If you are looking for ASX 200 shares to buy with big return potential, then you may want to check out the two listed below.
That's because they have been named as buys by analysts and tipped to rise strongly from current levels.
Let's see what brokers are recommending to clients:
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CSL Ltd (ASX: CSL)
The first ASX 200 share that could be cheap at current levels is CSL.
It has long been regarded as one of Australia's premier companies — and for good reason.
The biotech giant has an enviable track record of innovation and execution across its core business segments: plasma therapies through CSL Behring, flu vaccines via CSL Seqirus, and kidney-focused treatments through the CSL Vifor business.
The company invests heavily in research and development, giving it a strong pipeline of new therapies. In addition, its global plasma collection network, deep scientific know-how, and mission-critical healthcare products give CSL enormous pricing power and customer loyalty.
The team at Morgans is bullish on the company. It said:
We view CSL as materially undervalued, trading on an EV/EBIT of 18.2x, more than 25% below its 10-year average (24.7x).
The broker has a buy rating and $303.00 price target on its shares. This implies potential upside of 22% for investors from current levels.
NextDC Ltd (ASX: NXT)
Another ASX 200 share that could be cheap right now is NextDC.
As a leading data centre operator, it provides the infrastructure that underpins the cloud computing revolution, AI development, and enterprise digital transformation.
NextDC's carrier-neutral, high-performance facilities are trusted by hyperscalers, government departments, and large corporates. As demand for data storage, compute power, and AI accelerates, the company is investing in new facilities and growing its national footprint.
The team at Morgans is also feeling very positive on this ASX 200 share. It recently said:
Enjoying all the benefits of the AI growth opportunity with less volatility are the operators of data centres. Data centres are facilities that store, process, and manage the vast amounts of data foundational to AI, ensuring secure and efficient data flow, backup, and recovery. […]
Our preferred exposure is NEXTDC. It has 17 operational data centres in Australia and nearly a dozen under construction or about to be built across Australasia and Asia.
Morgans has a buy rating and $18.80 price target on its shares. This suggest that upside of almost 35% is possible between now and this time next year.
