Why experts are tipping these ASX 200 shares as buys

A young bearded man wearing a white t-shirt with a yellow backdrop holds up his arms to his chest and points to the camera in celebration of ASX shares rising today

A young bearded man wearing a white t-shirt with a yellow backdrop holds up his arms to his chest and points to the camera in celebration of ASX shares rising today

The ASX 200 index is home to a good number of quality blue chip shares. So many, it can be hard to decide which ones to include in your portfolio.

In order to narrow things down, listed below are two ASX 200 shares that are highly rated right now. They are as follows:

Goodman Group (ASX: GMG)

The first ASX 200 share to look at is Goodman Group. It is a leading global integrated commercial and industrial property company.

Citi is a big fan of the company and has a buy rating and $29.50 price target. It is positive on the company’s outlook largely due to the strong demand for industrial properties and its burgeoning development pipeline.

Citi also believes a recent pullback has created a buying opportunity for investors. It commented

Similar to previous periods, we see FY22 guidance as conservative given strong FUM growth into 4Q22, off the back of development completions and rising asset values (as GMG’s book cap rates are softer than market). Moreover, despite fears, we see the growth outlook as being robust for FY23 as well given solid demand for industrial (which is driving market rental growth above longer-term averages) and ongoing investment demand, which should support asset value and AUM growth. We re-iterate Buy and see the -25% YTD share price decline as a good entry point.

REA Group Limited (ASX: REA)

Another ASX 200 share to look at is property listings company REA Group.

It has been a consistently solid performer over the last decade despite whatever the economy or housing market has thrown at it.

The good news is that the team at Goldman Sachs expect this trend to continue and has put a buy rating and $164.00 price target on its shares. The broker believes REA is a high quality company capable of delivering strong earnings growth in the coming years.

The broker said:

We re-iterate our Buy rating on REA and add it to the ANZ Conviction List, with +34% upside to our revised A$164 TP. As the #1 player in our preferred vertical (audience share), we believe REA is amongst the highest quality names in our coverage, and forecast FY22-25 EBITDA CAGR of +12%.

The post Why experts are tipping these ASX 200 shares as buys appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. 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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