Experts are feeling very bullish about the prospects of certain ASX shares with numerous buy ratings.
I think it can be a very positive sign for potential positive returns when a business is rated as a buy by a number of analysts, rather just one or two.
Of course, it's possible that they're all wrong. But, I also have a positive view on the below ASX shares at the current valuations.
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WiseTech Global Ltd (ASX: WTC)
According to CMC Markets, in the last three months there have been seven different analysts that have called WiseTech shares a buy. The global technology company provides software for the logistics sector.
The average price target for the WiseTech share price is $106.14, implying a possible rise of more than 80% within the next year. The most optimistic price target is $130, implying a theoretical rise of more than 120%, while the lowest price target of $74 still implies a possible rise of close to 30%.
While the market may be concerned about a possible impact by AI on the ASX share, UBS thinks that there's an opportunity for names in the software as a service (SaaS) space to benefit from AI monetisation and deliver rising average revenue per user (ARPU).
UBS thinks that a new commercial model could drive price rises of around 5% going forwards, with customers benefiting from four new AI capabilities.
The broker thinks there could be further upside for WiseTech if "i) large freight forwarders in contract move earlier than expected to the commercial model; and ii) customers [are] willing and able to disburse/pass through their CargoWise software costs to the end customer".
UBS thinks the WiseTech share price valuation is attractive as it's trading cheaper than it has historically and it has AI defensiveness.
Lottery Corporation Ltd (ASX: TLC)
The national lottery operator has been rated as a buy by at least four brokers, according to CMC Markets.
The average price target on the business is $5.53, implying a potential mid-single-digit rise. The highest price target of $6.30 implies a theoretical rise of around 20% within the next year.
UBS is the broker that's most optimistic about the ASX share. The broker wrote in a recent note:
We believe Lottery Corp has a compelling 'growth formula' that may be underestimated by [market] consensus forecasts. Once normalising for the jackpot cycle (now UBSe FY27E), we expect Lottery Corp to consistently deliver high single digit EPS growth supported by (1) GDP lottery top line (UBSe revenue +4.3% pa), (2) digital channel mix shift (UBSe VC +5.9% pa), (3) scalable cost base (UBSe EBITDA 6.6% pa), and (4) capital boosters such as leverage and buybacks (post Vic licence renewal). By FY31 we forecast EPS 6% higher than consensus, mostly due to digital mix/ VC margin.
A mixture of revenue growth, rising margins and share buybacks for investors could mean very positive things for owners of this ASX share.
UBS predicts earnings per share (EPS) could rise from a predicted 17 cents in FY26 to 26 cents in FY30, while maintaining a high dividend payout ratio.
