Where to invest $10,000 in ASX 200 shares in July

Analysts think these shares could deliver big returns for investors.

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If you are lucky enough to have $10,000 burning a hole in your pocket, it could be worth putting it to work in the share market.

After all, over the long term, the share market has generated an average return of approximately 10% per annum.

Thanks to the power of compounding, this means that your $10,000 could turn into significantly if the market continues to perform in line with historical averages.

But which ASX 200 shares could be a good option for these funds? Let's look at two buy-rated shares:

Neuren Pharmaceuticals Ltd (ASX: NEU)

Bell Potter thinks that this pharmaceutical company's shares could have major upside potential.

The broker currently has a buy rating and $28.00 price target on the ASX 200 share. Based on its current share price of $20.21, this implies potential upside of almost 39% for investors over the next 12 months.

Bell Potter is feeling very bullish about the company's outlook thanks largely to its NNZ-2591 product. It believes this has product has significant market opportunities and could be a big revenue generator. The broker said:

Our positive outlook on the stock is driven largely by the company's second asset, called NNZ-2591, currently preparing to start Phase 3 clinical trials in CY25. In the last six months, NNZ-2591 reported highly encouraging Phase 2 data in two rare diseases. NEU will once again have first-to-market opportunities in these two rare diseases, assuming future Phase 3 trials are successful. While short-term news will continue to be impacted by Acadia's commercialisation of NEU's first drug, called Daybue, we maintain our BUY recommendation for investors who have a longer 2 to 3-year investment horizon.

ResMed Inc (ASX: RMD)

Another option for that $10,000 investment could be ResMed. It is a sleep disorder treatment focused medical device company.

Morgans thinks it could be a top ASX 200 share to buy now. The broker currently has an add rating and $34.11 price target on its shares. This suggests that upside of over 19% is possible for investors from current levels.

It believes that investors should look beyond weight loss drug concerns and focus on its huge market 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. Although quarters are likely to remain volatile, nothing 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.

Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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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