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

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

Three happy office workers cheer as they read about good financial news on a laptop.
Broker Notes

Morgans says these ASX shares can rise 20% to 45%

Let's see why the broker is bullish on these shares.

Read more »

Workers inspecting a gas pipeline.
Broker Notes

What's Macquarie's price target for Origin Energy shares?

Could Origin be primed for a turnaround?

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Bank building in a financial district.
Bank Shares

Which is the only ASX 200 bank stock Macquarie expects to outperform in FY 2026?

Macquarie forecasts a tough year ahead for the ASX 200 banks, with only one expected to outperform.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Broker Notes

These ASX 200 shares could rise 30% to 50%

Brokers have good things to say about these cheap shares.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Broker Notes

10 Aussie stocks to buy in FY 2026

Let's see which shares analysts think could be buys in the upcoming financial year.

Read more »

watch
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 »