Looking for big returns? Then look no further!
That's because the ASX shares listed below have been named as buys and tipped to rise 25% to 55% from current levels. Here's why analysts are bullish on them:
Domino's Pizza Enterprises Ltd (ASX: DMP)
Goldman Sachs thinks this beaten down pizza chain operator's shares are great value at current levels. The broker has a buy rating and $40.00 price target on them. This implies potential upside of 26% for investors over the next 12 months.
Commenting on its buy rating, the broker said:
We believe that DMP's renewed focus on store unit economics and re-investment to ignite topline growth is rightly placed. While there is still significant progress to be made, we believe that earnings has troughed in FY24 and see a path of improvement through FY25.
Iluka Resources Limited (ASX: ILU)
Another ASX share that Goldman Sachs believes is cheap at current levels is mineral sands producer Iluka. Last week, its analysts put a buy rating and $9.00 price target on its shares. Based on its current share price of $5.82, this suggests that upside of 55% is possible for investors.
The broker highlights its strong free cash flow generation and exposure to rare earths. It said:
Compelling Mineral Sands FCF and Rare Earth growth potential: ILU is trading on a FCF yield of 17%/14% in 25/26 without the RE refinery capex. We are positive on ILU's project pipeline and forecast >20% production growth in mineral sands volumes, ~18ktpa of Rare Earths (~4ktpa of high value NdPr) over the next 5yrs. We think ILU's Eneabba RE refinery is a strategic asset considering it will be only the third significant western world RE refinery.
Treasury Wine Estates Ltd (ASX: TWE)
Finally, the team at Morgans is tipping wine giant Treasury Wine as an ASX share to buy. Its analysts currently have an add rating and $14.80 price target on its shares. This implies potential upside of 25% for investors from current levels.
Morgans believes the company's pivot to luxury wine is paying off and believes it is well-placed to grow at a strong rate through to FY 2027. It said:
TWE's FY24 result held few surprises given the company's recent trading updates. Pleasingly, its two Luxury portfolios and cashflow all slightly beat guidance. The much smaller and low margin Treasury Premium Brands (TPB) disappointed. Importantly, its targets for both of its Luxury wine businesses over the next few years were reiterated, and if delivered, will underpin double digit earnings growth out to FY27. While not without risk given macro headwinds, TWE's trading multiples look attractive to us. and we maintain an Add recommendation.
