If you're a value investor then cheap ASX shares will no doubt be of interest to you.
The good news is that there are two ASX shares that have just been declared as cheap by analysts.
They are as follows:
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Rural Funds Group (ASX: RFF)
Analysts at Bell Potter believe that agricultural property company Rural Funds could be a dirt cheap ASX share following recent weakness. In fact, the broker highlights that the current discount to net asset value (NAV) implies that something disastrous is going to happen in agricultural property. However, the broker appears to doubt that this will be the case. It said:
RFF is down ~39% from its Jan'22 peak a material underperformance relative to the XPJ, which is down ~21% over the same time frame. The underperformance has come despite double digit YOY gains in agricultural land values in CY22. In effect the current 31% discount to market NAV is implying a downward correction in property values comparable to that seen in US agricultural land values in 1932-33 and 1985-87.
Bell Potter has a buy rating and $2.65 price target. It also expects dividend yields in the region of 6% for the foreseeable future.
Super Retail Group Ltd (ASX: SUL)
Another cheap ASX share to consider buying is Super Retail. It is the retail conglomerate behind brands such as Macpac, Rebel, and Super Cheap Auto.
Citi rates the retailer highly and put a buy rating and $14.50 price target on its shares earlier this month. This was in response to a solid quarterly update, which the broker believes demonstrates the company's resilience. It commented:
Super Retail's trading update again demonstrated resilience in sales across the board. The implied 4yr CAGR for the most recent 10-week period showed only very slight moderation from the strong February trading update across all brands. On the negative side, GP margins look to be down ~80bps in 2H23 to date on the pcp, better than the market's expectation of -100bps though worse than we expected. High promotional intensity in BCF's categories has continued from 1H23. We reduce our FY23e EBIT by ~1% but remain 8% above consensus for 2H. Super Retail remains our top pick in consumer discretionary.
All in all, with its shares changing hands for under 11x forward earnings and offering a dividend yield greater than 5%, Citi appears to see Super Retail as an ASX share to buy.
