These ASX 200 shares could rise 20% to 50%

Analysts see huge value in these shares at current levels.

| More on:
A man raises his reading glasses in a look of surprise.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you are on the lookout for big returns to supercharge your investment portfolio, then you may want to take a look at the ASX 200 shares listed below.

They have all recently been named as buys by brokers and tipped to rise between 20% and 50% from current levels. Here's what you need to know about them:

Orora Ltd (ASX: ORA)

This packaging company's shares were sold off last week following the release of a disappointing market update. While analysts at Goldman Sachs were equally disappointed with the update, they believe it is worth sticking with Orora and see huge value in its shares at current levels.

Goldman Sachs currently has a buy rating and $3.00 price target on the ASX 200 share. This implies potential upside of 36% for investors over the next 12 months.

And with the broker also expecting 5%+ dividend yields through to at least FY 2026, the total 12-month potential return stretches beyond 40%.

Qantas Airways Limited (ASX: QAN)

This airline operator's shares have lost almost 20% of their value over the last 12 months. This is despite the Flying Kangaroo delivering huge profits in FY 2023 and so far in FY 2024.

While this is disappointing for shareholders, a number of analysts think it is a compelling buying opportunity for the rest of us.

For example, the team at Morgan Stanley currently has an overweight rating and lofty $8.00 price target on the ASX 200 share. If this recommendation proves accurate, it will mean a return of almost 50% for investors between now and this time next year.

Another positive to consider is that a few brokers believe that Qantas could resume its dividend payments in the near future. Macquarie, which has an outperform rating and $6.00 price target, has pencilled in a 34 cents per share dividend in FY 2025. This represents a very generous 6.25% dividend yield at current prices.

Telstra Group Ltd (ASX: TLS)

You don't generally think of this telco giant as being an ASX 200 share that can generate market-beating returns. But a number of analysts think its shares are seriously undervalued at current levels.

One of those is Morgan Stanley. In response to its half year results in February, the broker put an overweight rating and $4.75 price target on its shares. This suggests potential upside of 24% for investors before dividends and almost 29% including them.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

Research, collaboration and doctors working digital tablet, analysis and discussion of innovation cancer treatment. Healthcare, teamwork and planning by experts sharing idea and strategy for surgery.
Healthcare Shares

Buy, hold or sell these 3 ASX 200 healthcare shares: Experts

These experts reveal their calls on CSL, Resmed and Sonic Healthcare shares today.

Read more »

A smiling boy holds a toy plane aloft while a girl watches on from a car near an airport runway.
Broker Notes

Buy one, sell the other: Goldman's verdict on these 2 ASX 200 travel shares

The broker says one of these stocks could deliver 30% share price growth in just one year.

Read more »

A couple in a supermarket laugh as they discuss which fruits and vegetables to buy
Broker Notes

Why Goldman Sachs just upgraded Coles shares

The broker has become a lot more positive on this supermarket giant.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Financial Shares

What this top broker is saying about IAG shares

IAG shares are trading close to their four-year highs.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Broker Notes

Buy this ASX 200 share for a 20%+ return

Bell Potter thinks big returns could be coming for this stock.

Read more »

Investor sitting in front of multiple screens watching share prices
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

Keyboard button with the word sell on it.
Financial Shares

Why Goldman Sachs just slapped a sell rating on this ASX 200 stock

This blue chip has been hit with a sell rating. But why?

Read more »

Two brokers analysing stocks.
Broker Notes

Guess which four ASX 300 shares were just re-rated by top brokers

Leading brokers have re-evaluated the prospects for these ASX 300 companies.

Read more »