Are you on the lookout for some big returns for your investment portfolio?
If you answered yes to that, then take a look at the ASX 200 stocks in this article.
That's because they have been named as buys and tipped to rise at least 20% from current levels. Here's what you need to know:
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Life360 Inc (ASX: 360)
Bell Potter is bullish on this ASX 200 stock and thinks investors should be snapping up its shares.
Its analysts have put a buy rating and $28.15 price target on its shares. This suggests that upside of 20% is possible from current levels.
The broker thinks the location technology company is well-placed for strong growth in the coming years. It said:
Life360 has c.2.25m paying circles – the best measure of subscriber numbers – and managed to grow this base by 23% in 2022, 21% in 2023 and 25% in 2024 despite the disruptions associated with COVID-19. This growth shows resilience in the subscriber base and, furthermore, the potential for continued strong growth in the base with market conditions now back to normal.
Bell Potter also highlights that the company has a big opportunity to disrupt the legacy incumbents in a number of new markets. The broker explains:
Life360 has the potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents. An example is roadside assistance where Life360 launched a subscription-based product called Driver Protect which disrupted the market and helped enable monetisation of its user base. Other markets Life360 could potentially enter include insurance, item & pet tracking, senior monitoring, home security and/or identity theft.
Zip Co Ltd (ASX: ZIP)
Analysts at Goldman Sachs see potential for this ASX 200 stock to deliver big returns over the next 12 months.
The broker has put a buy rating and $2.50 price target on the buy now pay later provider's shares. This implies potential upside of of 35% for investors from current levels.
Goldman likes the company due to its significant opportunity in the United States. It said:
Our Buy rating is centered on: 1) US adoption in an under penetrated BNPL market, supported by elevated e-commerce growth and a shift towards accessible and transparent consumer credit products; 2) Market leading position in ANZ which Zip can use to drive adoption of higher-margin financial products among a maturing younger consumer base; and 3) renewed capital structure which has materially simplified and de-risked the balance sheet, supporting operating leverage.
