The large end of the S&P/ASX 300 Index (ASX: XKO) gets a lot of attention, but there are plenty of potential smaller ASX 300 shares that could be opportunities too.
When one analyst thinks a business is a buy, that's interesting. When multiple analysts are excited about a stock, that could signal that the company is very compelling.
The businesses below are two of the most recommended ASX 300 shares right now. Experts think they are undervalued and can deliver profit growth. Let's take a look at each of them.
Image source: Getty Images
Judo Capital Holdings Ltd (ASX: JDO)
Broker UBS describes Judo as a fast-growing challenger bank which focuses exclusively on servicing small and medium enterprises (SME). It provides lending products like business loans, lines of credit, asset finance, bank guarantees and SME home loans. These are funded by term deposits and wholesale funding.
One of the main reasons it's finding success, according to UBS, is because the big banks are supposedly increasingly focused on household lending and the 'industrialisation' of business lending, particularly around the automation of credit decisioning, with a relationship-centric service proposition.
Commsec's collation of analyst opinions show there are at least nine buy ratings on the business right now.
UBS is one of those experts that's bullish on the business, with a buy rating and a price target of $2.20.
The broker said that the business is a high-growth bank offering "sizeable upside" with a low price/earnings (P/E) ratio.
Judo believes its total addressable market for SME lending is now $814 billion. UBS suggests Judo's overall suite of products and pricing are crucial factors to retain clients, particularly as their needs evolve and mature.
UBS also called out that the ASX 300 share plans to offer two new deposit products by late FY26: a business online savings account and a high interest online savings account. The broker likes this plan because it gives the business greater funding optionality.
The broker expects Judo's net profit to grow by almost 60% in FY26, and says the business is currently trading at 15x FY26's estimated earnings.
Orica Ltd (ASX: ORI)
UBS describes Orica as the world's largest supplier of commercial explosives and blasting systems servicing both the mining and infrastructure sectors. Its customers are from across the world, including Australia, Asia, Pacific, North America, Latin America, Europe, the Middle East and Asia.
Commsec's collation of analyst opinions currently shows there are 13 buy ratings on the ASX 300 share.
UBS has a buy rating on the business with a price target of $22.
The broker noted that the company is seeing continued demand for premium blasting products and technologies alongside consistent mine production activity and further adoption of its digital solutions technology offering. UBS is expecting sustained pricing support, the integration of recent acquisitions and the uptake of technology services to drive a three-year earnings per share (EPS) compound annual growth rate (CAGR) of 12% between FY24 to FY27.
UBS believes there is ongoing potential for the company's P/E ratio to re-rate.
According to the broker's projections, the Orica share price is trading at 19x FY26's estimated earnings.
