2 ASX shares to buy you haven't thought of: expert

Here are a couple of companies not on your radar that a fund manager is recommending you buy at current cheap prices.

| More on:
assortment of office stationery and folders with label saying game changer, investment opportunity

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are more than 2,100 companies listed on the ASX, so it's impossible for any one human to keep track of them all.

So it should not surprise you that there are a few bargains that you may not have thought of yet.

Red Leaf Securities chief John Athanasiou suggested two such ASX shares that you may want to consider picking up:

Can this airport hit the jackpot like Sydney did?

Now that Sydney Airport shareholders have been paid out after its private buyout and delisting, Auckland International Airport Limited (ASX: AIA) has become the big aviation infrastructure play.

Athanasiou sees excellent upside for the airport in New Zealand's biggest city.

"A positive for Auckland International Airport is the New Zealand Government bringing forward its plans to re-open the country's borders to international travellers," he told The Bull.

"The return of international travel may encourage AIA management to resume dividends."

According to The Motley Fool website, the company has not paid out a dividend since 2009. However, CMC Markets forecasts a 5.8 cents per share payout in 2023 and a 15.3 cent yield in 2024.

The resumption of dividends would be a massive catalyst, said Athanasiou. Maybe it will even end up with the same fate as its Sydney cousin.

"If the company starts paying dividends, AIA is likely to attract interest from global funds seeking yield from quality infrastructure assets."

Auckland Airport shares have dipped more than 4% for the year so far. The stock price hasn't yet approached its pre-COVID peaks.

Cashed-up Aussies spend big on pets

Online marketplace Mad Paws Holdings Ltd (ASX: MPA) only listed 13 months ago, hoping to ride the huge interest in growth stocks.

The company claimed at the time the initial public offer was oversubscribed four times over.

The recent market rotation to cyclicals has unfortunately meant the stock price has merely gone sideways from its IPO price of 20 cents per share.

But Athanasiou is upbeat after his team visited the business in real life recently.

"The pet chemist business is potentially the most lucrative segment of the company's operations, as it's able to sell pet pharmaceutical products at an attractive premium to repeat customers," he said.

"There's plenty of room for growth for the pet chemist business, as it uses the Mad Paws platform to sell their products."

Athanasiou told The Motley Fool in February that Australians are "not shy" of spending big on their fur (or feather) children.

"We all know tailwinds in the industry of increased levels of pet ownership. Everyone bought a pet during lockdown to have some company."

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

A woman presenting company news to investors looks back at the camera and smiles.
Broker Notes

Up 110% in 12 months: Why this ASX 200 stock can keep flying

Let's see what Bell Potter is saying about this high-flyer.

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A man in a dark blue suit walks through an airport past floor-to-ceiling windows with a Qantas plane flying in the distance
Travel Shares

Up 16% this year, does Macquarie rate Corporate Travel Management shares a buy, hold or sell?

Does the travel stock have further to fly?

Read more »

group of friends checking facebook on their smartphones
Broker Notes

Macquarie tips 22% return for this ASX telco stock

This telco could be undervalued at current levels according to the broker.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Broker Notes

Passive income: What's CBA's dividend outlook according to Macquarie?

Is CBA still a top passive income stock?

Read more »

A smiling woman looks at her phone as she walks with her suitcase inside an airport.
Broker Notes

Down 41% in a year, why Macquarie thinks Flight Centre shares are set to rebound

Is Flight Centre about to take off?

Read more »

A group of miners in hard hats sitting in a mine chatting on a break as ASX coal shares perform well today
Broker Notes

Does Macquarie rate Liontown Resources shares a buy, hold or sell?

Let’s find out what the broker had to say.

Read more »