'Attractive entry point': Fundie says buy these ASX 200 shares now

These stocks could be too good to miss.

| More on:
A woman smiles as she sits on the bus using her phone and listening to music through headphones.

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

S&P/ASX 200 Index (ASX: XJO) share prices are always changing, which can open up compelling buying opportunities with the right businesses at the right price.

In this article, I'm going to examine where one leading fund manager is seeing value amid recent volatility and shifting valuations.  

Audinate Group Ltd (ASX: AD8)

This is the company behind Dante, a media networking solution that's used in the professional audio-visual industry. It is used for numerous purposes including universities, conferences, recording studios, amusement parks, zoos, houses of worship, arenas and stadiums, theatres and so on.

Fund manager Philippe Bui from Medallion Financial Group wrote on The Bull that Audinate is a buy because this ASX tech share "still appears to be in the early stages of a long-term growth trajectory."

Bui points out the ASX 200 share is "growing quickly" in the video segment of the market, yet the Audinate share price has fallen close to 30% since March 2024. He thinks it's at an "attractive entry point" after the decline and the "strong" report it revealed in February.

In that FY24 half-year result, revenue rose by 47.7% to US$30.4 million, while net profit after tax (NPAT) grew from A$5.1 million to A$4.7 million.

The fund manager revealed that Audinate is the top holding in its ASX shares growth fund.

Challenger Ltd (ASX: CGF)

Challenger is an ASX 200 financial share which is the largest provider of annuities in Australia.

After a difficult period when interest rates were close to 0%, Challenger is recovering. It's now able to offer annuities with more appealing yields to older Australians who want an income stream with interest rates now being much higher. Challenger says 2.5 million Australians are set to retire over the next 10 years, which could drive demand for annuities.

The fund manager said Challenger shares were trading on an "undemanding" price/earnings (P/E) ratio multiple, and it has a fully franked dividend yield of around 4%. According to the forecast on Commsec, the Challenger share price is valued at under 13x FY24's estimated earnings.

Bui noted that Challenger recently reaffirmed that it expects its FY24 annual result to be at the top end of its normalised net profit before tax guidance range of between $555 million and $605 million.

Motley Fool contributor Tristan Harrison 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 Audinate Group. The Motley Fool Australia has positions in and has recommended Audinate Group. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Opinions

A group of executives sit in front of computer screens in a darkened room while a colleague stands giving a presentation with a share price graphic lit up on the wall
Opinions

2 ASX 200 large-cap shares that this fundie is cashing in after phenomenal growth

Shaw and Partners portfolio manager James Gerrish says he knows this will be an 'unpopular call'.

Read more »

Woman and man calculating a dividend yield.
Opinions

Buy or bail? Fundie's verdict on 2 ASX 300 shares

Stuart Bromley of Medallion Financial Group provides his insights.

Read more »

A woman sits in a quiet home nook with her laptop computer and a notepad and pen on the table next to her as she smiles at information on the screen.
Opinions

2 top ASX passive income stocks to buy with $5,000 today

I think these leading ASX passive income shares will keep delivering market beating yields in FY 2026.

Read more »

A black cat waiting to pounce on a mouse.
Opinions

ASX All Ords gold share jumps 28% in 7 days – but fundie says don't hold on

Niv Dagan of Peak Asset Management has a sell rating on this ASX All Ords gold stock.

Read more »

a man in a business suit sits at his laptop computer at his desk and smiles broadly in an office setting, giving an air of optimism and confidence.
Opinions

This ASX 200 share has made the most money for my portfolio. I'm expecting a lot more

There’s one key reason why I’m expecting strong growth from this stock.

Read more »

A woman with a mobile phone in her hand looks sceptical with a puzzled expression on her face with an eyebrow raised and pursed lips.
Opinions

Is it time to be bullish or cautious on buying ASX shares right now?

Should investors be greedy or fearful as FY26 approaches?

Read more »

A happy young woman in a red t-shirt hold up two delicious burritos.
Opinions

Bull vs. Bear: Guzman Y Gomez shares

Guzman Y Gomez shares peaked at $45.99 in February and closed at $28.04 yesterday. Where to now?

Read more »

A businessman hugs his computer and smiles.
Opinions

3 ASX 200 shares to buy and hold forever

I don't expect these stocks to go out of style anytime soon.

Read more »