3 ASX shares under $5 ready to break the ASX mould

Analysts are tipping big returns from these shares over the next 12 months.

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If you're looking to get some bang for your buck, then it could be checking out these ASX shares that trade under $5.

Based on what some analysts are saying, they could be undervalued at current levels and be destined to climb meaningfully higher.

Let's take a closer look at them:

Accent Group Ltd (ASX: AX1)

The first ASX share under $5 to look at is Accent Group. It is the footwear-focused retailer behind the HypeDC, The Athlete's Foot, and Platypus store brands, to name just three.

Its shares have taken a hit this year and are currently fetching $1.73. However, analysts at Bell Potter believe they are worth substantially more. Last week the broker put a buy rating and $2.50 price target on its shares, which implies a potential upside of almost 45%.

Chalice Mining Ltd (ASX: CHN)

If you're not averse to investing in the mining sector, then another option to look at is Chalice Mining. It is the mineral exploration company behind the Julimar Nickel-Copper-PGE project, which has the potential to be globally significant.

At present, you can pick up its shares for $1.50 apiece, which could prove to be an absolute steal if Bell Potter is on the money with its recommendation. It currently has a speculative buy rating and a $5.40 price target, which suggests a potential upside of over 250%.

Telstra Group Ltd (ASX: TLS)

A final ASX share under $5 that could be a buy is Telstra according to analysts at Goldman Sachs.

They appear to see a recent pullback by the telco giant's shares as a buying opportunity. Particularly given "the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business."

Goldman currently has a buy rating and a $4.70 price target on its shares. So, with them currently changing hands for $3.78, there could be a 24% gain on the cards over the next 12 months, along with an attractive 4.75% dividend yield.

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 Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Accent Group. 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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