Historically, the share market has provided investors with an average annual return of 10%.
While this is great, you don't necessarily have to settle for that.
For example, if analysts are on the money with their recommendations, the ASX shares listed below could rise materially more than average over the next 12 months.
Here's what brokers are saying about them:
Pilbara Minerals Ltd (ASX: PLS)
Morgans says this lithium miner is an ASX share to buy according to Morgans.
It remains positive on the company despite falling lithium prices and has an add rating and $5.00 price target on its shares. This suggests a potential upside of 30% for investors from current levels.
The broker sees Pilbara Minerals as the best pure-play lithium exposure on the local bourse. It said:
We rate PLS as our best pick of the pure-play lithium stocks. It is well funded, has a long resource life and is an established Australian operator with multiple growth options ahead of it.
Readytech Holdings Ltd (ASX: RDY)
Over at Goldman Sachs, its analysts see major upside ahead for this enterprise software provider's shares.
The broker has a buy rating and a $4.50 price target, which implies a 12-month potential return of 34% for investors.
Goldman likes the company due to its positive growth outlook and cheap valuation. It explains:
We believe RDY remains undervalued compared to SaaS peers on an absolute and growth adjusted basis, trading on 11.5x FY24E EV/EBITDA vs a 19% FY23-26E EBITDA CAGR or a growth-adjusted multiple of 0.6x vs peers typically at ~1.5x.
Treasury Wine Estates Ltd (ASX: TWE)
This wine company could be another ASX share to buy according to analysts at Morgans.
The broker currently has an add rating and $14.15 price target on its shares. This implies a potential upside of almost 37% for investors over the next 12 months.
Morgans was pleased with the company's recent acquisition in North America and sees upside to its valuation if it delivers on expectations. It said:
DAOU has generated solid earnings growth and is a high margin business. It consequently allowed TWE to upgrade its margins targets. While not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation.
