Thursday, September 19, 2024

2 ASX shares to buy that are near 52-week lows

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Despite the Australian share market currently trading within sight of its record high, not all ASX shares are faring so well right now.

In fact, there are a large number of ASX shares that are currently at or around their 52-week lows.

And while not all of these are buys and some deserve to be down there, a couple that could be in the buy zone are listed below. Here’s what analysts at Morgans are saying about them:

Karoon Energy Ltd (ASX: KAR)

The Karoon Energy share price dropped to a 52-week of $1.71 today.

The team at Morgans is likely to see this as a buying opportunity. It has the ASX energy share on its best ideas list at present. It commented:

Unique as a reasonable scale pure conventional oil producer, benefitting directly from rising oil prices. Karoon has significant net cash and is fully funded through a doubling of production over the next 12 months. There are also potential catalysts just around the corner with Karoon flagging at its recent result that it plans to shortly update the market with more detail on its growth plans, Bauna’s outlook, and its ESG approach.

Morgans has an add rating and $2.80 price target on its shares. This implies potential upside of over 60% for investors.

Tyro Payments Ltd (ASX: TYR)

The Tyro Payments share price sank to a 52-week low of 77 cents on Tuesday before ultimately ending the day at 77.5 cents.

In recent years Tyro has built a significant presence in the Australian payments industry. In fact, with around 70,000 merchants on its network, it is only behind the big four banks in respect to number of terminals in the market.

And while investors don’t appear enamoured with the ASX share right now, a good number of brokers are positive on Tyro and see it as a buy. One of those is Morgans, which has it on its best ideas list. It said:

TYR sold off heavily in 2023 affected by the broad pull back in technology stocks and overall concerns regarding its earnings trajectory. However, we believe FY24 will show significantly improved business momentum, importantly driven by a much greater focus on lifting overall profitability. TYR still trades at a significant discount to valuation.

Morgans has an add rating and $1.47 price target on its shares. This suggests that the ASX share could double in value over the next 12 months.

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