Macquarie has identified four S&P/ASX All Ords Index (ASX: XJO) shares for exceptional capital growth over the next 12 months.
Let's take a look.
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CSL Ltd (ASX: CSL)
Despite its share price plunge last month, Macquarie remains very positive on CSL.
CSL shares cratered after the company's FY25 report revealed a 17% increase in net profit to US$3 billion.
After CSL's FY25 report, Macquarie retained its outperform rating with a 12-month price target of $295.90.
That suggests about 40% upside over the next year.
The broker said:
Despite downgrades to earnings, we view [the results day] price movement as an overreaction.
Incorporating more conservative FY26 forecasts compared to guidance, we see the current valuation as undemanding (trading at P/E ~20x with ~10% EPS growth).
The broker says the ASX All Ords healthcare share is now trading on a forward price-to-earnings (P/E) ratio of 19.1x.
This is not only below the current market average P/E but also 2.3 standard deviations lower than the long-run norm for CSL shares.
Polynovo Ltd (ASX: PNV)
The broker also likes Polynovo shares with a price target of $2 following the biotech's FY25 results.
While that's a reduction from the previous target of $2.45, it's still about 40% higher than where the ASX All Ords healthcare share is now.
In a post-report note, Macquarie gave Polynovo shares an outperform rating.
The broker said it saw "several near-term positive catalysts for PolyNovo, with a significant longer-term opportunity in additional indications."
Macquarie added:
In the near term, we expect ongoing strong order growth, MTX acceleration and new markets to support sales growth, while in medium term, we expect several new product filings and new market entries.
GQG Partners Inc (ASX: GQG)
The broker has a $2.63 price target on GQG Partners shares following the asset manager's 1H FY25 results.
This indicates an exciting potential near-50% capital gain over the next 12 months.
After last month's report, Macquarie maintained its outperform rating on this ASX All Ords financial share.
Analyst Elizabeth Miliatis said potential inclusion in the ASX 300 or ASX 200 at the next rebalance would be a catalyst for the stock.
Miliatis said:
While relative performance has deteriorated from Dec-24, with funds positioned defensively … GQG has successfully turned periods of underperformance around previously (eg., CY21 and CY23).
Notably, our analysis also suggests GQG's net flows are historically not correlated with fund performance, implying flows are a function of GQG's strong distribution footprint and reputation, and giving us comfort that recent outflows are a short-term headwind.
Temple & Webster Group Ltd (ASX: TPW)
Macquarie has an outperform rating on this ASX All Ords retail share.
The broker put a price target of $31.30 on Temple & Webster shares after the online retailer's FY25 report.
This implies about 40% capital growth potential over the next 12 months.
Macquarie analyst James Wilson commented:
We maintain our Outperform rating — seeing momentum from accelerating sales and earnings growth (greater active customers, greater conversion, increased revenue per customer, further operating leverage, and an onmarket buyback).
