The S&P/ASX All Ordinaries Index (ASX: XAO) closed at 8,918.7 points on Friday, marking a modest weekly gain of 0.075% and a 12-month rise of 2.5%. Amidst these fluctuations, experts have identified two shares within the index that are currently at 52-week lows, offering significant potential upside for investors. These shares are Suncorp Group Ltd (ASX: SUN) and Betr Entertainment Ltd (ASX: BBT).
Suncorp Group Ltd: Navigating Challenges
Suncorp Group Ltd, a key player in the financial sector, saw its share price dip to a 52-week low of $17.54 on Friday. Over the past year, the company’s shares have declined by 24%. Despite this downturn, UBS has reiterated its buy rating for Suncorp, albeit with adjusted earnings forecasts.
The adjustments come in response to a surge in natural disaster claims across Australia and New Zealand, which have significantly impacted the insurer’s financial outlook. According to UBS, Suncorp is expected to exceed its FY26 catastrophe budget by a staggering $580 million, leading to a 31% reduction in forecast earnings per share (EPS) to 88 cents for FY26.
UBS has also revised its FY27 EPS forecast, reducing it by 1% to $1.27 per share. Despite these challenges, the broker maintains a price target of $22, suggesting a potential upside of 25% over the next year.
To mitigate these financial strains, Suncorp may implement further increases in home and car insurance premiums during the second half of FY26 and into the first half of FY27. This strategy could help cushion the financial impact of rising claims and stabilize earnings.
Betr Entertainment Ltd: Betting on Growth
Meanwhile, Betr Entertainment Ltd, a prominent name in the consumer discretionary sector, has also seen its share price hit a new 52-week low of 21 cents, reflecting a 25% decline over the past year. Despite this, Morgans has maintained a buy rating on the company following its first-quarter FY26 update.
The sports and racing betting group reported a turnover of $363 million for the first quarter, representing a 27% increase compared to the previous year. This impressive growth was achieved despite unfavorable sporting outcomes in September, underscoring the company’s resilience and strategic positioning.
Morgans highlighted that Betr’s recent investments in brand and product development are beginning to bear fruit, with key metrics such as turnover, gross win, and net win margins surpassing expectations.
At the company’s recent annual general meeting, Executive Chair Matthew Tripp expressed confidence in Betr’s trajectory, stating, “The Company enters FY26 in its strongest position to date, with the foundations in place to support disciplined, sustainable growth.”
Morgans has set a price target of 43 cents for Betr Entertainment, indicating the potential for the share price to double over the next year. This optimistic outlook is supported by the company’s robust balance sheet, which provides the flexibility to explore both organic and inorganic growth opportunities.
Market Context and Future Outlook
The announcement of these buy ratings comes as the ASX All Ordinaries Index continues to navigate a volatile market environment. Both Suncorp and Betr Entertainment are positioned uniquely within their respective sectors, facing distinct challenges and opportunities.
For Suncorp, the path forward involves managing the financial impact of natural disasters while leveraging its core strengths in insurance. The potential for premium adjustments offers a pathway to recovery, albeit one that requires careful execution and market acceptance.
In contrast, Betr Entertainment’s focus on growth and expansion in the competitive betting industry highlights its strategic agility. The company’s ability to adapt and capitalize on market trends will be crucial in realizing the projected doubling of its share price.
As investors consider these opportunities, the broader market dynamics, including economic conditions and sector-specific developments, will play a critical role in shaping outcomes. Both companies represent intriguing prospects for investors willing to navigate the inherent risks and uncertainties of the current market landscape.
Looking ahead, continued monitoring of these companies’ performance and strategic initiatives will be essential for investors seeking to capitalize on the potential upsides identified by experts.
