The Australian share market has traditionally delivered a return in the region of 10% per annum.
While that is a great return, there are ASX 200 shares out there with the potential to outperform this.
For example, the two buy-rated ASX 200 shares listed below have been tipped to rise by more than 20% over the next 12 months by brokers.
Here's what they are saying about them:
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NextDC Ltd (ASX: NXT)
The team at Morgans remains very bullish on this data centre operator following the release of its half-year results last month.
In response to the results, the broker has retained its buy rating with an improved price target of $20.50. Based on its current share price of $13.88, this implies potential upside of almost 50% for investors between now and this time next year.
Morgans highlights that the company is experiencing incredible demand for capacity in its data centres. So much so, it believes that it is destined to deliver EBITDA of $700 million in FY 2029 even if it didn't win another contract before then. As a comparison, for the first half of FY 2026, NextDC reported EBITDA of $115.3 million, which annualises to approximately $230 million.
Commenting on the ASX 200 share, the broker said:
NXT sold more MWs in the month of December 2025 than in the preceding 36 months combined. It was a record sales period for enterprise and hyperscale. The 416MW now contracted underpins FY29 underlying EBITDA of >$700m (without new contract wins) and sees NXT trading on an undemanding ~22x EV/Contracted EBITDA, with upside potential. BUY retained and target price lifted to $20.50 from $19.00 following our upgrades.
Elders Ltd (ASX: ELD)
Bell Potter continues to believe that the market is undervaluing this ASX 200 share.
Last week, the broker retained its buy rating on the agribusiness company's shares with a trimmed price target of $9.00. Based on its current share price of $7.26, this suggests that upside of approximately 25% is possible between now and this time next year.
It also expects a generous 5.4% dividend yield over the period, lifting the total potential return to approximately 30%.
Commenting on its buy recommendation, Bell Potter said:
Our Buy rating is unchanged. We see encouraging signs for FY26e, with livestock turnoff values exhibiting double digit YoY growth through 1H26TD, mitigated in part by dryer conditions through most of the summer cropping window and an easing in input price tailwinds. A more normal selling pattern in FY26e, delivery on SYSMOD and backward integration initiatives, and consolidation of Delta are expected to drive high double-digit EPS growth in FY26-27e. This view does not look reflected in the current share price, with ELD trading at 13.3x FY26e EPS.
