There are a lot of options for investors to choose from on the Australian share market. So many, that it can be hard to decide which ASX shares to buy above others.
But don't worry because analysts have done the hard work for you and picked out ones that they think offer decent returns.
I have then gone a step further by narrowing things down to three ASX shares that analysts think have the potential to rise more than 25% from current levels.
To put that into context, $10,000 would turn into at least $12,500 in 12 months if analysts are accurate with their recommendations for these ASX shares.
With that in mind, here's what you need to know about them:
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IDP Education Ltd (ASX: IEL)
This language testing and student placement company's shares could have been severely oversold according to analysts at Goldman Sachs.
Particularly given its belief that "IEL's structural growth outlook and business quality remain unchanged" despite some temporary headwinds.
Goldman Sachs currently has a buy rating and a $25.30 price target on the ASX share. This implies a potential upside of 60% for investors over the next 12 months.
Megaport Ltd (ASX: MP1)
Another ASX share that could offer investors major upside potential is Megaport. It is a network as a service company that offers scalable bandwidth for public and private cloud connections, metro ethernet, data centre backhaul, and internet exchange services.
Megaport has been growing at a rapid rate in recent years thanks to the cloud computing boom. The good news is that Macquarie thinks that this strong form can continue.
In light of this, the broker recently put an outperform rating on Megaport's shares with a price target of $18.30. This implies a potential upside of 36% for investors from current levels.
Webjet Limited (ASX: WEB)
Finally, the team at Morgans thinks that Webjet could be an ASX share to buy. It is an online travel booking provider and business to business (B2B) hotel technology company.
Its analysts are feeling very positive about the company's outlook and see it as a "high-quality growth stock." This is due largely to its rapidly growing WebBeds B2B business and the "significant market share still up for grabs."
Last month, Morgans put an add rating and a $11.20 price target on Webjet's shares. Based on its current share price, this suggests that upside of over 26% is possible for investors between now and this time next year.
