Do you have $10,000 burning a hole in your pocket? If you are lucky enough to answer yes to this question, then read on.
That's because the three Australian shares named below have been tipped as buys with the potential to generate big returns. Here's what you need to know about these shares:
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CSL Limited (ASX: CSL)
CSL could be an Australian share to buy with the $10,000.
It is the biotechnology giant behind the CSL Behring, CSL Vifor, and CSL Seqirus businesses. Combined, these businesses have a collection of industry-leading therapies and vaccines including Privigen, Hizentra, Idelvion, and Afstyla. The company also invests heavily in its research and development, which ensures that it has a pipeline of future products that save lives and support revenue growth.
Bell Potter is positive on the company and has "confidence that CSL will be able to achieve its guidance of 'annual double-digit earnings growth' over the mid-term, despite more challenging near-term prospects for Seqirus and Vifor."
Bell Potter has a buy rating and $345.00 price target on its shares. This suggests that upside of 25% is possible over the next 12 months.
NextDC Ltd (ASX: NXT)
Another Australian share that could be a great option for the $10,000 is NextDC. It is one of the Asia-Pacific region's leading data centre service providers.
Morgans is a big fan of the company and believes its future is very bright due to the artificial intelligence (AI) boom. It notes that one of the largest players in the world, Digital Realty, recently reported record sales.
It notes that it "sold double the data centre capacity of its previous high and about four times more capacity than it usually sells in a quarter. This reinforces our view that the significant demand for cloud computing and AI-related digital infrastructure is going to unpin attractive returns and long-term growth."
Morgans has an add rating and $20.50 price target on its shares. This suggests that upside of 30% is possible over the next 12 months.
Temple & Webster Group Ltd (ASX: TPW)
A third Australian share that could be a buy is Temple & Webster. It is Australia's leading pureplay online furniture and homewares retailer.
It appears well-placed for growth over the long term thanks to the structural shift to online shopping in the furniture and homewares market, which is still in its early days.
It is partly for this reason that analysts at Citi have named the company as their top pick in the online retail space right now.
The broker currently has a buy rating and $13.50 price target on its shares. This implies potential upside of 19% for investors from current levels.
