Are you on the lookout for ASX shares with the potential to rise strongly over the next 12 months and generate big returns for your portfolio? If you are, then read on.
That's because the two ASX shares in this article have been named as buys by analysts and tipped to rise very strongly from current levels.
Let's see what they are saying about these shares and just how big the returns could be if you buy at current levels.
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Karoon Energy Ltd (ASX: KAR)
Morgans thinks that this ASX energy share could be undervalued by the market.
The broker currently has an add rating and $2.80 price target on its shares. This suggests that its shares could rise by a massive 66% over the next 12 months.
Its analysts think investors should be investing due to Karoon Energy's growth plans and the potential for rising oil prices. It said:
Unique as a reasonable scale pure conventional oil producer, benefitting directly from rising oil prices. Karoon has significant net cash and is fully funded through a doubling of production over the next 12 months. There are also potential catalysts just around the corner with Karoon flagging at its recent result that it plans to shortly update the market with more detail on its growth plans, Bauna's outlook, and its ESG approach.
Universal Store Holdings Ltd (ASX: UNI)
The team at Bell Potter sees significant value in this ASX youth fashion retailer's shares. The broker currently a buy rating and $6.15 price target on them. This implies potential upside of almost 23% for investors over the next 12 months. In addition, it is forecasting a fully franked 6%+ dividend yield from its shares in FY 2025.
Bell Potter likes the company due to its positive growth outlook, which is being underpinned by its store rollout and private label sales. It commented:
Management execution remains a key strength for UNI and we see good growth trajectory for the name given the building of core brands while growing its store rollout. In our view, the higher margin sales from the majority of private label sales should become a major driver of margin improvement and earnings growth, in an expanded store footprint. While we remain cautious on the overall consumer sentiment, given the return to positive comps while cycling elevated pcp through Jan-Feb, we think UNI is well placed as comps become supportive through the 2H.
