Are you wanting to supercharge your portfolio's returns? If you are, then you may want to check out the two ASX stocks listed below that have been tipped to generate huge returns for investors.
Here's what analysts are saying about them:
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IDP Education Ltd (ASX: IEL)
Goldman Sachs thinks that IDP Education is an ASX stock to buy. Its analysts note that the student placement and language testing company's shares have been hammered recently following news that it has lost its monopoly in Canada.
Goldman believes this has created a very attractive buying opportunity for investors. It said:
On our new estimates, IDP trades on 34x/27x FY24/25 P/E, a material discount to its historical 5-yr avg 12mf/24mf multiples of 54x/38x and representing an attractive entry point into IDP's long-term SP structural growth story; although we accept that in the near term the market may need to digest consensus earnings downgrades and gain greater comfort on IELTS growth re-basing. With +41% upside to our TP, forward estimates de-risked and the key potential negative catalyst now behind IDP, we retain our Buy rating.
The broker currently has a buy rating and a $30.60 price target on IDP Education's shares. This implies a potential upside of over 40%.
PeopleIn Ltd (ASX: PPE)
This workforce management company could have huge upside potential according to analysts at Morgans.
While the broker has recently revised its estimates to reflect a softer-than-expected trading update, it still believes this is a dirt cheap ASX stock. It commented:
Whilst valuation and earnings forecasts are incrementally weaker post the announcement, PPE still screens well, in that the company trades at c.10x (FY24F PER), with earnings growing at low to mid double digits, strong free cash flow conversion and a c.5% dividend yield, all positive characteristics that are somewhat rare amongst the small cap universe.
Morgans has an add rating and a $4 price target on its shares. This implies a potential upside of over 80%.
