Share prices are always changing, which means the appeal of ASX shares can alter whether experts think of a business as a buy or not.
In recent weeks, experts from UBS have named two businesses as buys because of their growth outlooks and valuations.
One of them is successfully executing on international expansion, while the other is at the forefront of technological expansion in the financial services space. Let's get into why the broker is a fan of these two businesses.
Breville Group Ltd (ASX: BRG)
UBS describes Breville as a business that designs and sells small electrical kitchen appliances.
The broker currently has a buy rating on the business, with a price target of $35.50. A price target is where the expert believes the share price will be in 12 months from the time of the investment call. That implies a rise of close to 10% within the next year.
UBS likes Breville because it's exposed to a growing global total addressable market (TAM), with further scope for market share gains. The broker's analysis of the coffee machine market, representing at least half of the ASX share's sales, suggests a TAM of $13 billion in Breville's core markets, which has grown at a historical compound annual growth rate (CAGR) of 7%.
There's also around a $2 billion TAM in new markets such as South Korea, China and the Middle East, which has "significant upside potential as coffee culture develops".
Despite growing for years, UBS says Breville only has a 4% global market share, which has increased over time.
South Korea was the first Asian market that Breville converted to direct distribution in June 2022 and has been a major success, according to the broker – its market share has increased from around 4% to approximately 7% in FY24. It's now beginning to go direct in China which presents "a big opportunity".
UBS is projecting the ASX share could achieve a CAGR of revenue of 9% between FY25 (estimated to be $1.7 billion) to FY35 (forecast to be $4 billion). It's expecting the operating profit (EBIT) margin to increase from 11.9% to 13.7% in FY35. A lot of the operating leverage it could achieve is expected to be redeployed into marketing, research and development (R&D) and IT.
It's currently valued at 35x FY25's estimated earnings.
Hub24 Ltd (ASX: HUB)
Hub24 is another ASX share that UBS recently rated as a buy, with a current price target of $105.
UBS describes Hub24 as a financial services company and that it's one of the fastest-growing wealth management businesses in Australia. The broker says the ASX share operates market-leading integrated platform, technology and data solutions for the Australian market.
Hub24 recently released its FY25 fourth quarter update, which showed platform funds under administration (FUA) reached $112.7 billion. Platform net flows of $5.3 billion in the fourth quarter were ahead of UBS' estimates, driven by a higher contribution from migrations from other places.
UBS also said that strong advisor growth of 13% to 5,100 remains a "key lead indicator for flows".
The broker also noted that Hub24's FUA has now surpassed Netwealth Ltd (ASX: NWL) and UBS expects its stronger flow momentum will help its market share against Netwealth in the medium-term, which is why the broker prefers Hub24 shares.
One of the key signs of customer satisfaction is the net promoter score (NPS) – UBS points out that Hub24 has the number one NPS score in the sector, according to the 2025 Adviser Technology Needs Report.
According to UBS, the business is trading at 69x FY26's estimated earnings.
