UBS analysts have looked over the reports from earnings season and decided a few of those ASX shares are worthy of being called buys.
Both businesses that I'm covering in this article have international growth intentions and have already grown significantly.
Recent trading has been difficult for both businesses as they worked through challenging conditions in FY25. But, the outlook is now promising, which is why the below ASX shares look like top buys.
Harvey Norman Holdings Ltd (ASX: HVN)
UBS describes Harvey Norman as an integrated franchising, retail and property company. While Harvey Norman is the main banner in Australia, it also has Domayne and Joyce Mayne. It has company-operated retail operations in New Zealand, Singapore, Malaysia, Ireland, Northern Ireland, Slovenia and Croatia.
The Harvey Norman stores sell products like furniture, appliances, computers, phones, flooring and bed products.
The broker rates Harvey Norman shares as a buy, with a price target of $7.75. A price target is where experts believe the share price will be in a year. Therefore, the current UBS price target on Harvey Norman shares implies a possible rise of 4%, plus a forecast dividend yield of around 4%.
UBS was impressed by the FY25 result thanks to the core franchising operations, with a strong July 2025 trading update as well as greater confidence in the outlook. This could allow Harvey Norman to trade on a higher price/earnings (P/E) ratio than history.
The broker said the ASX share's July 2025 like-for-like sales growth showed strength in Australian franchisees (with 6.4% growth) and retail growth in New Zealand (with 7.2% growth).
UBS pointed to a number of positives including real wage growth and falling interest rates and inflation for consumers. The broker also said that items like computers, electronics and furniture saw significant sales during the COVID-19 period, but those categories are now entering a multi-year replacement cycle.
Added to that, the broker is expecting Harvey Norman's profit before tax (PBT) margin to rise because of operating leverage. Sales growth could lead to "outsized PBT growth" as sales improve.
Finally, UBS said Harvey Norman is prudently managing costs, which should "amplify the operating leverage tailwind."
The Harvey Norman share price is valued at 19x FY26's estimated earnings.
Audinate Group Ltd (ASX: AD8)
UBS describes Audinate as a dominant provider of professional audio digital networking technologies globally. Its core technology is Dante, which enables digital audio devices to create a network. Its ecosystem is reportedly 11 times larger than peers. The company also has digital video networking solutions and offers additional audio networking software add-ons.
The broker noted that the ASX share's FY25 was challenging, with the revenue and gross profit not 'business as usual'. It was cycling an "over inflated" FY24, there was excess destocking by original equipment manufacturers (OEMs), there was low business confidence (in FY25) and there has been tariff uncertainty.
UBS thinks its estimates for the company's video offering are conservative, yet it believes the market isn't even pricing this in for the long-term.
The broker said about the ASX share:
Longer term, we remain firm believers on audio – every industry contact we've spoken with says Dante is the digital audio "holy grail" and the structural shift from analog to digital will continue. At 10% penetration of the audio opp. – we see plenty of runway. Core video is early days and Iris has no rev, but combining interoperability with control functionality creates an important differentiator to the video offering.
…We recognise that FY26 still has some challenges to work through – but we look to the long term. The current price is factoring in very little to video, assumes minimal recovery to growth vs the market and assumes FY25 is a proper base year (we think it could prove to be a depressed year).
UBS currently has a buy rating on Audinate shares, with a price target of $7.10. That implies a possible rise of 50% over the next year from where the ASX share is today.
