Expert Names 2 Gorgeous ASX Stocks Right Now
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There is still a lot of uncertainty with ASX stocks at the moment.
The Reserve Bank has indicated that more interest rate hikes are coming. Inflation is still raging. And no one knows how badly the economy will be affected.
So in this environment, you need to have a lot of confidence in a stock to have enough courage to buy it with your hard-earned money.
Fortunately, Morgans investment adviser Jabin Hallihan named two ASX stocks this week that he currently sees as high-conviction mikes:
Purchase opportunity for a huge advantage
Silk Logistics Holdings Ltd (ASX:SLH) stocks have lost more than 10.7% since early June.
Morgans’ team thinks it just gives them more of an advantage.
“This integrated logistics provider has displayed [an] underlying group net profit after tax of $15.8 million for fiscal year 2022, an increase of 45% compared to the corresponding period,” Hallihan told The Bull.
“Silk Logistics continues to evaluate merger and acquisition opportunities as a way to add capacity in port and contract logistics.”
He added that management is also looking for more storage sites to improve the capacity of its network.
Hallihan’s team has a price target of $3.50 for Silk Logistics shares, which is up 62% from the current level.
Shaw and Partners also agrees with this assessment. Its analysts consider the stock a solid buy, according to CMC Markets.
“Good prospects” for the darling of analysts
Lovisa Holdings Ltd (ASX:LOV) is currently an analyst favorite.
And this, despite a superb 84.3% rise in the share price since mid-June.
The view seems to be that due to its focus on low costs, the accessories retail chain will weather any economic downturn to come.
Hallihan is positive about the company.
“Lovisa offers a brilliant prospect,” he said.
“Investors reacted positively to its fiscal 2022 result.”
Lovisa’s “wide product range” and high gross margins put it in Hallihan’s good books.
“This fashion jewelry and accessories retailer has developed a vertically integrated business model capable of responding quickly to changing trends.”
Last week, QVG Capital appreciated the progress of the expansion in Lovisa’s latest performance update.
“Its bottom line has been stellar, and the global rollout of high-yield stores appears to be accelerating.”