These ASX 200 shares can rise 20% to ~40%

There's a reason that Morgans thinks these stocks could rise strongly from where they currently trade.

| More on:
A young man punches the air in delight as he reacts to great news on his mobile phone.

Image source: Getty Images

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

Are you looking for big returns for your investment portfolio? If you are, it could be worth checking out the three ASX 200 shares that Morgans recently rated as buys.

Here's what the broker is saying about these shares:

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans is feeling very bullish about this travel agent following its results release last month. The broker believes that "margin improvement will underpin strong growth" and looks forward to its guidance being released at its annual general meeting (AGM) later this year. It said:

FLT's FY24 result was in line with its recent update. The highlights were the increase in its revenue margin to 11.4% vs 10.4% in FY23, the 2H24 NPBT margin of 1.7% and strong operating cashflow up 170% on the pcp. FLT said that its outlook is positive however in line with usual practice, FY25 guidance won't be provided until the AGM in November. We maintain our ADD rating.

Morgans has an add rating and $25.35 price target on the ASX 200 share. This implies potential upside of 22% for investors over the next 12 months.

Nextdc Ltd (ASX: NXT)

Another ASX 200 share that Morgans is tipping to rise strongly is data centre operator NextDC. The broker believes that the company is "laying the foundations for platform growth" and that investors should look beyond its softer guidance for FY 2025. It said:

NXT's FY24 result was slightly stronger than expected while FY25 guidance was slightly lower than expected due to a slower ramp-up in revenue and faster ramp-up in scale-up costs, positioning the business for significant expansion. We maintain our ADD rating.

The broker has an add rating and $20.50 price target on its shares. This implies potential upside of 20% for investors from current levels.

Woodside Energy Group Ltd (ASX: WDS)

A third ASX 200 share that Morgans thinks could generate big returns is energy giant Woodside.

It believes there is "a lot to be optimistic about" following its half year results. It said:

A strong 1H24 earnings and dividend result comfortably beating Visible Alpha consensus estimates. WDS maintained an 80% dividend payout ratio, for a solid 1H24 interim dividend of US69 cents. Strong inbound interest from potential partners on Driftwood LNG has given WDS confidence it can assemble a strong partnership on the project. We maintain our ADD rating.

Morgans has an add rating and $33.00 price target on its shares, which suggests that upside of 37% is possible over the next 12 months.

Motley Fool contributor James Mickleboro has positions in Nextdc and Woodside Energy Group. 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 Flight Centre Travel Group. 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

ASX shares Business man marking buy on board and underlining it
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 »

Smiling couple looking at a phone at a bargain opportunity.
Broker Notes

Brokers name 3 ASX shares to buy today

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

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Broker Notes

These ASX 200 shares could rise 10% to 40%

Analysts are tipping these shares to deliver big returns over the next 12 months.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Broker Notes

Down 26%! Buy this ASX 200 stock while it's dirt cheap

Bell Potter thinks this blue chip has been oversold and is in the buy zone now.

Read more »

Rising share price chart.
Broker Notes

Morgans says these top ASX stocks could rise 15% to 20%

The broker thinks these shares could be heading higher from here.

Read more »

Man in mining hat with fists raised and eyes closed looking happy and excited about the Newcrest share price
Broker Notes

'Gamechanger': Top broker says this ASX mining share can rise over 100%

Big returns could be on the cards for buyers of this speculative mining stock according to Bell Potter.

Read more »

group of friends checking facebook on their smartphones
Broker Notes

How much could $5,000 invested in Telstra shares become in a year?

Do analysts think this telco giant could deliver good returns for investors?

Read more »