Why these ASX 200 blue chip shares could generate big returns

Brokers think these shares are could be dirt cheap at current levels.

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A new month is on the horizon, so what better time to look for some new portfolio additions.

But which ASX 200 shares could be buys in December? Let's take a look at three big blue chips that could generate big returns for investors according to analysts. Here's what they are tipping as buys:

Flight Centre Travel Group Ltd (ASX: FLT)

Macquarie says that Flight Centre could be an ASX 200 blue chip share to buy for big returns.

It is the travel company operating under the eponymous and iconic Flight Centre brand, as well as Aunt Betty, Corporate Traveller, FCM, Stage & Screen, and Travel Associates.

Flight Centre's shares have been under pressure recently due to a softer than expected start to FY 2025. However, Macquarie remains positive and sees this as a buying opportunity and thinks they are undervalued at current levels.

The broker recently put an outperform rating and $22.34 price target on its shares. Based on the current Flight Centre share price of $17.00, this implies potential upside of 31% for investors over the next 12 months.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX 200 share that analysts think could be undervalued right now is Treasury Wine.

It is a leading wine company that owns a portfolio of popular brands such as Penfolds, Wolf Blass, Lindeman's, and 19 Crimes.

Morgans thinks the market is undervaluing its shares, especially if the recent acquisition of DAOU Vineyards delivers on expectations. It notes that the "acquisition is in line with TWE's premiumisation and growth strategy and will strengthen a key gap in Treasury Americas (TA) portfolio" and that "if TWE delivers on its investment case, there is material upside to our valuation."

Morgans currently has an add rating and $14.80 price target on its shares. Based on its current share price of $11.28, this suggests that upside of 31% is possible between now and this time next year.

Woolworths Group Ltd (ASX: WOW)

Goldman Sachs thinks that supermarket giant Woolworths could also be an ASX 200 blue chip share to buy right now.

Its analysts believe that the company's shares are undervalued following a period of weakness. It notes that "while WOW is facing transition challenges as its new CEO recalibrates WOW's strategy against a value consumer, we believe that WOW's structural advantages of its store network, scaled online position and leading data/analytics capabilities will enable market share wins in the medium term. WOW is FY26 P/E of ~21x vs historical avg 26x."

The broker currently has a buy rating and $36.20 price target on the company's shares. Based on the current Woolworths share price of $29.89, this implies potential upside of 24% for investors over the next 12 months.

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Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. 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. The Motley Fool Australia has recommended Flight Centre Travel Group and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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