After a tough 2025, many investors are still licking their wounds. Several former market darlings suffered sharp selloffs as AI bubble concerns and company-specific issues weighed heavily on sentiment.
But history shows that some of the strongest rebounds often come from high-quality businesses that fall too far, too fast.
The good news is that analysts are now pointing to substantial upside for several beaten-down names.
For example, here are three ASX stocks that could potentially double in 2026 if everything goes to plan.
Image source: Getty Images
Telix Pharmaceuticals Ltd (ASX: TLX)
Telix Pharmaceuticals shares were sold off in 2025 and are down 55% over the past 12 months. Investors were hitting the sell button after reassessing development timelines and regulatory risks in response to the US Food & Drugs Administration not approving the new drug application for Pixclara. This followed the rejection of Zircaix in the previous year.
While this is disappointing, it is worth remembering that its prostate cancer imaging product is already generating revenue, and its pipeline spans multiple high-value oncology indications. In addition, Bell Potter is confident that the long-awaited regulatory approval for Zircaix is coming in 2026, which could be a game-changer for this ASX stock.
It is for this reason that Bell Potter has a buy rating and $23.00 price target on Telix shares. This implies potential upside of around 110% from current levels.
WiseTech Global Ltd (ASX: WTC)
WiseTech Global was one of the hardest-hit ASX stocks in 2025. Concerns around the behaviour of its founder, acquisitions, and a new business model change combined to trigger a dramatic sell-off.
However, the underlying business remains highly attractive. CargoWise is deeply embedded in global freight forwarding operations, creating sticky recurring revenue and high switching costs. As global trade normalises and digital transformation continues across logistics, WiseTech remains well placed to benefit.
Morgan Stanley appears to believe the market has gone too far. It currently has an overweight rating and $130.00 price target on WiseTech shares. This suggests that upside of approximately 100% is possible between now and this time next year.
Xero Ltd (ASX: XRO)
Finally, Xero shares sank in 2025 as investors questioned management's decision to make a huge acquisition and became concerned over the threat of AI on software stocks. That derating has been painful, but it has also reset expectations.
Despite the share price weakness, Xero's long-term story remains compelling. The company continues to grow its subscriber base globally, monetise its ecosystem more effectively, and expand average revenue per user.
Small and medium-sized businesses remain under-penetrated globally when it comes to cloud accounting, giving Xero a long runway for growth.
Macquarie clearly sees a disconnect between price and potential. The broker has an outperform rating and $230.30 price target on Xero shares. This implies potential upside of around 115% over the next 12 months.
