7 ASX 200 shares in the buy zone as optimism returns to the market: experts
The market has been choppy in FY27 so far.
Between 30 June and 6 August, ASX 200 shares rose 5.6%.
This was partly due to strong US tech earnings inspiring renewed confidence in the AI boom.
The benchmark then tumbled 7.1% as persistently high inflation led to an interest rate hike on 30 September.
The ASX 200 troughed on 1 October and has since rebounded 5.9% on hopes the US will end the war in Iran.
Following another rate increase on 4 November, investors are also now hopeful the hiking cycle is over.
This week, brokers reaffirmed their buy calls on several ASX 200 shares amid this renewed optimism.
Let's check them out.
Liontown Ltd (ASX: LTR)
The Liontown share price is 67 cents, down 5.9% today and down 49% over 12 months.
JP Morgan renewed its buy rating on this ASX 200 lithium share on Monday.
The broker lowered its 12-month price target from $1.10 to 80 cents.
This suggests a potential 19% upside ahead.
Xero Ltd (ASX: XRO)
The Xero share price is $76.78, up 8.4% today on its 1H FY27 results and upgraded outlook.
This ASX 200 tech share has fallen 45% over 12 months.
Today, it's the strongest riser of the ASX 200.
Citi renewed its buy rating on Xero shares with a $91.55 target on Thursday.
This implies potential capital growth of 19% over the next year.
Rio Tinto Ltd (ASX: RIO)
The Rio Tinto share price is $151.93, down 1.3% today and up 15% over 12 months.
JP Morgan renewed its buy rating on this ASX 200 mining heavyweight on Monday.
The broker increased its price target from $209 to $211.
This suggests a potential 39% upside ahead.
Minerals 260 Ltd (ASX: MI6)
The Minerals 260 share price is 81 cents, down 8% today.
This ASX 200 gold share has ripped 170% over 12 months.
The explorer announced it was fully funded through to first production yesterday.
Today, Minerals 260 advised works approval for its Bullabulling Gold Project.
Bell Potter reiterated its speculative buy rating on Minerals 260 shares today.
The broker's valuation is $1.45 per share, implying 79% upside from here.
Life360 Inc CDI (ASX: 360)
The Life360 share price is $21.30, up 2.4% today and down 47% over 12 months.
Morgan Stanley reaffirmed its buy call on Life360 shares with a $31.75 target on Tuesday.
This suggests a potential 49% upside ahead.
PLS Group Ltd (ASX: PLS)
The PLS share price is $2.94, down 5.3% today and down 14% over 12 months.
Citi reiterated its buy rating on PLS shares yesterday.
However, the broker lowered its target on this ASX 200 mining share from $5.50 to $4.10.
This still implies a healthy potential gain of 39% ahead.
Light & Wonder Inc (ASX: LNW)
Light & Wonder shares are $123.36 apiece, up 1.1% today and down 12% over 12 months.
Macquarie renewed its buy rating on Light & Wonder shares on Tuesday.
The broker raised its price target from $185 to $190.
This implies 54% potential upside over the next year.
The post 7 ASX 200 shares in the buy zone as optimism returns to the market: experts appeared first on The Motley Fool Australia.
JPMorgan Chase is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen 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 JPMorgan Chase, Life360, Light & Wonder Inc, Macquarie Group, and Xero. The Motley Fool Australia has positions in and has recommended Life360 and Xero. The Motley Fool Australia has recommended Light & Wonder Inc and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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