Experts are always on the lookout for ASX share opportunities that could be undervalued. Some stocks could generate strong returns, according to analysts.
The ASX share market has returned an average of around 9% to 10% per year over the ultra-long-term, depending on the time period.
There are a few ideas that could deliver significantly stronger returns than 10% in the next year. Let’s take a look at two of the most exciting ASX share opportunities.
Macquarie Technology Group Ltd (ASX: MAQ)
Macquarie Technology describes itself as Australia’s data centre, cloud, cybersecurity and telecom company for mid to large business and government customers. It aims to provide the best customer service in Australia.
According to CMC Invest, there have been six analyst ratings on the business within the last three months. Four of those analyst ratings were buys and two of them were holds. Of those six analyst ratings, the average price target was $79.03, suggesting a potential rise of 75% within the next 12 months.
The company is investing significantly into data centres and customer solutions, while deploying AI across the group to enhance productivity and operational performance.
In August, the company said the construction of IC8 SuperWest phase 1 (6MW) would be delivered on time and on budget by September 2026. Phase 2 of 13MW is expected to be delivered by June 2027. IC3 SuperWest has attracted significant demand by multiple customers.
The company expects to report modest growth of operating profit (EBITDA) in FY27, assuming IC3 SuperWest phase 1 revenue starts in the second half of FY27.
Aeris Resources Ltd (ASX: AIS)
Another ASX share that could be one to watch is Aeris Resources, which describes itself as a mid-tier copper and gold producer. Not only does it have operating assets, but it also has a pipeline of growth projects and a prospective exploration portfolio.
According to CMC Invest, there have been five broker ratings on the ASX mining share within the last three months, all of those ratings were a buy. The average price target from those five analysts is 74 cents, implying a potential rise of 61% over the next year.
The company worked on a number of goals through FY26, including repaying debt, selling its North Queensland exploration assets for up to $15.5 million, improving its operational performance, consider acquisitions and reduce costs.
FY26’s financials improved strongly – revenue grew 22% to $702.8 million, adjusted operating profit (EBITDA) grew 77% to $318.2 million, net profit before tax increased 181% to $127 million, net profit after tax (NPAT)grew 295% to $178.5 million and operating cash flow grew 111% to $275.6.
With a good outlook for copper, amid electrification of vehicles and expanding electricity grids, I think this ASX share. I can see why experts like this ASX share right now.
The post 2 ASX shares tipped to grow up to 75% or more in the next 12 months appeared first on The Motley Fool Australia.
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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.