UPDATE: Leading financial analysts from UBS have just announced two ASX shares to buy as August unfolds, citing compelling growth prospects. This urgent recommendation comes as both companies are positioned for significant market expansion, making them attractive investments for savvy investors.
Breville Group Ltd (ASX: BRG) is highlighted as a prime candidate due to its successful international expansion strategy. UBS has set a price target of $35.50, suggesting a potential rise of nearly 10% within the next year. Analysts emphasize Breville’s exposure to a growing global addressable market, particularly in the coffee machine sector, which alone boasts a market size of $13 billion in Breville’s core markets. Despite its growth, Breville holds only a 4% global market share, indicating substantial room for improvement.
The company has made significant strides in South Korea, transitioning to direct distribution in June 2022, leading to an increase in market share from 4% to approximately 7% in FY24. With plans to enter China next, the potential for further growth is vast. UBS anticipates a 9% compound annual growth rate (CAGR) for revenue, projecting an increase from $1.7 billion in FY25 to $4 billion by FY35.
On the other hand, Hub24 Ltd (ASX: HUB) is also receiving attention from UBS, which has assigned a price target of $105. This financial services company is recognized as one of Australia’s fastest-growing wealth management firms. Recent reports reveal that Hub24’s platform funds under administration (FUA) reached $112.7 billion, with net flows of $5.3 billion in the fourth quarter, surpassing analyst expectations.
UBS highlights strong advisor growth, noting a 13% increase to 5,100 advisors, which is a key indicator of future performance. Hub24 has now eclipsed Netwealth Ltd (ASX: NWL) in FUA, signaling a stronger competitive position. The company boasts the highest net promoter score in the sector, reflecting high customer satisfaction, a crucial metric for ongoing success.
Both companies are trading at competitive valuations, with Breville at 35x FY25 estimated earnings and Hub24 at 69x FY26 earnings. Investors are urged to consider these shares immediately, given their promising outlooks and solid market positions.
Investors should stay attuned to further developments as August progresses, as these companies are set to shape the landscape of the ASX. This is a pivotal moment for those looking to capitalize on emerging opportunities in the financial and consumer goods sectors.
The post has been sourced from The Motley Fool Australia, ensuring that readers receive timely and accurate investment advice. Stay informed as market dynamics continue to evolve!
