If you are in the market for some new ASX shares in December, then it could be worth listening to what analysts at Bell Potter are saying.
That's because the broker has just revealed its favoured picks for the month ahead on its Australian equities panel. It notes that these are the shares that it believes "offer attractive risk-adjusted returns over the long term."
In addition, Bell Potter points out that when identifying its picks, it considers the current macro-economic backdrop and investment environment, focusing on quality companies with proven track records, capable management, and competitive advantages.
With that in mind, let's look at two ASX shares that have just been added to its list. They are as follows:
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Catapult Group International Ltd (ASX: CAT)
This sports technology solutions company has been added to the broker's Australian equities panel in December.
As the leader in the industry, Bell Potter believes that Catapult is well-positioned in a very underpenetrated market. This bodes well for its earnings growth in the coming years. It said:
We now include Catapult in our domestic small caps panel. CAT is a clear global leader in wearable athlete tracking solutions, but in spite of this leading position, only a small fraction of all elite and professional athletes currently have any wearable solution in place so the market is very underpenetrated and there is significant opportunity for growth.
We believe the stock looks reasonable value on EV/Revenue multiples of 5.5x in FY25 and c.5x in FY26, relative to comparables like Life360. All up, CAT has a large addressable market and appears to be on an upgrade cycle along with a potential catalyst for the stock being a likely inclusion in the S&P/ASX 300 index in the next rebalance in March next year.
WiseTech Global Ltd (ASX: WTC)
Another ASX share that has been added to Bell Potter's Australian equities panel this month is WiseTech Global.
It is a leading logistics solutions technology company that has been growing at a rapid rate for many years. And while it has downgraded its guidance for FY 2025 due to product launch delays, the broker isn't fazed and sees recent weakness as a buying opportunity. It said:
WiseTech is a leading global provider of software solutions to the logistics services industry. At its recent AGM, WTC downgraded its FY25 guidance by up to around 10% at revenue and 15% at EBITDA, principally due to the delay in the release of one of the company's new products – Container Transport Optimisation – due to "distractions flowing from the recent media attention and the organisational changes that have subsequently been implemented".
The release is now expected to occur in 2HFY25 rather than 1HFY25, and we note that the releases of the company's other new products – ComplianceWise and CargoWise Next – are on track. In our view, WTC appears oversold at current levels and as one of the best growth names on the market, the recent downgrade presents a buying opportunity.
