The average return from the share market over the long term is approximately 10% per annum.
But investors don't necessarily have to settle for that. Not when there are ASX 200 shares out there being tipped by brokers to deliver much stronger returns.
Let's see what they are recommending to their clients:
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Pilbara Minerals Ltd (ASX: PLS)
The team at Macquarie thinks that this lithium miner's shares could delivered outsized returns for investors over the next 12 months.
In response to the announcement of a mineral resource upgrade at the world class Pilgangoora operation, the broker said:
PLS has upgraded its resource estimate with a 23% increase in contained lithium, reflecting a 10% increase in tonnage and 12% lift in grade. […] We note the flat grade tonnage curve offers optionality for management to target higher-grade mine plans should prices remain suppressed, without compromising mine life, a positive in our view.
In light of this, Macquarie has reaffirmed its outperform rating and $2.40 price target on the ASX 200 share. Based on its current share price of $1.35, this implies potential upside of almost 80% for investors between now and this time next year. It concludes:
Maintain Outperform: The resource upgrade was encouraging, while a flat Mineral Resource grade-tonnage curve could offer optionality and operating cost reduction opportunities in the longer term, in our view.
WiseTech Global Ltd (ASX: WTC)
The team at Morgans sees plenty of upside potential in this ASX 200 share despite a recent rebound.
WiseTech Global is a logistics solutions software company that is responsible for the CargoWise platform. More than 16,500 logistics companies use its software. This includes 24 of the top 25 global freight forwarders and 46 of the top 50 global third-party logistics providers.
But the company isn't settling for that and is looking to boost its reach with a significant acquisition. Morgans is supportive of the proposal and sees it as another reason to buy. The broker said:
WTC is set to acquire E2open (ETWO.NYSE), for an Enterprise Value of US$2.1bn, (~10.2x Adj FY26 EBITDA pre synergies) in a deal that will extend WTC's reach to become a solution for Beneficial Cargo Owners, stepping beyond the core Freight Forwarder & Logistics market serviced by CargoWise. The acquisition of ETWO sees our EPS forecasts increase by +1%/+11% in FY26F/FY27F. This drives an upgrade to our PT to $132.40/sh and sees our Add rating retained.
Morgans has an add rating and $132.40 price target on the ASX 200 share. This suggests that upside of over 25% is possible from current levels.
