The Australian share market may be at record highs right now, but that doesn't mean there aren't ASX 200 shares out there with the potential to generate big returns for investors.
For example, the two ASX shares listed below have been named as buys and tipped to rise between 23% and almost 30% over the next 12 months. Here's what analysts are saying about them:
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Endeavour Group Ltd (ASX: EDV)
This drinks giant's shares could be dirt cheap according to analysts at Goldman Sachs.
The broker currently has a buy rating and $5.50 price target on the ASX 200 share, which implies potential upside of 27% for investors over the next 12 months. And if you include forecast dividends, the total potential 12-month return from Endeavour's shares stretches beyond 31%.
Goldman Sachs feels that its shares are simply too cheap given the quality of the company. It recently said:
Net net, we reiterate Buy on our continued believe in a high quality retailer gaining share amid a category down-cycle with a resilient growth option in Hotels. Company is trading at FY25 P/E of 17x vs historical average of 22x and WOW 22x, COL 21x.
Harvey Norman Holdings Limited (ASX: HVN)
The team at Bell Potter sees significant upside from this retail giant's shares over the next 12 months.
A recent note reveals that its analysts have initiated coverage on the ASX 200 share with a buy rating and $5.80 price target. Based on its current share price of $4.72, this implies potential upside of 23% for investors. In addition, Bell Potter highlights that a 5.4% dividend yield is expected in FY 2025, which boosts the total potential return beyond 28%.
The broker recently highlighted Harvey Norman's exposure to artificial intelligence (AI) as a reason to be positive. It said:
We initiate coverage with a Buy rating and PT of $5.80 based on a based on a sum-ofthe-part valuation with the overall business operations on a DCF (WACC ~10%, TGR ~3%) methodology and the property bank on a fair value basis (as last reported) assuming largely similar capitalisation rates over FY25e.
Similar to JBH, we see a sizable upside from the AI driven upgrade cycle to Consumer Electronics sales at HVN which we size at up to ~12% of Australian sales given the position of the company as one of the leading players with large format stores globally which are considered attractive to global technology brands/suppliers when releasing new products.
