Certain ASX shares could deliver great returns from here, according to experts, and those analysts have outlined how undervalued they believe these stocks could be.
A price target tells investors how much they think a share price could rise over the next 12 months from the time of the investment rating.
Of course, a promising price target does not guarantee positive returns in the year ahead, but it does suggest the stock is worth a closer look. Below are two of the fast-growing ideas to consider.
Image source: Getty Images
Life360 Inc (ASX: 360)
Life360 describes itself as a family connection and safety company that "keeps people close to the ones they love". The services include location sharing, safe driver reports, and crash detection with emergency dispatch.
Its offering is clearly resonating, with the fourth quarter of 2025 showing strong ongoing growth for the business.
Fourth quarter revenue grew by 26% to $146 million, with US paying circles growing 23% to 2 million and international paying circles soaring 32% to 0.8 million. Additionally, the average revenue per paying circle rose 6% to $139.54.
The business demonstrated operating leverage with adjusted operating profit (EBITDA) rising 53% to $21.2 million and operating cash flow surging 199% to $36.8 million. Rising profit margins are exactly what I like to see from a growing business.
According to CMC Invest, there have been seven analysts who have recently rated the ASX share as a buy, with an average price target of $32.79, implying a possible rise of 51% over the next year.
Bubs Australia Ltd (ASX: BUB)
Bubs is best known as a goat infant formula business. Its products are sold across Australia in supermarkets and pharmacies. Products are also exported to markets in China, Southeast Asia, the Middle East, and the US.
It has had a volatile journey over the years, but it continues to grow in size, and it's expecting its operating profit (EBITDA) to be positive for FY26.
In the FY26 half-year result, the business reported group revenue of $55.5 million, representing a year-over-year increase of 14.4%. EBITDA increased by $3.9 million to $4.4 million.
Both the revenue and EBITDA benefited from strong demand in the US, according to Bubs. US revenue surged 48% (or $34.2 million) year over year.
In response to that strong half, management decided to upgrade its revenue guidance to between $120 million and $125 million. If revenue continues to grow globally, I believe the scale benefits should assist the company's margins in the future.
According to CMC Invest, there have been three recent buy ratings on the ASX share, with an average price target of 17 cents, suggesting a possible 66% rise from where it is at the time of writing.
