Broker says buy the dip on these 4 ASX shares

Top broker Morgans has add ratings on four ASX shares that have fallen significantly over the past month.

Could these ASX shares be attractive buy-the-dip opportunities for you?

Is it time to buy the dip on these ASX shares?

Over the past month, S&P/ASX All Ordinaries (ASX: XAO) shares have risen by 0.89%.

These four ASX stocks went the other way, potentially presenting a cheaper buy-the-dip opportunity given Morgans' endorsement of them with its add ratings.

Let's check them out.

Stanmore Resources Ltd (ASX: SMR)

ASX mining share Stanmore Resources closed at $3.07, down 1.29% in yesterday's trading session. The stock price has dived 18.8% over the past month.

In a new note, Morgans equity strategist Andrew Tang said:

The 4.4 US cps dividend was the biggest surprise amongst SMR's 1H24 result. Re-affirmed production and adjusted cost guidance was also a good look.

At this point, we think large sector M&A activity looks unlikely for SMR. Surprisingly weak steel markets do pose short-term risks to earnings/ valuation. But we maintain our positive medium-term structural view, and see interim weakness as an opportunity. We maintain our ADD rating.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

ASX healthcare share Clinuvel Pharmaceuticals closed at $13.79 yesterday, up 2.15%. The stock has fallen 6.45% over the past month.

In a separate note, Tang said the Clinuvel Pharmaceuticals share price had "retreated significantly since our last update".

He explained that the company's progress update on its Ph3 Vitiligo study highlighted challenges in patient retention and recruitment. Consequently, protocol adjustments were made that have extended the recruitment timeline by approximately six months.

However, Tang is more concerned about "an ineffective/absent buy-back; board and management changes; and poor segmental performance disclosure".

But he maintains an overall positive view on the ASX biotech share, commenting:

Despite all this, we continue to view the underlying asset in EPP as solid and will remain competition free for several more years over which time the cash backing should continue to build and one or more indications realised. We adjust to ADD rating.

Jumbo Interactive Ltd (ASX: JIN)

ASX consumer discretionary share Jumbo Interactive closed at $13.94 yesterday, up 1.68%. The stock has tumbled 13.42% over the past month.

Tang said:

JIN's FY24 result exceeded consensus and our earnings expectations by 2%, driven by an exceptionally strong period in Lottery Retailing, which grew 40% yoy.

However, the market was caught off guard by JIN's guidance for softer margins in FY25, primarily due to a slowdown in Stride. We maintain our ADD rating.

Accent Group Ltd (ASX: AX1)

Shares in footwear retailer Accent fell 4.25% on Tuesday to $2.03 per share. The stock has descended 5.58% over the past month.

Accent released its FY24 report last week. Tang noted the company still achieved sales growth despite a challenging retail environment due to the cost-of-living crisis and poor wholesale performance.

The retailer's earnings fell due to sales growth tracking below the rate of cost inflation (as well as material non-recurring costs relating to Glue), he said.

Tang concluded:

An improving retail and wholesale sales trajectory, moderating cost inflation and the elimination of some of the losses in Glue, will combine to see earnings recover in FY25. We maintain our ADD rating.

The post Broker says buy the dip on these 4 ASX shares appeared first on The Motley Fool Australia.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive. The Motley Fool Australia has recommended Accent Group and Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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