Some ASX shares could have the potential to deliver significant returns according to analysts.
Brokers are always on the lookout for opportunities that could be substantially undervalued.
We're going to look at two businesses that could be among the most compelling ideas right now, if analysts end up being right. But, price targets are not guarantees that positive returns will become reality.
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Siteminder Ltd (ASX: SDR)
This ASX tech share provides software to hotels to help them operate and generate revenue.
Siteminder has generated significant revenue growth in the last few years and it continues to do so. Analysts have put exciting price targets on the business, which suggest it could deliver great returns in the year ahead.
According to CMC Invest, of 11 recent analyst ratings, the average price target is $5.99, implying a possible rise of 111% from the current level, at the time of writing.
The company is rolling out its smart platform to subscribers, who may see a significant rise in revenue and efficiencies if they sign up for certain tools, while Siteminder gains significantly more revenue.
In the FY26 half-year result, Siteminder said channels plus grew to around 7,000 hotels, with ongoing progress in inventory optimisation and expanding distribution use cases. Dynamic revenue plus saw accelerating adoption, with over 20,000 rooms now under management, while the smart distribution program "broadened its impact across distribution partners".
On top of all of the above, along with its normal organic client wins, it saw annualised recurring revenue (ARR) grow 29.7% to $280.3 million.
The business is also seeing rising profit margins, which bodes very well for the future, in my view.
Xero Ltd (ASX: XRO)
Another ASX share I'll highlight is Xero, an accounting software and business operations company.
It recently announced its FY26 half-year result, which included a 27% decline of net profit partly due to Melio acquisition costs.
Other metrics were positive, including 31% operating revenue growth, 37% annualised monthly recurring revenue (AMRR) growth and 24% growth of operating profit (EBITDA).
The ASX share is investing heavily in AI features for subscribers, which could be key for maintaining and winning additional customers to its subscriber base.
While it may take some time for Melio to be embedded into the business, it could be essential if Xero is to succeed in the US.
According to CMC Invest, there have been nine recent ratings on the business, with an average price target of $124.52. That implies a possible rise of around 60% within the next year, at the time of writing.
