Buy these ASX 200 shares for huge returns: brokers

These could be excellent buys for investors looking for options on the ASX 200 index.

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There's a lot of choice on the ASX 200 index. To narrow things down, let's take a look at a couple of highly rated ASX 200 shares that analysts believe can rise materially from current levels.

Here's what you need to know about these ASX 200 shares:

Goodman Group (ASX: GMG)

The first ASX 200 share that has been tipped as a buy is Goodman.

It is leading industrial property company with a world class portfolio of assets that are in-demand with end users across the globe.

Citi is bullish on the company and has a buy rating and $24.00 price target on its shares. This compares to the latest Goodman share price of $19.18.

The broker believes that strong tailwinds will drive solid earnings growth for the foreseeable future. It commented:

GMG's 1H23 result highlighted the extent of tailwinds still existing for industrial property which make for a strong earnings growth outlook not just this year but into multiple years in the future. Higher than expected FUM, record development margins this period (~100%) and increased potential for rental reversion should support overall earnings growth into the future. Debt costs may be higher but lower gearing ensures limited impact to this. We believe GMG will continue to outperform given its high-quality exposure and strong earnings growth potential in an uncertain macro environment.

Qantas Airways Limited (ASX: QAN)

Another ASX 200 share that has been named as a buy is Qantas. It is Australia's flag carrier airline and the operator of the Qantas and Jetstar brands.

Morgans is a big fan of the company and has it on its best ideas list again this month. The broker even went so far as to name Qantas as its top pick in the travel sector.

Its analysts have an add rating and $8.35 price target on its shares. This compares to the latest Qantas share price of $6.50. It commented:

QAN is now our preferred pick out of our travel stocks under coverage given it has the most near-term earnings momentum. Looking across travel companies globally, airlines are now in the sweet spot given demand is massively exceeding supply. QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings, a much stronger balance sheet, a better domestic market position, a higher returning International business and more diversification (stronger Loyalty/Freight earnings).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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