The share market has historically delivered investors an average annual return of 10%.
While this is great, you may not have to settle for that. Not if analysts are on the money with their recommendations for the three ASX 200 shares listed below.
They are feeling bullish about them and are tipping upside of at least 20% over the next 12 months. Here's what you need to know:
IDP Education Ltd (ASX: IEL)
Goldman Sachs is very bullish on this language testing and student placement company.
It has a buy rating and a $29.65 price target on its shares, which suggests a potential upside of over 40% between now and this time next year. It said:
We believe IEL's premium valuation is justified given the medium-term earnings potential driven by: (1) Structural growth in multi-destination placements, supplemented by an ongoing Australian recovery; (2) Ability to grow market share in the highly fragmented Canadian and UK SP markets; (3) Reinvestment in digital capabilities to increase competitive moat and generate new earnings streams.
Pilbara Minerals Ltd (ASX: PLS)
The team at Morgans appears to believe that weakness in the lithium industry has created a compelling buying opportunity for investors.
Its analysts currently have an add rating and a $5 price target on the ASX 200 lithium miner's shares. This implies a potential upside of 33% for investors over the next 12 months.
Its analysts rate Pilbara Minerals as their "best pick of the pure-play lithium stocks."
ResMed Inc. (ASX: RMD)
Despite a recent rebound from this sleep treatment company's shares, analysts at Morgans also see major upside potential for this stock.
The broker currently has an add rating and a $32.74 price target on its shares, which suggests a potential upside of approximately 24% for investors.
Morgans believes the Ozempic-related selloff has created a buying opportunity. It said:
While weight loss drugs have grabbed headlines and investor attention, we see these products having little impact on the large, underserved sleep disorder breathing market, and do not view them as category killers.
