A boring ASX All Ords share offering an exciting 40% return

Big returns could be on offer from this stock according to Bell Potter.

| More on:
Man looking amazed holding $50 Australian notes, representing ASX dividends.

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

Often investors think that they have to invest in an exciting tech stock for mega returns.

But that isn't always the case. In fact, sometimes even boring ASX All Ords shares can deliver the goods for investors.

For example, Bell Potter believes that Australian beef company Australian Agricultural Company Ltd (ASX: AAC) could generate huge returns for investors.

It owns and operates Australia's largest cattle herd with around 433,000 head spread over its properties across Queensland and the Northern Territory.

Why buy this ASX All Ords share?

Bell Potter believes that the company's shares are thoroughly undervalued at the current level.

Particularly given that since reporting its latest results, its analysts "have witnessed a sharp upward movement in cattle market indicators."

This bodes well for the company and has led to the broker increasing its earnings estimates for the near term. It said:

Operating EBITDA upgrades of +1% in FY24e, +24% in FY25e and +2% in FY26e.

In response to this, the broker has retained its buy rating and lifted its price target on the ASX All Ords share to $2.00 (from $1.90 perviously).

Based on its latest share price, this implies potential upside of approximately 42% for investors over the next 12 months.

The broker highlights that Australian Agricultural Company's shares are trading at a deep discount to net asset value (NAV). It explains:

Our Buy rating is unchanged. Cattle prices have rebounded strongly and US meat pricing indicators remain fairly firm. AAC has not benefited from the same recovery in its share price to date and continues to trade at a material 40% discount to 1H24 NAV, despite a 50% rally in the heavy steer indicator and an 87% rally in the EYCI post balance date.

Should you invest $1,000 in Naos Emerging Opportunities Company Limited right now?

Before you buy Naos Emerging Opportunities Company 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 Naos Emerging Opportunities Company 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 James Mickleboro 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 Scott Phillips.

More on Share Market News

Multiple percentage signs in the palm of a man's hand.
Share Market News

ASX 200 lifts on the RBA's latest interest rate call

The ASX 200 is up 0.5% on the heels of the RBA’s interest rate announcement.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Broker Notes

Macquarie tips 40% upside for this ASX 200 real estate stock

Let's see what the broker is saying about this stock.

Read more »

Woman sits at her desk working at night, while traffic flows on a busy freeway out the window behind her.
Broker Notes

Transurban shares: Buy, hold, sell? Here's Macquarie's recommendation

Macquarie’s analysts just ran their slide rules over Transurban shares. Here’s what they found.

Read more »

A woman sits at her home computer with baby on her lap, and the winning ticket in her hand.
Consumer Staples & Discretionary Shares

Which 'enduring high-quality business' has become a forgotten ASX 200 stock?

Fundie says this ASX 200 consumer discretionary stock has been flying under investors' radar.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

Want a financial stock outside the big 4 banks? Macquarie tips 15% upside for this small cap financial

For those searching on the edges, this name could be worth a second look according to Macquarie.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Kogan, Monash IVF, OFX, and ResMed shares are falling today

Why are these shares taking a tumble today? Let's find out.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why Breville, Clarity, EOS, and TechnologyOne shares are racing higher today

These shares are having a strong session on Tuesday. But why?

Read more »

Copal miner standing in front of coal.
Resources Shares

How much upside does Macquarie tip for New Hope shares?

A softer-than-expected quarter has impacted the broker's view.

Read more »