The ASX 200 index may be nearing a record high, but not all shares have fared so well.
For example, the ASX 200 share in this article has just dropped to a 52-week low.
And while this is disappointing, it could have created an incredibly compelling buying opportunity according to analysts at Bell Potter.
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Which ASX 200 share?
On Tuesday, the Mineral Resources Ltd (ASX: MIN) share price dropped to a 52-week low of $43.32 before closing the day at $43.74.
Given its exposure to iron ore and lithium prices, which are both in free fall at present, investors have been rushing to the exits.
So much so, the mining and mining services company's shares have almost halved in value since hitting a 52-week high of $79.76 in late May.
Time to buy
Analysts at Bell Potter are likely to see this weakness as a buying opportunity. Especially after naming the ASX 200 share on its panel of favoured Australian equities for the month of May.
These are the shares that its analysts believe offer attractive risk-adjusted returns over the long term.
According to the note, the broker has a buy rating and $80.00 price target on its shares. This implies potential upside of 83% for investors over the next 12 months.
To put that into context, a $10,000 investment would be worth over $18,000 if Bell Potter is on the money with its recommendation.
Commenting on the ASX 200 share, the broker said:
MIN's services business encompasses construction, mining, crushing, processing, and haulage, as well as a range of other services. MIN operates two Iron Ore export businesses in WA, the Yilgarn Hub, and the Utah Point Hub, with combined capacity of ~20Mtpa. MIN holds direct interests in two lithium mines (Mount Marion and Wodgina) in WA. MIN's lithium business is one focus of its expansion efforts, in response to increasing demand for lithium products.
In contrast to its peers, MIN completes everything from engineering, to construction, to all aspects of operations in-house. Our Buy view is underpinned by MIN's earnings diversification, strong insider ownership, clearly articulated strategies, expertise in contracting and internal growth options at Onslow as well as potential lithium expansions including into downstream. All up, MIN offers diversified exposure to steady income streams from the contracting business and market-driven commodity exposure coupled with earnings derived from both lithium and iron ore.
All in all, this could make it worth considering if you have a high tolerance for risk.
