Are you hunting market-beating returns for your portfolio? If you are, then it could be worth considering the ASX 200 shares in this article.
They have just been named as buys and tipped to rise very strongly from current levels. Here's what you need to know:
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Neuren Pharmaceuticals Ltd (ASX: NEU)
Analysts at Bell Potter see significant value in this ASX 200 share at current levels.
Last week, the broker reaffirmed its buy rating on the pharmaceutical company's shares with a $22.00 price target. Based on its current share price of $12.52, this implies potential upside of 75% for investors over the next 12 months.
While approval delays in Europe are disappointing and have hit sentiment, Bell Potter remains positive. It explains:
We have reduced the PoS assumption for Daybue EU approval and delayed first EU sales to CY27 for conservatism. We think there is still a possibility that, following reevaluation, the CHMP reverses its initial decision, however the risk to EU approval has increased considerably. Changes to CY26 forecasts are mainly from delaying the risk-adjusted milestone upon first EU sales into CY27.
NEU remains attractively valued based on the upside potential from its second drug candidate, NNZ-2591, hence we maintain our BUY. The Phase 3 trial for NNZ-2591 still has ~18 months until its readout, so investors will require patience to see through to this catalyst. Royalties from Daybue in the US alone will generate ~A$65m in CY26 income by our estimate, so NEU's balance sheet remains very healthy regardless of the EU decision.
Pinnacle Investment Management Group Ltd (ASX: PNI)
The team at Morgans thinks this ASX 200 share could be undervalued following a pullback last week.
In response to its half year results, which fell short of expectations, the broker upgraded this investment company's shares to a buy rating with a $23.21 price target. Based on its current share price of $17.49, this implies potential upside of 33% for investors.
While the headline result missed expectations, Morgans saw a number of positives from the release. It explains:
PNI's 1H26 NPAT (~A$67m, -11% on the pcp) came in -4% below consensus, but it was more in line excluding one-offs (e.g. mark-to-market investment impacts). Overall, we saw the 1H26 result as compositionally stronger than the headline numbers suggested, and positively accompanied with a move-the-dial acquisition.
We reduce FY26F EPS by -7% on a softer-than-expected 1H26 "reported" result, and dilution from the PAM equity issue. Conversely, FY27F EPS rises +8% on PAM earnings benefits and a broader review of our assumptions. Our price target falls to A$23.21 (from A$26.30). We move to a BUY recommendation (previously Accumulate) with >20% upside existing to our PT.
