'Oversold': 2 ASX 200 shares to buy at attractive levels right now

These companies look attractive after being sharply sold, analysts say.

| More on:
Woman with speaker

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

sdf

Looking for some top ASX 200 shares currently trading at attractive levels? The experts have chimed in with two potential candidates.

And with investors still paying high multiples for companies in the technology and communications sector, it might be wise to look underneath some stones.

Multiple analysts are currently bullish on Audinate Group Ltd (ASX: AD8) and Orora Ltd (ASX: ORA). Both shares have sold off heavily in recent months. Now analysts say they could offer value at these new levels.

Here's why the experts say that these two ASX 200 shares might be trading at attractive valuations.

ASX 200 shares 'oversold'

Audinate Group saw its share price hit a 52-week high of $23.31 on 15 March. As you can see in the chart below, it has sold off sharply since then and now rests at $15.24.

Created with Highcharts 11.4.3Audinate Group PriceZoom1M3M6MYTD1Y5Y10YALL1 Jul 202322 Jul 2024Zoom ▾Jul '23Sep '23Nov '23Jan '24Mar '24May '24Jul '24Sep '23Sep '23Jan '24Jan '24May '24May '24www.fool.com.au

Audinate is known for its professional audio-visual (AV) networking technologies, particularly its Dante IP audio network, used in the live sound and broadcasting industries.

Arthur Garipoli from Seneca Financial Solutions sees Audinate as a buy.

According to The Bull, Garipoli said the ASX 200 stock's recent decline could be due to "profit taking, or the resignation of its chief financial office", referring to an announcement in May. This could be an opportunity:

We believe the shares have been oversold, providing an opportunity to buy on weakness. The company posted a strong first half 2024 result, with revenue increasing 47.7% on the prior corresponding period.

The firm doesn't provide a price target.

Morgan Stanley analysts are also bullish on Audinate's outlook. The firm recently retained its buy rating with a price target of $22.00 on the ASX 200 share. This suggests a potential upside of 44% at the time of writing.

The broker says Audinate can continue growing its market share in the video market, which will support a higher share price over time.

Consensus also rates the ASX 200 share as a buy, according to CommSec.

'Undemanding' multiples

Orora is in the packaging business. It manufactures products ranging from cans and bottles to the boxes in which these products are shipped.

The stock fell sharply in March from a previous high of $2.72 per share and has trended south ever since. It currently resets at $2.05.

After this sell-off, Seneca Financial Solutions sees this as a buying opportunity.

This packaging giant is trading on undemanding multiples, in our opinion. We expect operating conditions to remain challenging in the first half of fiscal year 2025, but anticipate packaging volumes to increase in the second half.

Seneca's Garipoli also notes that Orora's FY24 projections are set to be lower than the previous year, potentially justifying some of the recent share price declines.

As such, he notes the "share price has retreated to an attractive level for long-term investors".

Created with Highcharts 11.4.3Orora PriceZoom1M3M6MYTD1Y5Y10YALL1 Jul 202322 Jul 2024Zoom ▾Jul '23Sep '23Nov '23Jan '24Mar '24May '24Jul '24Sep '23Sep '23Jan '24Jan '24May '24May '24www.fool.com.au

Goldman Sachs analysts also believe Orora shares are undervalued after this sell-off.

The broker has a buy rating on the ASX 200 share with a price target of $3.00, indicating a potential upside of 46% from the current price.

Goldman is also attracted to Orora's dividend. The broker forecasts dividends per share of 12 cents in FY 2024 and 13 cents in FY 2025.

At the time of writing, these forecasts equate to forward dividend yields of 5.8% and 6.3%, respectively.

Consensus also rates it as a buy, according to CommSec.

Foolish Takeaway

Several analysts believe Audinate Group and Orora could offer promising opportunities for investors seeking value in ASX 200 shares.

With markets continuing to roar, starting valuations – what you pay initially – matter a lot. Remember to conduct your own due diligence and consider your risk tolerances before making any decisions.

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

More on Broker Notes

Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A group of three miners in hard hats and high visibility vests confer at a rocky mining site.
Broker Notes

Up 66% in a year, just how much more upside does Macquarie tip for Perseus Mining shares?

Just how much higher might Perseus Mining shares soar? Here’s what Macquarie had to say about the ASX 200 gold…

Read more »

Rising share price chart.
Broker Notes

Why this exciting ASX 200 share could rise almost 50%

Bell Potter has good things to say about this biopharmaceutical company.

Read more »

Buy and sell written on silver cubes on a stock market chart.
Broker Notes

2 buys and 2 sells in the ASX 200 financials sector: analysts

We reveal what the experts think of these ASX 200 financial shares.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Broker Notes

These ASX 200 shares could rise 33% to 37%

Analysts at Morgans think these shares could deliver big returns.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Broker Notes

Experts reveal 2 buys and 1 sell in the ASX 200 materials sector

And they're not all mining companies, either.

Read more »

A smiling miner wearing a high vis vest and yellow hardhat does the thumbs up in front of an open pit copper mine.
Broker Notes

Why Macquarie expects this ASX All Ords copper stock to soar 48% in a year

Macquarie forecasts another big year of gains ahead for this ASX All Ords copper stock. But why?

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Broker Notes

How much upside does Macquarie expect for Steadfast Group shares?

The broker has given its verdict on this blue chip.

Read more »