While some ASX 200 shares are trading close to record highs, others have been left languishing.
The good news is that this means there's potential for some big returns for investors over the next 12 months.
Let's take a look at two ASX 200 shares that have been named as buys and are being tipped to rise around 20% or more from current levels. Here's what brokers are recommending to clients:
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Aristocrat Leisure Ltd (ASX: ALL)
Bell Potter thinks that gaming technology company Aristocrat Leisure could be an ASX 200 share to buy now.
It was pleased with its strong performance in the first half of FY 2026, highlighting that its profits were a touch ahead of consensus expectations.
Looking ahead, the broker believes the company is well-placed for growth thanks to its investment in research and development (R&D). It said:
We retain Buy. We expect ALL's leading R&D investment will drive market share gains. Top 2 game performance observed in both the core sales and premium gaming ops markets leaves us confident that ALL can grow the install base >4.0k per year and grow global shipments. Further, with leverage expected to reach 0.4x despite significant buybacks, ALL has substantial capacity to boost growth inorganically.
Bell Potter has put a buy rating and $61.00 price target on Aristocrat Leisure's shares. Based on its current share price, this implies potential upside of almost 20% for investors over the next 12 months. A 1.9% dividend yield is also expected from its shares.
Xero Ltd (ASX: XRO)
The team at Morgans is bullish on this cloud accounting platform provider.
It was impressed with its performance in FY 2026 and is feeling optimistic on its outlook. It said:
XRO reported a better-than-expected FY26 result and FY27 outlook. Earnings momentum continues to improve relative to consensus expectations. Management were confident enough to announce a buy-back and hint at potential capital management in FY28. However, investors didn't take comfort with commentary around AI disruption risk versus reward.
Management has a plan to maximise the opportunity set (TAM) ahead of a path to AI monetisation. It's early days in AI and the path to AI driven value creation will become clearer, over time. We retain our BUY recommendation and $111 Target Price.
Morgans has put a buy rating and $111.00 price target on the ASX 200 share. Based on its current share price of $79.67, this implies potential upside of approximately 40% over the next 12 months.
