Are you hunting new investment ideas for this month?
Well, to narrow things down, let's take a look at three ASX shares that Bell Potter believes are best buys.
They have been named on its Australian equities panel, which is home to its favoured Australian equities that offer attractive risk-adjusted returns over the long term.
Here's why these shares could be worth considering for a $5,000 investment this month:
Clinuvel Pharmaceuticals Ltd (ASX: CUV)
The first ASX share to look at for a $5,000 investment is Clinuvel.
It is a pharmaceutical company distributing its lead drug Scenesse across Europe and the USA for patients with the rare disease erythropoietic protoporphyria (EPP).
Bell Potter believes its shares are good value given its highly profitable core operations and the potential expansion into other areas with significant market opportunities. It commented:
Trading at approximately 7.4x EV/EBITDA valuations are not stretched, our analysts view the current valuation as well-supported by its existing, highly profitable EPP franchise alone without consideration for the substantial market opportunity presented by its vitiligo treatment program.
Elders Ltd (ASX: ELD)
Another ASX share to look at is Elders. The broker continues to believe that this agribusiness company's shares are undervalued at current levels.
Bell Potter highlights that Elders has a positive outlook, strong dividend yield, and a number of growth drivers. It explains:
We see value in ELD, particularly with the market appearing to undervalue the pending Delta acquisition. The base business is performing well with multiple growth drivers including recovery from drought conditions, system modernisations, and backward integration benefits. We are attracted to ELD's valuation, which is relatively cheap at 10.7x 12MF P/E, along with these potential upside catalysts and a strong dividend yield
Universal Store Holdings Ltd (ASX: UNI)
Universal Store could be an ASX share to buy with the $5,000. It is the youth fashion retailer behind Universal Store, Perfect Strangers, and Thrills.
Bell Potter believes its shares are good value based on its positive earnings growth outlook. It said:
Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 14% p.a. over (FY25-27). Valuation looks attractive, trading on a forward P/E of ~14x. UNI is a quality small cap (ROE ~26%) that is executing on its rollout strategy.
