Although the S&P/ASX 200 Index (ASX: XJO) has been trading within sight of a record high, the same cannot be said for all ASX 200 shares.
For example, the two listed below have been sold off and are down approximately 50% and 70%, respectively, year to date.
And while this is disappointing for shareholders, it could prove to be a compelling buying opportunity for non-shareholders according to some analysts.
Let's see what they are saying about these beaten down ASX 200 shares right now.
Domino's Pizza Enterprises Ltd (ASX: DMP)
The Domino's share price is down approximately 50% in 2024. Investors have been selling the pizza chain operator's shares amid concerns over its turnaround strategy and the impact this could have on its ambitious store expansion plans.
Goldman Sachs sees this as a buying opportunity. Especially after the company revealed plans to focus on store economics instead of network expansion. It said:
We believe that DMP's renewed focus on store unit economics and re-investment to ignite topline growth is rightly placed. While there is still significant progress to be made, we believe that earnings has troughed in FY24 and see a path of improvement through FY25.
The broker has a buy rating and $39.10 price target on its shares. Based on its current share price of $29.50, this implies potential upside of 33% for investors over the next 12 months.
Liontown Resources Ltd (ASX: LTR)
The Liontown share price is down approximately 70% since the start of the year.
As with most lithium miners, Liontown has been sold off this year after battery material prices continued to fall amid increased supply and weak demand.
Bell Potter sees this as a good opportunity for investors with a high tolerance for risk. Especially given its belief that lithium prices will start to improve soon due to a potential supply deficit in 2026. It said:
We calculate that recent supply curtailments from Australian producers (including LTR) have deferred around 50kt of Lithium Carbonate Equivalent from the market (around 4% of 2024 supply). On our supply-demand modelling, the cuts result in a smaller market surplus in 2025 and brings forward our estimate of a market deficit to 2026 (previously 2027). Quarter to date SC6 prices have averaged around US$800/t CFR.
The broker currently has a speculative buy rating and lofty $1.40 price target on Liontown's shares. Based on its current share price of 54 cents, this suggests that upside of almost 160% is possible over the next 12 months.
