These ASX 200 shares could rise 15% to 20%

Analysts think these shares could be undervalued right now.

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If you are looking to supercharge your portfolio with some big returns, then read on!

That's because listed below are a couple of ASX 200 shares that brokers believe could deliver market-beating returns over the next 12 months.

Here's what they are saying about these shares right now:

DroneShield Ltd (ASX: DRO)

DroneShield, which joins the ASX 200 index at this month's quarterly rebalance, could be an ASX 200 share to buy according to Bell Potter.

Although it lost out on a major Australian government contract recently, the broker isn't concerned. It highlights its huge sales pipeline and how the missed contract accounts for only a tiny slice of its current opportunity.

Bell Potter has a buy rating and $3.70 price target on the growing company's shares. Based on its current share price of $3.03, this implies potential upside of 22% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

DRO's 1H25 performance demonstrates the significant growth that has occurred in the business in CY25, including the acceleration of both the scale and frequency of contracts. Whilst the Land156 update is disappointing, Australia represents <5% of DRO's $2.3b sales pipeline and the program was not included in our forecasts due to insufficient details regarding the structure and size of the program.

NextDC Ltd (ASX: NXT)

The team at Morgans thinks that data centre operator NextDC could be an ASX 200 share to buy for big returns.

In response to its FY 2025 results, the broker retained its buy rating with an improved price target of $19.00. This implies potential upside of 15% for investors over the next 12 months. It commented:

NXT's FY25 result in line with expectations as was FY26, but FY27 was higher. Highlights of the result include: 1) a slide which finally shows investors the revenue ramp-up profile of NXT's contracted MWs (it's faster than anticipated so upgrades forecasts); 2) the pipeline is larger than ever (~2 GWs in NSW alone); and 3) setting up a partnership in Japan and Joint Ventures for S4/S7 will lower NXT's equity requirements (relative to 100% self-funding).

While none of these items are totally new, collectively they represent good reasons for the share price to rally strongly. We lift FY26F EBITDA by 2% and FY27 by 23%. We also lift our capex forecasts. The net result is our target price lifts to $19.00 per share from $18.80.

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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