If you have $2,500 available to invest in August, then it could be worth checking out the two ASX shares listed below.
That's because they have been named as buys with the potential to rise strongly over the next 12 months
Here's what analysts are currently tipping as buys for Aussie investors:
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Light & Wonder Inc. (ASX: LNW)
The first ASX share that could be a buy in August is Light & Wonder. It is a global gaming and entertainment company with exposure to both land-based and digital gaming.
Thanks to its shift toward recurring, content-led revenue streams, Light & Wonder is starting to accelerate its earnings growth. The good news is that this growth is expected to continue for a number of years.
For example, the team at Macquarie notes that the company is aiming to hit $2 billion in EBITDA by 2028. This target equates to a compound annual growth rate (CAGR) of 9.5% per annum.
And while its analysts are forecasting US$1,941 million in adjusted EBITDA by 2028, which is 3% below its target, this is still 5% ahead of the consensus estimate of US$1,854 million. The broker commented:
Light & Wonder is setup to deliver +9.5% average annual adjusted EBITDA growth over three-years to hit the 2028 US$2bn target, albeit it is a touch above our forecast growth (+8.5%).
In light of this, it feels that its shares are undervalued at current levels and has put an outperform rating and $188.00 price target on its shares. Based on its current share price, this implies potential upside of 27% for investors over the next 12 months.
Web Travel Group Ltd (ASX: WEB)
Another ASX share that has been given the thumbs up by Macquarie is Web Travel. It is the business to business travel technology company behind the WebBeds business.
WebBeds is a global online marketplace for the travel trade, an intermediary connecting hotels and other travel service suppliers to a distribution network of travel buyers all over the world.
After going through a tricky period, the team at Macquarie believes that the tide is now turning for the company. It recently said:
Upgrade to Outperform (from Neutral). We expect WEB will continue to scale TTV and are increasingly confident it will reach its $10bn FY30 target. Visibility concerning medium-term revenue and UEBITDA margins has improved. WEB should outperform other ASX travel peers in volatile macro conditions.
Macquarie has an outperform rating and $6.19 price target on its shares. Based on the current Web Travel share price, this suggests that upside of 32% is possible between now and this time next year.
