Although the market may be close to a record high, that doesn't mean that all ASX 200 stocks are expensive.
In fact, one stock could be dirt cheap and destined to deliver big returns for investors over the next 12 months according to analysts at Bell Potter.
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Which ASX 200 stock?
The stock in question is Nufarm Ltd (ASX: NUF). It is a leading supplier of agricultural chemicals, seeds, and seed treatments globally. At the last count, it had a marketing presence in over 30 countries and sales in over 100 countries.
Bell Potter notes that quarterly trends have been favourable for the company, which bodes well for its results. It said:
3Q25 reporting trends highlighted continued stabilisation in net selling prices, with pricing down -1% YOY and a continued rebound in sales volumes, up +7% YOY, the fifth consecutive quarter of volume growth. In addition, we noted a material recovery in reported gross margins, up +300bp YOY and outlook comments around stabilising active ingredient values.
Crop protection trade activity has also been positive. It adds:
3Q25 was characterised by high levels of crop protection trade activity, with import volumes up +26% YOY in major cropping regions and up +15% YOY in core NUF regions, driven in large by the Northern hemisphere. Where reported, trade flows have continued to demonstrate double digit YOY growth through Jul'25. We also noted the recent +12% movement in glyphosate tech values from the May'25 low (with YOY growth in 3Q25 for the first time since Sep'22).
Big potential returns
In light of the above, Bell Potter has retained its buy rating and $3.55 price target on the ASX 200 stock. Based on its current share price of $2.28, this implies potential upside of 56% for investors over the next 12 months.
And while no dividend is expected in FY 2025, it is forecast by the broker to return in FY 2026.
Commenting on its buy recommendation, Bell Potter said:
Our Buy rating is unchanged. Base demand in agricultural chemical markets looks to have remained robust through 3Q25 and active ingredient values appear to be turning the corner. The latter is expected to be beneficial as NUF is cycling the highs in terms of YOY pricing declines from the pcp. In addition, the recent closing of the Peruvian fishing season has put a floor in omega-3 pricing indicators, which have lifted US$100- 200/t off the low.
