Investors on the lookout for big returns might want to check out the ASX 200 shares in this article.
That's because analysts are bullish on them and are tipping market-beating gains over the next 12 months. Here's what you need to know about them:
Nextdc Ltd (ASX: NXT)
The first ASX 200 share that could be a buy according to analysts is NextDC. It is a data centre operator with a growing collection of world class data centres across the Asia-Pacific region.
The team at Morgans is positive on the company. It believes that NextDC is well-placed to benefit from decades of digital infrastructure growth. In light of this, it feels investors should be patient while it lays the foundations for the future. The broker explains:
NXT's 1H25 result and outlook were largely as expected. The key challenge for investors remains the tradeoff between NXT investing now to setup the business for a much greater size (higher OPEX now) and the fact that they are investing ahead of revenue growth (higher OPEX is a short-term EBITDA drag).
NXT needs to execute well now, on commitments already made, to remain a preferred digital supplier, and continue benefiting from the decades of digital infrastructure growth which is yet to come. Incidentally, a ~$200m+ increase in revenue is already contracted so this is just a timing challenge. We see building a solid foundation as the best way to create value, but acknowledge it can create a jittery investor base, in the short term.
Morgans has an add rating and $18.80 price target on its shares. This suggests that upside of 44% is possible for investors between now and this time next year.
Nufarm Ltd (ASX: NUF)
Bell Potter believes that this agricultural chemicals company could be an ASX 200 share to buy.
The broker believes that the company is well-positioned to benefit from improving trading conditions and a weaker Australian dollar. It said:
Our Buy rating is unchanged. The 1Q25 reporting season has highlighted double digit volume growth in a more input cost environment resulting in a material recovery in sector wide gross margins.
Trading at ~20% discount to its R12MFWD EV/EBITDA and its global peer group, we see valuation as undemanding, particularly in light of the 1Q25 recovery in secular demand and gross margins, encouraging initial crop production forecasts in the EU+UK (NUF's highest margin market) and a weaker AUD (~70% of crop protection revenues are in USD, CAD, GBP & EUR).
Bell Potter has a buy rating and $4.75 price target on its shares. Based on its current share price of $3.85, this implies potential upside of 23% for investors over the next 12 months. Its analysts also expect a 1.6% dividend yield in FY 2025, growing to 2.9% in FY 2026.
