Are you on the lookout for some big returns? If you are, then it could be worth looking closer at the ASX 200 share named below.
That's because the team at Bell Potter has just initiated coverage on it and believes there's potential for strong returns over the next 12 months.
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Which ASX 200 share is the broker bullish on?
The share in question is engineering company Monadelphous Group Ltd (ASX: MND).
With its shares down 7% in 2024, the broker appears to believe a buying opportunity has been created for investors.
According to the note, the broker has initiated coverage on its shares with a buy rating and $15.40 price target.
Based on its current share price, this implies almost 12% upside for investors.
In addition, the broker is forecasting fully franked dividends of 51 cents per share in FY 2024, 55 cents per share in FY 2025, and then 59 cents per share in FY 2026. This equates to dividend yields of 3.7%, 4%, and 4.3%, respectively.
What did the broker say?
Bell Potter believes that this ASX 200 share has a bright short and medium term outlook. It commented:
MND's short-and-medium-term outlooks are supported by a growing pipeline of committed developments across the energy, lithium and rare earths sectors, which is expected to drive strong growth by its EC division. Over the same period, M&I's opportunities are reinforced by the latest wave of resources and energy developments, adding to Australia's infrastructure base and boosting sector-wide maintenance requirements, elevated demand for turnaround and shutdown services in the energy sector and expanded sustaining capital expenditure programs by iron ore miners. MND is also likely to benefit from a growing renewable energy investment pipeline.
All in all, this could make Monadelphous a top option if you're looking for exposure to this side of the market.
