It has been a challenging 12 months for some quality ASX shares. But for long-term investors, these downturns can create rare buying opportunities—especially in stocks with strong fundamentals and credible recovery plans.
Here are three quality ASX shares that have been sold off heavily but could bounce back strongly in the years ahead according to analysts.
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CSL Ltd (ASX: CSL)
The first ASX share to look at is CSL. Its shares have lost nearly a quarter of their value from their 52-week high, but this biotech giant could be gearing up for a strong recovery.
The blood plasma and vaccines leader has faced margin pressure in recent periods, but a recovery phase is underway. According to Bell Potter, CSL is trading on a 12-month forward PE of just ~22x, which is well below its 10-year average of ~31x. The broker adds:
CSL presents an attractive buying opportunity as we expect the margin recovery phase for CSL to drive above-market earnings growth over the next few years… Given the company's proven quality and growth prospects, we believe significant upside remains.
Bell Potter currently has a buy rating and $335.00 price target on the ASX share. This suggests that upside of approximately 40% is possible between now and this time next year.
Treasury Wine Estates Ltd (ASX: TWE)
Treasury Wine Estates shares have been out of favour with investors over the past 12 months. During this time, the wine giant's shares have lost a third of their value.
This has been driven by softer US sales and the ongoing impact of tariff-related uncertainty. But the worst may be over now and analysts at Morgans think it is time to buy. They said:
The downgrade [to guidance] was minor at 1.3% and better than feared […] While not without risk given industry and macro headwinds, TWE's trading multiples look far too cheap (FY25 PE of only 14.2x) and we maintain a BUY rating.
The broker has a buy rating and $11.06 price target. This implies potential upside of almost 40% for investors over the next 12 months.
Accent Group Ltd (ASX: AX1)
Another ASX share that has been hit hard is Accent Group. Its shares are down 30% over the past 12 months.
The footwear focused retailer's sales and margins have been hit by consumer spending weakness and discounting.
Nevertheless, with interest rates falling, Bell Potter believes that a turnaround is coming. It said:
We expect monetary policy catalyst led recovery into the back-end of CY25 to support FY26e performance […] With the first Sports Direct store to be opened by the end of CY25, we anticipate the unlocking of the sizable store roll-out opportunity for the banner in Australia (50-store target over 6 years), while benefiting from a higher relevance to leading brand partners such as Nike backed by FRAS.
Bell Potter has a buy rating and $2.10 price target on the ASX share. This suggests that upside of 55% is possible for investors.
