Wanting some big returns for your investment portfolio? If you are, then take a look at the ASX 200 shares in this article.
That's because they have been named as buys by brokers and tipped to rise very strongly from current levels. Here's what you need to know:
NextDC Ltd (ASX: NXT)
Data centre operator NextDC could be an ASX 200 share to buy now for big returns according to analysts at Macquarie.
The broker feels that the company is well-placed for growth thanks to strong demand for data centre capacity and its strategic position in the Asia-Pacific region. It said:
Strong Australian DC fundamentals. Australia has a strong strategic position in APAC, the fastest growing cloud region in the World. Govt openly supports digital infra. NSW expediting asset delivery with new authority. Recent VIC & NSW Premier visits at NXT assets. AU demand should grow >1.8GW in next 5 years. Driven by Stargate Global, Hyperscaler commitments and pent-up Enterprise demand.
Capital intensity is high, but is being deployed at an ROIC > WACC. Improving strategy to target AI contracts. Huge opportunity set, strong market position, need to execute. We have confidence in contract wins.
Macquarie has an outperform rating and $22.10 price target on its shares. Based on its current share price of $14.19, this suggests that upside of 56% is possible between now and this time next year.
Treasury Wine Estates Ltd (ASX: TWE)
This beaten down wine giant's shares could be cheap according to analysts at Morgans.
While the broker acknowledges that recent updates have been disappointing, it feels that the ASX 200 share is "far too cheap" and thinks patient investors should be taking advantage of this. It explains:
TWE has released its new divisional operating model (Penfolds, Treasury Americas and Treasury Collective) and a further update on its business performance. FY25 guidance was reiterated. In FY26, TWE is targeting further earnings growth, albeit more modest than its previous targets, particularly for Treasury Americas. An up to 5% share buyback was also announced.
We have revised our forecasts. While not without risk given industry and macro headwinds, TWE's trading multiples look far too cheap (FY25/26 PE of only 13.6/12.6x) and we maintain a BUY rating. However, we recognise the stock is lacking near-term catalysts and therefore patience is required given a material rerating may take time to eventuate.
Morgans has a buy rating and $10.25 price target on its shares. Based on its current share price of $7.81, this implies potential upside of 31% for investors over the next 12 months.
