The average annual return for the ASX share market over the long-term has been approximately 10%. It has been closer to 9% per year for the S&P/ASX 300 Index (ASX: XKO) in the last decade or so.

If any individual ASX share can deliver a double-digit return, there’s a good chance that it’ll be a market-beating return.

There are a few ASX stocks that expert analysts think could deliver enormous returns over the next year. Of course, that’s not a guaranteed return, but it can show how undervalued analysts think these ASX shares are. Let’s look at two potential winners.

Hansen Technologies Ltd (ASX: HSN)

Hansen describes itself as a leading global provider of software and services to the energy and utilities, and communications and media industries. It has customers in more than 80 countries.

The ASX share’s software enables customers to create, sell and deliver new products and services, manage and analyse customer data, and control critical revenue management and customer support processes. In other words, its customers couldn’t run the administration side of their business without Hansen’s software.

FY26 was a solid year of profit growth.

Operating revenue fell 1.5% due to its revenue ‘mix’, including lower licence fees and foreign exchange headwinds. Within that total, support and maintenance revenue grew 13.4% to $230.3 million.

The company also reported 7.2% growth in underlying operating profit (EBITDA) to $119.6 million and 22.5% growth in underlying net profit after tax (NPAT), driven by cost discipline and AI-driven productivity gains.

FY27 revenue is expected to be stable, with recurring support and revenue maintenance to grow between 6% and 8%. The underlying EBITDA margin is expected to exceed 26% – likely lower than FY26’s figure – due to reduced licence revenue and continued investment in AI capabilities, product investment and customer-led development opportunities.

It’s down 25% after revealing its FY26 result, but analysts think there’s a strong bounce back ahead. Hansen said it expects revenue growth in FY28 and the underlying EBITDA margin will return to its target of 30% or more.

According to CMC Invest, analysts have issued seven ratings on the business in the last three months: six buy and one sell. The average price target is $5.42, implying a possible rise of 70% over the next 12 months – that would be significantly higher than where it traded just before it reported FY26.

Nextdc Ltd (ASX: NXT)

Another ASX share worth looking at, according to expert analysts, is Nextdc. It’s a data centre developer and owner, with facilities in each major Australian mainland city, as well as multiple regional hubs.

It also has a growing international presence, with projects proposed in Bangkok, Kuala Lumpur, Singapore and Tokyo.

If you haven’t already seen the company’s FY26 result, I’m sure you won’t be surprised to learn that its revenue and operating profit (EBITDA) rose, while the underlying net loss, depreciation expense and capital expenditure also increased as it heavily invests.

FY26 revenue grew 16% to $496.5 million, while underlying operating profit (EBITDA) increased 15% to $248.8 million.

However, excluding positive property revaluations and a tax benefit (which I’d describe as non-operational items), it would have registered a net loss of $103.9 million – a worsening of 71.7%. Capital expenditure increased 100% to $3.4 billion, and the depreciation and amortisation expense grew 26% to $262.5 million.

In FY27, it expects revenue to grow at least 52%, underlying EBITDA to grow at least 55% and capital expenditure to grow at least 55%.

According to CMC Invest, the business has received nine ratings in the last three months. Eight of those ratings were a buy, and one was a hold. The average price target of $19.61 implies a possible rise of 72% over the next year.

The post 2 ASX shares tipped to surge 70% 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.

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is in focus today after announcing a merger with ITM Isotope Technologies Munich SE, a global leader in therapeutic radioisotopes. The deal could create a radiopharmaceutical powerhouse, with combined estimated 2026 revenue over US$1.3 billion and deeper supply chain security for Telix’s growing pipeline.

What did Telix Pharmaceuticals report?

• Strategic agreement to acquire 100% of ITM for US$1.65 billion upfront (cash-free/debt-free)
• Post-adjustments, ~US$1.25 billion in Telix shares to ITM shareholders, plus up to US$700 million in milestone payments
• Pro forma combined revenue projected at over US$1.3 billion for 2026
• ITM achieved US$273 million revenue in 2025, with a 40% CAGR from 2021–2025
• Combined group expected to generate positive EBITDA from 2027 onwards

What else do investors need to know?

The merger positions Telix as a vertically integrated leader, with capabilities across radioisotope production, global manufacturing, and therapeutic development. ITM brings expertise in commercial-scale isotope production, including lutetium-177, actinium-225, and terbium-161, and serves over 65 countries.

