The S&P/ASX 200 Index (ASX: XJO) has reached new heights, and as earnings season unfolds, analysts are focusing on promising ASX shares. Two companies, PEXA Group Ltd and Gold Road Resources Ltd, have recently been highlighted for their strong potential.
PEXA Group (ASX: PXA) PEXA Group has garnered a positive review from analysts, who have recently upgraded the company's stock rating and adjusted their target price. The new target price of $16.00 per share suggests an 11% increase from the current trading price of $14.39.
This optimism is driven by expected strong earnings growth. Projections indicate that PEXA's operating profit could rise by 30% by fiscal year 2026, surpassing consensus estimates. The recovery in the domestic property market is anticipated to boost PEXA's transfer volumes by 5% in FY25, a significant improvement from the 15% decline experienced in FY23.
The outlook for PEXA's core domestic business appears promising, with continued recovery in property markets. The company is also set to benefit from enhanced market penetration, particularly in Queensland, Western Australia, and Tasmania, with a projected market share increase. Additionally, opportunities in the UK market are expanding, with PEXA making strides towards its remortgage and sale targets, including key partnerships expected to drive growth in the near future.
Gold Road Resources (ASX: GOR) Gold Road Resources has also received favorable attention from analysts, despite reporting mixed quarterly results. The company’s production at the Gruyere asset was slightly lower than previous quarters, with a total of 62,535 ounces of gold produced. Costs per ounce rose by 11.3% due to operational disruptions caused by heavy rains.
Despite these challenges, analysts have upgraded their recommendations for Gold Road Resources. New price targets set at $1.85 and $2.10 per share reflect confidence in the company’s future performance. The adjustment in production guidance to 290,000–305,000 ounces for the full year, down from the initial range, has not deterred the positive outlook. Analysts anticipate that production will stabilize in the upcoming quarters, offsetting the earlier impacts of adverse weather conditions.
PEXA Group and Gold Road Resources have both received notable endorsements from analysts, reflecting their strong potential in the market. PEXA is expected to benefit from a recovering property market and growth in the UK, while Gold Road Resources is seen as a promising investment despite recent operational challenges.
As always, while these recommendations are based on thorough analysis, it is crucial for investors to conduct their own research and consider the broader risks before making investment decisions.