The Australian share market is filled to the brim with investment opportunities. But which ones should you take?
Three ASX stocks that Bell Potter speaks highly of are listed below. Here's why they could be worth considering:
Gentrack Group Ltd (ASX: GTK)
This billing technology company could be an ASX stock to buy according to Bell Potter.
This is despite a very strong gain over the past 12 months which gives it a premium valuation. The broker feels this is justified by its strong long term growth potential. It said:
Although it appears expensive at c.40x FY24 and c.30x FY25 EV/EBITDA multiples, we believe the valuation is justified with a long and visible opportunity for revenue growth, as well as margin expansion following investment in headcount to deliver on its pipeline of deployments and integrations in addition to geographic expansion into Asia and EMEA.
Bell Potter has a buy rating and $10.90 price target on its shares.
McMillan Shakespeare Ltd (ASX: MMS)
This salary packaging and fleet management company could be another ASX stock to buy according to Bell Potter.
The broker is feeling very positive about the company's outlook for a number of reasons. It explains:
We see a strong FY24e earnings outlook, underpinned by our assumption for 17.6% novated lease volume growth YoY and passage of the Federal Government's Electric Car Discount Bill in November 2022, which exempts certain non-luxury zero and low emissions vehicles from Fringe Benefits Tax. MMS could additionally catalyse a reported $34.9m in unfulfilled vehicle orderbook revenue, provided that vehicle supply constraints reverse and derive operational efficiencies upon the release. EVs represented around 42% of new order volumes in 1H24 and annualised sales have grown strongly from 6.4% of the light duty vehicle segment to 8.9% in a rising market.
Bell Potter has a buy rating and $22.20 price target on its shares.
Regal Partners Ltd (ASX: RPL)
A final ASX stock that the broker is tipping as a buy is investment company Regal Partners.
The broker has been impressed with the company's performance and sees a lot of positives from a recent acquisition. It commented:
Regal Partners has continued to show value creation in CY24 with further inflows, new fund launches, and strong performance which is expected to translate into high performance fees, and recently another acquisition. […] This acquisition will add to FUM, is enhancing to EPS, but does not create an immediate overhang of stock. This latest acquisition further highlights the entrepreneurial culture, illustrated by the expansion through M&A (Attunga, Kilter, VGI Partners, Taurus, PM Capital and now Merricks) and is growing through the launch of new strategies. It is also highly profitable with earning high management and performance fees.
Bell Potter has a buy rating and $4.75 price target on its shares.
