The FTSE 100 may be near all-time highs but not all UK shares look overvalued. Here are three stocks with average 12‑month price targets 100% or more above their current share prices.
| Stock | 12-month price target (%) |
| Metals Exploration (LSE:MTL) | 165% |
| Sylvania Platinum (LSE:SLP) | 108% |
| Craneware (LSE:CRW) | 105% |
That’s an eye‑catching level of optimism, but I want to dig into the latest numbers before deciding how realistic that upside might be.
Metals Exploration
Metals Exploration’s a gold miner that’s already delivered spectacular returns, with its share price up 611% over the past five years. That kind of performance suggests the market has started to believe in its turnaround story.
A key attraction, in my view, is profitability: a return on equity (ROE) of 15% tells me the company is using shareholders’ capital quite efficiently. On top of that, a price‑to‑earnings (P/E) ratio of 17.78 doesn’t look outrageous for a profitable, growing miner, especially if production and cash flow can keep improving.
The obvious risk is that mining is a volatile business, with operational issues, commodity price swings, and political factors all having the potential to hit profits. If any of those occur at the wrong time, that 100%+ target could start to look over optimistic.
Sylvania Platinum
Sylvania Platinum gives investors exposure to platinum group metals, and its share price has risen 15% over the past year. That’s not a huge move, but it does suggest the market’s warming up again after a tougher period.
The fundamentals look appealing to me: ROE of 14.3% shows solid profitability, while the P/E ratio of 8.1 makes the shares look cheap compared to many growth names. A dividend yield of 4.6% adds another layer of appeal, particularly for income‑focused investors who want regular cash returns.
The big risk here is that platinum group metal prices can be highly cyclical, driven by global demand from sectors like autos and industry. If prices turn down sharply, earnings and dividends could come under pressure.
So, is the combination of value and income enough to justify a 108% performance target in such a cyclical space? It’s worth thinking about.
Craneware
Craneware’s a healthcare software firm, with shares up 32% over the past 10 years. That’s not bad but not exactly spectacular. The investment case here is more about an undervalued healthcare business than explosive growth.
The P/E growth (PEG) ratio of 0.51 implies the shares are selling cheap relative to their expected growth rate. That’s a notable metric for value investors with a long-term outlook.
What’s more, a gross margin of 69.7% indicates a very profitable business model, which I’d expect from a well‑established software provider.
Income-wise, it’s not a top dog but the 2.7% dividend yield adds some appeal alongside growth.
The main risk I see is that healthcare budgets and regulation can change, especially in key markets, which might weigh on customer spending. If that happens, earnings could disappoint and prompt potential investors to seek growth elsewhere.
Final thoughts
For me, these three shares are worth considering because they combine clear growth forecasts with solid underlying metrics.
But with 100%+ targets on the table, I’d still want to dig deeper into each business, and think hard about whether I’m comfortable with the specific risks before putting serious money to work.
Alternatively, there’s always a wealth of reliable dividend shares to consider on the FTSE 100.
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Mark Hartley does not hold any positions in the companies mentioned.
