4 ASX shares tipped by brokers to return 50% to 169%

ASX shares have fallen into the red in Tuesday lunchtime trade, driven by a sell-off of mining and technology shares, and higher oil and gold prices.

Here are four ASX shares that brokers expect to outperform broader indexes over the next 12 months.

Centaurus Metals Ltd (ASX: CTM)

Centaurus shares have slumped around 6% in Tuesday afternoon trade to 40 cents apiece. The shares have fallen 14% over the past months, and they’re now just over 30% lower year to date.

The ASX shares jumped 5% on Monday after the company confirmed that its offtake agreement with Glencore, announced to the ASX on 16 March 2026, remains binding and effective. In a statement to the ASX, Centaurus said that Glencore has been kept up to date on the progress of the Jaguar Project development and has now confirmed its intention to maintain the binding offtake agreement on the previously announced terms.

On the 2nd of October, Centaurus said it was at an advanced stage of negotiations and final documentation for additional offtake and strategic funding for the Jaguar Nickel Project. 

It looks like investors were thrilled with the update. It’s likely that today’s sell-off is the result of investors taking their gains off the table after a subdued year. At the same time, the ASX nickel shares have suffered continued headwinds from soft sentiment in the nickel sector.

But Market Index data shows that the experts are optimistic that we’ll see a turnaround in the ASX shares this year. All brokers have a strong buy rating. The $1.09 average target price implies a potential 169% upside, at the time of writing.

Light & Wonder Inc (ASX: LNW)

Light & Wonder shares are up around 1% on Tuesday afternoon, trading at $114.56 per share. It’s been a volatile ride for the shares over the past 12 months, and they’ve swung anywhere between $96.79 and $193 a piece. They’re now down 27% year to date and 8% lower than a year ago.

The company has been reshaping its business in recent years, including a focus on its recurring revenue and higher-quality earnings. 

Light & Wonder’s latest second-quarter FY26 earnings results suggest the reshape is starting to translate into revenue. The company posted a 2% increase in revenue and a 26% increase in net income year on year. 

It looks like investors are still wary about whether the company’s earnings can keep improving. But the experts are confident a growth period is coming. Market Index data shows all brokers have a strong buy rating on the shares. The $196.20 average target price implies an upside of around 71%, at the time of writing.

Generation Development Group Ltd (ASX: GDG)

Generation Development Group shares are down around 1% at the time of writing, to $2.70 a piece. The diversified financial services company’s shares have climbed around 4% higher from a two-year low recorded late last week, but they’re still down 54% for the year to date.

There hasn’t been any price-sensitive news out of the company to explain the ongoing decline. The sell-off is most likely the result of a continued broad-based rotation away from financial shares following the latest interest rate increase, higher inflation figures, and sky-high bond yields.

But the company believes that it is well-placed to benefit from strong structural tailwinds from the superannuation, retirement, and managed account markets in FY27. This is due to recent superannuation legislation changes and an aging demographic.

Brokers are bullish too. Market Index shows that all brokers have a strong buy rating on the ASX shares, and the $5.62 average target price implies an upside of around 108% at the time of writing.

CAR Group Ltd (ASX: CAR)

CAR Group shares are up around 0.5% in Tuesday afternoon trade to $22.67 per share. The increase is great news for investors after the company, which runs online global marketplaces for cars, motorcycles, boats, and commercial vehicles, tumbled 25% over the past two months.

The company has been hit by broad market volatility since mid-August. And many investors have also been taking their gains off the table after a strong rally following the company’s FY26 results announcement.

As part of the announcement, CAR Group said it expects 11% to 14% revenue growth and 10% to 13% adjusted EBITDA growth in FY27. It is also planning for high single-digit revenue growth in Australia and double-digit growth in North America, Latin America, and Asia.

Investors still look to be a little reserved about the company’s outlook. But brokers are bullish that the ASX shares could jump higher over the next 12 months. After a strong sell-off, Market Index data shows all brokers have a strong buy rating on the shares. The $34.07 average target price implies an upside of around 50% at the time of writing.

The post 4 ASX shares tipped by brokers to return 50% to 169% appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc. The Motley Fool Australia has recommended CAR Group Ltd, Generation Development Group, and Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.