Brokers just rated these ASX 200 shares as buys in August

Experts have recently rated a few S&P/ASX 200 Index (ASX: XJO) shares as buys.

Share prices are changing all the time which can also change how attractive the value of a business is to investors. As well, updates are regularly flowing to investors, providing insights into the performance of businesses.

Experts like to look at ASX shares and give them a rating that indicates whether they are a buy, hold, or sell.

ASX 200 shares are often market leaders in what they do in Australia. For example, the index contains Australia’s biggest banks and retailers.

Let’s have a look at two of the latest ASX shares to have been rated as buys:

Domain Holdings Australia Ltd (ASX: DHG)

Domain is a leading property advertising portal business. Property owners can advertise their real estate on Domain’s website in a bid to attract as much interest in their properties as possible.

In May 2022, the company gave an update for the three months to 31 March 2022. It said that digital revenue increased by 25% and that the business had benefited from higher depth penetration and pricing. Domain also said it is choosing to invest in the business in a disciplined manner, while also being committed to ongoing profit margin expansion.

Specifically, FY22 costs are expected to increase in the “low-teens” range from the FY21 ongoing expense base of $195.5 million.

The broker Ord Minnett rates the company as a buy with a price target of $4.40. That implies a possible rise in the Domain share price of around 20% over the next year.

Based on its earnings projection, the Domain share price is valued at 33 times FY23’s estimated earnings.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is a funds management business that aims to invest in high-quality fund managers and help them grow. It provides a number of administrative services for fund managers including distribution and client services, compliance, finance, legal, and technology.

The ASX 200 share recently reported its FY22 result for the 12 months to 30 June 2022.

It said net profit after tax (NPAT) grew by 14% to $67 million. Aggregate affiliate funds under management (FUM) was down by 6% over FY22 to $83.7 billion. However, aggregate retail FUM was up 4% to $21.1 billion at 30 June 2022.

Net inflows for the year were $0.6 billion and $2.2 billion for the six months ended 30 June 2022. Pinnacle said that 83% of its five-year affiliate strategies had outperformed as at 30 June 2022.

The business is also looking for further expansion opportunities. It’s committed to taking advantage of the “significant” offshore opportunity to “evolve into a global multi-affiliate by exporting its model”.

After seeing the result, the broker Macquarie decided to rate the business as ‘outperform’ with a price target of $11.78. This implies single-digit potential upside over the next 12 months. It thinks Pinnacle’s profitability can continue to please investors.

Based on the current Pinnacle share price, Macquarie thinks it’s valued at 23 times FY24’s estimated earnings with a potential grossed-up dividend yield of 5.2%.

The post Brokers just rated these ASX 200 shares as buys in August appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison 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 FPO. The Motley Fool Australia has positions in and has recommended PINNACLE FPO. The Motley Fool Australia has recommended Macquarie 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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