3 high-quality ASX shares tipped to generate strong returns

Analysts think investors should be checking out these top stocks before it's too late.

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Do you have room in your portfolio for some new ASX shares? If you do, then it could be worth checking out the three listed below.

They have all been named as buys and tipped to generate strong returns over the next 12 months. Here's what you need to know:

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Lovisa Holdings Limited (ASX: LOV)

The first ASX share that could be a buy is fashion jewellery retailer Lovisa.

Morgans is feeling very positive about the company's outlook and sees it as a great long-term pick due to its global expansion plans.

In fact, the broker has previously suggested that "LOV may just prove to be one of the biggest success stories in Australian retail. LOV is showing every sign of becoming a global brand."

Morgans has an add rating and $35.00 price target on its shares. This implies potential upside of 9% for investors from current levels. It also expects a ~2.6% dividend yield to sweeten the deal further.

NextDC Ltd (ASX: NXT)

Another ASX share that could deliver big returns for investors is NextDC. It provides colocation services to local and international organisations from its growing collection of world-class Tier III and Tier IV data centre facilities across Australia and the Asia-Pacific.

It has been growing at a rapid rate for many years thanks to the insatiable demand for data centre capacity due to the shift to the cloud. The good news is that the artificial intelligence boom is expected drive a third wave of demand. This bodes well for NextDC's growth over the next decade.

Morgan Stanley is a big fan of the company. It believes the data centre market will more than double in size by the end of the decade.

As a result, earlier this month it put an overweight rating and $20.00 price target on its shares. This suggests potential upside of almost 14% for investors.

WiseTech Global Ltd (ASX: WTC)

Finally, the team at UBS believes that WiseTech Global could be an ASX share to buy.

It is the logistics solutions company behind the CargoWise One platform. This platform is integral to the global logistics industry and used by all the big players.

In fact, strong demand for the platform from industry giants means WiseTech has been growing at a very strong rate in recent years. The good news is that UBS believes this strong form can continue.

Earlier this month, the broker put a buy rating and $112.00 price target on WiseTech Global's shares. This implies potential upside of 14% for investors over the next 12 months.

Motley Fool contributor James Mickleboro has positions in Lovisa and Nextdc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Lovisa. 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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