I'm always on the lookout for ASX shares that could deliver big returns. Recently, analysts have highlighted some that could be significantly undervalued.
The ultra-long-term return of the ASX share market has been approximately 10% per year, so anything capable of outperforming that benchmark could be very attractive.
Brokers have highlighted two businesses that released promising updates this year, and could therefore could deliver significant returns in the year ahead. Let's look at those ideas.
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Megaport Ltd (ASX: MP1)
Megaport said it's changing how businesses manage their infrastructure, with one smart and simple platform. The company says it brings "network and compute together seamlessly and deploy[s] secure, scalable infrastructure closer to users, data and clouds."
It noted that it's trusted by leading companies across the world, partnering with service providers, data centres and system integrators.
The ASX share continues to win sizeable contracts – it recently announced a major new customer contract for compute and storage. That customer signed a 36-month contract with a total value of approximately US$25.1 million, or A$35.4 million. That adds US$8.4 million (A$11.8 million) in annualised recuring revenue (ARR).
The company said that its subsidiary Latitude.sh is in an ideal position as a critical infrastructure platform to continues to capture the "unprecedented AI-driven demand for CPU, GPU and storage."
Megaport's network ARR continues to grow strongly, with the figure reaching A$272 million as at 31 March 2026, representing 23% year-over-year growth on a constant currency basis. Excluding India, network ARR increased 20% on a constant currency basis.
According to CMC Invest, there have been nine recent analyst ratings on the business, with eight of those being a buy and one being a hold. The average price target of those ratings is $15.39, implying a possible rise of around 70% from where it is, at the time of writing.
Austal Ltd (ASX: ASB)
Austal is another ASX share that experts have tipped to deliver potentially large returns.
It's a global shipbuilder and defence contractor that designs, constructs and maintains some of the world's most advanced commercial and defence vessels. The business is Australia's largest defence exporter.
Austal has shipyards in Australia, the USA, the Philippines and Vietnam, with service centres across the world.
Some of its major clients include the US Department of Defense, the US Coast Guard, the Australian Department of Defence and the Australian Department of Home Affairs.
Its FY26 half-year result was impressive, with revenue growth of 34% to $1.1 billion operating profit (EBIT) growth of 41% to $60.4 million and net profit after tax (NPAT) growth of 21% to $30.5 million.
There are a number of positives for the business, including its Australian order book being at record levels, providing "years of growth". Additionally, it's expanding its Alabama shipyard which will help its US earnings and capabilities.
Its HY26 order book reached $17.7 billion, suggesting plenty of future revenue and earnings are locked in.
According to CMC Invest, of three recent ratings on the business, the average price target is $6.94. That implies a possible rise of around 65% from where it is, at the time of writing.
