Did you have a good year with your investment portfolio in 2024?
Whether you did or you didn't, analysts think you could set yourself up for a strong return this year with the ASX 200 shares in this article.
They have put buy ratings on them and are tipping them to rise 20% to 40% from where they currently trade. Here's what you need to know:
Challenger Ltd (ASX: CGF)
The team at Goldman Sachs thinks that this annuities company's shares could be in the buy zone right now.
It feels its shares are being undervalued by the market following a de-rating. Particularly given how its earnings and return on equity (ROE) are improving. It said:
Valuation appeal noting improved earnings / ROE while valuation has derated: CGF's 1-year forward P/E has fallen to ~10x against a backdrop of improving normalised ROE toward target in FY25 and COE margin (without material normalised capital returns) and improved normalised earnings.
Goldman has a buy rating and $7.60 price target on its shares. Based on its current share price, this implies potential upside of 26% for investors over the next 12 months. In addition, the broker is forecasting a dividend yield of 4.4% in FY 2025
Flight Centre Travel Group Ltd (ASX: FLT)
Flight Centre could be an ASX 200 share to buy now according to analysts at Macquarie.
It is the travel booking company behind the Flight Centre, Aunt Betty, Corporate Traveller, FCM, Stage & Screen, and Travel Associates brands. Combined, these brands cater to both leisure and corporate travel markets.
Macquarie believes that recent weakness has created a buying opportunity for investors. Especially given its belief that airfare deflation will soon slow and comparables will become easier.
A recent note out of the investment bank reveals that its analysts have an outperform rating and $22.34 price target on its shares. This suggests that upside of almost 40% is possible for investors from current levels.
Woolworths Group Ltd (ASX: WOW)
Goldman Sachs also thinks that Woolworths is a cheap ASX 200 share to buy in 2025.
Its analysts acknowledge that the supermarket giant is facing a few challenges, but they believe the risk/reward is very favourable for investors. Goldman said:
While WOW is facing transition challenges as its new CEO recalibrates WOW's strategy against a value consumer, we believe that WOW's structural advantages of its store network, scaled online position and leading data/analytics capabilities will enable market share wins in the medium term. WOW is FY26 P/E of ~21x vs historical avg 26x, next catalyst Feb 2025 post ACCC Inquiry conclusion.
Goldman has a buy rating and $36.20 price target on the company's shares. This implies potential upside of approximately 20% for investors over the next 12 months. In addition, it expects a dividend yield in the region of 3.2% in FY 2025.
