If you're looking to take advantage of recent market weakness, then it could be worth considering the ASX shares listed below.
Both have recently been named as buys by the team at Bell Potter. Here's what its analysts are saying:
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Premier Investments Limited (ASX: PMV)
This retail conglomerate's shares could be in the buy zone according to Bell Potter. Its analysts have put a buy rating and $32.00 price target on its shares. Which, based on the current Premier Investments share price of $27.79, suggests potential upside of 15% for investors.
The broker sees opportunities for the Peter Alexander brand to expand globally and appears optimistic that the Smiggle brand will rebound now children are returning to school.
Bell Potter said: "PMV has been an outperformer throughout COVID-19, demonstrating resilient sales performance underpinned by market leading omni-channel capabilities that leverage off a wholly owned DC. We see several key positive catalysts over the next 12-24 mths including the continued rebound in Smiggle, the potential launch of Peter Alexander in new offshore markets, plus M&A opportunities. We retain our Buy rating on the stock."
Temple & Webster Group Ltd (ASX: TPW)
Bell Potter remains positive on this online furniture retailer following its first half update.
Its analysts have upgraded its shares to a buy rating and put a $12.10 price target on them. This implies potential upside of 72% based on the current Temple & Webster share price of $7.03.
Bell Potter remains positive on its outlook and believes recent share price weakness is a buying opportunity.
The broker explained: "We have moderated our revenue growth forecasts as conservative measure in a rising interest rate environment, although we are yet to allow for upside from TPW's Home Improvement offering. The net effect is our PT reduces to $12.10 (previously $12.75)."
"Following TPW's share price retreat, we believe valuation is now more appealing with FY23e EV/sales ~1.8x. Also, TPW's new growth horizons (B2B / Home Improvement), the structural shift to online plus M&A prospects, provide attractive offsetting benefits vs potential risks from the housing cycle. Accordingly, we upgrade from Hold to Buy," it concludes.
