2 ASX shares tipped to grow up to 142% in the next 12 months

Some ASX shares have the potential to deliver impressive returns because they're significantly undervalued for their potential.

A business doesn't necessarily need to double for it to be a good return. The S&P/ASX 200 Index (ASX: XJO) long-term return has been an average of roughly 10% per year. So, just returning 20% would be a great performance for an Australian investor.

We're going to look at two ASX shares where analysts think the ASX share could rise more than 100% over the next 12 months.

Audinate Group Ltd (ASX: AD8)

Audinate is an ASX share that aims to be the world leader in audio-visual (AV). Its Dante IP networking offering is used in numerous industries including professional live sound, commercial installation, broadcast, public address and recording industries. Its technology powers products from hundreds of audio and video partners globally.

Dante works by replacing traditional analogue cables with an ethernet cable that sends synchronised AV signals across large distances to multiple locations at once. It's headquartered in Australia, with regional offices in the US, the UK, Belgium and Hong Kong.

According to CMC Invest, there have been five ratings on the ASX share within the last three months. All of those ratings were a buy.

A price target is what brokers believe the share price will trade at in 12 months from the time of the investment call. Of those five broker ratings, the average price target is $4.88, which implies a large 142% potential gain.

After a difficult period amid COVID-19 impacts, a declining gross profit margin through FY21 to FY23, and a big decline of gross profit dollars in FY25, the business now seems to be on a stronger footing.

The FY26 result, released in August, showed a 14.6% rise in gross profit to US$37.7 million. Its revenue growth of 14.7% to US$46 million in FY26 was at the upper end of its guidance.

In FY27, the business expects its gross profit growth to be in line with or slightly ahead of the rate achieved in FY26. The gross profit margin is expected to be in line with FY26. Underlying operating expenses are expected to be flat compared to FY26.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The other ASX share I'll highlight is EOS, a business that provides both defence systems and space systems. Some of its key defence systems include remote weapon systems, vehicle turrets, high-energy laser weapons and counter-drone systems.

According to CMC Invest, there have been three ratings on the ASX share within the last three months. All of those ratings were a buy. The average price target from those three ratings was $14.57, implying a possible 107% gain over the next year.

The company's latest quarterly update, being the three months to 30 September and released on 26 October, showed the rapid nature of its growth.

At 30 September 2026, its order book had reached $717 million – a 56% increase from 31 December 2025.

After the end of the quarter, EOS announced that it had entered into a conditional contract with Kuwait to provide a nationwide counter-drone system valued at approximately A$700 million. Including that contract, EOS' combined total order book is now over A$1.4 billion.

The ASX share has also secured a letter of intent with the Netherlands Ministry of Defence regarding EOS' Apollo high energy laser weapon technology, including a potential future production facility in the Netherlands. Overall, the future looks bright for the company.

The post 2 ASX shares tipped to grow up to 142% in the next 12 months appeared first on The Motley Fool Australia.

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 positions in and has recommended Audinate Group. The Motley Fool Australia has positions in and has recommended Audinate Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026