Should investors buy the dip on these ASX 200 shares?

Almost every company in the S&P/ASX 200 Index (ASX: XJO) fell on Monday. 

Geopolitical conflict weighed heavily on investor confidence, as Australia’s benchmark index tumbled almost 3%. 

In fact, yesterday was the worst day since the post-“Liberation Day” sell-off in April last year.

However after the fall, there are buying opportunities for many ASX 200 companies. 

It’s important to understand that volatility is likely to continue as concerns continue to rise about the conflict involving the United States, Israel, and Iran. 

However, taking a long-term view, these companies could be great value after Monday’s crash. 

BHP Group Ltd (ASX: BHP)

BHP shares fell more than 5% yesterday. 

It has been one of the major losers in the “risk-off” reaction from markets. 

The natural resources company is now down 15% in just the last week of trading. 

However BHP Chairman Ross McEwan said the global mining giant sees little immediate impact from the US-Iran conflict. 

According to Bloomberg, the company has prepared for various scenarios, and about 95% of its mining products ultimately go to Asia, with relevant trade routes remaining open, though some routes passing through the Middle East are expected to be affected.

Analysts seem fairly neutral on the ASX 200 stock in the short term. 

16 analysts ratings via TradingView have an average 12 month price target of $53.00 on BHP shares. 

That’s roughly 5.8% higher than yesterday’s closing price of $50.10. 

While right now might not be the most attractive entry point, should the sell-off continue, it could be a buy low opportunity for long-term investors. 

Nextdc Ltd (ASX: NXT)

This ASX 200 company fell more than 6% yesterday. 

However, it appears the conflict in Iran has affected the company mostly indirectly through market sentiment and interest-rate expectations, not through its core operations.

The company operates data centres in Australia, New Zealand and Southeast Asia. 

It focuses on co-location services to local and international organisations as well as interconnectivity between enterprises, global cloud, ICT providers, and telecommunication networks.

This core business focus is set to play an important role in the growth of AI, which is set to require massive processing infrastructure. 

Essentially, this ASX 200 stock is considered a high-growth tech infrastructure stock. These can drop more than defensive companies during market shocks.

While the short term could be bumpy, a 6% sell-off could be a time to gain exposure at a reasonable price. 

It has a buy rating from UBS, with a price target of $22.55.

That’s a 76% upside from yesterday’s closing price. 

The post Should investors buy the dip on these ASX 200 shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BHP Group. 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.