These ASX 200 shares could rise 30% to 40%

Looking for big returns? Bell Potter thinks these shares could be the ones to buy.

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Key points

  • CAR Group, a key player in auto listings, is seen by Bell Potter as undervalued due to sector-wide tech stock weakness; with strategic growth insights and improving margins, a 30% price increase is plausible.
  • Mesoblast, bolstered by the successful launch of Ryoncil, remains a promising bet for investors with a significant upside potential of 42% as the market begins to value its future growth prospects and label expansions more fully.
  • Both CAR Group and Mesoblast are highlighted as undervalued opportunities with strong growth potential, urging investors to consider these picks for portfolio enhancement.

Are you on the lookout for ASX 200 shares that could supercharge your portfolio with some big returns?

If you are, then it could pay to listen to what Bell Potter is saying about the two shares named below. Here's why it is urging investors to buy them this month:

CAR Group Limited (ASX: CAR)

Bell Potter notes that this auto listings company's shares have been dragged lower following weakness in the tech sector.

While this is disappointing given that it only recently initiated coverage on the carsales.com.au owner, it feels that it has created a very attractive opportunity for investors. Especially with the ASX 200 share trading on lower than normal multiples. It said:

Our forecast adj. EPS CAGR of 12.2% through FY25-28e reflects a steady state of accelerating growth through the period (10.4%, 12.3% and 14.0% in FY26e-28e respectively) from realising the benefits of investing into margins during FY26, which includes acquisition-related cost headwinds in North America and marketing investment in South Korea. CAR's current share price reflects a 12mth fwd P/E of ~28x, a two-year low; we feel this misses the underlying investment case for CAR heading into a period from 1H27 onwards from margin headwinds rolling off into an accelerating adj. EPS growth profile.

This morning, Bell Potter has retained its buy rating and $42.20 price target on its share. Based on its current share price, this implies potential upside of 30% over the next 12 months. In addition, the broker is expecting a modest 2.6% dividend yield over the period.

Mesoblast Ltd (ASX: MSB)

This ASX 200 biotech share could be undervalued according to Bell Potter.

It highlights that 2025 has been a big year for Mesoblast, thanks to the "highly successful commercial launch" of the Ryoncil therapy.

The good news is that the broker believes there is significantly more to come. In fact, it feels the market isn't even fully pricing in its opportunity in current indications. This means that potential future label expansions could add even more value. It said:

We estimate the NPV of de-risked revenues from future sales of Ryoncil at a minimum of $5.1bn (A$4/share). To achieve this outcome we ignore revenues from all other product approvals and reduce to nil the risk allowances for future revenues from label expansions in adults for GvHD and IBD.

The majority of the value A$4/share valuation is attached to approvals in paediatrics and adult GvHD. As the market begins to appreciate the sustainability of revenues and long term EPS growth, we expect the valuation will increase as more aggressive relative valuation models are employed.

Bell Potter has retained its speculative buy rating and $4.00 price target on Mesoblast's shares. Based on its current share price of $2.82, this suggests that upside of 42% is possible between now and this time next year.

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 CAR Group Ltd. 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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