.
The fund manager said Challenger shares were trading on an "undemanding" price/earnings (P/E) ratio multiple, and it has a fully franked dividend yield of around 4%. According to the forecast on Commsec, the Challenger share price is valued at under 13x FY24's estimated earnings.
Bui noted that Challenger recently reaffirmed that it expects its FY24 annual result to be at the top end of its normalised net profit before tax guidance range of between $555 million and $605 million.
