Experts say these five ASX 200 shares may provide an opportunity for investors looking to boost their share portfolios in FY24.
As FY23 draws to a close this week, it's a great time to take stock (sorry, couldn't resist) of your investment portfolio and the ASX shares you might like to add or dollar-cost average before they grow.
At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is up 0.61% today to 7,122 points.
Here are five ASX 200 shares that brokers are backing for 40% growth or more in FY24.
Which ASX 200 shares are brokers tipping for mega growth?
South32 Ltd (ASX: S32)
Morgans is tipping ASX 200 mining share South32 for big growth in FY24.
According to a recent note, the broker has an add rating on South32 shares and a 12-month share price target of $5.60.
The South23 share price is up 0.81% today at $3.74 at the time of writing. So, the broker's target suggests a potential upside of 50% for investors in FY24.
Morgans says:
S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32's risk and ESG profile.
Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength).
We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.
Lovisa Holdings Ltd (ASX: LOV)
The Lovisa share price is $18.07 at the time of writing, down 1.3% today.
Bell Potter reckons this ASX 200 retail share is in serious buy-the-dip territory.
The broker has a 12-month share price target of $30.50 on Lovisa shares. This suggests a potential upside of 69% for investors in FY24.
Bell Potter said:
We also view LOV as a key pick in our Retail sector coverage with its ability to execute on the large global roll-out opportunity as a strong player in the fashion jewellery market while remaining relatively better immune to consumer spend pressures given the accessibility of the product from a price point perspective, once comps normalise.
Nufarm Ltd (ASX: NUF)
Shares in the ASX 200 Australian agricultural chemical and seed technology company, Nufarm are down 1% today to $4.91.
Bell Potter has a buy rating on the agriculture share and a 12-month price target of $7.35. This implies a potential 50% upside in FY24.
The broker says:
FY23e is a year of earnings consolidation for NUF, with a downdraft in APAC mitigated by gains elsewhere in the global portfolio.
Beyond FY23e we can see a pathway to NUF reaching its FY26e revenue targets through the omega3 and carinata opportunities and continued over indexing in ag-chem.
As the beyond-yield platform takes over as the revenue and earnings driver we see the scope for a re-rating in the multiple of NUF above that of ag-chem peers.
Harvey Norman Holdings Limited (ASX: HVN)
The Harvey Norman share price hit a three-year low this month and is $3.22 today, up 0.6%.
Goldman Sachs reckons this ASX 200 share will rise to $4.70 within 12 months. That's a potential upside of 46%.
As my Fool colleague James reports, Goldman believes Harvey Norman's regional store network and older customer base will help it fend off competition from online retailers.
Goldman says:
Harvey Norman holds a unique position within the electronics and appliances retail industry as a result of its franchise model of operations in Australia, property portfolio and regional exposure.
Accent Group Ltd (ASX: AX1)
Bell Potter is also keen on this ASX 200 retail share. It has a $2.50 price target on the footwear retailer for the next 12 months.
The Accent share price is $1.54 today, up 1%. So, we're looking at a potential upside of 62% if the broker is correct.
Bell Potter says:
AX1 remains a key pick with its exposure to a diversified customer demographic in their core brands and overweight position in footwear which we believe would be supported by continuing casual footwear trends in the industry and as sports, fitness & wellness related spending remains a priority.
Income investors looking for investment options in FY24 may also like to check out these nine ASX shares expected to pay a 5% yield or more in the next financial year.
