Down 28% to 46%: Are these beaten-down ASX shares cheap buys?

If you are in the market for a bargain, then it could be worth hearing what Bell Potter is saying about the beaten-down ASX shares in this article.

Are they cheap buys? Let's find out:

Austal Ltd (ASX: ASB)

This ASX share is down 46% over the past 12 months. 

Unfortunately, Bell Potter isn't in a rush to buy the shipbuilder's shares after this decline. In response to its results, the broker has retained its hold rating with a trimmed price target of $4.70. It explains:

Hanwha's knowledge of recent onerous contracts prior to bid submission suggests a higher likelihood of the deal going ahead. We forecast FY27e sole Australasian EBIT (incl corp. costs) of $32m ($44m normalised in FY26e) implying current multiple of 10- 17x if bid goes ahead vs. global peer group at 16-24x. We believe ramp-up risks are heightened in the Australasian segment over the next 2 years with labour the key constraint. Retain Hold. TP lower on model roll forward.

Harvey Norman Holdings Ltd (ASX: HVN)

Bell Potter remains positive on retail giant Harvey Norman, which has seen its shares fall 43% since this time last year.

However, the broker has taken an axe to its valuation following a review of the company's FY 2026 results. A note reveals that it has retained its buy rating on the ASX share with a reduced price target of $5.00 (from $6.00). It commented:

In HVN's key Australian market, we see near term pressures with a further challenged operating environment and a period of high comps navigated through Sep-Nov. However, HVN has the second highest global exposure within our coverage, while trading at a 1-year forward P/E of ~14x (as per BPe). We view this as reasonable considering the CY27/28 outlook for the name with the growth opportunity in 8 global markets and as Australia's single largest owner in large format retail with a global portfolio of ~$4.8b.

Praemium Ltd (ASX: PPS)

This investment platform provider's shares are down 28% from their highs, and Bell Potter appears to believe this has created a buying opportunity.

According to the note, the broker has retained its buy rating on the company's shares with a trimmed price target of $1.10 (from $1.20). It said:

. We stay Buy rated. Derecognising assets is a setback. However, PPS has flagged an intention to migrate onto its new system over the coming 12-18 months. We see an untapped potential in superannuation and new client wins beginning to convert into revenue.

The post Down 28% to 46%: Are these beaten-down ASX shares cheap buys? appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro 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 Praemium. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Praemium. 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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