If you are looking for some big potential returns, then it could be worth checking out the two S&P/ASX 200 index (ASX: XJO) shares in this article.
That's because the team at Bell Potter believes they are significantly undervalued and have the potential to deliver market-beating returns over the next 12 months.
Here's what it is recommending to clients:
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Liontown Ltd (ASX: LTR)
Bell Potter thinks that Liontown could be an ASX 200 share with strong potential returns over the next 12 months.
The broker recently put a buy rating and $1.90 price target on the lithium miner's shares. Based on its current share price of $1.02, this implies potential upside of approximately 85% for investors.
Bell Potter believes the market is undervaluing Liontown's shares, especially given the significant improvements it has made this year. This includes reducing its net debt and ramping up underground production at Kathleen Valley.
In light of this, the broker thinks now could be a good time to buy:
We still believe that LTR's EV is lagging the recent recovery in lithium markets and expected tight fundamentals. The last time LTR was trading at its current EV (early December 2025), SC6 prices were US$1,150/t and net debt was $274m. Since this date. Since then, the Kathleen Valley underground ramp-up has been further derisked and spot SC6 prices are above US$2,300/t.
While we expect lithium markets will be volatile, market fundamentals remain strong. Over FY27, LTR will continue to ramp up and de-risk Kathleen Valley, a highly strategic asset in terms of scale, long project life and location in a tier-one mining jurisdiction
Paladin Energy Ltd (ASX: PDN)
Bell Potter also sees major upside potential in this uranium producer.
It recently retained its buy rating and $14.50 price target on the ASX 200 share. Based on its current share price of $9.52, this implies potential upside of 52%.
Bell Potter believes Paladin Energy is well-positioned to benefit from increasing demand for uranium thanks to a combination of electrification, energy security and artificial intelligence (AI)-related power requirements. It said:
We retain our Buy recommendation. We have a positive medium- to long-term outlook for the uranium market, supported by barriers to new supply and demand growth linked to electrification, energy security and AI-related power requirements. PDN has ~56% exposure to market prices out to 2030.
Production at LH continues to improve with higher-grade mined ore feeding the processing plant. PDN continues to derisk its key growth project at Paterson Lake South in Canada's Athabasca Basin.
