The market may be near a record high but that doesn't mean there aren't ASX shares out there with the potential to generate big returns.
Let's take a look at three ASX shares that could rise 17% to 25% according to analysts. They are as follows:
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Endeavour Group Ltd (ASX: EDV)
Analysts at Goldman Sachs think that this drinks giant is seriously undervalued by the market at present.
The broker highlights that the BWS and Dan Murphy's owner is one of the most attractively priced stocks in the consumer sector. It said:
EDV is currently trading at FY25 P/E of 18x vs FY24-27e EPS CAGR of 6%, while the implied EV/EBIT on Hotels is 3.6x (assuming Retail EV/EBIT of 15x), attractive amongst our Consumer coverage.
Goldman has a buy rating and $6.20 price target on its shares. This implies potential upside of 26% for investors from current levels. In addition, a dividend yield of 4.5% is expected by the broker.
Life360 Inc (ASX: 360)
The team at Bell Potter continues to believe that this high-flying ASX tech share can keep rising.
It is bullish on the location technology company and believes it is destined to deliver strong top line growth for at least the next three years. It said:
We continue to forecast strong top line revenue growth in 2024, 2025 and 2026 of 22%, 20% and 17% and positive statutory EBITDA and NPAT in 2025 and beyond.
Last week, Bell Potter put a buy rating and $22.50 price target on Life360's shares. This suggests that they could rise 17.5% over the next 12 months.
Qualitas Ltd (ASX: QAL)
Morgans thinks that this alternative real estate investment manager could be a top ASX share to buy.
It was pleased with its performance in FY 2024 and is positive on its outlook. In respect to the latter, the broker said:
FY25 guidance for NPBT of $49-$55m reflects growth of c.26% to 41% (vs pcp), with base management fees and balance sheet co-investments to deliver the bulk of the growth. Management commented that its current cash balance should be sufficient to see it reach the aspirational target of $18bn FUM by FY28. Deployments should continue to grow, albeit at a slower pace, with the proportion of net to gross loans likely to remain similar. […] QAL is well-positioned to increase market share in debt funding for affordable multi-unit metro developments.
Morgans has an add rating and $3.20 price target on its shares. This implies potential upside of 25% for investors from current levels.
