Experts name 2 ASX 200 shares to buy next week

Are you wanting to add some new ASX 200 shares to your portfolio next week? If you are, read on.

Two ASX 200 shares that could be worth considering are listed below. Here’s what you need to know about them:

NextDC Ltd (ASX: NXT)

The first ASX 200 share to look at is data centre operator NextDC. Thanks to the structural shift to the cloud, demand for its world class data centre network has been growing at a rapid rate in recent years. This has underpinned strong revenue and operating earnings growth for many years.

Pleasingly, with this shift still ongoing, NextDC has been tipped to continue its positive form long into the future.

Morgans is a big fan of the company and has a buy rating and $13.01 price target on its shares. This compares favourably to the latest NextDC share price of $11.29.

The broker likes the company due to its “substantial structural growth, quality management, significant barrier to entry and, in our view, improving competitive advantage with regional/edge sites.”

TechnologyOne Ltd (ASX: TNE)

Another ASX 200 share to look at is enterprise software provider TechnologyOne. It has been tipped to deliver strong earnings growth over the coming years thanks to its transition to a software-as-a-service (SaaS) focused business.

A recent note out of Bell Potter reveals that its analysts have retained their buy rating and lifted their price target on the company’s shares to $14.25. This compares favourably to the latest TechnologyOne share price of $11.91.

The broker suspects that TechnologyOne could lift its growth targets in the near future thanks to its strong performance and the success of its SaaS transition. It notes that “Technology One has had an annual growth target of 10-15% growth in NPAT for a decade but we believe there is potential for the company to lift this annual target to 15-20% at some stage in the next few years.”

The post Experts name 2 ASX 200 shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Here are 2 excellent ASX tech shares a top broker says are buys
• $20,000 invested in these ASX shares 10 years ago is worth how much now?
• Worried about how ASX 200 tech shares might perform this earnings season? Here’s what to watch
• Broker tips TechnologyOne share price to shoot 15% higher
• Why are ASX 200 tech shares having such a stellar run today?

Motley Fool contributor James Mickleboro has positions in NEXTDC Limited and SEEK Limited. 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 SEEK Limited and TechnologyOne Limited. 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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