Analysts name 3 ASX 200 shares that could generate strong returns

a man with a wide, eager smile on his face holds up three fingers.a man with a wide, eager smile on his face holds up three fingers.

a man with a wide, eager smile on his face holds up three fingers.If you’re interested in adding some S&P/ASX 200 Index (ASX: XJO) shares to your portfolio in January, then the three listed below could be worth considering.

These ASX 200 shares have been named as buys and tipped to generate strong returns for investors. Here’s what you need to know about them:

NEXTDC Ltd (ASX: NXT)

The first ASX 200 share to look at is NEXTDC. It is a leading data centre operator with a collection of world class centres across key capital city locations throughout Australia. Together with its potential expansion into Asia and Edge data centres and the structural shift to the cloud, NEXTDC has been tipped by a number of brokers to grow strongly in the coming years.

One of those is Citi. It is positive on the company’s outlook and has a buy rating and $15.40 price target on NEXTDC’s shares. This compares to the latest NEXTDC share price of $11.22.

SEEK Limited (ASX: SEK)

Another ASX 200 share to look at is this leading job listings company. It appears well-positioned for growth in the coming years thanks to its leadership position, pricing power, and exposure to Australia’s recovery from the pandemic.

The team at Credit Suisse is bullish on SEEK. Its analysts currently have an outperform rating and $39.50 price target on its shares. This compares to the most recent SEEK share price of $29.65.

Westpac Banking Corp (ASX: WBC)

A final ASX 200 share that could be in the buy zone is Westpac. Australia’s oldest bank has been named as a buy by the team at Morgans. Its analysts believe the company’s shares offer “considerable value” following a recent decline. And while the broker acknowledges that Westpac’s margins have re-based notably lower, it remains positive due to its “expectation of significant cost out by FY24F.”

Morgans has an add rating and $29.50 price target on the bank’s shares. This compares to the current Westpac share price of $21.45.

The post Analysts name 3 ASX 200 shares that could generate strong returns appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns NEXTDC Limited, SEEK Limited, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SEEK Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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