Searching for new portfolio additions for 2025? If you are, then it could pay to listen to what Bell Potter is saying about the ASX shares listed below.
These shares have all made its list of best ideas for the year ahead. Here's what you need to know about them:
Image source: Getty Images
Accent Group Ltd (ASX: AX1)
This leisure footwear focused retailer could be an ASX share to buy in 2025 according to the broker.
Its analysts like the company due to its dominance of an expanding market. They also sees a recent strategic investment by Frasers Group as a positive. The broker explains:
Accent Group commands a dominant ~30% market share in the $3b Australian footwear retailing market, in addition to a broader opportunity given the expansion into the athleisure market via its own brands. We continue to view AX1 as a key pick in our retail sector coverage given their scale as Australia's market leader, growth adjacencies in both footwear/ apparel from exclusive partnerships & TAF channel conversion and growing vertical brand strategy led by Nude Lucy.
We also view the strategic investment by Frasers Group (FRAS) in AX1 (~15%) and the board appointment recently as a step forward to unlocking the sizable store roll-out opportunity of FRAS's core Sports Direct banner in Australia.
Bell Potter has a buy rating and $2.75 price target on its shares.
Light & Wonder Inc. (ASX: LNW)
Another ASX share that gets the thumbs up from the broker is Light & Wonder. It is a leading developer of slot machines, free-to-play social casino games for mobile platforms, and online real-money gaming content for online casinos.
Bell Potter believes the company is well-placed to deliver solid earnings growth in the coming years. As a result, it feels that recent weakness has created a buying opportunity. It said:
Operating globally, LNW historically derives over 67% of its revenue from the US. Since reducing its debt levels in 2022, LNW has increased its Research & Development (R&D) spending, leading to improved game performance. We anticipate 8-11% annual EBITDA growth rates over CY24-26, driven by further R&D investment that enhances game performance and results in market share gains across the North American premium leased market, global outright game sales markets, and online gaming markets.
Additionally, we view the recent turmoil surrounding the Dragon Train preliminary injunction as an attractive entry point.
Bell Potter has a buy rating and $180.00 price target on its shares.
Nickel Industries Ltd (ASX: NIC)
Finally, if you are not averse to investing in the mining sector, then Nickel Industries could be an ASX share to buy in 2025.
It likes the nickel producer due to its low costs and potential production and margin growth. It expects this to support some big dividends in the near term. The broker said:
Nickel Mines' operations are located in Indonesia and are long-life, bottom-of-the cost-curve projects uniquely exposed to a diversified suite of nickel products capturing value across upstream and downstream operations. This strategic advantage has allowed NIC to demonstrate the ability to make money through the price cycle which is a key attribute of attractive long-life assets. It is in the middle of aggressive production and margin growth, lifting attributable nickel production from ~108kt in CY23 to +130kt CY25 and +160kt CY26.
We expect margin expansion to be driven by an increased proportion of high margin HPAL production, rising from ~8kt in CY24 to ~50kt in CY26. Sustainable and rising dividends also support the current valuation.
Bell Potter has a buy rating and $1.43 price target on its shares.
