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Analysts are always scouring the S&P/ASX 200 Index (ASX: XJO) for potential ASX 200 share opportunities.
Share prices are changing all the time. As we’ve seen in recent times, business valuations can rapidly fall when investors become fearful.
Sometimes these declines can open up opportunities for investors to buy at a good price. Brokers have named two of the latest compelling ASX shares to look at, with the lower prices now representing good buying potential.
Keep in mind, a price target is just a guess of where analysts think a share price will be in 12 months.
Let’s have a look.
The broker Morgan Stanley recently re-iterated its ‘overweight’ rating on appliance maker Breville. ‘Overweight’ is similar to a buy rating. The price target is $25, which suggests a potential rise of around 26% over the next year.
Since the beginning of 2022, the Breville share price has fallen by almost 40%. One of the key reasons the broker currently thinks Breville is attractive is because of the potential global growth in the next few years.
Breville thinks there’s a global $9.7 billion revenue opportunity. There are a number of new markets that the business is focused on including Germany, Austria, Switzerland, Spain, Portugal, France, Italy, Mexico, Belgium, the Netherlands, and Luxembourg.
The ASX 200 share also recently completed the acquisition of Italian-based business LELIT. It designs, manufactures, and markets premium prosumer home coffee equipment in Europe and throughout the world.
Breville described the company as a rapidly growing disruptor in the premium Italian-made espresso machine and grinder market. The total cost was $140 million.
DEXUS Property Group (ASX: DXS)
The broker Macquarie rates Dexus, the property business, as a buy. It has a price target of $10.41 on the business, implying a potential rise of just over 10%.
Macquarie likes the look of the Dexus share price, which is down 17% in the 2022 year to date.
Macquarie is not that confident on office properties, though the outlook for industrial properties is still compelling with stronger demand for industrial real estate.
The ASX 200 share recently announced that 177 of 186 assets had been externally valued at 30 June 2022 – that comprises 34 office properties, 142 industrial properties, and one healthcare property.
The external independent valuations have resulted in a total estimated increase of around $374 million, or 2.2%, on prior book values for the six months to 30 June 2022.
Dexus said that it has continued to see growth in asset values for well-located industrial and logistics facilities supported by market rent growth.
The value of the office portfolio increased by around 1.7% on prior book values on the back of recent leasing success. The industrial portfolio increased by around 3.8% on prior book values due to “market evidence supporting an increase in market rents and continued tightening of capitalisation rates”.