It's been a rough stretch for some of the most talked-about ASX shares. But here's the twist: while share prices have slid or stalled, broker optimism hasn't. In fact, it's surging.
Three ASX shares stand out right now: Mesoblast Ltd (ASX: MSB), Telix Pharmaceuticals Ltd (ASX: TLX), and Zip Co Ltd (ASX: ZIP). All three have had turbulent months. Yet analysts see massive upside, in some cases, more than a double from here.
Let's break them down.
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Mesoblast: Largely pre-profit
This ASX share has had a shaky start to the year, with the share price down about 25%. That's nothing new for this high-risk biotech stock. Volatility comes with the territory.
Strengths? Mesoblast is targeting major unmet medical needs with its stem cell therapies. Regulatory progress and clinical milestones can be powerful catalysts. When sentiment turns, it can turn fast.
Weaknesses? It's still largely pre-profit and heavily dependent on approvals. Delays or setbacks can hit the share price hard. Funding risk also lingers.
Analyst outlook: This is where things get interesting. Brokers have an average price target on the ASX share of $4.23 at the time of writing. That implies around 105% upside. In other words, analysts believe a doubling is firmly on the table if execution improves.
Telix: Pipeline gaining traction
Telix is the outlier here. It's actually up about 13% this year. But zoom out and the picture changes — the ASX share is still down roughly 54% over 12 months.
Strengths? Telix is already generating revenue from its prostate cancer imaging product. It's not just a story stock. Its pipeline in therapeutic radiopharmaceuticals is also gaining traction.
Weaknesses? Growth expectations are high, and any miss can disappoint. The company also operates in a complex regulatory and manufacturing environment.
Analyst outlook: Brokers remain firmly bullish. The average price target sits at $23.97, suggesting 88% upside. Even more striking, the most bullish target is $31.59 — a potential 148% gain. That's serious conviction.
Zip: Cutting costs, improving margins
Zip has had the toughest run of the three. The buy now, pay later ASX share is down around 55% this year. Investor sentiment has been fragile.
Strengths? The company has been aggressively cutting costs and focusing on profitability. Its US business is showing resilience, and margins are improving.
Weaknesses? It's still exposed to consumer spending cycles and credit risk. Competition in the BNPL space remains fierce. Market trust also needs rebuilding.
Analyst outlook: Despite all that, brokers are highly optimistic. The average price target is $4.21. That's about 191% upside — nearly triple its current share price. Few ASX shares carry that kind of implied return.
Foolish Takeaway
These three ASX shares aren't for the faint-hearted. Each carries risk. Each has burned investors recently.
But here's the bottom line: brokers see significant mispricing. If even part of the bullish thesis plays out, the upside could be substantial.
For investors willing to stomach volatility, the ASX growth stocks could be worth a closer look.
