The Australian share market has delivered a return of approximately 10% per annum over the long term.
While this is great, investors can aim higher than this with their investments.
For example, analysts believe these ASX 200 shares could deliver returns of at least 30% over the next 12 months. Here's what they are recommending as buys:
Elders Ltd (ASX: ELD)
Analysts at Bell Potter thinks that agribusiness company Elders could be an ASX 200 share to buy.
The broker sees huge value in the company's shares at current levels. Especially given the impending acquisition of Delta Agribusiness., which it appears confident will go through.
This is contrary to what the market thinks, according to the broker. It feels the market is pricing in the ACCC blocking the transaction, which could be a big boost to its share price if it does go through. It said:
Our Buy rating is unchanged. The largest driver of the turnaround in our FY25e forecasts is the expected recovery in crop protection margins (from stability in COGS) and stronger levels of livestock activity. In our view, at present the share price is implying that the Delta transaction does not proceed and as such we would see the ACCC report due on 29/05 as possibly the largest near-term share price catalyst, noting ~$1.60ps of our target price and ~25% of our FY26-27e EBIT forecasts are based on a successful acquisition and integration of the Delta business.
Bell Potter has a buy rating and $9.10 price target on Elders' shares. Based on its current share price of $6.44, this suggests that upside of 40% is possible for investors over the next 12 months.
Light & Wonder Inc. (ASX: LNW)
Goldman Sachs sees a lot of value in this ASX 200 share following a selloff last week after the release of the gaming technology company's quarterly update.
Commenting on its bullish view of the stock, the broker said:
Light & Wonder is a global gaming business, generating revenue across three divisions: (1) Gaming, which refers primarily to the lease and sale of slot machines to land-based casinos, (2) SciPlay, its online gaming business designing social casino (c.90% of bookings) and casual free-to-play games (c.10% of bookings) for mobile, and (3) iGaming or Real Money Gaming (RMG) services where land-based slots games can be played online.
The broker has put a buy rating and $165.00 price target on its shares. This implies potential upside of 30% for investors over the next 12 months.
