The S&P/ASX All Ordinaries Index (ASX: XAO) closed at 8,918.7 points on Friday, marking a modest increase of 0.075% for the week and a 2.5% rise over the past 12 months. Amidst this backdrop, financial analysts have identified two shares within the index that present compelling buying opportunities, despite their current 52-week lows.
Suncorp Group Ltd: Navigating the Storm
Suncorp Group Ltd (ASX: SUN) saw its share price dip to a 52-week low of $17.54 on Friday. Over the past year, the financial services provider has experienced a significant decline, with shares falling 24%. Despite this downturn, UBS has reiterated its buy rating for Suncorp shares, albeit with some adjustments to its earnings forecasts.
The revisions come in response to a surge in natural disaster claims across Australia and New Zealand, which have impacted Suncorp’s financial outlook. According to UBS, the insurer is expected to exceed its FY26 catastrophe budget by a substantial $580 million.
UBS has reduced its FY26 earnings per share (EPS) forecast by 31% to 88 cents and adjusted its FY27 EPS forecast down by 1% to $1.27 per share.
To mitigate these challenges, Suncorp may increase home and car insurance premiums in the latter half of FY26 and into the first half of FY27. Despite the downgrades, UBS’s revised share price target of $22 still suggests a potential upside of 25% over the next 12 months.
Betr Entertainment Ltd: Betting on Growth
Meanwhile, betr Entertainment Ltd (ASX: BBT) has also hit a new 52-week low, with shares trading at 21 cents on Friday, reflecting a 25% decline over the past year. Despite this, Morgans has maintained a buy rating on the consumer discretionary share, following a promising first-quarter update for FY26.
The sports and racing betting company reported a turnover of $363 million for the quarter, representing a 27% increase compared to the same period last year. This performance exceeded expectations across key metrics, even amidst unfavorable sporting outcomes in September.
“BETR Entertainment (BBT) reported a solid first quarter, delivering results modestly ahead of expectations across key metrics despite unfavourable sporting outcomes in September,” noted Morgans.
With improved customer engagement and a diversified product mix, the company has demonstrated strong operational momentum. Additionally, a robust balance sheet positions betr Entertainment well for both organic and inorganic growth opportunities.
At the company’s recent annual general meeting, executive chair Matthew Tripp emphasized the company’s strengthened position:
“The Company enters FY26 in its strongest position to date, with the foundations in place to support disciplined, sustainable growth… Our key trading metrics confirm the new scale of the business with record levels of turnover and sustained growth more than one year on since the BlueBet/betr migration.”
Morgans has set a price target of 43 cents for betr Entertainment, suggesting that the share could potentially double over the next year.
Context and Market Implications
The identification of these shares as potential buys comes as investors seek opportunities amidst market volatility. The ASX All Ords Index, representing the 500 largest companies on the Australian Securities Exchange, is often seen as a barometer for the broader market’s health.
Historically, buying opportunities often arise when shares hit their lowest points, provided the underlying fundamentals remain strong. For Suncorp, the focus will be on how effectively the company manages its exposure to natural disasters and adjusts its pricing strategies. For betr Entertainment, the emphasis will be on maintaining growth momentum and capitalizing on its strengthened market position.
As investors weigh these opportunities, the broader economic environment, including interest rates and consumer confidence, will play a crucial role in shaping market dynamics. The coming months will reveal whether these shares can rebound and deliver the anticipated returns, making them a focal point for market watchers and investors alike.
