Analysts are always on the lookout for undervalued ASX shares with good growth potential.
When one analyst is bullish on a business it's intriguing, but when there are numerous buy ratings it could be a clear opportunity, if they're all correct.
I'm going to look at two of the most well-liked businesses on the ASX right now, with both the number of buy ratings and the small percentage of overall ratings that aren't buys.
Let's dive in.
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Dicker Data Ltd (ASX: DDR)
According to Commsec's collation of analyst recommendations, there are currently seven buy ratings, two hold ratings and zero sell ratings on the business.
Broker UBS is one that rates Dicker Data as a buy, with a price target of $10.20. A price target tells investors where the analyst thinks the share price will be in 12 months after the investment call.
UBS said Dicker Data is a distributor of hardware and software products in Australia – it's reportedly the number one player in Australia with a market share of more than one-third and the number two player in New Zealand with a market share of around 30%.
In a note, UBS pointed out the ASX share achieved 17% sales growth in the four months to April 2025, which continued in May and June with 14% growth in those two months, thanks to large enterprise deals. This led to FY25 first half profit before tax (PBT) growth being 5% ahead of what market analysts were expecting.
The broker noted Dicker Data said on a call that new enterprise work should not fall away once the small business sector rebounds, indicating "potential materially upside" to gross profit into 2026 and 2027 as smaller customer demand returns.
UBS believes the company has a strong pipeline of AI deals (infrastructure and Copilot), while cyber software is "booming", with major new vendor Crowdstrike still ramping up.
On top of all that, the broker thinks this ASX share is well-positioned to benefit from the RBA rate-cut cycle.
Hansen Technologies Ltd (ASX: HSN)
According to Commsec's collation of analyst recommendations, there are currently seven buy ratings on the ASX share and one sell rating. The technology business provides software for utility companies.
UBS is one of the brokers that rates Hansen shares as a buy, with a price target of $7.20.
The broker noted that the company changed its guidance from a 12-month view to a three-to-five-year outlook. UBS noted the outlook said "a target organic revenue growth of 5-7% over the medium term and a medium term underlying EBITDA margin target of 30% or above (FY25 28.5%)". UBS noted bearish investors may say that guidance implies FY26 will be weak and underperform market expectations.
But, UBS is encouraged by this guidance because it suggests management have enough confidence in the telco and energy billing sector tailwinds to suggest revenue can grow organically at a rate of between 5% to 7% on a consistent basis over the next five years.
Hansen has delivered revenue growth over the last three years of a compound annual growth rate (CAGR) of 5%, according to UBS.
UBS is forecasting 5% revenue growth in FY26 to $408 million for the ASX share, with 12% growth of recurring software as a service revenue (SaaS) and maintenance revenue and 8% growth in predictable application or service revenue. However, upfront licence sales are forecast to decline 35% after a very strong FY25.
The broker finished its commentary on the ASX share with the following:
We retain our positive view on the Hansen stock and consider the sell off from outlook comments related confusion as a good buying opportunity.
It has an attractive combination of predictable and growing revenues alongside the recent introduction of operating leverage driving cash earnings margin expansion which overall underpins a 3yr Cash EBITDA CAGR of 12%. The group's Return on Capital continues to increase c.200bps p.a. and is now at 18% and with a balance sheet that is net cash will provide eventual inorganic growth upside opportunities.
