Investors that are on the lookout for new investment ideas this week might want to check out the two ASX 300 shares named in this article.
That's because analysts are currently tipping them as top buys and see scope for them to rise very strongly from current levels. Here's what these brokers are saying about these shares:
Megaport Ltd (ASX: MP1)
The first ASX 300 share that could rise strongly from current levels is Megaport. It is a leading provider of elastic interconnection services with a footprint in 850 data centres globally.
It has been growing strongly in recent years thanks to the shift to the cloud, which has been accelerating recently due to the artificial intelligence (AI) megatrend.
Morgans expects this strong growth to continue and is forecasting explosive earnings growth over the coming years. It recently said:
Megaport is a global cloud connection network and the leading Network as a Service provider. It operates the largest data centre connection business in the world, connecting to 850 data centres through a fully automated, on-demand telco network. We think it is uniquely placed to help business move data globally and benefit from the growth of data related to both cloud computing and AI.
The broker currently has an add rating and $12.50 price target on its shares. Based on its current share price of $7.07, this suggests that its shares could rise 76% over the next 12 months.
Paladin Energy Ltd (ASX: PDN)
Another ASX 300 share that Bell Potter believes could rise very strongly from current levels is Paladin Energy.
It is one of Australia's top uranium miners, holding a 75% interest in the globally significant Langer Heinrich Mine (LHM) in Namibia. Its long-life operations have already produced over 43 million pounds of U3O8 to date.
The broker likes Paladin Energy due to its proposed acquisition of Fission Uranium. It notes that this deal has the potential to turn it into a leader in uranium production across two sites. In light of this, it feels that recent share price weakness has created a buying opportunity for investors. Its analysts recently said:
PDN has announced its intention to acquire Athabasca developer, Fission Uranium in an all-scrip deal. We see this transaction as transformative for PDN, with the potential to make the business a leader in uranium production across two sites and thus alleviating our concerns around future growth. With the recent pull-back in the stock we see this as an opportunity to gain exposure to a high-quality uranium producer.
The broker has a buy rating and $14.40 price target on its shares. Based on its current share price of $9.60, this implies potential upside of approximately 50% for investors between now and this time next year.
