If you are hunting for big potential returns, then it could be a good idea to check out the S&P/ASX 200 index (ASX: XJO) share in this article.
That's because the team at Bell Potter believes that it could smash the market over the next 12 months.
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Which ASX 200 share?
The share that Bell Potter is urging investors to buy is Nickel Industries Ltd (ASX: NIC).
It is an Indonesia-focused vertically integrated nickel producer with production assets across nickel ore mining, Nickel Pig Iron (NPI) production, and nickel Mixed Hydroxide Precipitate (MHP) production.
Bell Potter notes that low rainfall is impacting its operations. It said:
NIC reported that low rainfall is impacting water supply in Central Sulawesi and interrupting the ramp-up of the 46%-owned Excelsior Nickel Cobalt (ENC) HPAL project. […] Should water supply constraints persist, ENC is expected to run at ~30% of nameplate until water availability normalises. The wet season is late and inherently hard to predict, but normalisation is anticipated by December 2026.
On a positive note, the low rainfall has supported mining and haulage productivity. The broker adds:
Conversely, the dry conditions have supported mining and haulage productivity at the Hengjaya Mine, which achieved 3.1Mwmt of nickel ore sales in July and August, including a record 1.6Mwmt in August 2026. This is tracking ahead of our prior forecast, which we incrementally increase from here, noting the current 14.3Mt RKAB sales permit cap. NIC's RKEF operations continue unaffected by the water shortage.
Should you invest today?
According to the note, the broker has retained its buy rating and $1.45 price target on the ASX 200 share.
Based on its current share price of 80 cents, this implies potential upside of 81% for investors over the next 12 months.
In addition, a very generous 7.7% dividend yield is forecast in FY 2027, followed by a massive 15.5% dividend yield in FY 2028.
Commenting on its buy recommendation, Bell Potter said:
EPS changes in this report are: CY26: -10%; CY27: 0%; CY28: 0% as we update for a revised production outlook and higher price realisations. NIC is one of the world's largest listed nickel producers and offers exposure across a range of nickel products and markets. It has a track record of maintaining margins through low nickel prices, benefitting from its diversified product suite and margin exposure across an integrated value chain. We retain our Buy recommendation and TP$1.45/sh.
