These FTSE 100 shares are undervalued by as much as 44%!

These FTSE 100 shares have significant share price potential, according to City analysts. Here’s why they could be great investments today.

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The FTSE 100‘s a great place to find a wide selection of bargain shares. This follows several years of underperformance as investors have focused on overseas equities.

These three FTSE stocks all look cheap at current prices, in my opinion. In fact, City brokers believe they could rise by as much 44% over the next 12 months. And analysts overwhelmingly consider each of them to be a Buy.

Here’s what we need to know about these stocks before considering them.

Ashtead Group

Conditions remain tough in the US construction industry as higher interest rates persist. This poses an ongoing challenge to rental equipment supplier Ashtead Group (LSE:AHT).

Yet the outlook here remains extremely bright. Despite market softness, revenues continue to rise strongly as the business expands to build market share. And as infrastructure spending in the US heats up I expect sales growth to steadily accelerate.

Eighteen City analysts have ratings on the rental equipment provider right now. Of these, 13 have a Buy rating on the company, four classify it as it a Hold, while just one reckons it is a Sell.

What’s more, broker consensus is that the Ashtead share price has substantial room for growth. It’s tipped to hit £60.26 per share in the next 12 months, up from current levels of £50.90.

This represents a gigantic 24% premium from today’s price.

Reckitt

Reckitt (LSE:RKT) shares have been hit by a double-whammy in 2024. Disappointing trading numbers and concerns over baby formula compensation costs have driven the business sharply to the downside.

I think the bad news could now be baked into the company’s share price however. As an investor, I’m drawn to the excellent pulling power of labels such as Nurofen and Durex and the firm’s huge developing market footprint. They could help Reckitt rebound sharply from current levels.

Of the 16 analysts with ratings on the business, 10 have placed a Buy recommendation on it. Four reckon it’s a Hold, while no one believes the business is a Sell.

They also believe Reckitt’s share price will surge over the next year. The average price target among them is at £55.48 compared with £42.86 right now.

This is a healthy 29% premium from present levels.

JD Sports Fashion

Retailer JD Sports Fashion (LSE:JD.) has been squeezed by a mix of weak consumer spending and severe competition of late.

Nevertheless, its ambitious expansion drive, evidenced by the recent acquisition of Hibbett and its 1,169 North American stores, ensures it’s well-equipped to tap into the growing global sports/athleisure market.

Today, 15 brokers have ratings on the FTSE 100 company, of which one analyst considers it to be a Buy, four believe it’s a Hold, and one has slapped a Sell sticker on it.

Like Ashtead and Reckitt, broker consensus is that the JD share price will also appreciate substantially in the near future. The 12-month price target sits at 164p, up significantly from a current price of 113.6p.

In fact, this represents a colossal 44% premium from today’s price.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has positions in Ashtead Group Plc. The Motley Fool UK has recommended Reckitt Benckiser Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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