ITM’s late-stage pipeline includes ITM-11, a novel candidate for treating neuroendocrine tumours, which has completed a Phase 3 trial. This potentially accelerates Telix’s entry into established commercial markets and complements its existing precision medicine platform.

The transaction is subject to shareholder and regulatory approval, with closing expected by the end of FY2026. Following completion, Telix shareholders will own about 76.3% of the combined group, and ITM shareholders the remaining 23.7%.

What did Telix Pharmaceuticals management say?

Telix Managing Director and Group CEO, Dr. Christian Behrenbruch, said:

This merger positions Telix at the forefront of the consolidation that is occurring as the industry matures. ITM is the leader in radioisotope production, with deep scientific expertise and a track record of value-adding innovation. We have enjoyed a close working relationship with ITM for many years and there is strong management alignment for the rationale behind this transaction. By combining our complementary strengths, we will create a company with commercial scale, world-leading supply and the most exciting theranostic drug portfolio in the sector. Importantly, this combination further expands our late-stage therapeutic pipeline with two completed Phase 3 trials and deepens radioisotope security, while bringing together the mission-critical capabilities needed to deliver radiopharmaceutical treatments to patients around the world.

What’s next for Telix Pharmaceuticals?

Telix expects the merger to drive new growth opportunities, deepen its global supply chain, and enhance its ability to deliver innovative cancer therapies. The launch of ITM-11, if approved, could open up additional high-margin revenues in targeted radionuclide therapy markets.

Management anticipates further cost savings, manufacturing efficiencies, and synergy benefits post-merger. An extraordinary general meeting is planned for November 2026 to seek shareholder approval.

Telix Pharmaceuticals share price snapshot

Over the past 12 months, Telix shares have risen 19%, outpacing the S&P/ASX 200 Index (ASX: XJO), which has declined 1% over the same period.

View Original Announcement

The post Telix Pharmaceuticals: ITM merger builds a sector leader appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

It has been a tough 12 months for ASX financials stock Regal Partners Ltd (ASX: RPL). 

The specialist alternative investment manager has seen its share price fall more than 30% year to date. 

However, a new report from Ord Minnett points to a major rebound over the next year. 

The company manages a range of investment strategies covering hedge funds, growth equity, real & natural assets and credit & royalties on behalf of institutions, family offices, charitable groups and private investors.

Not just a dividend stock 

In recent months, this ASX financials stock has been highlighted for its generous dividend yield – and for good reason. 

It currently offers a very healthy dividend yield of 11.1%, after more than doubling its net profit over the past financial year.

However, recent share price weakness now makes it an attractive growth option as well. 

According to Ord Minnett, it delivered a strong first-half FY26 result (1H26), though attention focused mainly on the announced transition to retirement of founder and portfolio manager Philip King. 

Mr King is responsible for approximately 16% of RPL’s funds under management (FUM), or $3.4 billion, and will remain in his current roles until at least 30 June 2027. The extended handover period should help support continuity. RPL declared a fully franked interim dividend of 12 cents per share (cps) which was double last year’s interim. Financially, the result was robust. Normalised net profit after tax reached $93 million (guidance was for at least $90 million), more than double the prior corresponding period, and 3% ahead of consensus.

Flows remain strong

Ord Minnett also highlighted the standout contributor during the most recent half was performance fees which came-in at $119 million. 

This was above guidance for at least $115 million, and significantly higher than the $42 million generated in the first-half of FY25. “Performance fees may moderate in the second-half of FY26 given the amount of FUM that is at, or within, 5% of its high-water mark, has fallen by $1.1 billion in the six months to 30 June 2026.

This has likely declined further in July given softer investment returns from a range of long/short strategies. Flows remain strong. Net inflows totalled $300 million in July, with additional inflows during August across credit and listed investment company products. This momentum has prompted us to lift our expectations for CY26 net inflows to $2.2 billion, ahead of management’s guidance of $2 billion.

Big upside for ASX financials stock

Based on this guidance, Ord Minnett slightly lowered its price target on this ASX financials stock. However, significant upside remains. 

The broker now has a price target of $4.90 (previously $5.40). 

We maintain a Buy recommendation. Despite the leadership transition risk, RPL is trading on an attractive FY27 price to earnings multiple of circa 8x, and on our numbers, offers around 14% per annum growth in EPS over FY26–29.

From current levels, this indicates 118% upside potential. 

The post Ord Minnett tips this ASX financials stock to double within the next 12 months  appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.