Broker says these ASX shares can rise 25%+

Big yields and bigger gains could be coming according to the broker.

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Looking for some big returns? Then check out the two ASX shares listed below.

The team at Bell Potter is positive on them and is tipping their shares to rise over 25% from current levels. Here's what the broker is saying about these shares:

Smartgroup Corporation Ltd (ASX: SIQ)

The first ASX share to look at is Smartgroup. It is a leading fleet management and salary packaging company.

The broker highlights its undemanding valuation and sees plenty of near-term catalysts that could drive its shares higher. It explains:

We are attracted to the significant earnings leverage via novated and see the current 10.5x EV/EBITDA as less demanding. Catalysts to drive share price appreciation in the near-term include (1) Revenue uplift from tender wins in FY25e; (2) Introduction of the New Vehicle Efficiency Standard from 1 January 2025, with forthcoming PHEV models specific to the Ford Ranger and BYD Seal U; and (3) The announcement for 671 EV charging ports to be installed across 391 sites in NSW.

Bell Potter has a buy rating and $10.95 price target on its shares. This implies potential upside of 28% for investors. In addition, dividend yields of ~6% are expected through to FY 2026.

Universal Store Holdings Ltd (ASX: UNI)

Bell Potter also sees big return potential from this ASX share. Universal Store is a youth focused apparel, footwear and accessories retailer in Australia. It operates under the flagship Universal Store brand and is expanding its private label brands by growing the stand-alone formats of Perfect Stranger and Thrills.

The broker is feeling very positive about the company's growth trajectory. This is due to its store rollout plans and margin improvement opportunities. It said:

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.

Bell Potter has a buy rating and $6.15 price target on its shares. This suggests that upside of 27% is possible over the next 12 months. In addition, 5%+ dividend yields are expected in the coming years.

Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Smartgroup. 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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