The ASX 50 index is home to many of the highest quality companies that the ANZ region has to offer. And while not all shares in the index are necessarily in the buy zone, two that could be are listed below.
Here’s why analysts rate these ASX 50 shares as buys:
Cochlear Limited (ASX: COH)
The first ASX 50 share to look at is Cochlear. It is one of the world’s leading hearing solutions companies with a portfolio of industry-leading cochlear implant products. These include its Nucleus System and the Baha System.
But management isn’t resting on its laurels with these products. It continues to spend 12%-14% of its revenue each year on research and development. This is a significant spend and demonstrates the implant industry’s high barriers to entry and the competitive moat created by Cochlear through decades of R&D.
All in all, this leaves the company well-positioned to benefit from the ageing population tailwind over the 2020s and beyond.
Macquarie currently has an outperform rating and $256.00 price target on the company’s shares. This compares favourably to the latest Cochlear share price of $216.66.
Xero Limited (ASX: XRO)
Another ASX 50 share that could grow at a solid rate long into the future is Xero. It is a provider of a cloud-based business and accounting solution to small and medium sized businesses.
Thanks to its international expansion, acquisitions, the transition to the cloud, and its burgeoning app ecosystem, the team at Goldman Sachs believe Xero has multi-decade runway for growth. Especially if it can monetise its App Store successfully.
In light of this, it will come as no surprise to learn that Goldman Sachs is bullish on Xero. It currently has a buy rating and $158.00 price target on the company’s shares. This compares to the latest Xero share price of $142.06.
The post 2 ASX 50 shares to buy in 2022 appeared first on The Motley Fool Australia.
Should you invest $1,000 in Xero right now?
Before you consider Xero, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Xero wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
- Xero (ASX:XRO) share price dips amid acquisition news
- Are these 2 strong ASX 200 shares buys?
- Where are Xero (ASX:XRO) shares headed in 2022?
- 2 fantastic ASX growth shares Goldman Sachs rates as buys
- What’s the outlook for ASX healthcare shares in 2022?
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. owns and has recommended Cochlear Ltd. and Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3eoXJLf