Experts are buzzing about two ASX shares that they highly recommend buying, and it's an exciting opportunity for investors to explore. The power of consensus - when multiple experts agree on a stock, it's a signal that something compelling is happening.
Let's dive into these non-tech companies and uncover why they're generating so much interest.
Amcor (ASX: AMC): Unlocking Synergies and Growth
Amcor, a flexible and rigid packaging giant, has caught the eye of 18 analysts who rate it as a buy. UBS, one of the brokers, has set a price target of $91.25, indicating a potential double-digit rise in the next year.
The company's FY26 second-quarter earnings per share (EPS) were described as "reasonable" by UBS, hitting the midpoint of its guidance and exceeding market expectations by 3%. UBS believes Amcor's EPS growth will continue, with a projected range of 12% to 17% for FY26.
What's more, Amcor has provided guidance for third-quarter EPS of between 90 cents to $1, and they're confident about delivering synergies worth at least $260 million in FY26 and a whopping $650 million over three years. Growth synergies are also gathering pace, with $100 million of annualized sales secured so far.
UBS explains their bullish stance: "We maintain our Buy rating due to Amcor's impressive 12% 3-year EPS CAGR, supported by the potential delivery of $650mn in synergies from the Berry merger. We believe Amcor's revised capital allocation framework will enable increased free cash flow (FCF) to support deleveraging, invest in higher growth categories, and potentially return capital to shareholders through buybacks. If these goals are met, we could see a re-rating of the P/E ratio from 11x to 15x, which is where the stock typically trades when offering double-digit EPS growth."
AGL Energy Ltd (ASX: AGL): A Strong Energy Player
AGL Energy, an energy retailer and generator, has nine buy ratings according to Commsec's analyst views. UBS, one of the brokers, has set a price target of $11.00 for this stock.
AGL's underlying operating profit (EBITDA) and net profit were 7% and 21% ahead of market expectations, respectively, thanks to strong realized gas retail pricing and generation availability. UBS notes that AGL's long-term strategy, which involves owning low-cost capacity assets with operating flexibility, positions them well to grow underlying EBITDA year-over-year to 2030, provided generation availability is maintained.
UBS forecasts an impressive CAGR of 10% for EBITDA and 15% for net profit between FY26 and FY30, outpacing other market analysts. Additionally, UBS highlights the performance of AGL's battery portfolio, which is exceeding expectations and sustaining post-tax unlevered asset returns at the upper end of its 7-11% target range.
UBS adds, "Over time, as the market recognizes the value of low-cost capacity assets, we believe market estimates will reflect multi-year EPS upgrades, supporting a growing dividend profile. The upside potential is there, pending the Board's decision to reward shareholders with stronger payouts."
These two ASX shares are generating buzz among experts, but will they live up to the hype? Time will tell, but for now, it's an intriguing opportunity for investors to consider.
And this is the part most people miss: the potential for disagreement and debate. What do you think about these expert recommendations? Do you agree with the analysts' assessments, or do you have a different perspective? Feel free to share your thoughts and opinions in the comments below!
