The share market has historically delivered investors a return of 10% per annum.
While this is a great return, there are some ASX shares that have been tipped to rise significantly more than this over the next 12 months.
Let's take a look at three ASX shares that analysts believe have market-beating potential:
Arcadium Lithium (ASX: LTM)
If you're looking for exposure to the beaten down lithium industry then it could be worth checking out Arcadium Lithium.
That's the view of analysts at Bell Potter, which see significant value in the lithium giant's shares at current levels. It said:
LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. The group has a strong balance sheet and growth portfolio.
Bell Potter has a buy rating and $9.50 price target on the ASX share. This implies potential upside of almost 50% for investors from current levels.
IDP Education Ltd (ASX: IEL)
Goldman Sachs is sticking with this language testing and student placement company after a disappointing trading update last week.
While it expects another tough year in FY 2025, it believes IDP Education's growth will resume the following year. In light of this, it thinks that now could be the time for patient investors to load up. It said:
IEL remains well placed to capitalise as conditions normalise into FY26E, with IEL selectively investing for growth while SP competitors come under significant pressure. In our view the regulatory headwinds are cyclical, while structural SP growth can resume off the FY25E baseline.
Goldman has a buy rating and $21.75 price target on its shares. This suggests that upside of 42% is possible for investors over the next 12 months.
Universal Store Holdings Ltd (ASX: UNI)
A third ASX share that could be destined to deliver big returns is youth fashion retailer Universal Store.
Morgans is a big fan of the company and believes it has a very positive long term growth outlook. It said:
Our positive view about the fundamental long-term appeal of Universal Store as a retail proposition and investment opportunity is undiminished. The growth opportunities are in place. Universal Store's women's banner Perfect Stranger is performing well, justifying an acceleration in its network expansion; the prospect of building out the wholesale distribution channels acquired with CTC is compelling; and customers continue to respond well to the Universal Store banner, rendering its plan to grow this network to more than 100 stores more than reasonable.
Morgans has an add rating and $6.50 price target on its shares. This implies potential upside of 27% for investors between now and this time next year.
