When it comes to looking for outsized returns among ASX shares, it pays to check in with the professionals.
I've reviewed the reports coming out of the major broking houses and zeroed in on four from Canaccord Genuity, which profile companies that could do very well indeed.
Let's see which companies they like at the moment.
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Bravura Solutions Ltd (ASX: BVS)
Shares in Bravura jumped last week after the company delivered a better-than-expected earnings update for the past financial year.
The company said revenue would be within its previously guided range of $280 to $285 million, but cash EBITDA would be about $77 million, compared with previous guidance of $69 to $73 million.
Managing Director Colin Greenhill said the company had "continued to manage costs well whilst investing in core technology and exploring new initiatives''.
Canaccord Genuity said in its note to clients they believed cost management was the key to the result.
They said:
With costs very tightly managed in the half, we believe this positions BVS well entering FY27. With the new financial year potentially having lower project work, in our view, given FY26 featured work on the Aware and Telstra Super merger (of which Aware has labelled as completed), the potential for lower FY27 project revenue seems to be well managed by the cost-base being tightly managed.
The broker has a $2.73 price target on Bravura shares compared to $2.17 at the time of writing.
Light & Wonder Inc (ASX: LNW)
Canaccord Genuity said a recent share price pullback has Light & Wonder shares trading near 12-month lows, "and offering valuation constructs not seen in recent years''.
They added:
In addition, a widening of the discount to Aristocrat Leisure (ASX: ALL) has been apparent in recent months at levels not far from historic peaks. We remain attracted to the LNW thesis and consider the business to have a solid medium-term growth profile.
The broker has a $182 price target on Light & Wonder shares compared to $102.78 at the time of writing.
Mesoblast Ltd (ASX: MSB)
This drug company recently reported its quarterly sales results for its flagship drug Ryoncil, notching up US$36 million for the quarter and US$115 million for the full year.
The company's Chief Executive Officer, Dr Silviu Itescu, said Mesoblast was anticipating continued revenue growth in the current financial year, "in line with momentum we are seeing across major U.S. paediatric centres''.
Canaccord Genuity said it viewed consensus estimates of US$180 to US$190 million in Ryoncil sales this year as ambitious, but still has a bullish share price target of $3.23, up from $2.34 at the time of writing.
Pantoro Gold Ltd (ASX: PNR)
Canaccord Genuity has a very bullish $4.20 share price target on this company, compared to the price of $2.04 at the time of writing, but stresses that this is a speculative buy for investors.
Pantoro missed production estimates for the June quarter, but Canaccord said the longer-term story was of interest.
PNR expects to release its 5-year production plan this quarter alongside its annual Resource and Reserve update, which we expect will incorporate the new high-grade underground zones being delineated by PNR's extensive ongoing growth program. We note PNR has reaffirmed its long-term growth target of up to 200kozpa of production.
This compares to the current guidance for FY27 of 90,000 to 105,000 ounces of gold.
