UPDATE: Two highly recommended ASX shares are gaining traction among analysts, presenting potential investment opportunities for savvy investors. Experts from UBS and Commsec have issued bullish ratings for these stocks, making them hot picks as of July 2025.
Analysts have identified Dicker Data Ltd (ASX: DDR) as a standout investment. Currently, there are seven buy ratings and no sell ratings for Dicker Data, underscoring its strong market position. UBS has set a price target of $10.20 for the stock, indicating significant upside potential in the coming year.
Dicker Data is a leading distributor of hardware and software products in Australia, boasting a market share of over one-third. It ranks as the number two player in New Zealand with around 30% market share. UBS reported a remarkable 17% sales growth in the four months leading to April, with continued positive trends of 14% growth in May and June, attributed to substantial enterprise deals.
The company’s first-half profit before tax exceeded market expectations by 5%, suggesting robust financial health. UBS noted on a recent call that Dicker Data anticipates sustained demand from the small business sector, indicating “potential materially upside” as recovery progresses into 2026 and 2027. Furthermore, the firm is positioned to capitalize on the current RBA rate-cut cycle, enhancing its growth outlook.
In addition to Dicker Data, analysts are also optimistic about Hansen Technologies Ltd (ASX: HSN). With seven buy ratings and only one sell rating, Hansen is another strong candidate for investment. UBS has placed a price target of $7.20 on Hansen shares, reflecting confidence in its long-term growth.
Hansen specializes in providing software solutions for utility companies. UBS noted a strategic shift in the company’s outlook, transitioning from a 12-month to a three-to-five-year forecast. This change indicates management’s confidence in achieving organic revenue growth of 5-7% over the medium term, supported by favorable trends in the telco and energy billing sectors.
Despite some bearish sentiment regarding potential underperformance in FY26, UBS remains positive about Hansen’s long-term prospects. The company has achieved a 5% compound annual growth rate (CAGR) in revenue over the past three years, and UBS expects revenue to rise to $408 million in FY26, with a notable 12% growth in recurring software revenue.
Analysts are emphasizing the attractive combination of predictable revenues and operational leverage that could boost Hansen’s cash earnings margin. With a return on capital increasing by approximately 200 basis points per annum and a net cash balance sheet, Hansen is well-positioned for future inorganic growth opportunities.
Investors are encouraged to act swiftly as these recommendations could lead to significant returns. As the market continues to evolve, staying informed on these opportunities is crucial.
For more updates and in-depth analysis, stay tuned to our ongoing coverage of ASX stocks and market trends.
The urgency of these recommendations reflects the dynamic nature of the market, making it essential for investors to act fast. Don’t miss out on these compelling opportunities in the ASX landscape!
