These ASX 200 shares could rise 20% to 40%

Big returns could be on offer from these shares according to analysts.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are you on the lookout for some outsized returns for your investment portfolio?

If you are, then it could pay to look at the ASX 200 shares in this article that have recently been named as buys by brokers.

Here's what their analysts are saying about these top stocks this month:

Two happy and excited friends in euphoria holding a smartphone, after winning in a bet.

Image source: Getty Images

Domino's Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator's shares could generate big returns according to analysts at Goldman Sachs.

Last week, the broker reaffirmed its buy rating and $40.20 price target on the ASX 200 share. This implies potential upside of 33% for investors over the next 12 months.

Its analysts believe that a re-rating could be on the cards in the near term. They said:

The stock is trading at FY26e P/E of ~17x, below that of CKF and global QSR peers; and we expect reversion to LFL sales growth while network units stabilize and cost initiatives begin to materialize and drive re-rating.

HMC Capital Ltd (ASX: HMC)

Bell Potter thinks that this alternative asset manager could be an ASX 200 share to buy right now.

The broker has a buy rating and $13.50 price target on its shares. This suggests that they could rise 42% over the next 12 months.

Bell Potter highlights that the company's shares look cheap compared to peers following a recent pullback. Its analysts said:

[I]t has been remarkable half year period for HMC and we upgrade to Buy (was Hold). We think the share price pull-back provides an attractive entry point as the platform is reaching a scale and breadth sweet spot juncture which could see fee-earning capability increase further yet, and screens inexpensively vs. key global alternative AM and real estate fund manager peers.

Woolworths Group Ltd (ASX: WOW)

Goldman also sees Woolworths as an ASX 200 share to buy now and expects some big returns over the next 12 months.

It has a buy rating and $36.10 price target on the supermarket giant's shares. This implies potential upside of 20% for investors from current levels.

The broker feels that its shares are being undervalued by the market. It said:

The stock is trading at FY26e P/E of ~20x, approximately -1std below its historical average, we expect recovery in market share and cost discipline and scaling of retail media to drive recovery in AU Food EBIT margin, with trough earnings in NZ/W Living also support earnings recovery from 2H25 onwards.

Motley Fool contributor James Mickleboro has positions in Collins Foods and Domino's Pizza Enterprises. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises, Goldman Sachs Group, and HMC Capital. The Motley Fool Australia has recommended Collins Foods, Domino's Pizza Enterprises, and HMC Capital. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

Three smiling corporate people examine a model of a new building complex.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to buy these shares.

Read more »

Sell buy and hold on a digital screen with a man pointing at the sell square.
Broker Notes

Up 130% in a year, are Lynas Rare Earths shares still a good buy today?

Lynas Rare Earths shares have more than doubled ASX investors’ money in a year. Is there still time to buy?

Read more »

Woman chooses vegetables for dinner, smiling and looking at camera.
Broker Notes

3 reasons to buy Coles shares today

A leading analyst expects Coles shares are well-placed to outperform. But why?

Read more »

A businesswoman pulls her glasses down in shock to look at the bad news on her computer.
Broker Notes

Why did Morgans just lower its outlook on Collins Food and Pro Medicus shares?

Despite lowering its guidance, these stocks remain undervalued according to at least one expert.

Read more »

Business people discussing project on digital tablet.
Broker Notes

BHP vs Coles shares: Which is the better buy this week?

Let's see which one of these giants is being recommended as a buy by analysts.

Read more »

A smiling woman holds a Facebook like sign above her head.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Brokers name 3 ASX shares to buy right now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Person with thumbs down and a red sad face poster covering their face.
Broker Notes

6 ASX 200 shares downgraded by the experts this week

Brokers have reduced their ratings on six ASX 200 shares, including PLS Group and Westpac this week.

Read more »