The FTSE100 may be close to all-time highs, but not all UK shares appear overvalued. Here are three stocks with average 12-month price targets that are 100% or more above their current share prices.

This is an eye-catching level of optimism, but before deciding how realistic this improvement might be, I want to look at the latest numbers.

Metals Exploration is a gold mining company that has already achieved spectacular profits, with its share price increasing by 611% over the last five years. These kinds of results suggest that the market has started to believe in its return story.

In my opinion, the key attraction is profitability: a return on equity (ROE) of 15% tells me that the company is using shareholder capital quite effectively. Moreover, a price-to-earnings (P/E) ratio of 17.78 doesn’t look outrageous for a profitable, growth mining company, especially if production and cash flow can continue to improve.

The obvious risk is that mining is a volatile business where operational issues, commodity price fluctuations and political factors can potentially impact profits. If any of these occur at the wrong time, a goal of over 100% may start to look overly positive.

Sylvania Platinum

Sylvania Platinum provides investors with exposure to platinum group metals, and its share price has increased by 15% over the past year. It’s not a gigantic move, but it suggests the market is warming up again after a more complex period.

I find the fundamentals attractive: an ROE of 14.3% implies solid profitability, while a P/E ratio of 8.1 makes the stock look economical compared to many growth companies. The 4.6% dividend yield adds another level of attractiveness, especially for income-oriented investors who expect consistent cash returns.

The gigantic risk is that platinum group metal prices may be highly cyclical, driven by global demand from sectors such as automotive and industrial. If prices fall sharply, profits 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.

Crane

Craneware is a healthcare software company that has seen its shares rise 32% over the last 10 years. It’s not bad, but it’s not particularly spectacular. In this case, the investment is more about an undervalued healthcare company than a growth spurt.

A P/E growth ratio (PEG) of 0.51 means the stock is selling cheaply compared to its expected growth rate. This is a noteworthy metric for value investors with a long-term perspective.

Moreover, a gross margin of 69.7% indicates a very profitable business model, which I would expect from an established software provider.

It’s not a leader in terms of earnings, but its 2.7% dividend yield adds to its attractiveness alongside growth.

The main risk I see is that health care budgets and regulations may change, particularly in key markets, which could impact customer spending. If this happens, earnings could disappoint and prompt potential investors to look elsewhere for growth.

Final thoughts

In my opinion, these three stocks are worth considering because they combine clear growth prospects with solid underlying metrics.

However, with goals above 100% on the table, I would still like to take a deeper look at each business and carefully consider whether I feel comfortable with a particular risk before investing stern money.

Alternatively, there are always plenty of reliable dividend stocks to consider in the FTSE 100.

Which income stocks do we like better right now than Metals Exploration Plc?

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Mark Hartley holds no position in the companies mentioned.