Amid significant ASX share market volatility in recent weeks, there are a number of appealing opportunities, according to experts.
Some businesses may be impacted by higher costs (from higher energy costs), while others may be able to increase their profitability.
It's curious when one analyst rates a business as a buy, but it's fascinating when there are numerous buy ratings on the same business. We're going to look at two of the most highly rated ASX shares out there right now, in terms of the number of buy ratings on them.
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Coles Group Ltd (ASX: COL)
Coles is one of Australia's largest supermarket operators. According to CMC Invest, there are currently 11 buy ratings on the supermarkets.
One of the brokers that likes Coles is UBS, which has a buy rating on the business with a price target of $24.
In a recent note, UBS highlighted the strength of the ASX share regarding its ongoing sales growth. It said that its supermarket business is delivering strong execution because of promotional effectiveness and cost leadership. At the same time, it's trading at a sizeable price/earnings (P/E) ratio gap to Woolworths Group Ltd (ASX: WOW).
In the first six months of FY26, the supermarket division of Coles reported sales growth of 3.6% and underlying operating profit (EBIT) growth of 14.6%. This helped the overall business deliver underlying net profit growth of 12.5% to $676 million, despite challenges in the liquor division.
UBS also highlighted its recent investments in its supply chain and new warehouses will help product availability and improve its online offering, which help provide confidence for sales growth in 2026.
The broker projects the business could generate $1.25 billion of net profit in FY26 and pay an annual dividend per share of 77 cents.
Judo Capital Holdings Ltd (ASX: JDO)
Another business that is highly rated by analysts is small and medium business-focused bank Judo. A significant portion of its funding comes from term deposits for businesses, SMSFs and individuals.
According to CMC Invest, there have been seven recent buy ratings on the business.
One of the brokers that likes Judo is UBS, with a buy rating and price target of $2.25.
UBS thought the ASX share's FY26 half-year result was impressive, with "plenty going right". The broker highlighted that management are having improving confidence in lending book growth and net interest margin (NIM) delivery.
Management has guided that the NIM could be 3.15% in the second half of FY26. Judo also said that management's guidance for cost-to-income (CTI) to reach around 30% is "achievable given NIM can continue to expand from deposit growth and mix".
UBS said that it thinks Judo looks "well placed to benefit from structural tailwinds to business banking credit growth".
The broker forecasts the business could generate a net profit of $133 million in FY26, which would represent significant year-on-year growth. UBS also predicts that the business could start paying a dividend in the 2027 financial year.
