2 ASX shares tipped to grow 90% or more in the next 12 months

Share prices are changing all the time, giving investors the chance to deliver pleasing returns if they can buy the right ASX share at the right time.

Analysts like to pick out opportunities that seem like they could outperform. A price target tells us where analysts think the share price could go over the next 12 months.

A price target isn’t a guaranteed return of course, but it’s interesting to see how bullish some analysts are. Let’s take a look at two ASX shares that are predicted to generate very large returns.

Myer Holdings Ltd (ASX: MYR)

Myer is one of Australia’s main department store businesses, with 56 locations. It also has a number of apparel brands including Just Jeans, Jay Jays, Portmans, Dotti, Jacqui E, sass & bide, Marcs, and David Lawrence.

According to CMC Invest, the average price target of three analysts over the last three months is 49 cents, which suggests a possible rise of 92% in the next three months.

The Myer share price was trading above 50 cents less than a year ago, but updates from the business have not been strong enough to give the market confidence to keep the valuation at that level amid rising interest rates.

The most recent update from the company was the FY26 first-half result. Excluding the artificial financial benefit of acquiring the apparel brands from Premier Investments Ltd (ASX: PMV), which Myer called its pro forma figures, total sales only grew by 2.1% and operating gross profit was flat.

Underlying pro forma operating profit (EBIT) declined 17.2% because of “investment in strategic initiatives”, while pro forma net profit declined by 17.3%.

With profit going backwards, you can see why investors became more pessimistic.

But, the business is working on a number of initiatives to boost earnings, including improving its loyalty program, integrating the acquired apparel brands and “resetting” its fashion and beauty offerings.

According to the projection on CMC Invest, the Myer share price is valued at just 7x FY26’s estimated earnings with a possible grossed-up dividend yield of 11%, including franking credits, at the time of writing.

Aeris Resources Ltd (ASX: AIS)

The other ASX share with a very promising outlook for returns, according to analysts, is Aeris Resources. It describes itself as a mid-tier base and precious metals producer. Its copper-focused portfolio includes three operating assets, as well as an exploration portfolio.

According to CMC Invest, there have been five analyst ratings on the business within the last three months. The average price target is 75 cents, which implies a possible rise of 100% over the next year.

The company’s exposure to copper (and gold) is compelling because of the expected long-term demand growth of copper with global electrification and other tailwinds.

Using the projections on CMC Invest, the business is forecast to generate earnings per share (EPS) of 12.7 cents in FY26 and 19 cents in FY27. That means it’s valued at around 3x FY26’s estimated earnings and 2x FY27’s estimated earnings.

The post 2 ASX shares tipped to grow 90% or more in the next 12 months appeared first on The Motley Fool Australia.

More reading

• Why Aeris Resources, Northern Star, REA Group, and Weebit Nano shares are falling today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Myer and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.