If you are on the hunt for some big returns, then look no further than the ASX 200 shares in this article.
That's because analysts have just named them as buys and tipped them to rise more than 40% from current levels. Here's what they are recommending to clients:
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DroneShield Ltd (ASX: DRO)
Bell Potter thinks this counter drone technology company could be an ASX 200 share to buy.
And given the way its shares tumbled last week, the broker sees potential for some very strong returns over the next 12 months.
Its analysts believe that its market leading counter-drone offering leave it well-positioned for strong growth in the coming years. They said:
We believe DRO has the market leading counter-drone offering and a strengthening competitive advantage owing to its years of experience and large R&D team, focused on detect and defeat capabilities. We expect 2026 will be an inflection point for the global counter-drone industry with countries poised to unleash a wave of spending on soft-kill detect and defeat solutions. Consequently, we believe DRO should see material contracts flowing from its $2,550m potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26.
Bell Potter has a buy rating and $5.30 price target on DroneShield's shares. Based on its current share price of $3.22, this implies potential upside of 65% between now and this time next year.
Light & Wonder Inc (ASX: LNW)
Another ASX 200 share that could be destined to deliver big returns for investors over the next 12 months is gaming technology company Light & Wonder.
While there are short term risks from litigation, the broker believes investors should look beyond this and focus on the bigger picture. Especially given how it is a great example of growth at a reasonable price (GARP). It said:
We rate LNW a Buy over the medium to long term due to a compelling GARP profile relative to the ASX 100 and ALL (38% discount to EV / EBITA, pre 3Q25 upgrades). In our view, the key catalyst in closing this discount is the ASX sole listing, which we believe will weigh positively on the stock after November 2025. In the short term we acknowledge risks to LNW including: a worsening in the ALL litigation matter (less likely, in our view); and market disruption due to the Nasdaq delisting.
Bell Potter has a buy rating and $176.00 price target on its shares. Based on its current share price of $124.85, this suggests that upside of 41% is possible over the next 12 months.
