The team at Morgans regularly picks out its best ASX share ideas. These are the ASX stocks that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence.
Among its best ideas for May are the two top ASX 200 stocks listed below. Hereâs what the broker is saying about them:
Aristocrat Leisure Limited (ASX: ALL)
Morgans has this ASX 200 gaming technology company on its best ideas list in May. The broker believes Aristocrat is well-placed for long-term growth. It also highlights the company’s strong balance sheet, which provides it with opportunities to bolster its growth organically and inorganically. It said:
We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses; (2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE; and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn.
Morgans has an add rating and $43.00 price target on Aristocrat’s shares.
CSL Limited (ASX: CSL)
This biotherapeutics company is on the broker’s best ideas list again in May. Morgans has labelled CSL as a key portfolio holding. This is due to its significantly improved outlook and attractive valuation. The broker explains:
A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long-term forward multiple of ~30x.
Morgans has an add rating and $337.92 price target on the ASX 200 stock.
The post Morgans names the best ASX 200 stocks to buy in May appeared first on The Motley Fool Australia.
FREE Guide for New Investors
Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…
For over a decade, we’ve been helping everyday Aussies get started on their journey.
And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.
Yes, Claim my FREE copy!
*Returns as of April 3 2023
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Why analysts are bullish on these ASX 200 growth shares
- Can the CSL share price crack a new, all-time high in 2023?
- These ASX 200 shares could be top options for your retirement portfolio: experts
- ‘Under the radar success’: 3 quality ASX 200 growth shares to buy right now
- This is how you can generate passive income in May with ASX shares
Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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.
from The Motley Fool Australia https://ift.tt/Ptpl3I5
Stock Pick 