Market selloffs can be painful. But they also create opportunities.
For example, here are three ASX shares that have pulled back 25% or more and could be positioned for a strong rebound according to analysts. Here's what they are recommending to their clients:
Image source: Getty Images
Lovisa Holdings Ltd (ASX: LOV)
The first ASX share that could roar back is Lovisa. The fashion jewellery retailer's shares are down more than 45% from their 52-week high, with consumer weakness weighing on sentiment. Comparable store sales growth has slowed, and investors have become cautious toward discretionary retail.
However, the bigger picture remains compelling. Lovisa continues to expand aggressively across Europe and the Americas, growing its global store footprint at pace. It now operates in more than 50 markets and still sees significant room for further expansion.
Importantly, its gross margins remain exceptionally strong for a retailer, and the business continues to generate solid cash flow. When consumer confidence eventually improves, Lovisa's scalable model could translate into accelerated earnings growth once again.
Morgans recently put a buy rating and $36.80 price target on its shares. This implies potential upside of over 55% for investors.
NextDC Ltd (ASX: NXT)
Another ASX share that has been caught in the recent market weakness is NextDC.
The data centre operator has seen its share price slide over 25% amid concerns about rising interest rates, capital intensity, and broader tech volatility.
Yet the structural drivers behind the business remain intact. Cloud adoption, artificial intelligence (AI) workloads, and enterprise digital transformation all require secure, high-performance data centre infrastructure. NextDC continues to expand its network across Australia and has a significant development pipeline.
In response to its half-year results last month, UBS put a buy rating and $22.55 price target on its shares. This suggests almost 70% upside is possible from current levels.
WiseTech Global Ltd (ASX: WTC)
A final ASX share that could stage a comeback is WiseTech Global.
WiseTech shares have fallen over 60% from their highs, weighed down by a combination of AI disruption concerns and company-specific issues. That has led to a significant reset in valuation.
However, WiseTech remains a global leader in logistics software through its CargoWise platform. International trade is complex and highly regulated, creating high switching costs for customers once systems are embedded.
The company continues to invest in product development and integration of acquisitions, which could support stronger earnings growth over the medium term. If growth reaccelerates and confidence stabilises, today's discounted share price may look like an overreaction in hindsight.
Morgans sees significant value in WiseTech's shares at current levels. Last month, it put a buy rating and $83.80 price target on its shares. This implies potential upside of 85% over the next 12 months.
