If you are on the lookout for big returns, then keep reading!
That's because listed below are two ASX 200 shares that analysts are very positive on. So much so, they have recently named them as buys and tipped them to rise very strongly from current levels.
Here's what analysts are saying about them and how high they think they can climb in the near term:
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CSL Ltd (ASX: CSL)
The team at Goldman Sachs believes that recent weakness in the CSL share price has created a compelling buying opportunity for investors. Particularly given how the ASX 200 biotech share trades on below average multiples and has a very bright outlook. The latter is being underpinned by strong demand for immunoglobulin (IG) therapies. The broker said:
Our Buy recommendation for CSL is driven by (1) Strong growth in the IG market despite the entry of new drugs (anti-FcRn), (2) CSL market share gains in the IG market, Hemophilia, Hereditary Angiodema (HAE) and influenza vaccines, and (3) Gross Margin accretion driven by operational improvements to its cost base. We believe CSL's valuation multiple de-rate is undue considering the growth outlook, particularly for IG therapies.
Goldman Sachs currently has a buy rating and $304.60 price target on CSL's shares. Based on its current share price of $238.58, this implies potential upside of almost 28% for investors over the next 12 months.
Nextdc Ltd (ASX: NXT)
Analysts at Morgans are feeling very bullish about this data centre operator's shares. And despite a strong gain in recent weeks, it still sees significant value in the ASX 200 share at current levels.
Particularly after a recent update demonstrated that demand for data centre capacity remains very strong thanks to cloud computing and artificial intelligence. It said:
Yesterday we published a note reviewing quarterly results from the US Megatech companies. This showed end customer demand for Cloud and AI and consequently capex for data centres continued to rise. Today NXT proved this point in announcing it had secured a 50MW hyperscale AI deal in its Melbourne facility. This was broadly in line with our expectations and we consequently make immaterial changes to our forecasts. Add recommendation and $18.80 target price retained.
Morgans has an add rating and $18.80 price target on NextDC's shares. Based on its current share price of $13.82, this suggests that its shares could rise just over 35% between now and this time next year.
