Investors on the lookout for big returns might want to check out the two shares below that feature on the S&P/ASX 300 Index (ASX: XKO).

That’s because the team at Bell Potter has just recommended them to clients and is predicting returns of 16% to 38% over the next 12 months.

GenusPlus Group Ltd (ASX: GNP)

Bell Potter sees a lot of value in this Australian infrastructure services provider’s shares.

The broker was pleased with news that GenusPlus is acquiring Universal Communications Group Holdings. It highlights that the deal adds scale and capability to its telecommunication services offering, including network maintenance.

It also expects it to be immediately earnings accretive and provide a platform to drive further growth in New Zealand across telecommunications and other critical infrastructure markets.

In response, the broker has retained its buy rating and $12.80 price target on the ASX 300 share.

Based on its current share price and including dividends, this represents a total potential return of 38% for investors.

Commenting on its recommendation, Bell Potter said:

We view the UCG deal as strategic. The UCG acquisition will fast-track GNP’s multimarket growth strategy across the Communications, Transmission, Wind, Rail and Gas sectors. The UCG acquisition also provides a platform to extend GNP’s existing construction and maintenance capabilities in New Zealand.

Southern Cross Electrical Engineering Ltd (ASX: SXE)

Another ASX 300 share that has been given the thumbs up is Southern Cross Electrical Engineering.

It is a leading Australian national provider of specialised electrical, instrumentation, communications, security, fire, and maintenance services.

Bell Potter notes that it has also announced an acquisition this month. Southern Cross Electrical Engineering has agreed to buy Entire Operations, which is a Melbourne-based provider of integrated fire protection and mechanical (HVAC) services.

The broker has boosted its earnings estimates for FY 2027-2029 to reflect the deal and has lifted its valuation accordingly.

According to the note, the broker has retained its buy rating on the ASX 300 share with an improved price target of $5.70.

Based on its current share price and including dividends, this would mean a total return of around 16% for investors over the next 12 months.

Speaking about the acquisition, Bell Potter said:

The acquisition of Entire ticks a lot of boxes and mirrors SXE’s prior acquisition playbook. Firstly, Entire expands SXE’s existing fire suppression market exposure and extends skillsets into a new market, HVAC, which is underpinned by structural tailwinds already benefiting the Group. 

Secondly, the deal valuation and EPS accretion is attractive and underpins the FY27 guidance upgrade. Lastly, fire suppression and HVAC are complementary adjacent service offerings to SXE’s core electrical capabilities.

The post 2 ASX 300 shares tipped by brokers to return 16% to 38% appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why this ASX 300 share could rise 32%
• 5 things to watch on the ASX 200 on Friday
• 13 ASX shares with ex-dividend dates next week

Motley Fool contributor James Mickleboro 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 GenusPlus Group. The Motley Fool Australia has recommended GenusPlus Group and Southern Cross Electrical Engineering. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Rio Tinto Ltd (ASX: RIO) share price has been a strong performer within the S&P/ASX 200 Index (ASX: XJO) over the past year, rising by 28%, as the chart below shows.

Rio Tinto is involved with a number of commodities including iron ore, copper, aluminium, bauxite and lithium. Not many miners around the world have as much commodity diversification as Rio Tinto.

The ASX mining share may be best known as an Australian iron ore miner, but there’s a lot more to the business now. I think that makes it a much more appealing business than it was several years ago.

For me, there are at least three compelling reasons to consider the business.

Growing copper exposure

Iron ore prices can be volatile and don’t seem to have a strong outlook at present because of headwinds for both supply and demand. Non-Australian regions are looking to increase iron ore production (supply), and the huge Chinese residential construction boom isn’t happening these days (demand).

Rio Tinto has deliberately and significantly increased its exposure to copper with a number of projects. Copper is essential for a number of growth areas such as electricity grids, renewable energy, electric vehicles and so on.

One of the company’s key growth projects is Oyu Tolgoi, a huge copper operation in Mongolia. At peak production, Oyu Tolgoi is expected to produce 500,000 tonnes per annum of copper.

I think the 2026 half-year result strongly demonstrated the copper division’s performance. The sold copper price increased by 35.5%, while copper operating earnings (EBITDA) soared by 84% to US$5.7 billion. I’m not expecting every result to see that much growth.

Lithium mining

I think it was a smart move by Rio Tinto to acquire Arcadium Lithium a couple of years ago, at a time when the sector was facing significant pessimism.

Its exposure to lithium now looks very appealing, with how the lithium price has rebounded, and electric vehicle demand has increased following the fuel uncertainty because of the Middle East.

The company is not generating a lot of earnings from this division because it’s still developing its projects. But in the first half of FY26, the average realised lithium carbonate price rose 22% to US$18,960, segment revenue rose 84% to US$568 million, and underlying operating profit (EBITDA) rose 419% to US$218 million.

