These ASX 200 stocks could rise 20% to 35%

Analysts think these shares could be heading significantly higher.

| More on:
A man clenches his fists in excitement as gold coins fall from the sky.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you are hunting for ASX 200 stocks that could supercharge your portfolio, then read on.

That's because listed below are two buy-rated stocks that analysts believe could rise at least 20% from current levels.

Here's what they are recommending to clients:

Netwealth Group Ltd (ASX: NWL)

Bell Potter has named investment platform provider Netwealth as an ASX 200 stock to buy.

The broker believes recent share price weakness has created a buying opportunity for investors. It said:

Upgrade to Buy. First Guardian is an overhang, but if net flows are maintained then the company is on-track to beating guidance and maybe consensus. Against this backdrop there continues to be noise – KKR is looking to exit CFS and Macquarie has disrupted its flows – so we view FY26 as a good setup and upgrade based on valuation, where NWL has averaged an EV/

multiple of 33x.

The last traded price implies 29x our blended FY26-27 estimates. NWL has continued to build platform functionality with additional managed account options, a new individual HIN offering and expanded bond access through the trading desk. This should increase revenue share, and we can see a pathway to the usual +20% revenue growth story that historically has attracted value investors around these levels.

Bell Potter currently has a buy rating and $31.50 price target on the ASX 200 stock. Based on its current share price of $25.76, this implies potential upside of 22% for investors over the next 12 months.

Zip Co Ltd (ASX: ZIP)

The team at Macquarie Group Ltd (ASX: MQG) believes that buy now pay later (BNPL) provider Zip could be an ASX 200 stock to buy.

While the broker acknowledges that loss rates are increasing due to its explosive total transaction value (TTV) growth, it still expects the company to achieve its net transaction margin guidance.

In light of this, the broker sees a lot of value in its shares at current levels. Macquarie said:

Outperform. We forecast Zip to continue to deliver rapid growth supported by increased product adoption, expansion of merchant network, increased customer engagement and digital product innovation.

Catalysts: We expect ZIP to deliver attractive TTV growth and NTM in the guidance range, with potential upside risk to earnings.

Macquarie has an outperform rating and $4.85 price target on Zip's shares. Based on its current share price of $3.56, this suggests that upside of 36% 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 positions in and has recommended Macquarie Group and Netwealth Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

A group of people push and shove through the doors of a store, trying to beat the crowd.
Broker Notes

2 ASX shares highly recommended to buy: Experts

Are these two stocks the best buys on the ASX?

Read more »

Smiling couple sitting on a couch with laptops fist pump each other.
Broker Notes

These ASX 200 shares could rise 20% to 55%

Brokers have good things to say about these shares.

Read more »

A little girl is about to launch down the slide with a blue sky and white clouds in the sky behind her.
Broker Notes

BHP vs. Fortescue shares: Goldman Sachs says 1 will rip and 1 will dip

Top broker Goldman Sachs upgraded its 12-month share price forecasts for BHP and Fortescue shares this week.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Broker Notes

Brokers rate these 3 ASX shares as buys in January

These ASX shares have an exciting outlook according to experts.

Read more »

A young man sits at his desk working on his laptop with a big smile on his face.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

busy trader on the phone in front of board depicting asx share price risers and fallers
Resources Shares

Brokers issue new price targets on soaring ASX 200 mining shares

ASX 200 mining shares BHP, PLS Group, South32, and many others hit multi-year highs this week.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Why Bell Potter just upgraded this smashing ASX 200 stock

After rising over 100% in 12 months, Bell Potter believes there is more to come.

Read more »

A man in his 30s with a clipped beard sits at his laptop on a desk with one finger to the side of his face and his chin resting on his thumb as he looks concerned while staring at his computer screen.
Broker Notes

Buy, hold, sell: Catalyst Metals, NRW, and Paladin Energy shares

Let's see what analysts are saying about these ASX 200 shares.

Read more »