UPDATE: Experts from UBS have just confirmed two ASX shares that are must-buys for August 2023 due to their impressive growth potential and strong market positions. This urgent news could shape your investment strategy, with significant implications for your portfolio.
UBS highlights Breville Group Ltd (ASX: BRG) and Hub24 Ltd (ASX: HUB) as top picks, each demonstrating robust expansion capabilities. Investors should pay close attention to these developments, especially as the market shifts.
Breville Group Ltd is currently rated a buy with a price target of $35.50, suggesting a potential increase of nearly 10% over the next year. This growth is driven by Breville’s successful international expansion, particularly in coffee appliances—a segment where demand is surging. The total addressable market (TAM) for coffee machines in Breville’s core markets has reached $13 billion, growing at a historical compound annual growth rate (CAGR) of 7%.
UBS notes that Breville’s market share has increased from 4% to approximately 7% in South Korea since launching direct distribution in June 2022. The company is now expanding into China, presenting a significant opportunity for further growth. UBS projects Breville’s revenue could achieve a CAGR of 9% from FY25 to FY35, expecting operating profits to rise as well.
Meanwhile, Hub24 Ltd is another standout, rated a buy with a price target of $105. As one of Australia’s fastest-growing wealth management firms, Hub24 has reported $112.7 billion in platform funds under administration (FUA) as of the fourth quarter of FY25. The company also achieved net flows of $5.3 billion in the same quarter, surpassing initial estimates by UBS.
The growth in advisor numbers—up 13% to 5,100—is a key indicator of Hub24’s expanding influence in the market. UBS emphasizes Hub24’s leading net promoter score (NPS) in the sector, suggesting high customer satisfaction and loyalty.
As these companies continue to grow, investors should consider the potential of these shares in light of the current market dynamics. The urgency of these recommendations comes as UBS expects strong performance in the coming quarters, making now the time to act.
Stay tuned for further updates as these developments unfold, and consider how Breville and Hub24 could fit into your investment plans.
