These ASX 200 shares could rise 25% to 50%

happy investor, share price rise, increase, up

Although the market has been scaling new heights this year, it doesn’t mean it is too late to invest.

In fact, analysts have named two ASX 200 shares as buys this week and are tipping them to rise 25% to more than 50% over the next 12 months.

Let’s see what they are saying about them:

IDP Education Ltd (ASX: IEL)

The team at Goldman Sachs thinks that investors should be buying this beaten down ASX 200 share while it’s cheap.

The broker has trimmed its earnings estimates for the language testing and student placement company in response to recent industry feedback, regulatory changes, and data points.

However, its analysts “would argue the market has priced these cuts already given VA Consensus is relatively flat.”

In light of this and its strong structural growth outlook, it feels that investors should be investing in this high-quality company now. It said:

We are nearing the base for FY25E earnings and are now capitalising what we see as trough earnings/growth at a historically low multiple. IEL’s structural growth outlook and business quality remain unchanged in our view.

Goldman has reiterated its buy rating on the company’s shares with a trimmed price target of $25.30. This implies potential upside of approximately 55% for investors over the next 12 months.

Life360 Inc (ASX: 360)

Another ASX 200 share that could deliver big returns for investors is location technology company, Life360.

That’s the view of analysts at Bell Potter, which have just reiterated their buy rating on the company’s shares ahead of its quarterly update next month.

Bell Potter is expecting the company to deliver a very strong quarterly result, particularly given its recent trading update. However, it doesn’t believe management will upgrade its guidance so early in the year. It explains:

Life360 is scheduled to report its 1Q2024 result on Friday, 10th May and our key forecasts are revenue up 19% y-o-y to US$80.9m, adjusted EBITDA up >100% y-o-y to US$3.7m, ARPPC up 1% q-o-q and 4% y-o-y to US$125.87 and AMR up 4% q-o-q and 19% y-o-y to US$285.8m.

The launch of tiered membership in Australia this quarter is also another positive and this appears imminent following a price increase for existing paying subscribers last week. We also see some potential of a guidance upgrade but not until the second half of the year.

Bell Potter has a buy rating and $16.25 price target on the ASX 200 share. This suggests potential upside of 25% for investors over the next 12 months.

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Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Idp Education, and Life360. The Motley Fool Australia has recommended Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.