If you're looking for some new portfolio additions, then you may want to check out the two ASX 200 shares listed below that have been tipped to climb over 20% by analysts at Morgans.
Here's what the broker is saying about them:
Aristocrat Leisure Limited (ASX: ALL)
Morgans is feeling bullish about this gaming technology company. Its analysts recently put an add rating and $43.00 price target on its shares.
Based on the current Aristocrat share price of $35.45, this implies potential upside of 21% for investors over the next 12 months.
Its analysts believe post-results share price weakness has created a buying opportunity for investors. It said:
Whether it was the disappointment of there being no acquisition announcements today, the negative effect of higher finance costs on future estimates, or simply a reaction to FY22 earnings coming in slightly below consensus, the 5% decline in ALL's share price today creates a buying opportunity. We have taken our NPATA estimates down by 1.1% in FY23 and 0.9% in FY24 (higher finance costs) but, even after those adjustments, forecast 14.7% growth in FY23 and 7.9% in FY24. We reiterate our $43.00 12-month target price and ADD recommendation.
Whitehaven Coal Ltd (ASX: WHC)
Another ASX 200 share that has been tipped as a buy by analysts at Morgans is this coal miner. Earlier today, the broker reiterated its add rating with a trimmed price target of $11.20.
Based on the current Whitehaven Coal share price of $9.26, this suggests potential upside of 21% for investors. In addition, Morgans is expecting a mammoth 11.5% dividend yield, stretching the total potential return to over 32%.
The broker sees an opportunity to load up on Whitehaven Coal shares following a recent bout of profit taking. It commented:
The NEWC price correction, and likely government intervention in the domestic energy market, were easy excuses for traders to take profits, crystallising recent volatility. For investors, we see strong potential for a prolonged energy market dislocation where supply security commands a higher premium for longer. WHC is trading on a +30% free cash flow yield, with clear upside earnings/valuation risk, supporting further outsized shareholder returns over time.
