Bell Potter says these ASX shares are strong buys

Big returns are expected from these shares over the next 12 months.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are a lot of great ASX shares for investors to choose from on the local market.

To narrow things down for readers, let's now take a look at two shares that analysts at Bell Potter rate very highly.

These shares feature on its favoured list for June, which the broker believes offer attractive risk-adjusted returns over the long term. They are as follows:

A smiling woman holds a Facebook like sign above her head.

Image source: Getty Images

Regal Partners Ltd (ASX: RPL)

Bell Potter believes that this growing fund manager is being undervalued by the market.

Its analysts highlight that the company has strong organic and inorganic growth potential, strong performing investment funds, and accelerating inflows. The broker commented:

In recent years, Regal has expanded rapidly through strong investment performance, net flows into its funds, launches of new funds, and the acquisition or merger with VGI Partners, PM Capital and Taurus, which have expanded funds under management from $1.1bn in 2017, to over $12.1bn (March 2025). We continue to favour RPL, given its strong organic & inorganic growth potential, and entrepreneurial culture. In the last six months, and following the recent acquisition of PM Capital and Taurus (50%), the firm has shown an acceleration of inflows, strong investment performance (which will give rise to performance fees) and success in marketing new funds. We feel this strong performance is not reflected in the share price and see considerable upside.

Bell Potter has a buy rating and $4.02 price target on its shares. This implies potential upside of 11% for investors from current levels. A ~5.6% dividend yield is forecast over the next 12 months.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX share that Bell Potter is a big fan of is Universal Store. It is a youth focused apparel, footwear and accessories retailer in Australia.

It has a large number of stores under its flagship Universal Store brand. In addition, it is expanding private label brands by growing the stand-alone format of Perfect Stranger and Thrills.

Bell Potter thinks that it has a good growth trajectory thanks to its store rollout and sees scope for margin improvements. It said:

Management execution remains a key strength for UNI and we see good growth trajectory for the name given the building of core brands while growing its store rollout. In our view, the higher margin sales from the majority of private label sales should become a major driver of margin improvement and earnings growth, in an expanded store footprint. While we remain cautious on the overall consumer sentiment, given the return to positive comps while cycling elevated pcp through Jan-Feb, we think UNI is well placed as comps become supportive through the 2H.

The broker has a buy rating and $6.15 price target on its shares. This suggests that upside of 23% is possible over the next 12 months. A ~5% dividend yield is also expected over the period.

Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

A young man goes over his finances and investment portfolio at home.
Broker Notes

Are Mineral Resources shares a buy in May?

Let's see what one leading broker is saying about this mining share.

Read more »

A smiling woman holds a Facebook like sign above her head.
Broker Notes

5 ASX shares scoring upgraded ratings this week

Experts have raised their ratings on JB Hi-Fi, Beach Energy, Amcor, and others this week.

Read more »

A man sitting at his dining table looks at his laptop and ponders the share price.
Broker Notes

Down 65%: Is this ASX 300 stock a cheap buy?

This stock has been sold off. Has this created a buying opportunity? Let's see what Bell Potter is saying.

Read more »

Three guys in shirts and ties give the thumbs down.
Broker Notes

5 ASX All Ords shares downgraded by brokers this week

Brokers have reduced their ratings on PLS Group, Fortescue, Webjet, and others this week.

Read more »

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Broker Notes

Does Ord Minnett rate Goodman shares as a buy, hold, or sell?

The broker has been looking at a big agreement signed this month.

Read more »

Red sell button on an Apple keyboard.
Broker Notes

Sell alert! Why this expert is calling time on Westpac shares

A leading analyst delivers his verdict on Westpac shares.

Read more »

A woman wearing a black and white striped t-shirt looks to the sky with her hand to her chin, contemplating buying ASX shares.
Broker Notes

Buy, hold, sell: Minerals 260, 4DMedical, Karoon Energy shares

Two experts share their latest ratings and opinions on three ASX shares.

Read more »

Two mining workers in orange high vis vests walk and talk at a mining site.
Resources Shares

Morgans tips 1 ASX mining share to rip — and 1 to avoid — in 2026

Morgans has revised its ratings on an ASX 200 lithium share and an ASX 200 gold stock.

Read more »