What are experts saying about these red hot ASX 200 shares?

Three of the hottest ASX 200 stocks over the last year have been: 

• 4DMedical Ltd (ASX: 4DX)
• PLS Group Ltd (ASX: PLS)
• Electro Optic Systems Hldgs Ltd (ASX: EOS). 

These companies have all charged more than 300% higher in just a year. 

If you already have exposure to these high flying ASX 200 stocks – congrats! 

However for many investors on the outside looking in, the burning question is if there is any further upside. 

Here is the latest outlook from various experts on these ASX 200 stocks. 

4DMedical

The 4DMedical story has been historic. 

Its share price has rocketed more than 1,728% in the last 12 months. 

That kind of growth is hard to comprehend. 

A $1,000 investment in 4DX a year ago would now be worth approximately $18,285.70 today. 

However after this kind of run it can be difficult to pinpoint true value for a growth story like this. 

While holders will be jumping for joy, it’s important prospective buyers understand 4DMedical is still in a loss‑making, growth and commercialisation phase. 

In short, the company is not yet a profitable business.

The continued stock price growth is likely being driven by expectation as much as solid fundamentals. 

Analysts seem to agree it may have gone past fair value. 

The average analyst price target via TradingView sits at $4.47, which is approximately 13% below its current share price. 

Electro Optic Systems

This ASX 200 stock has been another red hot company over the last year, rising roughly 800%. 

It is an Australian company that develops and produces advanced electro-optic technologies. 

Geopolitical conflict has led to increased defence spending, benefiting sentiment around the company. 

At the time of writing, EOS shares are fetching $10.70 per share. 

There appears to be mixed outlooks on the future growth of the company. 

Price targets are ranging from $9.70 (9% downside) to highs of $16 (49% upside). 

PLS Group

PLS has enjoyed a 12 month rise of more than 300%. 

The company is an Australian lithium-tantalum producer positioning itself at the forefront of the rapidly growing global lithium industry. Its flagship development, the 100%-owned Pilgangoora Lithium-Tantalum Project, is located in the Pilbara region of Western Australia.

Recently, it has benefited from inflated oil prices.

When oil (petrol/diesel) gets expensive, running internal combustion cars becomes costlier. 

That tends to improve sentiment and drive investment in EVs, which rely on lithium-ion batteries. 

Since Pilbara Minerals produces lithium, rising EV demand translates to higher lithium demand and subsequently better pricing and margins for PLS.

If this tailwind continues, it could be good news long term for PLS shares. 

However, broker estimates indicate that upside could already be priced in. 

The lithium producers shares are currently trading for $5.92. 

Recently, Morgan Stanley downgraded this stock to a hold rating with a $5.25 price target. 

The post What are experts saying about these red hot ASX 200 shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.