Baker Young's Toby Grimm recently ran his slide rule over two S&P/ASX 200 Index (ASX: XJO) heavyweights.
And he liked what he saw.
Enough so that he issued a buy recommendation for engineering and professional services company Worley Ltd (ASX: WOR), which has a market cap of around $6.0 billion.
Grimm also has a buy recommendation on ASX 200 telco TPG Telecom Ltd (ASX: TPG), which commands a market cap north of $8 billion.
Here's why he expects their share prices, and market caps, are set to grow (courtesy of The Bull).
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Should you buy Worley shares today?
"Worley is an engineering and construction group," said Grimm. "It recently stepped back from underlying earnings before interest and tax growth due to delays on Middle East projects."
That news was delivered in a market update on 20 April.
While Worley reported that its projects in the Middle East have not been cancelled following the outbreak of hostilities, the ASX 200 heavyweight did say there were some delays.
As such, management forecast that the company's full year FY 2026 earnings before interest, tax and amortisation (EBITA) will take a hit in the range of $30 million to $40 million.
Despite these impacts, Worley said it still expects to achieve year on year revenue growth in FY 2026.
According to Baker Young's Grimm:
We believe the longer-term outlook remains supportive. Structural trends, such as de-globalisation of supply chains and increasing investment in energy efficiency, align closely with WOR's core capabilities.
Summing up his buy recommendation on the ASX 200 shares, Grimm said, "Earnings volatility and missed expectations have weighed on sentiment. But the company is trading on an undemanding valuation relative to its medium-term growth potential."
Worley shares trade on an unfranked 4.1% trailing dividend yield. The stock is down just over 2% in 12 months.
Which brings us to…
ASX 200 telecom accelerating growth
Commenting on his buy recommendation for TPG Telecom, Grimm said:
Following several years of asset sales and restructuring, TPG has emerged as a more focused telecommunications provider with a stronger balance sheet and increasing exposure to the structurally attractive mobile segment, now contributing close to half of group revenue.
And he noted that the ASX 200 share's strategic operational shift is starting to pay off.
According to Grimm:
Full year 2025 results highlighted accelerating subscriber growth and improving revenue per user, indicating positive operating momentum. The company's strategic shift away from infrastructure ownership and lower-margin fixed line broadband positions it for higher quality earnings growth.
The stock screens as relatively attractive compared to peers.
TPG shares are down about 20% over 12 months and trade on a partly franked 4.4% trailing dividend yield.
