2025 might be in full swing now, but it isn't too late to buy the two ASX 300 stocks in this article that were tipped as top buys for the year ahead by analysts at Bell Potter.
Here's what the broker is saying about these stocks:
Gentrack Group Ltd (ASX: GTK)
The team at Bell Potter is feeling very bullish about Gentrack and sees it as an ASX 300 stock to buy.
Gentrack is a specialist software developer to energy utilities, water companies, and airports. The latter includes providing flight information display systems (FIDS) at airports in Queenstown, Adelaide, and Sydney.
Bell Potter likes the company due to its quality software solutions and a number of tailwinds that re underpinning increased demand. It said:
Demand for modern-day utilities billing solutions is growing rapidly due to dual tailwinds in (1) an evolving energy grid generating significant amounts of data and complexity in billing and customer management, and (2) legacy tech debt incurred from historical underinvestment in the utility billing stack.
GTK has a track record of upgrading and beating guidance, with the interim result in May likely to be the next catalyst potentially from lumpy, large contract wins in Southeast Asia. GTK appears expensive at ~90x/~56x FY25e/26e P/E however the valuation reflects high earnings leverage emerging, noting PEG ratios of ~1.2x and ~0.9x respectively.
Bell Potter has a buy rating and $13.90 price target on its shares. This implies potential upside of 20% for investors from current levels.
Life360 Inc (ASX: 360)
Another ASX 300 stock that has been tipped as a best buy for 2025 by Bell Potter is Life360.
It is a tech stock that develops and operates a mobile app for families that provides a range of safety features. This includes communications, driving safety and location sharing. At the last count, there were over 70 million monthly active users.
Bell Potter highlights that the company has a significant opportunity to monetise this huge subscriber base. It said:
The app is used globally by over 75 million people and, of these, there are around 7 million paying subscribers. The penetration rate, therefore, is around 10% and the company has a stated long term target of 30% so there is the potential for the paying subscriber base to triple from here. Life360 is also adding new verticals – like advertising, pet and elderly tracking – which provide additional areas of growth.
The next potential catalysts are when Life360 releases its Q4/2024 result in February – we expect a strong result towards the upper end of the guidance ranges – and the S&P/ASX index rebalance in March where we see a good chance Life360 will be added to the Top 100.
Bell Potter has a buy rating and $26.75 price target on its shares. This implies potential upside of 10% for investors.
