UK shares have been on quite a bit of a rampage in 2025. But sadly, not all Britain’s stocks have been so fortunate. And even among FTSE 100 and FTSE 250 companies, there have been some substantial market-cap collapses.
Perhaps two perfect examples of this are B&M European Value Retail (LSE:BME) and WPP (LSE:WPP). The shares of these businesses have plunged by 55.6% and 65.9% in the last 12 months respectively.
But while that’s definitely a painful loss for shareholders, some analysts think a buying opportunity may have emerged. So could these British businesses secretly be on the verge of a stellar comeback?
A discounted discounter?
In the wake of the pandemic and cost-of-living crisis, B&M shares were the talk of the town. Massive profit margins, accelerating footfall, and rapid store network expansion all culminated in impressive financial results.
Sadly, this momentum didn’t last. Rising competitive threats, weakening value perception, and managerial missteps saw all its gains reverse, sending the stock into a freefall that’s continued throughout 2025.
Yet, looking at the latest projections among some industry experts, the fall in B&M’s market-cap could have created an opening for opportunistic investors.
For example, the team at Citigroup recently reiterated its Buy recommendation and issued a share price target of 290p. Meanwhile, Canaccord Genuity is even more bullish with a target of 395p. That means B&M shares could deliver up to a 137% return in the next 12 months alone!
A big driver of these forecasts is management’s new ‘Back to B&M Basics’ plan, which seeks to simply the group’s supply chain and reaffirm its position as one of Britain’s best discount retail chains.
Obviously, this recovery story comes with significant execution risk. And it’s still very early days, making it difficult to judge whether the leadership has what it takes to pull off such a turnaround. But at a price-to-earnings ratio of just 5.2, this may be a risk worth considering.
A cyclical recovery play
Another UK stock that analysts believe is ripe for recovery is WPP. The advertising titan has seen the departure of many high-profile clients lately as it navigates a massive slowdown in the advertising sector.
But with the stock now near a 29-year low, some experts believe a substantial turnaround could emerge. And Deutsche Bank has even set a 430p share price target – 52% higher than where the stock currently trades.
Under the new leadership of Cindy Rose, WPP’s investing aggressively in new AI tools and digital solutions to regain lost market share in an increasingly competitive advertising landscape. And with some early signs of earnings normalisation, this strategy could be working.
Of course, just like with B&M, the recovery all depends on execution. The business needs to be perfectly positioned ahead of the expected uplift in the North American advertising market. And with management restructuring parts of its business, it’s possible that the group may cause internal disruption, giving competitors the upper hand.
The bottom line
Both of these UK shares present compelling recovery opportunities. Out of the two, B&M looks more like one to consider, in my mind. But there are even better stocks already delivering a spectacular turnaround that are still under the radar of most investors.
