UPDATE: Bell Potter has just released its latest recommendations for ASX investors, identifying three top shares to buy in September 2023. This urgent announcement highlights potential investment opportunities that could significantly impact portfolios in the coming weeks.
Cuscal Ltd (ASX: CCL) tops the list as a standout buy. The payments company is perceived as undervalued, boasting a robust earnings per share growth outlook. Bell Potter describes Cuscal as an authorised deposit-taking institution (ADI) with the licensing and processing capabilities to support various payment and data services. Its diversified offerings and long-term client base position it favorably for future growth. Currently trading at a 16x 12-month P/E, Cuscal is projected to achieve a 24% two-year EPS CAGR, making it an attractive pick.
Another high-potential share is Nickel Industries Ltd (ASX: NIC). Bell Potter asserts that NIC shares are trading at a bargain price, especially as the company is poised for significant production increases and free cash flow growth. Described as the only major ASX option for exposure to nickel prices, Nickel Industries is diversifying its earnings across Type 1 and Type 2 nickel. The company continues to generate positive cash flow, even amid a challenging nickel market, and anticipates major growth milestones in CY25. With a forecast for substantial cash flow enhancement over the next two years, NIC presents an enticing investment opportunity.
Finally, Universal Store Holdings Ltd (ASX: UNI) rounds out Bell Potter’s recommendations. This youth-focused fashion retailer is favored for its strong earnings growth potential and appealing valuation. With plans to expand store numbers in the coming years, Universal Store is projected to achieve an annual earnings growth rate of 10%. Currently trading at a forward P/E of approximately 16x, UNI represents a quality small-cap investment with a remarkable ROE of ~26%.
As the Australian equities market evolves, these recommendations from Bell Potter could serve as vital insights for investors looking to capitalize on emerging trends. Investors are encouraged to act swiftly, as these opportunities could shift rapidly.
Stay tuned for more updates as the situation develops.
