If you own one of Australia's estimated 600,000+ self-managed super funds (SMSFs), then you may be on the lookout for some new portfolio additions to take your fund to the next level in 2025.
To help you on your way, let's look at a couple of ASX shares that analysts think could be great options for the year ahead. They are as follows:
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CSL Ltd (ASX: CSL)
Analysts at Bell Potter have put a buy rating and $345.00 price target on this biotechnology company's shares. Based on its current share price of $276.57, this implies potential upside of approximately 25%.
It is bullish due to its belief that CSL's shares are trading at an attractive level for investors. Especially given the prospect of its earnings growth accelerating in the coming years. The broker explains:
CSL presents an attractive buying opportunity as we anticipate the start of a margin recovery phase for CSL, driving above-market earnings growth over the next few years. CSL trades at a 12-month forward PE of ~28x, representing a discount to its 10-year average of ~31x. Furthermore, the company will continue to deleverage the balance sheet over the next few years. Given the company's proven quality and growth prospects, we believe significant upside remains.
Woolworths Group Ltd (ASX: WOW)
Goldman Sachs thinks that Woolworths could be an ASX share to buy now. And given its defensive qualities, attractive valuation, and positive long term growth outlook, it could be a good addition to an SMSF.
The broker has a buy rating and $36.20 price target on Woolworths' shares. This implies potential upside of approximately 20% for investors.
Goldman notes notes that Woolworths boasts significant structural advantages. This includes its vast store network, a strong online presence, and advanced data and analytics capabilities. And importantly, it feels that the ASX share is trading below fair value. The broker said:
Our Buy thesis is based on 1) robust supermarkets growth of ~4% in FY23-26E driven by strong population growth and a rational, oligopoly environment; 2) omni-channel leader further extending share gains due to its early mover advantage in digitalization and omni-channel execution. By 2030E, we expect WOW to be the dominant leader in online with ~50% share in a space that is expected to go from 5% to 10% of the total grocery market; 3) loyalty/retail media further margin opportunities: Woolworth's strong digital and omni-channel advantage is further reinforced through a virtuous cycle of loyalty and retail media (Cartology). WOW is also trading below fair value.
