Analysts pick 3 ASX 200 stocks to buy

Are you on the lookout for some new portfolio additions this week?

If you are, then it could be worth hearing what analysts are saying about the ASX 200 stocks listed below, courtesy of The Bull.

Here’s what they are recommending:

Goodman Group (ASX: GMG)

Morgans thinks this industrial property giant could be an ASX 200 stock to buy this week.

The broker believes recent market volatility has left its shares trading at a level that gives investors an attractive risk-reward. It explains:

Goodman Group is a global industrial property owner focusing on high quality warehouses and logistics assets, particularly those linked to e-commerce, datacentres, and supply chain infrastructure. Long term demand remains supported by online retail growth and the need for efficient distribution networks close to major cities.

Goodman’s development pipeline and customer relationships provide visibility and flexibility, while its balance sheet remains conservative. Although the valuation isn’t cheap, it reflects the group’s premium asset quality and structural growth exposure. After recent market volatility, we see the risk–reward as attractive for long term investors.

Pro Medicus Ltd (ASX: PME)

Over at Medallion Financial Group, its analysts are tipping this health imaging technology company as a buy this week.

It was pleased with recent contract renewals on higher fees and believes recent share price weakness has created a rare buying opportunity. Medallion said:

The company provides medical imaging software and services to hospitals and healthcare groups across the world. The share price is down significantly in the past year on fears of artificial intelligence impacting the business. But the company continues winning large and long term contracts.

PME recently renewed a five-year, $37 million contract with Northwestern Medicine based in Chicago. The renewal comes with increased minimums and a higher fee per transaction. In our view, PME presents a rare chance to buy a world class software play at a significant discount.

Sigma Healthcare Ltd (ASX: SIG)

Another ASX 200 stock that Morgans rates as a buy is Chemist Warehouse owner Sigma Healthcare.

As with the others, the broker thinks that recent share price weakness has created a compelling buying opportunity. It explains:

SIG is a leading wholesale distributor and retail pharmacy franchisor with operations in Australia, New Zealand, Ireland and the United Arab Emirates. It has a solid balance sheet with conservative leverage and strong operating cash flows.

We believe SIG can continue to widen margins through expanding labels it owns and exclusive products. We expect improving operating leverage through efficiencies in the supply chain and consolidation in distribution centres. A softer share price provides a compelling buying opportunity for long term focused investors.

The post Analysts pick 3 ASX 200 stocks to buy appeared first on The Motley Fool Australia.

More reading

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• 3 ASX 200 blue-chip shares I’d buy with $5,000 in May

Motley Fool contributor James Mickleboro has positions in Goodman Group and Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Goodman Group and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.