The Australian market has traditionally delivered a return of approximately 10% per annum over the long term.
While this is a great return, investors don't need to settle for that. Not when there are ASX 200 shares out there that are being tipped to rise significantly more over the next 12 months.
Here are two ASX 200 shares that Morgans is tipping as buys, courtesy of The Bull. Here's what the broker is recommending this week:
Amcor (ASX: AMC)
This packaging giant could be an ASX 200 share according to Morgans. The broker feels that recent share price weakness has created a buying opportunity for investors, especially given the transformational acquisition of Berry Global.
Morgans has a buy rating and $15.20 price target on its shares. This implies potential upside of 17% for investors from current levels. It also expects a 6% dividend yield in FY 2026, which boosts the total potential return to approximately 23%.
Commenting on the company, Morgans said:
This global packaging giant presents an attractive opportunity for long term investors following recent share price weakness. Its acquisition of Berry Global reinforces its position as a world leader in packaging and is expected to deliver substantial cost synergies, stronger earnings and robust cash flow. Also, Amcor's defensive market exposure combined with a recent and appealing dividend yield of about 6 per cent enhances its investment case. While risks remain, the current valuation offers potential for sustained growth.
Light & Wonder Inc. (ASX: LNW)
Another ASX 200 share that could offer major upside potential is gaming technology company Light & Wonder.
Morgans feels that its shares are significantly undervalued at current levels. As a result, it has put a buy rating and $175.00 price target on them. Based on its current share price, this suggests that upside of almost 30% is possible from current levels.
Morgans is a fan of the company due to its transformation into a high margin, content-driven business with recurring revenue. It explains:
Light & Wonder is a global gaming technology leader with strong growth prospects. Following strategic acquisitions and divestments, the company has transformed into a high margin, content-driven business with recurring revenue of about 70 per cent. Capital management remains disciplined through active buy-backs and deleveraging, while the upcoming ASX sole listing is expected to close the valuation gap with peers. In our view, LNW offers potentially significant upside.
