Brokers think these shares can outperform the ASX 200

Brokers have picked Bapcor Ltd (ASX: BAP) and these ASX200 shares to outperform the market in the near term

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Big brokers have picked out these ASX 200 shares on Wednesday as ones that could outperform the market. 

ASX200 shares with outperform ratings 

Bapcor Ltd (ASX: BAP) 

ASX automotive shares appear to be ticking all the boxes for big brokers. With recent buy ratings for peers such as Eagers Automotive Ltd (ASX: APE) and Super Retail Group Ltd (ASX: SUL). The success has come off the back of tailwinds for the industry.  This includes the changing attitude towards public transport and increased domestic travel. 

Bapcor shares are no exception with Credit Suisse and Macquarie rating its shares as an outperform with a respective $9.25 and $8.90. Bapcor shares are currently fetching $8.23. 

Credit Suisse believes the market is underestimating the durability of Bapcor earnings. In particular, given the underwhelming market reaction to its half-year results. The broker says that, unlike other retailers, Bapcor has a clear path to grow earnings in the near term. 

Mineral Resources Ltd (ASX: MIN) 

Mineral Resources is getting the best of both worlds. This is due to solid demand for its mining services, strong cash flows from its iron ore production, and also ramping up its lithium production capabilities. 

Macquarie is outperform rated on Mineral Resources with a $61.00 target price. The broker believes its Koolyanobbing site has the potential to achieve 13Mtpa of iron ore production in just under five years.

To add some perspective, the company produced a record 14.1Mt of iron ore in FY20 with a 7.4Mt contribution from Koolyanobbing. However, Mineral Resources shares have slumped 3.15% today, trading at $43.64 at the time of writing. 

Western Areas Ltd (ASX: WSA) 

The Western Areas share price has experienced two sharp selloffs this year. Its shares first slumped 16% on 28 January after its quarterly report.  The share price slumped another 13% on 10 March after an $85 million capital raising at a placement price of $2.15 per share. 

Brokers are seeing some upside to Western Areas given its improved production and buoyant nickel prices. 

Credit Suisse and Macquarie rate their shares as an outperform while Morgans upgraded its shares from hold to add. The average target price between the three brokers sits at $2.53. Western Areas shares are currently trading at $2.23. 

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor and Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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