Why these ASX 200 shares could still have major upside in 2026

The Australian share market may be closing in on its record high, but that doesn’t mean that there aren’t big potential returns out there.

For example, listed below are three ASX 200 shares that could have major upside potential according to analysts. Here’s what you need to know:

Breville Group Ltd (ASX: BRG)

Breville’s growth story is often misunderstood as cyclical or discretionary. While it does sell consumer appliances, the business is better viewed as a premium product company with global reach.

Breville has spent years refining its design, engineering, and brand positioning, allowing it to sell higher-value products rather than competing on volume alone.

As Breville deepens its presence in North America and Europe, incremental growth does not require reinventing the business. New product launches, category expansion, and distribution leverage can all contribute to earnings growth without dramatic increases in cost.

And while US tariffs could pose a short-term risk, this appears to have been priced in now.

Macquarie is bullish on this ASX 200 stock. It has an outperform rating and $39.20 price target on its shares. This implies potential upside of 25% for investors from current levels.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX 200 share that could have plenty of upside is growing retailer Lovisa.

Its fast-fashion jewellery model is built around speed, store productivity, and global rollout, rather than relying on any single region or trend. That structure gives Lovisa flexibility to keep expanding even when individual markets slow.

As long as Lovisa can continue opening stores at attractive returns and managing inventory tightly, earnings growth will follow. And small improvements in store performance or international penetration can compound meaningfully over time.

Macquarie is also positive on this one. It has an outperform rating and $37.30 price target on its shares. This suggests that they could rise 21% between now and this time next year.

NextDC Ltd (ASX: NXT)

Finally, NextDC could be an ASX 200 share to buy for big potential returns.

It develops and runs data centres that underpin cloud computing, enterprise IT, artificial intelligence, and data-intensive workloads. While near-term earnings can be influenced by build cycles and capital investment, the long-term demand drivers remain firmly in place.

As NextDC’s newer facilities mature and customer demand catches up with capacity, operating leverage can begin to show. Revenue growth does not need to accelerate dramatically for margins to improve as fixed costs are absorbed.

With digital infrastructure becoming more critical across industries, NextDC’s role may prove more valuable than the market currently prices in.

Morgans is a big fan and has a buy rating and $19.00 price target on its shares. This implies potential upside of approximately 45% over the next 12 months.

The post Why these ASX 200 shares could still have major upside in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Lovisa and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.