If you’re looking to bolster your portfolio with some new ASX 200 shares, then you may want to consider the two listed below. Both have recently been named as buys by analysts.

Here’s what they have to say about these ASX 200 shares:

Rio Tinto Ltd (ASX: RIO)

Rio Tinto shares could be a top option in the ASX 200 index right now if you’re not opposed to investing in the mining sector.

Goldman Sachs believes that Rio Tinto could be a great pick for investors. So much so, it has its shares on its coveted conviction list with a buy rating and $136.20 price target.

This compares favourably to the current Rio Tinto share price of $111.44. In addition, the broker is expecting fully franked dividend yields of 7.1% in FY 2023 and 6.2% in FY 2024, boosting the total return on offer nicely.

But why is Goldman so bullish? Well, it all comes down to its valuation, production growth, strong free cash flow, and dividend yields. The broker summarises:

We are Buy rated (on CL) on RIO due to: (1) compelling relative valuation vs. peers, (2) Strong FCF and dividend yield with our bullish view on iron ore, aluminium and copper prices, (3) Strong production growth in 2023 & 2024, (4) Pilbara turnaround (~50% of group NAV), (5) Compelling high margin low emission aluminium exposure.

Qantas Airways Limited (ASX: QAN)

Like Rio Tinto’s shares, this ASX 200 airline stock has been tipped to rise strongly from current levels.

This time it is the team at Morgans which is bullish. The broker has Qantas on its best ideas list with an add rating and $8.35 price target. This compares to the current Qantas share price of $6.39.

Morgans reveals that Qantas is its top pick in the travel sector due to its positive earnings outlook. The broker also highlights that its shares are trading at a sizeable discount to peers. It explains:

QAN is now our preferred pick of our travel stocks under coverage given it has the most near-term earnings momentum. Looking across travel companies globally, airlines are now in the sweet spot given demand is massively exceeding supply. QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings, a much stronger balance sheet, a better domestic market position, a higher returning International business and more diversification (stronger Loyalty/Freight earnings).

The post Rio Tinto and this ASX 200 share are strong buys: analysts appeared first on The Motley Fool Australia.

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More reading

• 5 reasons Rio Tinto shares could surge 21%
• Brokers say these ASX 200 mining shares are top buys
• Morgans names the best ASX 200 blue chip shares to buy in May
• Is the Qantas share price at risk over the airline’s $12 billion renewal plans?
• Why the iron ore price is ‘not out of the danger zone’

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 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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