If you are looking for big returns for your investment portfolio, then it could be worth checking out the ASX 200 stock in this article.
That's because analysts at Macquarie Group Ltd (ASX: MQG) believe it could be destined to rebound strongly and deliver mouth-watering returns for investors.
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Which ASX 200 stock?
The stock that Macquarie is tipping as a buy is data centre company DigiCo Infrastructure REIT (ASX: DGT).
Macquarie notes that momentum is building for the company following the establishment of a sales team and hosting certification framework (HCF). It explains:
DGT's SYD1 data centre has been certified by the Department of Home Affairs as a Certified Strategic hosting provider of data centre services. DGT noted sentiment has increased inc discussions with a multinational technology provider and a Government customer contemplating a return. DGT has made four senior industry hires across sales, commercial & asset management teams to position the business for growth.
It has also been pleased with the strong demand for the SYD1 data centre. Macquarie adds:
SYD1 demand has exceeded expectations, although space needs modification to meet requirements for contract sizes of 5-10MW. The development spend remains ~$900m over the next 3 years with a target YoC of 12%. SYD1 development is underway with 9MW of liquid cooled capacity on track for delivery in early Q4 FY26.
All in all, the broker believes that this leaves the ASX 200 stock well-positioned for top line growth in the coming years. It is now forecasting revenue of $238 million in FY 2026, $289.6 million in FY 2027, and then $333.9 million in FY 2028.
Big return potential
According to the note, the broker has retained its outperform rating with a trimmed price target of $3.90 (from $4.30).
Based on its current share price of $2.76, this implies potential upside of 41% for investors over the next 12 months. To put this into context, this would turn a $10,000 investment into over $14,000.
Commenting on its outperform recommendation, the broker said:
Outperform $3.90 TP. DGT has many moving variables, hence no FY26 guidance, although we are hopeful for an update mid-year. There is asset backing with the stock trading at $2.75, a 28% discount to NTA of $3.80.
Valuation: $3.90 TP ($4.35 prior) based on DCF, reflecting earnings changes. Catalysts: Progress on IT capacity inc leasing progress and contract wins; Introduction of capital partners; Progress on 9MW expansion at SYD1.
