These ASX 200 shares could rise 15% to 50%

Analysts think these shares can rise strongly from where they trade today.

| More on:
happy investor, share price rise, increase, up

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

Investors that are on the lookout for some big returns might want to check out these ASX 200 shares listed below.

That's because analysts are tipping their shares to deliver returns of between 15% and 50% for investors over the next 12 months.

Here's what you need to know about them:

GUD Holdings Limited (ASX: GUD)

Analysts at Morgans see plenty of value in this ASX 200 share at current levels.

GUD Holdings owns a portfolio of companies in the automotive aftermarket and accessories sector. Its brands hold market leadership positions in all categories in which they operate. These brands include Ryco Filters, Wesfil, Narva, Projecta, DBA, and Xtreme Clutch.

Morgans was pleased with the company's recent investor update, noting that management is guiding to earnings growth in FY 2024 despite the tough economic environment.

As a result, it has put an add rating and $13.71 price target on its shares. This implies potential upside of 24% for investors over the next 12 months.

Karoon Energy Ltd (ASX: KAR)

Another ASX 200 share that could rise strongly from current levels according to Morgans is Karoon Energy. It is an international oil and gas exploration and production company with assets in Brazil.

Morgans likes the company due to its production growth potential, strong balance sheet, and attractive valuation. It also highlights "potential catalysts just around the corner with Karoon flagging at its recent result that it plans to shortly update the market with more detail on its growth plans, Bauna's outlook, and its ESG approach."

The broker currently has an add rating and $2.80 price target on its shares. This suggests that they could rise by a sizeable 52% between now and this time next year.

TechnologyOne Ltd (ASX: TNE)

Finally, Goldman Sachs thinks that TechnologyOne could be an ASX 200 share with the potential to generate big returns. It is an enterprise software company providing a global SaaS ERP solution that transforms business and makes life simple for users.

Goldman highlights that "despite TNE's improving underlying growth and above-trend PBT outlook, the stock has de-rated from 25.5x to 23.5x NTM EV/EBITDA over the last 12 months while tech peers have re-rated."

In light of this, the broker thinks now is the time for investors to pounce on its shares. Particularly given that its analysts "forecast a mid-to-high teens (~16%) FY23-26E PBT CAGR (vs low-to-mid teens historically) with potential upside on achievement of TNE's 115% NRR target (vs ~110% GSe) or UK success."

The broker has a buy rating and $18.10 price target on its shares. This implies approximately 15% upside for investors.

Motley Fool contributor James Mickleboro has positions in Technology One. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Technology One. The Motley Fool Australia has recommended Technology One. 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

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Broker Notes

Top brokers name 3 ASX shares to buy today

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

Read more »

A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising
Broker Notes

These four ASX All Ords shares just earned hefty broker upgrades. Here's why

The ASX All Ords shares are forecast to surge as much as 98% over the year ahead.

Read more »

A man in a suit looks serious while discussing business dealings with a couple as they sit around a computer at a desk in a bank home lending scenario.
Bank Shares

What's the outlook for the Westpac share price in FY25?

Top broker Goldman Sachs outlines three challenges for the ASX 200 bank in FY25.

Read more »

Man smiling at a laptop because of a rising share price.
Broker Notes

Macquarie shares have 10% upside: Morgan Stanley

Another bullish broker on Macquarie.

Read more »

A woman looks questioning as she puts a coin into a piggy bank.
Broker Notes

Is the ANZ share price 'the best value of the major banks'?

ANZ shares are in the green today.

Read more »

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Broker Notes

Buy 'em now! Brokers name 3 ASX All Ords shares to add to your portfolio

Copper, technology, and healthcare are the themes among these newly buy-rated stocks.

Read more »

a woman holds a facebook like thumbs up sign high above her head. She has a very happy smile on her face.
Broker Notes

Bell Potter says these ASX shares are strong buys

Big returns are expected from these shares over the next 12 months.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Broker Notes

Guess which ASX 300 share could rise over 50%

Bell Potter sees huge upside for this buy-rated stock. Let's see why it is bullish.

Read more »