The market may be close to a record high, but that doesn't mean there aren't big potential returns out there for investors.
For example, listed below is one ASX All Ords stock that Macquarie Group Ltd (ASX: MQG) believes could deliver big returns over the next 12 months.
Which ASX All Ords stock?
The stock that is getting a big thumbs up from Macquarie is Propel Funeral Partners Ltd (ASX: PFP).
As you might have guessed from its name, it is a funerals company that owns and operates funeral homes, cemeteries, and crematoria.
Macquarie was pleased with the company's "solid" performance in FY 2025 and its strong start to the new financial year. In respect to its results, the broker highlights that the ASX All Ords stock outperformed its guidance. It said:
FY25 result slightly ahead of guidance. Revenue of $226m beat guidance for $220-225m, with UEBITDA of $56.2m also ahead of $54-56m guidance. Given industry volume contracted ~3% in 2H25, this was a solid result.
Looking to FY 2026, the broker highlights that Propel had a record month in July. And while no guidance has been given for the year ahead, Macquarie is feeling confident. Especially given the prospect of earnings accretive acquisitions. It adds:
FY26 off to a good start. Jul'25 revenue was a record month, exceeding $21.5m. This reflected 1) seasonally stronger funeral volume; 2) ARPF growth of +2.7% YoY; and 3) contributions from acquisitions. PFP has not provided quantitative FY26 guidance, however we expect 1) organic death volume should return to ABS/StatsNZ forecast trends (+2-3% pa); and 2) ARPF growth should be broadly in line with inflation (+2-4% pa). Upside likely exists to our forecasts from potential acquisitions.
Time to buy
According to the note, Macquarie has retained its outperform rating on the ASX All Ords stock with an improved price target of $5.80 (from $5.66).
Based on its current share price of $5.05, this implies potential upside of 15% for investors over the next 12 months.
But the returns won't stop there. The broker expects dividend yields of 2.8% in FY 2026 and then 3.1% in FY 2027. This boosts the total potential 12-month return to approximately 18%.
Commenting on its recommendation, Macquarie said:
Retain outperform. Long-term fundamentals remain attractive, with M&A continuing to represent material earnings upside.
Valuation: TP +2.5% to $5.80 ($5.66 prior) as minor earnings cuts offset by 1) val roll fwd; and 2) moving to the mid-point of our 14-16x NTM EV/ EBITDA range. We value PFP on a 50:50 blended DCF and 16x NTM EV/ EBITDA multiple.
