The S&P/ASX All Ords Index (ASX: XAO) closed at 8,918.7 points on Friday, marking a modest weekly increase of 0.075% and a 2.5% rise over the past year. Despite this overall growth, two shares within the index have reached their 52-week lows, presenting potential buying opportunities according to market experts.
These shares, Suncorp Group Ltd (ASX: SUN) and Betr Entertainment Ltd (ASX: BBT), have been highlighted by analysts as having significant upside potential. Let’s delve into the details surrounding these stocks and the reasons behind the expert recommendations.
Suncorp Group Ltd: Navigating Challenges
Suncorp Group Ltd’s share price fell to a 52-week low of $17.54 on Friday, reflecting a 24% decline over the past year. Despite this downturn, UBS has reiterated its buy rating for the financial services company, even after adjusting its earnings forecasts.
The broker’s revision stems from a surge in natural disaster claims in Australia and New Zealand, which is expected to impact Suncorp’s financial performance. According to UBS, Suncorp is projected to exceed its FY26 catastrophe budget by $580 million, leading to a 31% reduction in the forecasted earnings per share (EPS) for FY26, now estimated at 88 cents. The FY27 EPS forecast has also been slightly reduced by 1% to $1.27 per share.
UBS has adjusted its share price target from $23.15 to $22, yet this still suggests a potential upside of 25% over the next 12 months.
To mitigate these challenges, Suncorp may continue to increase home and car insurance premiums during the second half of FY26 and into the first half of FY27. This strategy could help offset the financial strain from increased claims.
Betr Entertainment Ltd: Betting on Growth
Betr Entertainment Ltd, a player in the sports and racing betting industry, also saw its share price drop to a new 52-week low of 21 cents on Friday, down 25% over the past year. Nevertheless, Morgans has maintained a buy rating on the stock following a promising first-quarter update for FY26.
The company reported a turnover of $363 million for the first quarter, a 27% increase compared to the same period last year. This growth was achieved despite unfavorable sporting outcomes in September, showcasing the company’s resilience and strategic investments.
“Betr Entertainment (BBT) reported a solid first quarter, delivering results modestly ahead of expectations across key metrics despite unfavorable sporting outcomes in September,” Morgans noted.
At the recent annual general meeting, executive chair Matthew Tripp expressed confidence in the company’s position, stating that Betr enters FY26 stronger than ever, with a solid foundation for sustainable growth. The company has reported record levels of turnover and continued growth since the BlueBet/betr migration.
Morgans has set a price target of 43 cents for Betr Entertainment, implying the potential for the share price to double over the next year.
Market Context and Future Outlook
The recommendations for Suncorp and Betr Entertainment come amid a broader context of economic uncertainty and sector-specific challenges. The financial services sector, represented by Suncorp, faces ongoing pressure from natural disasters and regulatory changes, while the consumer discretionary sector, including Betr, navigates fluctuating consumer spending and competitive dynamics.
Experts suggest that investors looking for opportunities in the ASX All Ords may find value in these stocks, given their current low prices and the potential for recovery and growth. However, as with any investment, these recommendations come with inherent risks, and investors are advised to consider their own risk tolerance and financial goals.
As the market continues to evolve, the performance of Suncorp and Betr Entertainment will be closely watched by analysts and investors alike, with upcoming financial reports and market developments likely to influence their trajectories.
