Finding significantly undervalued shares at the upper end of the market can be a challenge.
That's why it sometimes pays to check out what the experts are saying. I've had a look at the recent research reports out of broking house Jarden, and selected three stocks that they think could provide some serious upside.
Without further ado, here they are.
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Light & Wonder Ltd (ASX: LNW)
Jarden has put together a preview ahead of Light & Wonder reporting its first-quarter earnings on May 7.
The Jarden team is expecting a soft quarter from the gaming company, with their expectations for EBITDA of US$326 million sitting 5% below consensus estimates.
But they do point out that the underlying demand backdrop remains intact, with US gross gaming revenue trends "resilient".
Jarden said they expect the company's FY26 outlook will be maintained, with earnings to grow throughout the year.
They point out that the stock is down about 8% following the FY25 result, with minimal earnings changes, and therefore, "we view current entry levels as compelling''.
They added:
Light & Wonder is well placed to deliver double-digit earnings per share growth over the forecast period (18% FY25–FY28 CAGR), whilst trading at a material price to earnings discount to both market and peer Aristocrat
Jarden has a buy recommendation on the shares with a price target of $190 compared with the current price of $121.07.
HUB24 Ltd (ASX: HUB)
HUB24 recently published its third-quarter results, and the Jarden team said that while net funds inflows came in below consensus estimates, the miss was driven by one-off institutional client outflow, while retail flows delivered strong year-on-year growth.
They added:
Against this backdrop, we view the ~8.3% share price decline as an overreaction, driven more by broader market multiple compression than any deterioration in HUB's business fundamentals. With our revised FY27 funds under administration of $162.3 billion sitting at the top end of HUB's guidance range ($148-$162 billion), underpinned by flow assumptions we consider conservative, we retain our Buy rating.
Jarden has a buy recommendation on HUB24 shares and a price target of $115.30 compared with the current price of $83.44.
Cleanaway Waste Management Ltd (ASX: CWY)
Cleanaway recently held an investor day where the company talked through its BluePrint 2030 strategy to grow the business and earnings.
The Jarden team said they were encouraged by the projection that Cleanaway would hit a free cash flow inflection point in FY27, "and we see this as largely congruent with Visible Alpha expectations, which has free cash flow yield more than doubling from FY26''.
Jarden said it was now important for the company to deliver on its ambitions, saying "we see 2H26 as a critical juncture for Cleanaway to demonstrate that future organic earnings growth can be supported by strong free cash generation, whilst delivering forecast dividends''.
Jarden has a buy recommendation on Cleanaway shares and a price target of $3.10 compared with $2.34 currently.
