The market may be trading within sight of its record high, but that doesn't mean that everything is overvalued.
In fact, if you look hard enough, you will find a number of ASX shares that are trading at a deep discount to what analysts think they are worth.
With that in mind, let's take a look at two popular ASX 200 shares that are in the Boxing Day sales this year:
James Hardie Industries plc (ASX: JHX)
This building products giant's shares could be on sale right now.
Although the company has been dealing with a tough demand environment in North America, as higher interest rates and softer housing activity weighed on volumes, its most recent quarterly update signalled that conditions may be stabilising faster than expected.
The team at Macquarie Group Ltd (ASX: MQG) thinks investors should be buying James Hardie's shares while they are down in the dumps. It recently put an outperform rating and $41.70 price target on its shares. This implies potential upside of approximately 30% for investors.
Commenting on its outperform rating on this ASX 200 share, the broker said:
Outperform. Market conditions are tough, but stabilising – inventory concerns are fading. Focus now turns to rates and housing policy. An evolving AZEK integration story, a bottoming of markets, and valuation are in support of our thesis. Governance changes also seen as additive.
Nextdc Ltd (ASX: NXT)
While this data centre operator's shares are not conventionally cheap, they are trading at a 25%+ discount to their 52-week high. This could be a compelling opportunity for investors to snap up shares in a high-quality company with significant long-term growth potential thanks to artificial intelligence (AI) boom.
Morgans certainly thinks this is the case. It recently upgraded NextDC's shares to a buy rating with a $19.00 price target. This suggests that upside of approximately 45% is possible from current levels.
Commenting on the ASX 200 share, the broker said:
NXT has announced that following recent customer contract wins, presumably including a large single customer contract win across multiple locations, its contracted utilisation has increased by 71MW to 316MW as at 1 December 2025. Further contract wins were, and remain in, our forecasts so this mostly underpins our expectations.
However, we upgrade our capex assumptions and lift our FY27/28 EBITDA forecasts by 5%. Our target price remains $19 per share. The share price has declined ~19% in the last three months and given a ~40% differential between the current share price and our $19 target price we upgrade our recommendation to BUY from ACCUMULATE.
