5 ASX 200 shares to buy according to brokers

Top 5 written in blue with a blue background.

Top 5 written in blue with a blue background.

If you’re in the market for some new portfolio additions, then you will be pleased to know that a number of ASX 200 shares have recently been tipped as buys.

Here’s why brokers are particularly positive on these top shares:

Allkem Ltd (ASX: AKE)

Bell Potter believes this ASX 200 lithium share is still great value despite recent gains following the announcement of a merger with Livent Corp (NYSE: LTHM). The broker has a buy rating with a $19.20 price target on its shares. The broker commented:

AKE is now in-play; we think it is likely the LTHM merger will proceed and are not confident that an interloper will emerge. On a stand-alone basis the company has a strong production and earnings growth profile into what we expect to be an exceptionally strong market for lithium. Combining with LTHM and the NYSE listing could see an earnings multiple uplift. AKE is trading at a slight discount to the implied deal value, which we expect will close if deal certainty improves.

BHP Group Ltd (ASX: BHP)

A note out of Goldman Sachs reveals that its analysts are bullish on this mining giant. The broker currently has a buy rating and $49.90 price target on the Big Australian’s shares. Goldman named four reasons why it is positive on BHP. It said:

Our Buy thesis on BHP is based on: (1) Attractive valuation, but at a premium to S32 & RIO (2) GS bullish iron ore, copper and met coal, (3) Optionality with +US$20bn copper pipeline and improved production growth, (4) Robust FCF, but still below RIO & S32.

CSL Limited (ASX: CSL)

Morgans is a fan of this ASX 200 biotherapeutics share and has an add rating and $337.92 price target on it. The broker believes CSL is well-placed for growth now its headwinds have faded. It said:

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.

Goodman Group (ASX: GMG)

Citi is a fan of this integrated industrial property company and has a buy rating and $24.30 price target on its shares. The broker believes Goodman is well-positioned to deliver solid earnings growth for the foreseeable future. It said:

We see potential for GMG to generate consistent high-single to low-double digit earnings growth over the medium term driven by rental upside and longer term development projects, which will add to management and development earnings. The stock currently trades at c. 19x FY24e, below global industrial peers, despite having higher earnings growth and lower leverage. We therefore see upside to the share price and retain Buy.

ResMed Inc. (ASX: RMD)

Another ASX 200 share that has been named as a buy is ResMed. Goldman Sachs is a fan of the sleep treatment solutions company and has a buy rating and $39.60 price target on its shares. It commented:

We continue to see a long-duration runway of HSD organic growth for RMD, and we believe valuations (PE: 31.4x / EV/EBITDA: 22.0x) both c.6% below 5-year averages and growth-adjusted valuation of 2.6x (sector 2.4x) are not demanding in the context of various near/long-dated tailwinds.

The post 5 ASX 200 shares to buy according to brokers appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Allkem and CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group. 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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