Experts are always on the lookout for opportunities on the ASX share market, particularly ones that can deliver pleasing capital growth. With June just around the corner, it's worth looking at what experts think are underrated ideas.
It's not guaranteed that these businesses will deliver pleasing returns, but I think it's good to see which businesses are rated as opportunities.
The two ASX shares I'll discuss look like good picks to the broker UBS.
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Select Harvests Ltd (ASX: SHV)
UBS describes Select Harvests as a major almond producer and the largest listed almond company in the world. It produces significant amounts of almonds across a number of regions, including southern NSW, northern Victoria, and eastern South Australia. Its portfolio includes 23,156 acres of land, according to the ASX food share, of company-owned and leased almond orchards, as well as land suitable for planting.
It supplies almonds domestically and internationally to supermarkets, health food stores, other food manufacturers, retailers, and the almond trade. The ASX share also says it has a state-of-the-art processing facility at Carina West near Robinvale, Victoria.
UBS currently has a buy rating on the business. The Select Harvests share price has dropped 14% since 7 May 2025, as the chart below shows.
The broker believes that Select Harvests stands out as a beneficiary from the US tariff, "as China reallocates almond imports away from California." Due to the "increasingly positive" almond price outlook, UBS believes Select Harvests offers "strong earnings visibility with upside risk".
UBS currently has an almond price estimate of $10.35 per kilo for FY25 and $9.50 per kilo in FY26, with structural supply headwinds (in California) and strong near-term demand from China and India. The broker's five-year average price forecast for FY29 is $9.37 per kilo.
The broker then said:
The global almond backdrop is the most positive for SHV in years: 1) ~2.7b 2024 US crop expected, below the Objective Estimate (2.8b), supporting carry-out to be <500m lbs and stock-to-use ratio <20% (a level favourable for prices), 2) Liquidity issues among growers, which has driven cuts to input purchases (fertiliser, water); 3) Crop pull outs exceeding new plantings, including young trees (as opposed to older trees), driven by the impact from SGMA groundwater regulation; 4) Solid global demand out of China/India, with China demand supported by the US tariff regime (increases demand for Australian almonds into China), noting SHV is pivoting more of its mix into China.
According to UBS' estimates, the Select Harvests share price is valued at 12x FY26's forecast earnings. The broker has a price target of $5.40 on the business, suggesting a possible rise of 18% from where the ASX share is today.
Sandfire Resources Ltd (ASX: SFR)
UBS describes Sandfire as a copper miner with multiple international projects, including the MATSA copper-zinc mine in Spain, the Motheo copper project in Botswana, and the high-grade DeGrussa copper-gold project in Western Australia.
The broker currently has a price target of $13.15 on the copper miner and a buy rating, which implies a possible rise of 13.1%.
UBS highlighted in a note that in the three months to March 2025, the copper miner reported weaker-than-expected production at both MATSA and Motheo, as unprecedented rainfall restricted access to higher-grade ore at both sites. The company retained its FY25 guidance of 109kt, implying a significant step up in the last quarter of the 2025 financial year. The broker's forecast is 107kt of production in FY25.
But, UBS is bullish on copper for the longer term. It said:
The market continues to underestimate the supply challenges facing the copper industry. Miners are struggling to keep copper supply up given the accelerating industry trends of; declining exploration, older mines, increasing depths, lower grades, longer development timeframes, higher capex and higher operating costs. We believe 6mt of new supply is required within 10 years and a US$5.00/lb copper price is required to incentivise that supply.
This could be a very helpful tailwind for the ASX share over time, if that copper demand-supply dynamic plays out.
