Bell Potter says these ASX stocks are top buys

Let's see why the broker is feeling so bullish on these names.

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Are you looking for some investment inspiration this month?

If you are, it could pay to listen to what analysts at Bell Potter are saying about a couple of ASX stocks.

Here's why the broker is tipping them as buys right now:

Gentrack Group Ltd (ASX: GTK)

The first ASX stock that gets the thumbs up from Bell Potter is Gentrack. It describes itself as a global technology leader delivering product-to-profit solutions for the leading energy and water utilities.

Bell Potter's analysts believe that Gentrack's shares deserve to trade on a premium valuation. This is due to its strong long term growth potential which is being supported by its global expansion. It explains:

Although it appears expensive at c.40x FY24 and c.30x FY25 EV/EBITDA multiples, we believe the valuation is justified with a long and visible opportunity for revenue growth, as well as margin expansion following investment in headcount to deliver on its pipeline of deployments and integrations in addition to geographic expansion into Asia and EMEA.

Bell Potter has a buy rating and $10.90 price target on its shares. Based on its current share price of $8.91, this implies potential upside of 22% for investors over the next 12 months.

Mader Group Ltd (ASX: MAD)

Another ASX stock that gets the seal of approval from the broker is Mader Group.

It is a leading technical services provider that is a specialist in mobile and fixed plant equipment maintenance and support.

Bell Potter believes the company could be a great option for investors due to the momentum it is seeing in its growth plans and its North American business. It also sees potential for capital returns in the not so distant future. It said:

We expect ongoing earnings growth across the Group in FY25 as MAD's growth ambitions in Australia and North America gather momentum. Overall, commodity prices remain at elevated levels (compared with historical levels for gold and iron ore particularly), supporting mining activity and equipment utilisation.

In Australia, incoming iron ore production growth should support equipment and plant maintenance opportunities. In Canada, a significant expansion of the workforce will see the North American segment become a larger contributor to Group earnings and profitability. The company achieving its medium-term net cash target may drive positive capital management initiatives.

Bell Potter has a buy rating and $6.80 price target on Mader's shares. This suggests that upside of 9% is possible for investors over the next 12 months.

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

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