I love buying ASX shares that are undervalued but have a promising future ahead. Experts have named two ideas as buys that could produce strong returns from here.
We're going to look at two businesses where experts expect the share price could rise by at least 40% in the next year.
A price target tells us where analysts think the share price will be in 12 months from the time of the investment rating.
Let's dive into the exciting potential of the two stocks below.
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Centuria Capital Group (ASX: CNI)
Centuria is one of the leading property fund managers in Australia.
According to CMC Invest, there have been seven ratings on the business in the last three months, with three buy, three hold, and one sell.
The average price target of those seven ratings on Centuria Capital is $2.14. That translates into a projected rise of 44% over the next year.
The ASX share offers a wide range of strategies for clients to put their money towards, including industrial properties, office, real estate finance, large format retail, healthcare, agriculture, daily needs retail, investment bonds and data centres.
Centuria regularly wins new investment mandates, which can help attract new funds under management (FUM). For example, it recently launched the $454 million Sydney CBD Prime Office Fund.
According to the projection on CMC Invest, Centuria Capital is now valued at 11x FY26's estimated earnings. I think this could be a good time to invest while higher interest rates are a headwind on the business and the valuation.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Pinnacle is another ASX share that has significant capital growth potential, according to analysts.
The business partners with leading fund managers to help them grow. Pinnacle takes a sizeable minority stake in the fund management business and lets them focus on investing by providing behind-the-scenes services such as seed FUM and working capital, distribution and client services, compliance, finance, legal, technology, and more.
According to CMC Invest, there have been six analyst ratings on the business in the last three months, with five buys and one hold. The average price target of those six ratings is $22.39, suggesting a possible rise of 47% over the next year.
The strong investment performance of the fund managers – such as Antipodes, Coolabah, Hyperion and Spheria – is a strong tailwind for the ASX share's aggregate FUM, while also helping attract additional FUM from clients.
Excluding acquired FUM, Pinnacle has seen FUM rise at a compound annual growth rate (CAGR) of 20% over the five years to 31 December 2025.
According to the projection on CMC Invest, the Pinnacle share price is valued at less than 18x FY27's estimated earnings.
