These ASX 200 shares could rise 25% to 70%

Are you hunting for market-beating returns for your investment portfolio?

If so, it could be worth considering the three ASX 200 shares in this article.

That’s because the team at Morgans has named them as buys and expects outsized returns from their shares.

Here’s what it is recommending to clients:

Generation Development Group Ltd (ASX: GDG)

Morgans thinks this diversified financial services company’s shares could be great value.

It has a buy rating and $6.16 price target on its shares. Based on its current share price of $3.66, this implies potential upside of almost 70% over the next 12 months.

Commenting on the company, the broker said:

GDG has provided a 3Q26 quarterly update. This quarterly was something of a familiar story, in our view – the Investment Bond business again delivered ahead of expectations, while Evidentia once again fell short of the mark. We lower our GDG FY26F/FY27F EPS by -4%-11% on more conservative earnings estimates particularly around Evidentia.

Our price target is set at A$6.16 (previously A$6.66). We continue to be attracted to GDG’s exposure to structural growth areas, and its strong competitive positioning in these markets. With GDG trading at a >20% discount to our target price, we maintain our Buy recommendation.

Newmont Corporation (ASX: NEM)

Another ASX 200 share that Morgans is bullish on is Newmont.

In response to a strong quarterly update from the gold giant, the broker has put a buy rating and $208.00 price target on its shares. Based on its current share price of $166.16, this suggests that upside of 25% is possible. It explains:

Strong beat and capital returns increased: NEM delivered a strong beat across multiple operating and financial metrics, while completing its US$6bn buyback and announcing a further US$6bn program. The result reinforces NEM’s positioning as a high-quality, cash-generative gold producer with strong balance sheet flexibility and increasing capacity to return capital to shareholders. Maintain BUY rating with a A$208ps target price.

Pro Medicus Ltd (ASX: PME)

Lastly, Pro Medicus could be an ASX 200 share to buy according to Morgans.

After adjusting its financial model to be more conservative, the broker has put a buy rating and $210.00 price target on its shares. Based on its current share price of $138.12, this implies potential upside of 52% for investors over the next 12 months. It commented:

In this note, we deploy a new PME model where we have deliberately set a lower bar. Our remodelled estimates prioritise achievability over optimism, staging implementation revenue conservatively and mark FX to spot. We see this as the right framework for a stock where sentiment has been fragile. On the business operations front, the story remains untarnished. Contract newsflow since February has been exceptional: ~$100m in wins and renewals, all at higher pricing, with cardiology upsell gaining traction.

The demand story is not in question. We re-emphasise our positive long-term conviction on the name although lower our valuation to reflect current but potentially fleeting headwinds. Our target price is reduced to A$210 p/s and we retain our Buy recommendation.

The post These ASX 200 shares could rise 25% to 70% appeared first on The Motley Fool Australia.

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