If lithium battery demand continues to grow, predominantly due to electric vehicles, then this division could become a meaningful contributor in the coming years.

African iron ore

It’s possible that Australian iron ore may lose some of its strategic significance in the coming years.

Fortescue Ltd (ASX: FMG) recently highlighted that there are ongoing negotiations with China Mineral Resources Group (CMRG), a key buyer of iron ore. It could become harder to get a great price for Australian iron ore.

Meanwhile, Rio Tinto is working on a huge African iron ore project called Simandou. The fact that it’s in partnership with Chinese operators (and the Government of Guinea) hopefully bodes well for the future realised (sold) iron ore price.

The scale of this project could mean significant production and appealing profit margins. I think it’s a good idea to diversify away from Australian ore.

Overall, I believe the three factors above could lead to strong profits and good dividends, making Rio Tinto’s share price appealing.

The post 3 reasons why the Rio Tinto share price could be a buy appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Fortescue, Guzman Y Gomez, and Megaport shares
• Down 29% so far in 2026: What do brokers tip next for Fortescue shares?
• Fortescue vs Rio Tinto: Which ASX mining giant is the better buy today?
• Fortescue vs BHP: Which ASX miner is better for passive income in October?
• 9 ASX 200 shares upgraded by brokers this week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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 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.

If you are in the market for some new portfolio additions, it could be worth seeing what the team at Morgans is saying about the three ASX shares in this article.

Does the broker rate them as buys, holds, or sells? Let’s find out:

Fortescue Ltd (ASX: FMG)

Morgans was disappointed with this iron ore giant’s recent update, which revealed weak shipments and higher net debt.

In response, the broker has downgraded Fortescue shares to a trim rating with a reduced price target of $15.40. It said:

We have long argued that investing material capital in near-term loss-making projects (magnetite and new energy) has not diversified Fortescue, and has instead left group earnings more exposed to the iron ore price. Magnetite adds more iron ore exposure but at a higher cost, while new energy investment, and US$0.9-1.3bn of FY27 decarbonisation spend, are funded from hematite cash flow. 

This dynamic is starting to show in the numbers. Fortescue flagged that net debt rose US$1.9bn in 1Q27, equal to the final dividend (US$1.0bn) plus quarterly capex (US$0.9bn), implying negative FCF for the quarter. We attribute this mainly to weaker hematite cash flow after the central buying group China Mineral Resources Group (CMRG) reportedly halted purchases of two of Fortescue’s products during the quarter, leaving shipments 6% and actual sales 14% below Visible Alpha (VA) consensus in 1Q27. On updated estimates we lower our rating to TRIM (from HOLD) with an A$15.40 target price (was A$18.70).

Guzman Y Gomez Ltd (ASX: GYG)

Another ASX share that has been downgraded by Morgans is quick service restaurant operator Guzman Y Gomez.

While it has been pleased with its resilient performance, the broker cut its rating in response to recent share price strength. 

Morgans has downgraded Guzman Y Gomez shares to an accumulate rating with an improved price target of $31.30. It said:

We view GYG’s 1Q27 trading update as evidence that its sales are resilient. Backing out the high-single digit first seven weeks already disclosed (we estimate ~8.5%, supported by the Uber Eats deal), comps ran at ~5.5% in weeks 8-13, transaction-led and in line with the mid-single digit FY27 guidance. 

GYG remains our key pick in the QSR sector and the highest-quality operator in our coverage. We lift our FY27 same-store sales (SSS) growth forecast by 50bps to 5.5% and refine our margin mix, which raises FY27 underlying EPS by 1.9% and our price target to A$31.30 (from A$31.00). We move to ACCUMULATE (from BUY) given recent share price appreciation and would be buyers on any weakness.

Megaport Ltd (ASX: MP1)

One ASX share that Morgans is recommending to clients is cloud infrastructure provider Megaport.

It was impressed with its recent update, which revealed a significantly stronger earnings outlook.

In response, the broker has retained its buy rating on Megaport shares with an improved price target of $27.00. It said:

MP1 recently raised its FY27 EBITDA guidance by 25%. The compute and network businesses continue to deliver above expectations and MP1 announced three new AI infrastructure contracts with a Total Contract Value of ~A$1bn. Collectively these set a glide path for annualised EBITDA in excess of $850m. >We upgrade our EPS forecasts materially. Our Target Price lifts to A$27 per share and we retain our BUY recommendation.

The post Buy, hold, sell: Fortescue, Guzman Y Gomez, and Megaport shares appeared first on The Motley Fool Australia.

More reading

• 3 reasons why the Rio Tinto share price could be a buy
• UBS’ top nine ASX large-cap stock picks
• Here are the top 10 ASX 200 shares today
• Down 29% so far in 2026: What do brokers tip next for Fortescue shares?
• Fortescue vs Rio Tinto: Which ASX mining giant is the better buy today?

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 Megaport. 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.