The recent market selloff has left many ASX 200 stocks trading at discounted levels, creating potential opportunities for savvy investors.
While volatility can be unsettling, history shows that quality companies often rebound strongly after periods of weakness.
With that in mind, let's take a look at a couple of ASX 200 stocks that analysts are tipping to deliver significant gains over the next 12 months. Here's what they are saying about them:
Pro Medicus Limited (ASX: PME)
A major pullback could have created a compelling entry point for investors with this ASX 200 stock.
Pro Medicus is a leading global provider of medical imaging technology. It offers radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions to hospitals, imaging centres, and healthcare groups worldwide.
Bell Potter is urging investors to buy the company's shares while they can. Particularly given its unstoppable growth. It explains:
The PME full stack solution continues to wipe the floor with competitors – 10 contract announcements in the LTM including two new academic medical centres clients. FY25/26 revenues upgraded by 4% and 2% respectively. In addition we expect further growth in the cardiology space with the first small scale implementation to take place in April 2025.
We see no stopping the current momentum in new contract wins with margins more likely to grow as hospitals begrudgingly adopt the Visage despite its premium price, due to the absence of any viable alternative to meet productivity requirements.
Bell Potter currently has a buy rating and $330.00 price target on its shares. This suggests that upside of 40% is possible from current levels.
James Hardie Industries plc (ASX: JHX)
Another ASX 200 stock that could be cheap at current levels is James Hardie. It is a global leader in fibre cement with operations in Australia, United States, and Europe.
The team at Bell Potter is very positive on the company. This is because it believes that James Hardie is well-placed to benefit from a combination of interest rate cuts and the structural shift to fibre cement cladding in the United States. It said:
In our view, James Hardie is poised for continued earnings expansion, driven by the structural shift towards fibre cement in the US. Households in the US continue to shift to fibre cement cladding from vinyl/timber, providing a multiyear runway for JHX's revenue and profit growth. With a strong market position, premium brand, and pricing power, JHX is poised to capitalise on structural growth in the fibre cement market and cyclical tailwinds from potential rate cuts.
Bell Potter currently has a buy rating and $63.00 price target on its shares. Based on the latest James Hardie share price of $50.16, this implies potential upside of approximately 26% over the next 12 months.
