Double the customers in 2023? The ASX share one expert would pounce on now

This stock has already rocketed 18% since 20 December, but it's only halfway to where it was before COVID-19.

| More on:
A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

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

China, as the second largest economy in the world, has a huge influence on the fortunes of many ASX shares.

On top of this, the country has also been very topical among investors to start 2023 as it has recently made many significant policy changes.

Towards the end of last year, the ruling Chinese Communist Party backed down from its strict zero-COVID stance. While spurring a surge in coronavirus cases in the short term, the move is expected to be economically beneficial in the longer run.

The analysts at Firetrail, in a memo to clients, also noted other announcements following that reopening.

"President Xi wants the population 'to consume based on a stable income, dare to consume without worries, and have a good consumption environment with a strong sense of gain and strong willingness to consume', which could benefit Australian companies selling [products] into China."

50% fewer Chinese students in Australia now than pre-pandemic

The thawing of diplomatic relations between Australia and China will also potentially restore exports of items like lobsters and wine. 

But one export channel that has already opened up is education, thanks to a massive ruling out of Beijing.

"China will no longer recognise academic degrees and diplomas achieved through online study, which could increase the flow of students to Australian universities," read the Firetrail memo.

According to Shaw and Partners portfolio manager James Gerrish, there is one particular stock that could see a windfall from this development.

"We like IDP Education Ltd (ASX: IEL), this global student placement business, moving into 2023 as the world moves on from COVID and Chinese students return to Australian classes," he said in a Market Matters Q&A.

The IDP share price has already risen around 17% since 20 December.

But Gerrish believes there is still plenty of upside to be fulfilled.

"There are 50% fewer Chinese students in Australia than in 2019, illustrating the huge room for improvement."

The stock closed Wednesday at $31.07. Gerrish favours buying at this price.

"We like the risk-reward on IDP Education below $32 targeting a move back towards $40, or 25% higher."

Should you invest $1,000 in Audinate Group Limited right now?

Before you buy Audinate Group Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Audinate Group Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

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 positions in and has recommended IDP Education. The Motley Fool Australia has recommended IDP Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

Supermarket trolley with groceries going up the stairs with a rising red arrow.
Consumer Staples & Discretionary Shares

Woolworths shares have soared 18% since March. Here's how much upside Macquarie still expects

Having raced higher since March’s multi-year lows, just how high can Woolworths shares go?

Read more »

A customer and shopper at the checkout of a supermarket.
Consumer Staples & Discretionary Shares

Broker watch: Are Woolworths shares a buy?

Do analysts think this supermarket giant would be a good pick for investors? Let's find out.

Read more »

Supermarket trolley with groceries on top of a red pointing arrow.
Consumer Staples & Discretionary Shares

Up 31% in a year, just how much more upside does Macquarie tip for Coles shares?

Can Coles shares smash the ASX 200 returns again in the year ahead?

Read more »

A customer and shopper at the checkout of a supermarket.
Consumer Staples & Discretionary Shares

Woolworths shares storm higher on strong Q3 update

The supermarket giant outperformed expectations during the quarter.

Read more »

A woman holds up hands to compare two things with question marks above her hands.
Consumer Staples & Discretionary Shares

Compare the pair: Accent Group vs JB Hi-Fi shares

Which is a better option out of these two consumer discretionary shares. 

Read more »

person sitting at outdoor table looking at mobile phone and credit card.
Consumer Staples & Discretionary Shares

If I could only own 1 ASX retailer for the next 5 years it would be this one

This stock could be a great long term pick according to one leading broker.

Read more »

A couple in a supermarket laugh as they discuss which fruits and vegetables to buy
Consumer Staples & Discretionary Shares

Coles share price drops on Q3 update

Let's see how the supermarket giant performed during the three months.

Read more »

Business man with a cigar in his mouth counting US dollars.
Consumer Staples & Discretionary Shares

Both Labor and the Coalition to crackdown on illicit tobacco trade, which ASX stocks could benefit?

Could a tobacco crackdown benefit these stocks?

Read more »