Are you looking for big returns for your investment portfolio?
If you are, then take a look at the three ASX shares listed below that have been tipped to rise materially by analysts.
Here's what you need to know about them:
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AVITA Medical Inc (ASX: AVH)
Morgans sees huge upside for this ASX share over the next 12 months. In fact, the broker believes the regenerative medicine company could more than double in value from current levels.
It was very pleased with news that the US FDA has approved its Recell Go product. It is an autologous cell harvesting device, harnessing the regenerative properties of a patient's own skin to treat burn wounds and full-thickness skin defects. It commented:
AVH has received FDA approval for its automated product, RECELL Go, for use in burns and full thickness skin defects. This approval marks a significant milestone for the company, with management expecting this device to increase adoption of the technology amongst clinicians. We have made no changes to our forecasts and recommendation.
Morgans has an add rating and $6.40 price target on its shares. This implies potential upside of 115% for investors.
Champion Iron Ltd (ASX: CIA)
Analysts at Goldman Sachs think that this miner would be a great option for investors that are looking for exposure to iron ore. The broker feels its shares are undervalued at the current level and could offer major upside potential and good dividend yields. It said:
Supportive Valuation: the stock is trading at 0.8x NAV (A$8.8/sh) and ~4.4x EBITDA (NTM). Our NAV is based on a long run Fe price of ~US$105/t (real) for 65% Fe and ~US$75/t premium for DRPF above 62% Fe Index. For every ~US$10/t increase in our long run price, our CIA NAV would increase by ~A$1.5/sh.
Goldman has a buy rating and $8.80 price target on its shares. This implies potential upside of 25% for investors. In addition, it is forecasting dividend yields of 4% in FY 2025 and 6% in FY 2026.
Eagers Automotive Ltd (ASX: APE)
Another ASX share that could offer big returns is Eagers Automative. It operates one of Australia's largest auto dealership networks.
Bell Potter thinks that the company's shares have been oversold following a disappointing trading update last month. It said:
We believe this is a relatively isolated event that doesn't materially change the outlook so our investment thesis remains intact. We believe the stock looks value on a 2025 PE ratio of c.10x and a forecast yield of c.6% in 2024 and c.7% in 2025.
Its analysts have a buy rating and $13.35 price target on its shares. This implies potential upside of 32% for investors. In addition, dividend yields of 6%+ are forecast through to FY 2026.
