Analysts think these ASX 200 shares are dirt cheap buys

There are plenty of ASX 200 shares to choose from on the Australian share market.

And while not all of them are buys, two that could be this week are named below.

Here’s why analysts are feeling bullish about them:

Bapcor Ltd (ASX: BAP)

The team at Morgans think it is worth sticking with this auto parts retailer following its half-year results.

While the broker acknowledges that there is some uncertainty given its new leadership team and strategy, it feels that its valuation still provides an attractive entry point. The broker said:

There is clearly some ‘reset risk’ with a new incoming CEO/CFO. Part of our case for the recent recommendation upgrade was the improved prospect for earnings improvement into FY25. Despite the uncertainty tied to an inevitable strategy review, we continue to see higher earnings in FY25 as realistic. We acknowledge the BAP investment case is tricky until the new CEO provides some strategy clarity. However, despite incurring mgmt and strategy change and a difficult cost environment, the business has been resilient. We think the valuation point continues to provide value on a medium-term view.

Morgans has an add rating and $6.60 price target on its shares.

Qantas Airways Limited (ASX: QAN)

Goldman Sachs is feeling very bullish about this airline operator following its half-year results release.

It continues to believe that the market is undervaluing Qantas’ significantly improved earnings capacity. It highlights:

Notwithstanding a decline in unit revenues (and group capacity still at 95% of pre-COVID) our estimated FY24e EPS sits 52% above pre-COVID levels. Despite this, QAN’s market capitalisation and EV is 17% and 24% lower than pre-COVID levels. We acknowledge broader macro uncertainty at this point in the cycle, but believe the current share price does not reflect the group’s improved earnings capacity.

Goldman has a buy rating and $8.05 price target on its shares.

The post Analysts think these ASX 200 shares are dirt cheap buys appeared first on The Motley Fool Australia.

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More reading

• These ASX shares could rise 30% to 50% in 12 months
• Qantas descends, Treasurer’s RBA dilemma and Twiggy’s payday: Scott Phillips on Nine’s Late News
• Brokers name 3 ASX shares to buy now
• Bapcor share price resilient following record half year revenues
• Why Qantas shares could rise over 50%

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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Bapcor. 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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