When it comes to picking stocks that might have some serious upside, it pays to ask the professionals.
I've had a look through the broker reports that came out this week and have selected three ASX 200 companies that the analyst team at Macquarie thinks will do well going forward.
Let's see what they're saying.
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Santos Ltd (ASX: STO)
This oil and gas major recently announced it had hit continuous production at its Pikka oil project in Alaska, which was a major milestone for the company.
The project is now producing about 20,000 barrels of oil per day, which will ramp up to 80,000 during the third quarter of 2026.
Santos Managing Director Kevin Gallagher said regarding the project:
Pikka is a high-quality, low-cost oil development with strong economics and long reserves life benefiting not only Santos and its joint venture partner Repsol, but also key stakeholders, including the State of Alaska and Alaska Native Corporations. The project is set to generate robust cash flows and support strong shareholder returns over the coming years.
Macquarie said in this week's note to clients that Santos had "solid sequential growth" in its second-quarter production.
They added:
Currently, we view STO as tracking to the lower end of its CY26 guidance range, due to the longer asset commissioning/ramp times than expected when the guide was set.
They also added that due to relative share price weakness, Santos may yet again be in the sights of acquirers.
Macquarie has a price target of $9 on Santos shares compared to $7.07 at the time of writing.
Pexa Ltd (ASX: PXA)
Shares in this property settlements technology company are down about 16% over a 12-month period, but the Macquarie team believes there is significant upside.
Macquarie said property settlements in New South Wales improved by 3.1% in June compared with the previous corresponding period, after a weak May.
Macquarie boosted its price target on the company to $19.30 from $19.05, compared with $10.87 at the time of writing.
The broker added, "formal commitment from additional Tier-1 lenders is likely to incentivise the other Tier-1 lenders to onboard with PXA quickly, driving rapid market share gains''.
Aristocrat Leisure Ltd (ASX: ALL)
A recent investor day from this company "illustrated Aristocrat's dominant cross-channel position, and enterprise-wide approach to game development, which improves commercialisation of its market leading content''.
Macquarie said it saw market-share opportunities for Aristocrat in land-based gaming, but was more wary of the company's Product Madness mobile gaming division.
The broker said Aristocrat was well-placed to deliver 10% to 15% earnings per share growth.
They also said the company would benefit from AI, with the benefits including "creativity enhancements, improved velocity to market, and advancing data analytics''.
Macquarie has a price target of $65 on Aristocrat shares compared to $61.38 at the time of writing.
