If you are looking for outsized returns for your investment portfolio, then read on!
That's because the team at Morgans has recently named a couple of ASX shares as buys with the potential to rise by 30% or more between now and this time next year.
Let's see what the broker is recommending to clients and why it is feeling upbeat on these names this month. Here's what you need to know about them:
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Nanosonics Ltd (ASX: NAN)
Morgans thinks that this infection prevention company's shares are being undervalued by the market.
After reviewing its guidance for FY 2026 and taking into account tariff impacts, the broker has retained its buy rating on the ASX share with a trimmed price target of $5.00. Based on its current share price of $3.84, this implies potential upside of 30% for investors over the next 12 months. It commented:
We have updated our forecasts following a deeper review of guidance provided and management commentary, particularly around tariff impacts and CORIS commercialisation timing. While near-term earnings are trimmed, these changes are immaterial to the long-term investment thesis, which remains anchored by recurring revenue growth, installed base expansion, and CORIS' medium-term potential. Our valuation and target price moderates to A$5.00 (from A$5.50) and we retain our BUY recommendation.
Readytech Holdings Ltd (ASX: RDY)
Another ASX share that could offer major upside potential according to Morgans is mission critical software provider Readytech.
Although its performance has underwhelmed this year and its earnings estimates have been trimmed, the broker remains positive on its future.
As a result, it has put a buy rating and $3.00 price target on its shares. Based on its current share price of $2.19, this suggests that a return of 37% is possible between now and this time next year. Morgans commented:
RDY's FY25 result was softer than consensus expectations, however Underlying NPATA of $17.3m was broadly in line with MorgF. FY26/27 guidance was downgraded, and implies a gradual step-up in run-rate as NRR improves (off a challenging FY25) through cloud migration in local government and delivering on its Enterprise wins/pipeline. Whilst we downgrade our EBITDA forecasts by -12.5% in FY26-FY27F reflecting revised guidance, we see the buildup into FY26 as being manageable. Our target price is reduced to $3.00/sh (prev. $3.45/sh), and we retain our BUY rating.
