There are a lot of quality companies for investors to choose from on the Australian share market.
But two excellent ASX 200 shares that stand out as no-brainers for me are listed below. Here’s why analysts think they could be top buys:
ResMed Inc. (ASX: RMD)
ResMed could be a no-brainer ASX 200 share to buy now. It is one of the world’s leading sleep disorder treatment companies.
This certainly is a great market to lead. For example, analysts estimate that obstructive sleep apnoea (OSA) could afflict over a billion people globally. And with the vast majority of these sufferers undiagnosed, there’s a huge growth runway ahead for ResMed, its technology, and software solutions.
Bell Potter rates the company highly and has it on its favoured list with a buy rating and $36.00 price target. It commented:
The market for OSA and chronic obstructive pulmonary disease (COPD) remains under penetrated, and we expect industry volume growth to continue in the 6-8% range for the foreseeable future. In this regard, the competitive dynamics are very much in favour of RMD due to the Philips recall and improving semiconductor availability. Looking ahead, ResMed continues to expect device sales to be sequentially higher throughout CY2023. Furthermore, ResMed is well-positioned to build on its dominant share even after Philips returns to the global market, with the launch of its latest continuous positive airway pressure (CPAP) device, the Air Sense 11.
Xero Ltd (ASX: XRO)
Another no-brainer ASX 200 share for investors to consider buying is cloud accounting platform provider Xero.
It has been growing at a rapid rate in recent years thanks to the shift online and the quality and popularity of its platform. At the last count, the company had 4.16 million subscribers globally.
The good news is that Goldman Sachs believes its growth still has a very long way to go and estimates its market opportunity to be 100 million+ small businesses. In response to its full year results last week, the broker has reiterated its conviction buy rating with an improved price target of $164.00. The broker commented:
We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM. Given the company’s pivot to profitable growth and corresponding faster earnings ramp, we see an attractive entry point into a global growth story with Xero our preferred large-cap technology name in ANZ â the stock is Buy rated.
The post 2 no-brainer ASX 200 shares to buy next week appeared first on The Motley Fool Australia.
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More reading
- Here’s how the ASX 200 market sectors stacked up last week
- Top brokers name 3 ASX shares to buy next week
- Could the Xero share price leap a further 35% as profits begin to flow?
- Brokers name 3 ASX shares to buy now
- 5 things to watch on the ASX 200 on Friday
Motley Fool contributor James Mickleboro has positions in ResMed and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, ResMed, and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. 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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