Are you looking to supercharge your portfolio with some big returns?
If you are, it could pay to listen to what brokers are saying about the ASX shares listed below.
They have been named as buys and tipped to rise strongly from current levels. Here's what they are saying about them:
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Karoon Energy Ltd (ASX: KAR)
Goldman Sachs thinks that Karoon Energy is a deeply discounted ASX share. Especially after the energy producer upgraded the Who Dat resource.
In response to its update, the broker retained its buy rating and lifted its price target to $2.15. Based on its current share price of $1.40, this implies potential upside of 53% for investors over the next 12 months. Goldman commented:
KAR is trading at a ~35% discount to our risked NAV, which we feel does not reflect the value of producing assets and the potential Neon development, where our unrisked NAV including 100% of Neon is A$3.16/sh.
Big dividend yields could also be on the way, boosting total returns. The broker adds:
Trading on a ~26% FCF yield over 2025E supported by our expectations for oil prices to remain elevated over the near term, where KAR offers unique exposure to oil prices within the Australian Energy sector. KAR is trading on an 9% 2025E dividend yield on our estimates after announcing a revised capital allocation framework, which is a standout across our energy sector coverage.
Woolworths Group Ltd (ASX: WOW)
Goldman also believes that big returns could be coming from this ASX share.
It thinks the supermarket giant's shares have been oversold and are now trading at a very attractive level.
Last week, the broker retained its buy rating with a trimmed price target of $36.20. Based on its current share price of $29.80, this suggests that upside of almost 22% is possible over the next 12 months.
In response to its quarterly update, the broker said:
Our NPAT forecast is -10%/-5%/-4%. Our TP is A$36.20/sh (previous A$38.9/sh). While WOW is facing transition challenges as its new CEO recalibrates WOW's strategy against a value consumer, we believe that WOW's structural advantages of its store network, scaled online position and leading data/analytics capabilities will enable market share wins in the medium term. WOW is FY26 P/E of ~21x vs historical avg 26x, next catalyst Feb 2025 post ACCC Inquiry conclusion.
It also expects a dividend yield of approximately 3.2% in FY 2025.
