Looking for some top ASX 200 shares currently trading at attractive levels? The experts have chimed in with two potential candidates.
And with investors still paying high multiples for companies in the technology and communications sector, it might be wise to look underneath some stones.
Multiple analysts are currently bullish on Audinate Group Ltd (ASX: AD8) and Orora Ltd (ASX: ORA). Both shares have sold off heavily in recent months. Now analysts say they could offer value at these new levels.
Here's why the experts say that these two ASX 200 shares might be trading at attractive valuations.
ASX 200 shares 'oversold'
Audinate Group saw its share price hit a 52-week high of $23.31 on 15 March. As you can see in the chart below, it has sold off sharply since then and now rests at $15.24.
Audinate is known for its professional audio-visual (AV) networking technologies, particularly its Dante IP audio network, used in the live sound and broadcasting industries.
Arthur Garipoli from Seneca Financial Solutions sees Audinate as a buy.
According to The Bull, Garipoli said the ASX 200 stock's recent decline could be due to "profit taking, or the resignation of its chief financial office", referring to an announcement in May. This could be an opportunity:
We believe the shares have been oversold, providing an opportunity to buy on weakness. The company posted a strong first half 2024 result, with revenue increasing 47.7% on the prior corresponding period.
The firm doesn't provide a price target.
Morgan Stanley analysts are also bullish on Audinate's outlook. The firm recently retained its buy rating with a price target of $22.00 on the ASX 200 share. This suggests a potential upside of 44% at the time of writing.
The broker says Audinate can continue growing its market share in the video market, which will support a higher share price over time.
Consensus also rates the ASX 200 share as a buy, according to CommSec.
'Undemanding' multiples
Orora is in the packaging business. It manufactures products ranging from cans and bottles to the boxes in which these products are shipped.
The stock fell sharply in March from a previous high of $2.72 per share and has trended south ever since. It currently resets at $2.05.
After this sell-off, Seneca Financial Solutions sees this as a buying opportunity.
This packaging giant is trading on undemanding multiples, in our opinion. We expect operating conditions to remain challenging in the first half of fiscal year 2025, but anticipate packaging volumes to increase in the second half.
Seneca's Garipoli also notes that Orora's FY24 projections are set to be lower than the previous year, potentially justifying some of the recent share price declines.
As such, he notes the "share price has retreated to an attractive level for long-term investors".
Goldman Sachs analysts also believe Orora shares are undervalued after this sell-off.
The broker has a buy rating on the ASX 200 share with a price target of $3.00, indicating a potential upside of 46% from the current price.
Goldman is also attracted to Orora's dividend. The broker forecasts dividends per share of 12 cents in FY 2024 and 13 cents in FY 2025.
At the time of writing, these forecasts equate to forward dividend yields of 5.8% and 6.3%, respectively.
Consensus also rates it as a buy, according to CommSec.
Foolish Takeaway
Several analysts believe Audinate Group and Orora could offer promising opportunities for investors seeking value in ASX 200 shares.
With markets continuing to roar, starting valuations – what you pay initially – matter a lot. Remember to conduct your own due diligence and consider your risk tolerances before making any decisions.
