The Australian share market may be nearing a record high, but the same cannot be said for the ASX shares in this article.
But while declines are always disappointing, they can also be opportunities to buy quality companies at a discount.
Let's see why analysts think these ASX shares could be worth buying before they recover from being sold off in 2024. Here's what they are saying:
Endeavour Group Ltd (ASX: EDV)
The Endeavour share price is down 23% over the past 12 months and trading within a whisker of a 52-week low.
Investors have been selling the BWS and Dan Murphy's owner's shares after a relatively subdued operating performance in FY 2024 and concerns over challenging trading conditions and a structural decline in alcohol consumption.
Goldman Sachs remains bullish on the ASX share and isn't concerned by the above. It said:
Market concern over alcohol consumption structural decline overdone. […] Whilst per cap consumption volume has been on a downtrend (-1.6% 09-19), population growth, positive mix/price have driven industry growth.
Whilst the Liquor category is currently challenged, we agree with management's focus on market share gain while keeping reasonable level of profitability.
Goldman has a buy rating and $5.50 price target on its shares. This implies potential upside of 30% for investors from current levels. It adds:
Net net, we reiterate Buy on our continued believe in a high quality retailer gaining share amid a category down-cycle with a resilient growth option in Hotels. Company is trading at FY25 P/E of 17x vs historical average of 22x and WOW 22x, COL 21x.
Web Travel Group Ltd (ASX: WEB)
The Web Travel share price is down 37% since this time last year. Goldman Sachs also thinks this makes the travel booking technology company another ASX share to buy.
This decline has been driven largely by concerns over the company's margins. However, Goldman is confident that its margin outlook is positive and is expecting major improvements over the next 18 months. It said:
WebBeds EBITDA margin reaching 50% by FY26: management noted that the WebBeds business is highly scalable and that expenses in 2H will be stable vs 1H and going forward the cost base is ~A$75% fixed and ~10% variable though difficult to flex and ~15% true variable cost. As a result, the company is confident to reach 50% from FY26 vs GS previous estimate of 46%.
Goldman currently has a buy rating and $7.00 price target on Web Travel's shares. This implies potential upside of 52% for investors over the next 12 months.
