Are you on the lookout for some big returns in 2026? If you are, then it could be worth looking at the two ASX 200 shares in this article.
That's because analysts believe they could rise 50% or more this year. Here's what they are recommending to clients:
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Life360 Inc (ASX: 360)
Bell Potter thinks this location technology company's shares could be seriously undervalued at current levels.
The broker was impressed with the ASX 200 share's recent quarterly update and believes there's far more to come in 2026. It said:
Life360 provided a Q4 and 2025 update which was ahead of both the guidance and our forecasts: Year end MAU of 95.8m (vs BPe 93.5m) comprising 50.6m in the US (vs BPe 49.5m) and 45.3m international (vs BPe 44.0m); Year end paying circles of 2.83m (vs BPe 2.80m) comprising 2.00m in the US (vs BPe 1.97m) and 0.83m international (vs BPe 0.81m); 2025 revenue expected to be b/w US$486-489m (vs guidance US$474-485m and BPe US$480m); and 2025 adjusted EBITDA expected to be b/w US$87-92m (vs guidance US$84-88m and BPe US$86m).
The company also provided one outlook statement for 2026 which was MAU growth of 20% which implies absolute growth of c.19m users to around 115m at year end.
Bell Potter has a buy rating and $45.00 price target on its shares. Based on its current share price of $28.64, this suggests that upside of 55% is possible between now and this time next year.
Mesoblast Ltd (ASX: MSB)
The team at Bell Potter also thinks that big returns could be coming from this biotechnology company's shares in 2026. Though, it warns that it would only be suitable for investors with a high tolerance for risk.
The broker believes that the ASX 200 share is in a very healthy position following its new debt funding and growing demand for its Ryoncil product. It explains:
We continue to expect large reductions in cash burn in the March and June quarters reflecting collections from current and future sales with operating expenses stabilising at the new higher level. Elsewhere, this note reviews key terms of the new debt funding package. The new loan package vastly simplifies the balance sheet and earnings transparency by virtue of the simple 8% charge, paid quarterly – interest only for five years.
Finally, the recent update on real world performance of Ryoncil in the treatment of paediatric SR aGvHD is reassuring. 21 of 25 patients (84%) treated since launch were alive at day 28. The challenge for the commercial team is to convince physicians that established modes of treatment are now obsolete. Ryoncil is here to stay.
Bell Potter has a buy rating and $4.45 price target on its shares. This implies potential upside of approximately 80% for investors over the next 12 months.
