Buy these ASX 200 growth shares with 40%+ upside

Analysts believe that big returns could be coming for buyers of these shares at current levels.

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If you're looking for big returns for your portfolio and have a penchant for ASX 200 growth shares, then look no further!

That's because the two ASX 200 shares listed below have been named as buys and tipped to rise over 40% from current levels.

Here's what analysts are saying about these shares this month:

ResMed Inc (ASX: RMD)

Analysts at Morgans believe the Ozempic-induced sell-off of this ASX 200 growth share has created a compelling buying opportunity.

At the end of last month, the broker retained its add rating on the sleep treatment company's shares with a $32.74 price target. This suggests a potential upside of 47% for investors over the next 12 months.

Commenting on the threat of weight loss drugs. The broker said:

Management presented an epidemiological model of global OSA [obstructive sleep apnoea] prevalence through 2050, suggesting while weight-loss drugs could shave up to c15% off TAM (worst case) the market would remain large (1.2bn) and underpenetrated (<10%).

It also recently stated:

[N]othing changes our view that the company remains well placed and uniquely positioned as it builds a patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

Xero Limited (ASX: XRO)

Goldman Sachs remains bullish on this cloud accounting platform provider following its half-year results and appears to see last week's selloff as a buying opportunity.

The broker has put a buy rating and $141.00 price target on the ASX 200 growth share. This implies a potential upside of 41% from current levels. Goldman commented:

We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$76bn TAM.

Motley Fool contributor James Mickleboro has positions in ResMed and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, ResMed, and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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