If you are on the lookout for some big returns, then it could be worth listening to what Morgans is saying about the ASX 200 shares in this article.
That's because the broker believes they could rise at least 30% from current levels. Here's what is being recommended:
NextDC Ltd (ASX: NXT)
Morgans has is bullish on this data centre operator and was impressive with the announcement of yet another big customer win. It feels this win in Kuala Lumpur validates its international expansion. The broker said:
NXT has announced its first international cornerstone customer who has signed a 10MW deal in NXT's upcoming Malaysian site (Kuala Lumpa/KL1). KL1 goes live early calendar year 2026. It's pleasing to see customer demand before go-live. The deal is significant as the first reference point with a Hyperscaler contractually validating NXT's international expansion plans. We retain our Buy recommendation and $18.80 target price.
Morgans has an add rating and $18.80 price target on the ASX 200 share. Based on its current share price of $14.10, this implies potential upside of 33% for investors.
Treasury Wine Estates Ltd (ASX: TWE)
Another ASX 200 share that could be a buy according to Morgans is wine giant Treasury Wine.
Morgans notes that the company has recently downgraded its earnings guidance to reflect weakness in the US premium wine market. The broker was expecting a downgrade so was pleased with how modest it was in the end.
As a result, it thinks that a buying opportunity has been created for investors and highlights the low multiples its shares are trading on. Morgans said:
A deceleration of US Premium wine sales (particularly 19 Crimes) below US$15 per bottle, has seen TWE revise its FY25 EBITS guidance. The downgrade was minor at 1.3% and better than feared. TWE's Luxury portfolios appear to be performing well. However, focus is now on what impact a change in distributor in TWE's key US market, declining Premium US wine sales and the tariffs will have on FY26. We have revised our forecasts.
While not without risk given industry and macro headwinds, TWE's trading multiples look far too cheap (FY25 PE of only 14.2x) and we maintain a BUY rating.
The note reveals that Morgans has a buy rating and $11.06 price target on Treasury Wine's shares. Based on its current share price of $8.08, this suggests that upside of 37% is possible for investors between now and this time next year.
