If you are looking to supercharge your portfolio, then it could be worth considering the ASX All Ords stock in this article.
That's because the team at Macquarie Group Ltd (ASX: MQG) believes that it could deliver market-beating returns over the next 12 months.
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Which ASX All Ords stock?
The stock that Macquarie is tipping as a buy is Autosports Group Ltd (ASX: ASG).
Autosports is an auto retailer with a core focus on the sale of prestige and luxury vehicles.
Macquarie believes that the ASX All Ords stock would be a big winner if the government decides to remove the luxury car tax (LCT). It explains:
Media speculation indicates the Government is considering a gradual phase-out of the Luxury Car Tax (LCT) in effort to finalise a FTA [free trade agreement] with the EU. The LCT threshold for FY26 is $91.4k/ $80.6k for fuel-efficient/ other vehicles. Vehicles with a LCT value over the thresholds attract a LCT of 33% for the amount over the threshold. ASG is the most leveraged ASX exposure to the potential removal of the LCT. Its portfolio is dominated by luxury brands, with vehicles mostly exceeding these thresholds.
The broker also highlights that the company is stepping up its M&A activity with a new acquisition. It feels this leaves it well-placed to hit its revenue growth target. It adds:
ASG has announced it has acquired Gulson Canberra for $13m consisting of $12m of goodwill and $1m for net assets. This supports ASG's entry into the ACT, where Gulson operates Porsche, Fiat, Alfa Romeo, Leapmotor, Abarth and Jeep. ASG targets $250mpa in revenue growth from acquisitions, at multiples of 4-6x UNPBT plus assets. We expect ASG could potentially exceed this target in FY26 given 1) quality assets are at cyclical profitability lows; 2) management's confidence in the pipeline; and 3) sufficient funding capacity.
Time to buy
Macquarie has retained its outperform rating on the ASX All Ords stock with a vastly improved price target of $2.82 (from $2.00).
Based on its current share price of $2.45, this implies potential upside of 15% for investors over the next 12 months.
In addition, the broker is forecasting fully franked dividends of 8.6 cents per share in FY 2025 and then 14.6 cents in FY 2026. This equates to attractive dividend yields of 3.5% and 6%, respectively.
This stretches the total potential 12-month return to approximately 20%. It concludes:
Retain Outperform. ASG's margins have likely bottomed and should gradually begin recovering. It is the most leveraged ASX exposure to the potential removal of the LCT. Inorganic growth remains in focus, and ASG's balance sheet is well capitalised to take advantage of the pipeline.
