2 undervalued ASX 200 shares to target

Overall, the S&P/ASX 200 Index (ASX: XJO) has had a mediocre year. 

Historically, Australia's benchmark index has risen roughly 9% per year. 

However, this year, it has risen by approximately 4.7%. 

While it's certainly not a bad year by historical standards (2018 and 2020 were significantly worse), investors with large exposure to ASX 200 companies will undoubtedly have seen some individual shares in their portfolio fall.

On the flip side, this can create buy-low opportunities. Historically, strong companies and blue-chip stocks may now be a value. 

As the year draws to a close, I have tried to sift through these companies that have had down years.

Earlier this week, I covered other buy-low opportunities.

Here are two more of Australia's largest companies by market capitalisation that may be value investments heading into the new year. 

Pinnacle Investment Management Group Limited (ASX: PNI)

This ASX 200 stock is an Australian-based multi-affiliate investment management company.

It provides seed funding, distribution services, and infrastructure support to a network of 15 asset managers, or 'affiliates', globally. 

In 2025, its share price has fallen more than 26% and 33% since August 7. 

However, there are positive signs. 

Despite the share price falling, the business is growing with a number of new boutiques as well as funds under management (FUM) increasing. 

At 30 June 2025, private markets FUM was $28.7 billion, up from $1.5 billion, or 6% at 30 June 2016. 

Additionally, the company offers an attractive dividend yield. 

Last month, The Motley Fool's Tristan Harrison also covered the opportunity that dividend shares provide when the share price falls. 

He explained that when a dividend-paying business falls, we can buy it at a lower price, but the dividend yield on offer also increases.

With the business growing steadily and a grossed-up dividend yield of over 4%, I believe there is reason to think the company is a value at its current price. 

Analyst ratings from TradingView suggest that there is upside potential at the current price. 

The one-year price target of $25.32 indicates more than 50% upside for this ASX 200 stock. 

EBOS Group Limited (ASX: EBO)

This ASX 200 stock is the largest pharmaceutical wholesaler and distributor across Australia, New Zealand, and Southeast Asia.

Its share price is down more than 30% year to date. 

This included a 14% crash back in August following the company's FY25 financial results. 

However, analyst price targets suggest it may have been oversold, providing investors with an opportunity to buy this ASX 200 stock at a value. 

TradingView has a one-year price target of $31.95. 

This indicates an upside of roughly 37% from current levels. 

Additionally, online platform SelfWealth rates the stock as "undervalued" by 38%. 

The post 2 undervalued ASX 200 shares to target appeared first on The Motley Fool Australia.

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 Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2025