Goldman Sachs says these ASX 200 shares are buys

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements

Are you wanting to make some new portfolio additions?

If you are, then check out the two ASX 200 shares listed below that Goldman Sachs is bullish on.

Here’s why the broker believes they are buys:

IDP Education Ltd (ASX: IEL)

Goldman Sachs says that this language testing and student placement company is an ASX 200 share to buy.

Its analysts believe that the company is well-placed to deliver double-digit revenue growth through to at least FY 2025. And with its margins forecast to expand, its earnings growth looks set to grow at an even quicker rate. Goldman commented:

While the 1H23 result was modestly below our EBIT forecast (-4%) the company delivered strong revenue growth (+26%) and operating leverage (EBIT margin +476 bps). We expect double digit revenue growth and c.200bps p.a. of EBIT margin expansion to continue over the forecast period, justifying the stock’s premium rating.

Goldman has a buy rating and $35.70 price target on IDP Education’s shares.

Nextdc Ltd (ASX: NXT)

Another ASX 200 share that Goldman is bullish on is data centre operator NextDC.

Thanks to the cloud computing boom, which is driving strong demand for data centre services, NextDC has been growing at a solid rate for years.

The good news is that the shift to the cloud still has a long way to go. Goldman believes this bodes well for the company’s growth in the coming years. It commented:

We are particularly positive on NXT and are Buy rated given the rapid growth in cloud adoption, which has been supported by the continued evolution of the enterprise telecommunications market, and the significant demand by both public and private investors for digital infrastructure assets. We believe the company has a compelling growth profile and a proven and profitable business model, noting it trades on a growth-adjusted discount vs. peers, which we view as unjustified.

The broker has a buy rating and $13.30 price target on NextDC’s shares.

The post Goldman Sachs says these ASX 200 shares are buys appeared first on The Motley Fool Australia.

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More reading

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education. The Motley Fool Australia has recommended Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia

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