2 ASX 200 shares with major upside potential

These ASX 200 shares could have plenty of upside potential…

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Due to the recent market volatility, there are a number of ASX 200 shares trading notably lower than recent highs and at what could prove to be very attractive levels in the future.

Two such ASX 200 shares are listed below. Here's why they could be in the buy zone:

Collins Foods Ltd (ASX: CKF)

The first ASX 200 share to look at is quick service restaurant operator Collins Foods. It is one of the largest operators of KFC restaurants in Australia and has a growing presence in the European market as well. It also has a smaller but growing number of Taco Bell restaurants across Australia.

Late last year it released its half year result and revealed a 9.5% increase in revenue to $534.2 million and a 31.6% jump in underlying net profit after tax to $28.9 million. The KFC Europe business was a key driver of this strong half.

The good news is that management still sees plenty of room for growth in both the Australian and European markets. It highlighted that it has a significant organic growth pipeline and attractive opportunities to reach scale in KFC Netherlands and Taco Bell Australia, while adding to its core KFC Australia footprint.

Macquarie was pleased with the result and remains positive on its growth outlook. In response to the result, the broker put an outperform rating and $14.80 price target on its shares. This compares to the latest Collins Foods share price of $11.45.

IDP Education Ltd (ASX: IEL)

Another ASX 200 share to look at is IDP Education. It is a provider of international student placement and English language testing services. The company is also co-owner of the high stakes language test, IELTS. It has been operating for almost 50 years and has offices in over 30 countries.

Given how the international student market has been struggling over the last couple of years because of the pandemic, IDP Education's performance was impact significantly. However, the company has bounced back strongly in recent quarters and also put its strong balance sheet to use by making a key acquisition in the India market. All in all, this appears to have left IDP Education well-placed for growth in 2022 and beyond.

Analysts at UBS are fans of the company. It was pleased with its strong performance during the first quarter and remains optimistic on the future once COVID passes. Its analysts currently have a buy rating and $36.40 price target on its shares. This compares to the latest IDP Education share price of $29.85.

Motley Fool contributor James Mickleboro owns Collins Foods Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Idp Education Pty Ltd. The Motley Fool Australia has recommended Collins Foods Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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