Morgans says these ASX 200 shares could return 18% to 27%

The broker has good things to say about these shares.

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Key points

  • The Australian share market's historical 10% annual return may be outdone by these targeted ASX 200 shares, which offer promising growth potential according to Morgans' analysis.
  • Elders is positively viewed by Morgans due to an acquisition approval and expected performance improvements, with a potential 18% total return considering share price growth and dividends.
  • Morgans sees growth potential in Guzman Y Gomez, citing new menu items and conservative margin guidance as catalysts for share price improvement, projecting a 27% upside.

The Australian share market has traditionally delivered a return of approximately 10% per annum.

But investors may not have to settle for that when analysts at Morgans are expecting even greater returns for the ASX 200 shares named below.

Let's see what the broker is saying about these shares:

Elders Ltd (ASX: ELD)

Morgans is feeling positive about this ASX 200 share following news that the ACCC has approved its acquisition of Delta Agribusiness.

And while it was a little disappointed with its trading update, it feels the stage is set for a much-improved performance in FY 2026. It said:

The ACCC has finally approved ELD's acquisition of Delta Agribusiness, subject to six store divestments (not material to earnings). ELD has provided FY25 guidance which was 9.3% below forecast at the mid-point. While its 2H25 performance was disappointing, the improved seasonal conditions didn't eventuate until the 4Q. Importantly, FY26 should benefit from a positive rainfall outlook, higher selling prices, acquisitions and the transformation projects. We retain a BUY recommendation with a new price target of A$8.50.

As mentioned above, Morgans has a buy rating and $8.50 price target on its shares. Based on its current share price of $7.53, this suggests that upside of 13% is possible between now and this time next year. It also expects a 4.8% dividend yield over the period, boosting the total potential return to approximately 18%.

Guzman Y Gomez Ltd (ASX: GYG)

This quick service restaurant operator could be an ASX 200 share to buy according to Morgans.

It delivered a quarterly update largely in line with expectations. And while it is currently tracking below the market's comparable store sales growth estimates, it believes that new menu items will help drive stronger growth as the financial year progresses.

It also feels that management's margin guidance is conservative and outperforming it could help drive its shares higher. The broker said:

The 1Q26 played out largely as expected with comp sales growth improving slightly through the quarter as GYG cycled through a period of elevated demand in the pcp (IPO and 'Clean is the new Healthy'). Our forecasts are largely unchanged. Whist comp sales growth is tracking below our FY26 forecast of +5% (which is in line with VA consensus), GYG continues to expect comp sales growth to improve from 1Q26 levels.

We see higher comp sales growth being delivered in 2Q26 (MorgansF is +6.0%) driven by Caesar (already driving improved comp sales growth) and cycling an easier comparison (on a two-year stack GYG is cycling +9.4% in 2Q compared to +10.2% in the 1Q). In our view, 1Q26 will likely be the low point for comp sales growth this year and accelerating comps combined with conservative margin guidance should continue to drive the stock higher from here. Maintain BUY.

Morgans has retained its buy rating with an improved price target of $32.60. Based on its current share price of $25.69, this implies potential upside of 27% for investors over the next 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders. 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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