Insights

Experts name 2 beaten down ASX shares that could be going cheap

These ASX shares could be cheap at current levels…
The post Experts name 2 beaten down ASX shares that could be going cheap appeared first on The Motley Fool Australia. –

While the market rebounded strongly last month, there are still plenty of shares trading well below their highs.

Two that have been beaten down in 2022 and could be great value now are listed below. Here’s what analysts are saying about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator’s shares have been having a very tough year. Weakness in Japan and concerns over inflationary pressures have been weighing on investor sentiment. This has led to the Domino’s share price dropping 42% since the start of the year.

The team at Citi remains positive on the company and believes recent share price weakness is a buying opportunity. This is due to its very positive long term growth outlook. It said:

Our Buy rating is predicated on potential upside from potential M&A activity, upside to long term store rollout and sales on track to rebound later in CY22 once the business has cycled through the abnormal comps.

Citi has a buy rating and $92.95 price target on the company’s shares.

Xero Limited (ASX: XRO)

Another ASX share that has been beaten down is Xero. It is a cloud-based accounting solution platform provider competing with the likes of MYOB, Quickbooks, and Sage.

Despite delivering a 29% increase in revenue to NZ$1.1 billion and a 28% jump in annualised monthly recurring revenue to NZ$1.2 billion in FY 2022, Xero’s shares have been hammered in 2022 due to weakness in the tech sector. Since the start of the year, the Xero share price has lost 34% of its value.

The team at Goldman Sachs appear to see this as a buying opportunity for investors. Particularly given its belief that Xero can continue growing at a rapid rate for many years to come. The broker said:

While noting that the near term remains robust, we do acknowledge the risk of higher churn from SME business challenges and recent price increases. Nevertheless, we see Xero as well-placed to navigate this uncertainty given the stickiness & importance of its software, and lower levels of churn vs. AU overall. We revise FY23-25 GP [22% CAGR] to reflect FX and higher churn/ARPU growth (price increases).

Goldman currently has a buy rating and $113.00 price target on its shares.

The post Experts name 2 beaten down ASX shares that could be going cheap appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Top brokers say Domino’s share price has loads of extra topping in it, here’s why
Broker gives its verdict on the Xero share price following new product launch
2 excellent ASX tech shares experts say are buys
Top brokers name 3 ASX shares to buy today
How are ASX 200 tech shares performing on Wednesday?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info