After lying dormant for some time, two ASX shares rebounded significantly yesterday.
On Monday, Reliance Worldwide Corp Ltd (ASX: RWC) leapt nearly 7%, while AMP Ltd (ASX: AMP) rose 4.2%.
These were two of the best-performing stocks yesterday, in a day the S&P/ASX 200 Index (ASX: XJO) fell 0.4%.
Both had hovered close to yearly lows for some time.
However, now could be the start of a long-term rebound.
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Why did these ASX shares suddenly jump higher?
Yesterday, investors were gobbling up Reliance Worldwide shares after the company announced that it will undertake a further on-market share buyback targeting $120 million.
The company said the new buyback was in addition to a US$15.3 million buyback announced on February 17. That buyback was part of its interim distribution, which included a US2 cents per share dividend.
The company's Chair, Russell Chenu, said:
RWC has continued to generate strong cash flows over the past two years despite subdued end markets. This has enabled us to substantially reduce net debt. Consequently, RWC's leverage ratio has fallen below the bottom end of our target range of 1.5 time to 2.5 times net debt to EBITDA. Undertaking this additional share buy-back will enable us to return excess capital to shareholders efficiently and is consistent with our previously articulated capital management strategy.
Meanwhile, AMP, a diversified financial services company, saw its share price rise more than 4% despite no price-sensitive news from the company.
This was the first sign of relief for the company in 2026, after it had fallen more than 33% so far this year.
Are these rebounding ASX shares a buy?
Reliance Worldwide shares closed yesterday at $3.12 each.
Based on recent targets from brokers, it seems yesterday's rebound could be a sign of things to come.
In February, Morgans released a research note to its clients on Reliance, with a price target of $3.50.
Also in February, Macquarie had a price target of $4.75 on Reliance shares.
From yesterday's closing price, these targets indicate an upside between 12% and 52%.
It's a similar story for AMP shares.
They closed yesterday at $1.22.
Recent price targets suggest they could be undervalued after their rough start to the year.
Morgan Stanley recently issued a buy rating and a $1.90 target price for the stock.
Citi also has a buy rating and $1.80 target price.
Similarly, Jefferies has a buy rating and a $1.75 price target.
Finally, Jarden and Ord Minnett have a buy rating and a $1.65 target price on the AMP share price.
These targets indicate an upside between 35% and 55%.
