Are you wanting some big returns for your investment portfolio? If you are, then read on.
That's because the ASX shares in this article have been recommended as buys and tipped to rise at least 20% from current levels. Here's what brokers are bullish on right now:
Adairs Ltd (ASX: ADH)
The team at Morgans is sticking with this furniture and homewares retailer after the release of a disappointing trading update which revealed that its earnings will be comfortably short of expectations. It explains:
ADH has provided a trading update for FY25, with group EBIT (pre-AASB 16) expected to be between $53.5-57.0m, which was roughly 10% lower than consensus expectations and up 1.2% on the pcp. Sales are expected to be broadly in line with expectations and up 6.2% yoy (Adairs up 9.2%, Mocka up 14.1% and Focus down 7.0%).
However, performance has been impacted by elevated levels of promotional activity and weaker AUD compared to the pcp which has impacted gross margins. We have lowered our EBIT forecast by 15%/14% in FY25 and FY26. We continue to see this business significantly leveraged into a recovery in consumer sentiment.
Morgans has put a buy rating and $2.60 price target on its shares. Based on its current share price of $2.00, this implies potential upside of 30% for investors over the next 12 months.
Aurelia Metals Ltd (ASX: AMI)
Analysts at Macquarie think this gold and copper miner's shares are undervalued following recent weakness. The broker said:
While AMI can be applauded for providing a detailed level of disclosure, perhaps the market has penalised it for its transparency. Although positive FCF generation has been deferred to FY28 due to organic investments, its strong balance sheet (A$107m cash) differentiates it to peers.
Macquarie has an outperform rating and 25 cents price target on its shares. Based on its current share price of 20 cents, this suggests that upside of 25% is possible between now and this time next year.
Resimac Group Ltd (ASX: RMC)
Bell Potter is bullish on this non-bank lender and believes it could be an ASX share to buy now.
Following a change of CEO and the announcement of a special dividend, the broker feels that Resimac is going places. It said:
The buy case remains. RMC has a small but strong position in the mortgage market and a developing position in novated leases, both of which give it scope to grow profitably. After a period of stiff competition and change of leadership, the company has renewed team and strategy with a revised agenda to grow. We review our assumptions and include the $1.5bn auto book.
Bell Potter has a buy rating and $1.00 price target on its shares. Based on its current share price of 83 cents, this implies potential upside of 20.5% for investors over the next 12 months.
