Looking for investment ideas for April? Listed below are two high quality options to consider right now.
Here’s what you need to know about these ASX 200 shares:
ResMed Inc. (ASX: RMD)
The first ASX 200 share that could be in the buy zone in April is ResMed. It is a sleep treatment-focused medical device company with a portfolio of industry-leading products supporting sufferers of afflictions including sleep apnoea and chronic obstructive pulmonary disease.
ResMed also has a growing software business that looks well-placed to benefit from the shift to home healthcare.
The company has a long runway for growth. This is due to its significant market opportunity, with an estimated ~1 billion people suffering from sleep apnoea worldwide.
Morgans is a fan of ResMed. It recently retained its add rating and put a price target of $40.80 on its shares. The broker believes ResMed is well-placed as it “builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”
TechnologyOne Ltd (ASX: TNE)
Another ASX 200 share to look at in April is TechnologyOne. It is Australia’s largest enterprise software company, providing a global software as a service (SaaS) ERP solution that transforms business and makes life simple for its customers.
At the last count, there were well over 1,000+ leading corporations, government agencies, local councils and universities being powered by its software.
TechnologyOne’s ongoing shift to a SaaS focused business has driven strong recurring revenue growth in recent years. Pleasingly, this is expected to continue in the coming years with management confident it will hit annual recurring revenue (ARR) of over $500 million by FY 2026. This is almost double its current base ARR of $257.5 million.
It commented: “Our SaaS business continues to grow quickly. The quality of this revenue stream is exceptionally high, given its recurring contractual nature, combined with our very low churn rate of ~1%. […] With our fast-growing SaaS business and the announcement of the end of our On-Premise business, we are on track to hit our target of $500m+ ARR by FY26.”
Bell Potter is a fan and has a buy rating and $14.00 price target on its shares.
The post 2 highly rated ASX 200 shares analysts are tipping as buys right now appeared first on The Motley Fool Australia.
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More reading
- Analysts name 3 ASX 200 shares that could generate strong returns
- 3 ASX shares primed to bounce back: expert
- Growth will be back! Expert picks 7 ASX shares to buy now
- The next ASX share ready to join the 20-bagger club: expert
- Broker tips TechnologyOne (ASX:TNE) share price to rise 26% amid SaaS growth
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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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