ASX consumer staples shares are considered defensive investment options.
This is often the case because defensive shares are companies that provide products that are essential, even during an economic downturn.
When household spending is tight, discretionary purchases such as travel, electronics and fashion might be cut.
Meanwhile healthcare and groceries remain important.
Consumer staples shares haven't received much attention lately, as they have remained flat over the last year.
However, broker Bell Potter has tipped two consumer staples shares to grow between 40-52%.
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Elders Ltd (ASX: ELD)
Elders Ltd is an agribusiness that provides goods and services to Australian primary producers.
As well as selling seed, fertiliser, agricultural chemicals, animal health products, and general rural merchandise, Elders also supplies professional and technical services to farmers via its network of agronomists.
The consumer staples company has seen its share price fall 22.62% over the past year.
However, broker Bell Potter indicates the stock may be good value at the current price.
The broker currently has a "buy" recommendation and price target of $9.10.
This indicates an upside of 40%.
In a report analysing the company released in June, the broker indicated the current share price does not reflect the upside.
We don't believe the current share price of ELD is reflective of the upside in the existing
ELD business through execution of its current strategy, let alone ascribing any likelihood of
completion of the proposed Delta acquisition.If ELD can deliver on current business initiatives while operating under improved seasonal conditions in SA, then ELD has the scope to deliver 10-15% p.a. EPS growth through to FY27e.
In addition to the upside, the company also offers an attractive dividend yield of 5.49%.
Select Harvests Ltd (ASX: SHV)
Select Harvests Ltd engages in the processing, packaging, marketing, and distribution of edible nuts, dried fruits, seeds, and a range of natural health foods in Australia.
It has brought market beating returns in the last 12 months, rising 9.67%.
Broker Bell Potter seems to believe the ASX consumer staples share price can continue to rise.
The broker currently has a "buy" recommendation and price target of $6.05. This target is 52% higher than its current share price of $3.97.
The broker looked kindly on the stronger than expected first half FY25 results.
Select Harvests reported a much stronger than expected first-half FY25 profit, with EBITDA up 210% year-on-year to $57.9 million, beating forecasts due to earlier recognition of crop earnings.
For the full year, SHV slightly raised its crop forecast and is expected to benefit in the second half from more hull sales and increased third-party processing.
