If you're looking to diversify your investment portfolio with some mining sector exposure, then it could be worth considering the two ASX 200 mining stocks named below.
That's because they have not only been rated as top buys, but they also have been tipped to rise strongly from current levels. This could potential mean market-beating returns for investors buying them today.
Here's what you need to know about these mining stocks:
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Regis Resources Ltd (ASX: RRL)
Analysts at Bell Potter think this ASX 200 gold mining stock could be severely undervalued by the market right now.
It feels that investors are not taking into account its high-quality all-Australian portfolio and the attractiveness of these assets to a bigger player. In addition, the broker highlights that the Duketon Gold Project owner has a very positive production growth outlook. It said:
As one of the largest ASX listed gold producers, we are attracted to its all-Australian asset portfolio and organic growth options which are unique at this scale. Furthermore, we see key opportunities in the fundamental, medium-term outlook and, in our view, these may also make RRL an appealing corporate target in the current conducive M&A environment.
Bell Potter has a buy rating and $2.80 price target on its shares. This implies potential upside of 61% for investors over the next 12 months.
Woodside Energy Group Ltd (ASX: WDS)
Another ASX 200 mining stock that gets the thumbs up by analysts is Woodside. It is one of the world's largest energy producers with operations across the globe.
Morgans thinks that its shares are undervalued after recent weakness. In light of this, it sees now as a great opportunity for investors to snap them up. It said:
WDS's share price has been under pressure in recent months from a combination of oil price volatility and approval issues at Scarborough, its key offshore growth project. With both of those factors now having moderated, with the pullback in oil prices moderating and work at Scarborough back underway, we see now as a good time to add to positions. Increasing our conviction in our call is the progress WDS is making through the current capex phase, while maintaining a healthy balance sheet and healthy dividend profile.
The broker has an add rating and $36.00 price target on Woodside's shares. Based on its current share price of $27.26, this suggests that a return of 32% is on the cards for investors before dividends. This increases to approximately 36% including them.
