These ASX 200 shares could rise 20% and 50% in 2025

Analysts are tipping these shares to beat the market this year. Let's see why.

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Investors that are on the hunt for big returns in 2025 might want to check out the ASX 200 shares in this article.

That's because analysts are tipping them to rise by at least 20% this year. Here's what you need to know:

CSL Ltd (ASX: CSL)

Bell Potter thinks that CSL is a cheap ASX 200 share to buy now. It has a buy rating and $345.00 price target on the biotechnology giant's shares. This suggests that upside of just over 20% is possible in 2025.

The broker believes the market is undervaluing CSL given the potential for double-digit earnings growth in the coming years. It explains:

CSL presents an attractive buying opportunity as we anticipate the start of a margin recovery phase for CSL, driving above-market earnings growth over the next few years. CSL trades at a 12-month forward PE of ~28x, representing a discount to its 10-year average of ~31x.

Furthermore, the company will continue to deleverage the balance sheet over the next few years. Given the company's proven quality and growth prospects, we believe significant upside remains.

Iluka Resources Limited (ASX: ILU)

Goldman Sachs sees significant value on offer from this mineral sands and rare earths company's shares.

The broker currently has a buy rating and $7.70 price target on them, which implies potential upside of just over 50% for investors over the next 12 months.

Commenting on its bullish view of the ASX 200 share, Goldman said:

Attractive valuation: trading at ~0.5x NAV (~A$9.34/sh) and pricing in almost no value to the rare earth refinery and Wimmera rare earth project. Compelling Mineral Sands FCF and Rare Earth growth potential: ILU is trading on a FCF yield of ~13% in 25/26 without the RE refinery capex. At the current share price, we think it makes sense for ILU to announce a share buyback with FCF from mineral sands.

We are positive on ILU's project pipeline and forecast >20% production growth in mineral sands volumes, ~18ktpa of Rare Earths (~4ktpa of high value NdPr) over the next 5yrs. We think ILU's Eneabba RE refinery is a strategic asset considering it will be only the fifth Western World RE refinery.

Worley Ltd (ASX: WOR)

Goldman Sachs also sees a lot of value in this engineering company's shares. The broker has a buy rating and $18.00 price target on them, which suggests that upside of 29% is possible over the next 12 months.

Goldman is positive on the company's outlook due to it being "well positioned to play a role in enabling the transition from fossil fuels to a more sustainable energy mix."

Its analysts also highlight that the ASX 200 share is forecasting strong growth in FY 2025 despite economic and geopolitical uncertainty. They explain:

At its Nov AGM WOR reiterated expectations for low double digit FY25e EBITA growth in a period of moderating growth due to economic and geopolitical uncertainty. Despite re-iterated guidance, general uncertainty around capital expenditure plans in key end markets and timing/uncertainty around discrete major projects has seen WOR's share price lag, in our view.

We have assessed earnings levels being capitalised at the current share price and believe the risk/reward remains positively skewed.

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Goldman Sachs Group. The Motley Fool Australia has recommended CSL. 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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