I've had a look through the broker notes published this week and selected three companies that they believe could deliver serious share price gains.

Let's see who they like.

ResMed Inc (ASX: RMD)

Macquarie this week issued a new research note on ResMed after the company told shareholders it was going to sell its MatrixCare business for $490 million, with the funds to be used, in part, for an accelerated buyback program.

The company said the sale fit with its 2030 strategy, "by focusing on high-growth, scalable opportunities in sleep health, breathing health and connected home-based healthcare''.

Chair Mick Farrell said regarding the sale:

Today's announcement is about our disciplined approach to portfolio management and our commitment to driving long-term growth. By focusing on areas where we see the greatest opportunity for sleep health innovation and impact, we are strengthening our ability to deliver life-changing health technologies, improve patient outcomes, and create value for our stakeholders.

Macquarie said the sale "offloads a structurally challenged business, improving the group's growth profile''.

The broker has a 12-month price target of $46.60 on ResMed shares, which would represent a 53.7% gain if achieved.

Bhagwan Marine Ltd (ASX: BWN)

This marine services company hosted brokers at an investor day recently, showing them around two of its divisions on the Brisbane River, Bhagwan Marine Services, and Riverside Industrial Sands.

Analysts from Shaw and Partners attended and said the business looks to be in good shape.

They said:

BWN operates Australia's largest and most diverse marine fleet, employing more than 1,000 personnel nationwide. BWN's Queensland Marine Solutions business is … strategically located on the Brisbane River and generates revenue from both contract and spot work. Core activity provides a solid EBITDA base, with fleet utilisation currently around 75%. Higher-margin contract work can lift EBITDA margins to approximately 30%. The business is positioned to benefit from demand associated with the Brisbane Olympics, and management has recently secured several new contracts. Longer term, growth is supported by population expansion and Queensland's substantial infrastructure pipeline.

Shaw and Partners said competition was relatively limited, with only 3 to 4 meaningful participants in the market.

The broker has a price target of 60 cents on Bhagwan shares, which would represent a 90.5% gain if achieved.

Metro Mining Ltd (ASX: MMI)

Shaw and Partners said this bauxite miner remains on track to hit its full-year guidance of 6.6 to 7.1 million tonnes of bauxite for the year.

The analysts said bauxite prices had firmed from lows earlier this year, and the market remained well supported by strong demand growth from China.

They said:

Metro Mining's Bauxite Hills project is well placed to supply the growing Chinese market due to the proximity to markets. As a low value product, freight costs make up almost half the cost of delivering bauxite to China.

Shaw and Partners has a $3 target price on Metro Mining shares, which would be an 89.8% gain if achieved.

The company also pays a 5.8% dividend yield.

The post 3 ASX shares which could deliver 53% to 90% gains appeared first on The Motley Fool Australia.

Shares still looking cheap

That said, the analyst team at Shaw and Partners think the stock is a buy at current levels, with a bullish share price target on the company. We'll get to that later.

First let's have a look at what the company announced. Earlier this week Bhagwan Marine said it was facing a tougher trading situation.

The company said:

The conflict in the Middle East, together with organisational restructuring within the energy sector, has resulted in selected delays to the award and commencement of spot and short-term projects. These delays are considered timing-related rather than structural in nature, with underlying long-term demand remaining strong.

The company said it now expected EBITDA to be in the range of $38.5-$40.5 million, excluding contributions from the recently-acquired Riverside Marine and acquisition costs.

Including the Riverside business, the result is expected to be in the range of $44.5-$46.5 million.

This compares with full year earnings last year of $50.9 million and consensus expectations for this year of $56.3 million.

Bhagwan said it was doing what it could to limit the impact of negative effects from the Middle East war.

It said:

Pricing structures include mechanisms to mitigate variable operating costs, including fuel pass through provisions and pricing adjustments at contract renewal or extension. The Company maintains strong visibility over its fuel supply arrangements and has not experienced any fuel-related disruptions. Higher operating costs arising from the conflict and broader inflationary pressures are being closely managed and are expected to be substantially recovered over time.

Despite the cost issues, the company said, "supported by strong tendering activity and a healthy project pipeline, the outlook remains positive despite the short-term geopolitical and economic environment''.

Valuation undemanding

Shaw and Partners said in a note to its clients that the company had retained its buy rating as it was trading at a discount to its peers.

The Shaw team added:

We view the earnings soft-patch as timing-related rather than structural, reflecting delays to spot and short-term project awards amid geopolitical disruption, not a deterioration in demand or pricing.

They said they believed that Bhagwan had not lost any customers over the period, and, "core activity in ports, decommissioning and industrial sands is tracking at or ahead of expectations, reinforcing that underlying earnings power and utilisation remain intact''.

Shaw and Partners has lowered its price target for Bhagwan Marine from 90 cents to 60 cents, however this is still well above the current price of 32 cents.  

Bhagwan Marine is valued at $127.1 million.

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