Top brokers name these 2 S&P/ASX 200 shares a buy

Top brokers have weighed in on these 2 S&P/ASX 200 companies as strong buy opportunities for the week ahead.

CSL Limited (ASX: CSL)

Shares in biopharmaceutical company CSL Limited are down 0.8% today to $156.72 at the time of writing after a drop in share price over the last month which UBS says could signal buy time for investors.

UBS says Canada’s changes to its sourcing of immunoglobulin from commercial operators would result in a decline in CSL’s percentage contribution to the total purchased immunoglobulin to 10% in FY19 from around 26% in FY18.

UBS calculates a CAD$44 million decline in immunoglobulin revenue for CSL in FY19, but the loss will represent just 1% of global sales for the company, with UBS maintaining its $175 target price on the stock.

CSL shares have tracked upwards in price from a 52-week low of $119.01, but many analysts believe broker valuations are too high despite CSL’s propensity to continue to grow with no signs of slowing down.

CSL has recently been ranked the 42nd best employer in the world – recognised for its patient focus, innovation and sustainable growth, with employees said to be “inspired” by the company’s overall values.

CSL human resources officer Elizabeth Walter said CSL’s culture of innovation is what drives results for shareholders.

CSL reported a 31% increase in NPAT, revenue increase of 11% and EBIT rise of 31% when it handed down half-year results in February with its 79c per share unfranked dividend due to be paid out this week.

Cleanaway Waste Management Ltd (ASX: CWY)

Shares in integrated industrial cleaning and waste management company Cleanaway Waste Management Ltd opened up 0.3% to $1.44 today as Morgans has placed an add rating on the stock.

Morgans has Cleanaway in its “high conviction list” after a recent presentation by the company to the broker’s advisor network reinforced its confidence in its outlook.

The Morgans rating can be attributed to Cleanaway’s competitive advantages in the burgeoning waste management sector, the diversity of its operations and its market-share leadership in collection volumes.

Morgans expects defensive and solid earnings growth from Cleanaway at 7% EBITDA for FY18 with EPS growth more difficult to pin down give the acquisition of Tox Free Solutions Limited (ASX: TOX).

Morgans has a $1.68 target price on Cleanaway and this should be achievable for the stock as Cleanaway rolls out a number of new contracts to keep FY18 guidance on track after record NPAT growth of 60% for the half-year ended December 31, 2017.

All eyes are on Cleanaway as the Tox deal progresses.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Tox Free Solutions Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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