These ASX stocks could rise 30% to 85%

A leading broker has put buy ratings on these shares this morning.

| More on:
Five young people sit in a row having fun and interacting with their mobile phones.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're looking for some big returns to supercharge your portfolio, then read on.

That's because analysts at Bell Potter have just put buy ratings on three ASX stocks and tipped them to rise between 30% and 90%.

Here's what the broker is saying about them:

Immutep Ltd (ASX: IMM)

Bell Potter thinks this biotechnology company could be a great option for investors with a high tolerance for risk. The broker currently has a speculative buy rating and 80 cents price target on the ASX stock. Based on its current share price of 43.5 cents, this implies a potential upside of almost 85% for investors over the next 12 months.

Commenting on a recent Soft Tissue Sarcoma (STS) trial update, the broker said:

The strong early readout in STS further demonstrates Efti's potential across a diverse range of oncology settings. From a partnering perspective, pharma is increasingly eager to find mega-blockbuster drug candidates, and this bodes well for developers such as IMM who have a candidate in Efti with genuine 'pipeline in a product' opportunity.

Nickel Industries Ltd (ASX: NIC)

If you're not averse to investing in the mining sector, then Nickel Industries could be an ASX stock to buy according to the broker. This morning, Bell Potter has retained its buy rating with an improved price target of $1.54. This suggests a potential upside of 62% is possible from current levels. It also expects an 8%+ dividend yield this year, boosting the total return to 70%.

Bell Potter believes the nickel producer's shares are undervalued. It said:

NIC is one of the world's largest listed nickel producers and one of few that offers diversified exposure across a range of nickel products and markets. It continues to trade on undemanding valuation multiples, offers a supportive (unfranked) dividend and has demonstrated its ability to make money through the nickel price cycle. Retain Buy.

Pointsbet Holdings Ltd (ASX: PBH)

Finally, a third ASX stock that could be a buy is sports betting company PointsBet. Bell Potter has a buy rating and 63 cents price target on its shares, which implies a potential upside of 31% for investors.

The broker feels that the market is undervaluing what is left of the business following the sale of its US operations. It explains:

We note that, at the current share price, the Australian and Canadian businesses combined are being valued at approximately $126m assuming cash of around $30m after the second capital distribution. In our view this is too low given we value the Australian business alone at $150m. A value of $126m for Australia – if we assume Canada is worth nothing – equates to an EBITDA multiple of c.8x based on our FY25 forecasts (after allocating a portion of corporate overheads). But obviously we believe Canada is worth something – as well as the Banach technology – so the actual multiple being applied to Australia is <8x. We also believe PointsBet is a potential takeover target given the simplified structure.

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 PointsBet. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

A female worker in a hard hat smiles in an oil field.
Broker Notes

Buy BHP and this ASX 200 share next week

Here are a couple of shares that Bell Potter rate highly this month.

Read more »

A young man sits at his desk working on his laptop with a big smile on his face due to his ASX shares going up and in particular the Computershare share price
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Broker Notes

Why did this $1 billion ASX 300 stock just crash 10%?

This stock isn't having a good finish to the week. What's going on?

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Blue Chip Shares

Is it too late to buy this $33 billion ASX 200 stock?

Do analysts think this popular stock can deliver good returns for investors? Let's find out.

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Broker Notes

5 ASX All Ords shares upgraded to 'strong buy' consensus ratings

Brokers upgraded their ratings on these ASX All Ords stocks last month.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
Broker Notes

2 more of the best ASX 200 shares to buy in February

The broker is feeling very bullish about these shares. Let's see what it is saying.

Read more »

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Technology Shares

2 ASX tech stocks to buy during an anticipated 15% to 20% sector pullback in 2025

Expert reveals 2 of his favourite tech stocks and at what prices we should buy them during a dip.

Read more »

Successful group of people applauding in a business meeting and looking very happy.
Broker Notes

Bell Potter names the best ASX 200 shares to buy in February

The broker believes these shares could generate big returns for investors.

Read more »