The S&P/ASX 200 Index (ASX: XJO) may be trading close to record highs, but that doesn't mean there aren't huge potential returns out there for investors.
For example, two ASX 200 growth shares that could rise at least 50% are listed below. Here's why they could be top buys:
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Megaport Ltd (ASX: MP1)
Analysts at Morgans think that Megaport could be an ASX 200 growth share to buy. It is a leading global provider of elastic interconnection services with a footprint in over 800 data centres across the world.
Demand for Megaport's services has been growing strongly in recent years. This has been underpinned by the structural shift to the cloud.
The team at Morgans believes there's still plenty of growth left in the tank. This is due to the cloud computing and artificial intelligence (AI) megatrends. Its analysts said:
Megaport is a global cloud connection network and the leading Network as a Service provider. It operates the largest data centre connection business in the world, connecting to 850 data centres through a fully automated, on-demand telco network. We think it is uniquely placed to help business move data globally and benefit from the growth of data related to both cloud computing and AI.
The broker currently has an add rating and $12.50 price target on its shares. This implies potential upside of 50% for investors over the next 12 months.
Neuren Pharmaceuticals Ltd (ASX: NEU)
Another ASX 200 growth share that analysts are tipping as a buy is Neuren Pharmaceuticals.
It is a pharmaceuticals company focused on the development of new drug therapies to treat multiple serious neurological disorders that emerge in early childhood and have no or limited approved treatment options.
Bell Potter is a big fan of the company. This is due partly to its NNZ-2591 product candidate, which is being trialled in children with Phelan-McDermid syndrome. The broker believes NNZ-2591 could give the company's earnings a big boost. Last week, it said:
We have updated our near-term forecasts to reflect the PRV sale timing and the assumption that NEU will internally fund multiple Phase 3 trials for NNZ-2591 over the next few years. Our BUY recommendation and $25.00 PT remains unchanged. Roughly $10/share of our valuation is attributed to Daybue licensing income, hence our BUY recommendation is driven by a positive view on NNZ-2591. The next steps for NNZ-2591 are further FDA engagement on the Phase 3 design in PhelanMcDermid syndrome, likely in 1Q CY25, followed by starting the Phase 3 trial in CY25.
Bell Potter has a buy rating and $25.00 price target on its shares. This suggests that the ASX 200 growth share could rise 60% from current levels.
