These ASX shares could rise 25% to 50%

Big returns could be on offer from these shares according to analysts.

| More on:
A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price

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

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.

Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Idp Education. 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 woman jumps for joy with a rocket drawn on the wall behind her.
Broker Notes

This speculative ASX stock could almost double in value

Bell Potter thinks investors could almost double their money with this high risk option.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

This ASX 200 stock's 'compelling valuation' makes it a strong buy

Goldman Sachs thinks a 50% return could be on the cards for investors.

Read more »

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX shares could rise 25% to ~50%

Big returns could await buyers of these shares according to analysts.

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
Broker Notes

Brokers name 3 ASX shares to buy now

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

Read more »

rising asx share price represented by man with arms raised against blackboard featuring images of dollar notes
Broker Notes

Why these 3 ASX 200 shares just earned substantial broker upgrades

Top brokers just increased their share price forecasts for these three ASX 200 shares. But why?

Read more »

Two smiling men in high visibility vests and yellow hardhats stand side by side with a large mound of earth and mining equipment behind them smiling as the Carnaby Resources share price rises today
Broker Notes

See why this broker just upgraded South32 shares to a buy

Commodity prices continue to create tailwinds for ASX stocks.

Read more »

Keyboard button with the word sell on it.
Broker Notes

Sell these ASX 200 stocks now: Goldman Sachs

The broker is warning investors that these stocks could tumble from current levels.

Read more »