These ASX 200 shares could rise 20% to 50%

Analysts see huge value in these shares at current levels.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you are on the lookout for big returns to supercharge your investment portfolio, then you may want to take a look at the ASX 200 shares listed below.

They have all recently been named as buys by brokers and tipped to rise between 20% and 50% from current levels. Here's what you need to know about them:

A man raises his reading glasses in a look of surprise.

Image source: Getty Images

Orora Ltd (ASX: ORA)

This packaging company's shares were sold off last week following the release of a disappointing market update. While analysts at Goldman Sachs were equally disappointed with the update, they believe it is worth sticking with Orora and see huge value in its shares at current levels.

Goldman Sachs currently has a buy rating and $3.00 price target on the ASX 200 share. This implies potential upside of 36% for investors over the next 12 months.

And with the broker also expecting 5%+ dividend yields through to at least FY 2026, the total 12-month potential return stretches beyond 40%.

Qantas Airways Limited (ASX: QAN)

This airline operator's shares have lost almost 20% of their value over the last 12 months. This is despite the Flying Kangaroo delivering huge profits in FY 2023 and so far in FY 2024.

While this is disappointing for shareholders, a number of analysts think it is a compelling buying opportunity for the rest of us.

For example, the team at Morgan Stanley currently has an overweight rating and lofty $8.00 price target on the ASX 200 share. If this recommendation proves accurate, it will mean a return of almost 50% for investors between now and this time next year.

Another positive to consider is that a few brokers believe that Qantas could resume its dividend payments in the near future. Macquarie, which has an outperform rating and $6.00 price target, has pencilled in a 34 cents per share dividend in FY 2025. This represents a very generous 6.25% dividend yield at current prices.

Telstra Group Ltd (ASX: TLS)

You don't generally think of this telco giant as being an ASX 200 share that can generate market-beating returns. But a number of analysts think its shares are seriously undervalued at current levels.

One of those is Morgan Stanley. In response to its half year results in February, the broker put an overweight rating and $4.75 price target on its shares. This suggests potential upside of 24% for investors before dividends and almost 29% including them.

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 positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

A young man goes over his finances and investment portfolio at home.
Broker Notes

NextDC vs Wesfarmers shares: Which is a buy?

Analysts have given their verdict on these shares this week.

Read more »

Three smiling corporate people examine a model of a new building complex.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to buy these shares.

Read more »

Sell buy and hold on a digital screen with a man pointing at the sell square.
Broker Notes

Up 130% in a year, are Lynas Rare Earths shares still a good buy today?

Lynas Rare Earths shares have more than doubled ASX investors’ money in a year. Is there still time to buy?

Read more »

Woman chooses vegetables for dinner, smiling and looking at camera.
Broker Notes

3 reasons to buy Coles shares today

A leading analyst expects Coles shares are well-placed to outperform. But why?

Read more »

A businesswoman pulls her glasses down in shock to look at the bad news on her computer.
Broker Notes

Why did Morgans just lower its outlook on Collins Food and Pro Medicus shares?

Despite lowering its guidance, these stocks remain undervalued according to at least one expert.

Read more »

Business people discussing project on digital tablet.
Broker Notes

BHP vs Coles shares: Which is the better buy this week?

Let's see which one of these giants is being recommended as a buy by analysts.

Read more »

A smiling woman holds a Facebook like sign above her head.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Brokers name 3 ASX shares to buy right now

Here's why brokers are feeling bullish about these three shares this week.

Read more »