With a new month approaching, what better time to look at making some new additions to your portfolio.
Two ASX shares that could be worth considering are listed below. Here's what analysts are saying about them:
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Lovisa Holdings Ltd (ASX: LOV)
The first ASX share to look at is fashion jewellery retailer Lovisa.
It could be a top option for investors due to its enormous long term growth potential thanks to its global expansion plans.
It is for this reason that the team at Morgans is so bullish on the company and has an add rating and $24.50 price target on its shares. The broker commented:
What was clear to us from LOV's FY22 result was that this is a global growth story that is really only just getting started. FY22 earnings were certainly impressive, with sales beating our forecasts rising 59% and statutory EBIT before LTI more than double that of the prior year. Even the dividend, at 74c for the year, was a very positive surprise. But all this could be just a taste of things to come.
What was even more remarkable than the result itself was the phenomenal scale of LOV's ambition. In its own words, LOV is 'building a global brand', which will involve the development of a global presence that we believe will far out scale the 651 stores in the portfolio today.
Objective Corporation Limited (ASX: OCL)
Another ASX share that could be in the buy zone is software company Objective Corp.
It recently released its full year results and delivered a 15% increase in annualised recurring revenue (ARR).
The team at Goldman Sachs expects this strong form to continue and is forecasting ARR growth of 18% in both FY 2023 and FY 2024.
As a result of this strong growth outlook, the broker has put a buy rating and $18.40 price target on its shares. Goldman commented:
Objective Corp is a leading provider of software solutions to the public sector in ANZ and the UK, with a growing presence in the US. Objective has a long history of organic product development and accretive M&A which has helped support growth as its core Enterprise Content Management (ECM) product matures.
We are attracted to management's track record of growth and margin expansion and see upside being driven from 1) new products including Build and RegWorks; and 2) expansion in the US over time. When adjusting for OCL's conservative accounting (100% of R&D expensed), robust growth outlook, defensive end markets and high franchise quality, we see valuation appeal compared to SaaS peers and believe the shares can outperform in a more challenging macro environment.
