Are you looking for big returns to supercharge your investment portfolio?
If you are, then it could be worth checking out the ASX 200 shares in this article that have been tipped to rise strongly from current levels. Here's what you need to know about them:
Image source: Getty Images
BHP Group Ltd (ASX: BHP)
Analysts at Morgans see potential for this ASX 200 share to rise strongly from current levels.
Its analysts highlight the mining giant's impressive margins compared to peers as a reason to buy. They recently commented:
Another strong result from BHP, posting an FY24 EBITDA margin of 54%, close to its decade-average of 55% (10 percentage points above its next closest peer). Strong opex performance, with earnings coming in slightly ahead with a final dividend of US74 cents, for an annualised dividend yield of 5.6% fully franked.
Morgans has an add rating and $48.30 price target on BHP's shares. This implies potential upside of 25% for investors over the next 12 months. A 5%+ dividend yield is also expected over the period.
Graincorp Ltd (ASX: GNC)
Another ASX 200 share that has been tipped to deliver market beating returns is grain exporter Graincorp.
Analysts at Bell Potter are bullish on the company and believe the market is underestimating its earnings potential in FY 2025. They said:
On face value consensus FY25e estimates appear conservative, particularly if the basis trade emerges over harvest, which we would expect to occur on a winter crop of this magnitude.
Bell Potter has a buy rating and $10.20 price target on Graincorp's shares. This suggests that upside of 18% is possible over the next 12 months.
IDP Education Ltd (ASX: IEL)
Goldman Sachs thinks that big returns could be on offer from this ASX 200 share.
The broker remains positive on the language testing and student placement company despite its troubles this year. Particularly given its belief that FY 2025 will be the bottom for its earnings and then it will be onwards and upwards. It recently commented:
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.
Goldman has a buy rating and $19.85 price target on its shares. This implies potential upside of 25% for investors from current levels.
