2 fantastic ASX 200 shares analysts say are buys

A man sees some good news on his phone and gives a little cheer.

A man sees some good news on his phone and gives a little cheer.

The Australian share market is home to a number of companies with the potential to grow at a strong rate in the future.

Two such shares that analysts rate highly are listed below. Here’s what you need to know about these ASX 200 shares:

Allkem Ltd (ASX: AKE)

The first ASX 200 share that is rated highly is lithium miner Allkem.

It is the owner of a collection of quality projects across several lithium types. These include Olaroz, Mt Cattlin, and the Sal de Vida brine project.

With lithium prices at sky high prices and looking likely to stay that way in the near term, Allkem appears well-placed to deliver strong earnings growth. Particularly given the end of older supply contracts at much lower prices and increasing production.

In respect to the latter, management is aiming to grow its production three-fold by 2026 and command a 10% share of global lithium production over the long term.

Bell Potter is a big fan of the company. It has a buy rating and $21.58 price target on its shares.

Altium Limited (ASX: ALU)

Another ASX 200 share to look at is Altium. It is a printed circuit board design software (PCB) provider.

PCBs are the boards you find in almost all electronic devices. They are integral to the operation of the device and come in all shapes and sizes. As a result, the design of them is an extremely complex process and requires specialist software.

Altium’s software is regarded as the best in the industry. A testament to this is its customer base, which includes the likes of NASA and Tesla.

Management is very confident on its future and is aiming to double its revenue to US$500 million by 2026 with stronger margins. This bodes well for its earnings growth over the coming years.

Jefferies is a fan of the company. Its analysts currently have a buy rating and $38.13 price target on its shares. 

The post 2 fantastic ASX 200 shares analysts say are buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. The Motley Fool Australia has no position in any of the stocks mentioned. 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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