The fund manager Wilson Asset Management (WAM) is excited by the potential of two ASX shares. We'll look into why the investment team are attracted to them.
One of the listed investment companies (LICs) that WAM runs is WAM Active Ltd (ASX: WAA), which aims to find mispriced opportunities in the Australian market.
The two businesses WAM has highlighted are very different – one is a key player in the Australian agricultural world, while the other plays a part in the aerospace industry.
Let's take a look at the stocks that WAM likes.
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Iperionx Ltd (ASX: IPX)
The first ASX share is IperionX. WAM said it develops lower-carbon titanium production and critical mineral technologies with applications in aerospace, defence and hydrogen markets.
In its quarterly update for the three months to June 2025, which was released in mid-July, the ASX share revealed the successful commissioning of its new Titanium Manufacturing Campus, with all major equipment now operational.
The company secured a US$46 million private placement (capital raising) to accelerate the expansion of its US titanium production, including fast-tracking orders for long-lead equipment and scaling up forging capacity.
WAM also noted the company received a US$1.3 million task order under a US$99 million Department of Defense (DoD) contract for titanium vehicle parts and reported that its Titan Critical Minerals Project is on track for completion in the second quarter of 2026.
The fund manager said:
These developments position the company favourably with a diversified revenue stream and potential for future DoD contracts, strengthening investor confidence in the company's growth outlook with the market underestimating at-scale economics.
Elders Ltd (ASX: ELD)
WAM says that Elders provides agribusiness services across Australia including livestock and wool agency, feedlots, rural real estate and farm inputs.
The fund manager notes that Elders' July update indicated beneficial rainfall and milder autumn weather in key agricultural regions that "supported pasture recovery, livestock weight gains and crop emergence."
WAM said that the seasonal improvement has boosted livestock prices and client sentiment, and believes the company is emerging from a cyclical low point.
The fund manager said:
We view the upcoming ACCC announcement the Delta Agriculture acquisition as a key potential catalyst to drive a re-rating of the [Elders] share price with material upside to come via synergies over time with the stock remaining expensive.
