These ASX 200 shares could rise 30% to 40%

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

| More on:
A young man pointing up looking amazed, indicating a surging share price movement for an ASX company

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

sdf

Are you looking for big returns for your investment portfolio? If you are, then it could pay to listen to what analysts are saying about the ASX 200 shares in this article.

They have been named as buys and tipped to rise 30% to 40% over the next 12 months. Here's what you need to know about them:

Light & Wonder Inc. (ASX: LNW)

The first ASX 200 share that is being recommended as a buy by analysts is Light & Wonder.

It is a leading cross-platform global games company with operations across land-based games, digital/mobile games, and iGaming. It aims to "create immersive content that forges lasting connections with players, wherever they choose to engage."

The company also highlights that with its "technologically advanced systems and real-time insights and solutions, driving player loyalty and operational efficiencies have never been easier."

Bell Potter is very positive on the company despite the recent Dragon Train litigation. Even without earnings from this game, the broker estimates that Light & Wonder could grow its earnings in the double digits through to at least 2026. It said:

We anticipate 8-11% annual EBITDA growth rates over CY24-26, driven by further R&D investment that enhances game performance and results in market share gains across the North American premium leased market, global outright game sales markets, and online gaming markets. Additionally, we view the recent turmoil surrounding the Dragon Train preliminary injunction as an attractive entry point.

Bell Potter currently has a buy rating and $180.00 price target on its shares. This suggests that upside of approximately 30% is possible for investors from current levels.

Megaport Ltd (ASX: MP1)

Due to its exposure to the artificial intelligence (AI) megatrend, Morgans believes that Megaport shares could generate huge returns for investors.

Megaport is a technology company aiming to change how businesses connect their infrastructure, with one smart and simple platform to manage every connection. It allows users to build secure, scalable, and agile networks in just a few clicks, accessing global endpoints and creating private paths in minutes.

Commenting on the company, Morgans 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.

Its analysts have an add rating and $12.50 price target on its shares. This implies potential upside of almost 40% for investors over the next 12 months.

Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder and Megaport. The Motley Fool Australia has recommended Light & Wonder. 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

A young man wearing a black and white striped t-shirt looks surprised.
Broker Notes

These ASX 200 shares could rise 25% to 80%

Analysts think big returns could be on offer from these shares.

Read more »

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 group of three miners in hard hats and high visibility vests confer at a rocky mining site.
Broker Notes

Up 66% in a year, just how much more upside does Macquarie tip for Perseus Mining shares?

Just how much higher might Perseus Mining shares soar? Here’s what Macquarie had to say about the ASX 200 gold…

Read more »

Rising share price chart.
Broker Notes

Why this exciting ASX 200 share could rise almost 50%

Bell Potter has good things to say about this biopharmaceutical company.

Read more »

Buy and sell written on silver cubes on a stock market chart.
Broker Notes

2 buys and 2 sells in the ASX 200 financials sector: analysts

We reveal what the experts think of these ASX 200 financial shares.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Broker Notes

These ASX 200 shares could rise 33% to 37%

Analysts at Morgans think these shares could deliver big returns.

Read more »

Female miner in hard hat and safety vest on laptop with mining drill in background.
Broker Notes

Experts reveal 2 buys and 1 sell in the ASX 200 materials sector

And they're not all mining companies, either.

Read more »

A smiling miner wearing a high vis vest and yellow hardhat does the thumbs up in front of an open pit copper mine.
Broker Notes

Why Macquarie expects this ASX All Ords copper stock to soar 48% in a year

Macquarie forecasts another big year of gains ahead for this ASX All Ords copper stock. But why?

Read more »