While the Australian share market is trading close to its highs, not all ASX shares are doing as well.
For example, the two shares in this article are trading only a fraction away from 52-week lows.
The team at Bell Potter appears to believe that this could be a buying opportunity for investors and sees potential for some big returns over the next 12 months.
Here are the ASX shares that it thinks the market may be undervaluing right now:
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Nufarm Ltd (ASX: NUF)
Bell Potter thinks that agricultural chemicals company Nufarm could be an undervalued ASX share.
The broker believes the market is overlooking the value of its seeds business — particularly if the current strategic review results in a divestment or restructure.
Importantly, even without selling off the Seeds division, the broker feels that Nufarm's crop protection business alone could justify a much higher share price. It highlights that the market is either pricing no value for the Seeds business or a crop protection business worth significantly less than global peers. It explains:
The market looks to be capitalising a loss in Omega-3 that in essence could be unwound within a season. The underlying Crop Protection and residual seed platforms continue to perform well and if a value commensurate with recent industry transactions or peer trading multiples is achieved on the latter then the residual trading multiple implied for Crop protection is 4.4-5.5x FY25e EBITDA.
NUF's current share price is effectively implying either negligible for Seeds or a Crop Protection business worth 25-50% less than global peers.
Bell Potter currently has a buy rating and $3.45 price target on its shares. Based on its current share price of $2.35, this implies potential upside of almost 50% for investors.
Accent Group Ltd (ASX: AX1)
Another ASX share that Bell Potter thinks is being undervalued is Accent Group. It is the owner of popular retail brands like Hype DC, The Athlete's Foot, and Platypus.
Accent has had a tough time in FY 2025. Slowing sales in its lifestyle segment, margin pressure from promotions, and a cautious consumer have all weighed on sentiment. So much so, recent earnings guidance came in around 18% below consensus.
But despite this, the broker believes that it is worth sticking with Accent Group. It said:
While some ongoing weakness in highly discretionary categories similar to AX1's non-sport segments remain, we expect monetary policy catalyst led recovery into the back-end of CY25 to support FY26e performance in the name.
As a medium-term catalyst, we expect a higher growth focus for the name leveraging the outperforming sports segment via global partner and key shareholder, FRAS. With the first Sports Direct store to be opened by the end of CY25, we anticipate the unlocking of the sizable store roll-out opportunity for the banner in Australia (50-store target over 6 years), while benefiting from a higher relevance to leading brand partners such as Nike backed by FRAS.
Bell Potter has a buy rating and $2.10 price target on its shares. Based on its current share price of $1.29, this suggests that upside of over 60% is possible.
