These ASX shares could rise 19% and 35%

Looking for big returns for your portfolio? Then look no further, that's because analysts are tipping these buy-rated ASX shares to rise strongly from current levels.

Here's what they are saying about them:

GQG Partners Inc (ASX: GQG)

Last week, Morgans upgraded this embattled fund manager's shares on the belief that recent selling has been overdone and created a buying opportunity.

Particularly given that funds under management (FUM) outflows relating to its investment in the Adani Group may not be as bad as feared. It said:

An assessment of some of GQG's FUM shows some outflows likely occurred directly post the Adani news. While there is some near-term outflow risk (including headline risk in the imminent FUM update given previous flow strength), based on fund performance we do not expect this to persist for an extended period. The Emerging Markets (EM) fund (>10% exposure to Adani) outperformed its benchmark by ~1% in November. Over timeframes 1-5 years, all strategies have outperformed benchmarks meaningfully (ranging ~180bp – 920bp). GQG will implement a A$100m buyback (~1.5% of shares) commencing 6-Dec.

Uncertainty on the investment performance impact of the Adani news was high at the onset, but can now be assessed and has been minor to-date (Adani vehicles -11% to +14%; EM outperformance in Nov). There is some outflow risk and Adani news flow risk (if GQG remains invested), but we believe there is solid underlying business strength and value at ~9.5x FY25F PE.

Morgans has put an add rating and $2.47 price target on its shares. This implies potential upside of approximately 19%. In addition, a 10% dividend yield is forecast in FY 2025.

Worley Ltd (ASX: WOR)

Goldman Sachs thinks that this engineering company's shares could be undervalued at current levels.

The broker is positive on the company's outlook due to it being "well positioned to play a role in enabling the transition from fossil fuels to a more sustainable energy mix."

It also highlights that the ASX share is forecasting strong growth in FY 2025 despite economic and geopolitical uncertainty. It said:

At its Nov AGM WOR reiterated expectations for low double digit FY25e EBITA growth in a period of moderating growth due to economic and geopolitical uncertainty. Despite re-iterated guidance, general uncertainty around capital expenditure plans in key end markets and timing/uncertainty around discrete major projects has seen WOR's share price lag, in our view. We have assessed earnings levels being capitalised at the current share price and believe the risk/reward remains positively skewed.

Goldman has a buy rating and $18.00 price target on its shares. This suggests that upside of 35% is possible over the next 12 months.

The post These ASX shares could rise 19% and 35% appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro 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 Goldman Sachs Group. 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.

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