These ASX shares could rise 20% and ~40%

Analysts think buyers of these shares could generate big returns over the next 12 months.

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Are you looking for big returns for your investment portfolio?

Of course you are! Who wouldn't want to grow their wealth at a rapid rate?

So, without further ado, let's take a look at three ASX shares that analysts have named as buys and are tipping to rise strongly. Here's what you need to know about them:

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans thinks that Flight Centre could be an ASX share to buy for big returns.

This is due to the benefits of its transformed business model and the travel recovery. It said:

FLT has the greatest risk, reward profile of our travel stocks under coverage. The risk is centred around execution given its changed business model, while the reward is material if FLT delivers on its 2% margin target. If achieved, this would result in material upside to consensus estimates and valuations. FLT is targeting to achieve this margin in FY25. With greater confidence in the travel recovery and the benefits of Flight Centre's transformed business model already emerging, we think the company is well placed over coming years.

Morgans has an add rating and $27.27 price target on its shares. This implies potential upside of 38% over the next 12 months.

Smartgroup Corporation Ltd (ASX: SIQ)

The team at Bell Potter is bullish on Smartgroup and sees the salary packaging company as an ASX share to buy.

It believes the company would be a good option due to its exposure to the growing electric vehicles market. It said:

SIQ provides a unique exposure to the growing demand profile for renewable fuels and vehicle electrification on the ASX. Australia will need to achieve a 50% sales share for low emission vehicles by 2035 to meet transport emission targets of 95.3 Mt CO₂-e; and we view the New Vehicle Efficiency Standard as an additional means to meet this ambition through incentivised dealer volumes. EVs currently represent around 1% of the light duty vehicle stock in Australia.

Bell Potter has a buy rating and $11.00 price target on its shares. This suggests that upside of 28% is possible from current levels.

Worley Ltd (ASX: WOR)

Analysts at Goldman Sachs think that this engineering company's shares are undervalued at current levels. Particularly given how the company remains well-placed to benefit from the energy transition. It said:

WOR is well positioned to play a role in enabling the transition from fossil fuels to a more sustainable energy mix in the LT, leveraging its experience in providing engineering and maintenance services for complex energy/chemicals works, existing client relationships, and management's stated focus on expanding the company's transition footprint.

Goldman has a buy rating and $17.50 price target on the ASX share. Based on its current share price of $14.25, this implies potential upside of 23% for investors over the next 12 months. The broker also expects a 3.7% dividend yield in FY 2024.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Smartgroup. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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