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Prices of UK shares soared last year, but eagle-eyed investors can still pick up lots of bargains. Indeed, some top-quality shares have dropped sharply over the past 12 months, leaving them trading at dirt-cheap prices.
Take the following FTSE 100 and FTSE 250 stocks: Forterra (LSE:FORT), Auto Trader (LSE:AUTO), and Greeencoat UK Wind (LSE:UKW). They fell heavily in 2025, but City analysts are expecting them to rebound spectacularly during the next year.
But the question is: are their share price forecasts achievable, or are they just fantasy?
Too bearish
Forterra shares slumped in 2025 on fears of a protracted housing market downturn. Such a scenario could have significant ramifications for brick demand. The company is the UK’s second-largest producer.
Have investors hit the panic button too soon though? I think so. Market uncertainty lingers, but with interest rates falling and mortgage lenders fighting a rate war, I’m confident sales could pick up sharply in 2026.
Strong housing market at the start of the year has fed my optimism. According to Nationwide, average UK house prices rose at their fastest monthly pace since mid-2015 in January.
Eight analysts currently have ratings on Forterra shares. Their average 12-month share price target is 234.5p per share, up 38% from current levels. Combined with expected dividends, this suggests a total return of 43%.
Motoring ahead
Of the three UK stocks discussed, City analysts think Auto Trader will deliver the biggest share price gains between now and early 2027.
Right now 16 brokers have ratings on the online car retailer. Their average price target is 785.6p per share, up 40% from today’s levels. If the company also pays the dividends analysts expect, shareholders could enjoy an overall return of 43%.
What could jeopardise these white-hot estimates? Well consumer spending remains under pressure, which could in turn impact motor sales. There’s also potential sales danger as the number of car dealerships steadily declines, reducing listings potential.
But on balance, I share the City’s bright outlook for Auto Trader and its shares. It enjoys stunning pricing power on its website listings, reflecting its position as the UK’s most popular online car sales platform. And helped by recent acquisitions, it has the chance to supercharge earnings from services (like finance integrations and data analytics).
47% total return?
City forecasts suggest Greencoat UK Wind will also deliver a juicy return over the next year. Three analysts currently have ratings on the FTSE 250 stock. Their average price forecast is 130.7p, up 36% from levels right now.
With expected dividends factored in, Greencoat UK shares might deliver a total 47% return. But what are the chances of this happening?
Like those other shares, I think the odds are pretty good of forecasts being met. Sentiment towards renewable energy stocks remains cautious, reflecting fears over interest rates and rising construction costs.
But I’m confident investor appetite will accelerate again as the Bank of England (likely) keeps cutting rates. There’s also a good chance power generation will be better following 2025’s wind slump, boosting investor confidence.
Trading at a 30% discount to its net asset value of 141.2p per share, I think the company could attract strong interest from bargain hunters.
