62% upside: Expert names 2 ASX shares looking beautiful right now

With such a huge cloud hanging over the economy and interest rates, it's helpful to know which stocks the experts have supreme confidence in.

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There is still much uncertainty with ASX shares at the moment.

The Reserve Bank has indicated there are more interest rate hikes to come. Inflation is still raging. And no one knows how hard the economy will be hit.

So in this environment, you need to have high belief in a stock to pluck up enough courage to buy it with your hard-earned.

Thankfully, Morgans investment advisor Jabin Hallihan named two ASX shares this week that he currently rates as high-conviction pickups:

Buying opportunity for huge upside

Silk Logistics Holdings Ltd (ASX: SLH) shares have lost more than 10.7% since the start of June.

The team at Morgans believes this just gives it more upside.

"This integrated logistics provider posted [an] underlying group net profit after tax of $15.8 million in fiscal year 2022, a 45% increase on the corresponding period," Hallihan told The Bull.

"Silk Logistics continues to evaluate merger and acquisition opportunities as a means of adding further capacity across port and contract logistics."

He added that management is also seeking more warehouse sites to upgrade the capability of its network.

Hallihan's team has a price target of $3.50 for Silk Logistics shares, which represents a 62% upside from the current level.

Shaw and Partners also agrees with this assessment. Its analysts rate the stock as a strong buy, according to CMC Markets.

'A bright outlook' for analysts' pet

Lovisa Holdings Ltd (ASX: LOV) is a favourite among analysts at the moment.

That's despite a stunning 84.3% rally in the share price since mid-June.

The opinion seems to be that due to its low-cost focus, the accessories retail chain will be resistant to any forthcoming economic downturn.

Hallihan's positive on the business.

"Lovisa offers a bright outlook," he said.

"Investors reacted positively to its fiscal year 2022 result."

Lovisa's "broad product range" and high gross margins puts it into Hallihan's good books.

"This fashion jewellery and accessories retailer has developed a vertically integrated business model that's capable of responding rapidly to changing trends."

QVG Capital last week liked the expansion progress in Lovisa's latest performance update.

"Its result was glittering and the global roll-out of high returning stores appears to be accelerating."

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 recommended Silk Logistics Holdings Limited. The Motley Fool Australia has recommended Lovisa Holdings Ltd and Silk Logistics Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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