Looking for some market-beating returns to boost your investment portfolio?
If you are, then it could be worth considering the three ASX 200 blue chip shares listed below that have been tipped to rise by ~20%+ over the next 12 months.
Here's what analysts are predicting for them:
Nextdc Ltd (ASX: NXT)
Analysts at Morgans say that NextDC could be an ASX 200 blue chip share to buy.
It thinks the data centre operator is well-placed for growth over the long term thanks to the cloud computing boom. It also sees scope for NextDC's earnings to double in the coming years. It said:
Future share price performance will likely hinge on securing significant new contracts. While major contract wins are anticipated, it's important to note that contracts secured in the past year or two typically take 2-3 years to fully ramp up, suggesting that EBITDA could double based on these existing agreements.
Morgans has an add rating and $20.50 price target on its shares. This suggests that upside of almost 20% is possible from current levels.
Treasury Wine Estates Ltd (ASX: TWE)
The team at Goldman Sachs still sees significant value in this wine giant's shares despite a strong rise on Friday.
The broker believes the ASX 200 blue chip share deserves to trade on higher multiples given its positive earnings growth outlook. Commenting on its outlook, the broker recently said:
Treasury Wine Estates is the largest listed premium wine company globally. Our Buy rating on TWE is premised on accelerating double-digit EPS growth in FY24-27e.
Its analysts have a buy rating and $15.20 price target on its shares. This implies potential upside of 27% for investors between now and this time next year.
Woolworths Group Ltd (ASX: WOW)
Goldman Sachs is also feeling bullish about this supermarket giant and sees it as an ASX 200 blue chip share to buy.
And while investors may have concerns about the ACCC taking aim at the company, the broker believes this is all priced into its current share price. It said:
Net net, while we do not take any view on the final outcome, we remain of the view that earnings and valuation risks from the Inquiries are sufficiently priced in and reiterate Buy WOW and Neutral COL.
Goldman has a buy rating and $40.10 price target on the company's shares. Based on the current Woolworths share price of $33.43, this implies potential upside of 20% for investors over the next 12 months.
