If you’re looking for portfolio additions in May, then you may want to take a look at the ASX 200 shares listed below.
All three ASX 200 shares were recently rated as buys. Here’s why they could be top options right now:
Altium Limited (ASX: ALU)
Altium is an electronic design software provider best-known for its Altium Designer and Altium 365 platforms. These platforms are regarded as the best in their class and used by many of the world’s largest companies such as BAE Systems, Microsoft, and Tesla.
While FY 2021 has been underwhelming because of the pandemic, Altium looks well-placed for growth over the next decade. This is thanks to the internet of things and artificial intelligence booms, which are driving increasing demand for this type of software. One broker that likes what it sees here is Citi. Late last month Citi retained its buy rating and $33.50 price target on the company’s shares.
NEXTDC Ltd (ASX: NXT)
Another ASX 200 share to look at is NEXTDC. It is Australia’s leading data centre operator with a total of nine centres in key locations across Australia. Unlike Altium, FY 2021 has been a very strong year for the company. This has been driven by the accelerating shift to the cloud.
This led to NEXTDC reporting a 29% increase in EBITDA to $65.7 million for the first half of FY 2021. Pleasingly, more of the same is expected in the second half and beyond thanks to favourable industry tailwinds. This should be supported by its proposed expansion into the Asian market in the near future. Goldman Sachs is positive on its future. Its analysts recently reiterated their conviction buy rating and $15.00 price target on the company’s shares.
Ramsay Health Care Limited (ASX: RHC)
A third and final ASX 200 share to consider buying is Ramsay Health Care. It is a leading private healthcare company with operations across the world. Although the pandemic hit the company hard, it has bounced back strongly in recent months and is now benefiting from a backlog in surgeries.
Looking beyond the pandemic, Ramsay looks well-placed for long term growth thanks to increasing demand for healthcare services due to ageing populations and its penchant for making earnings accretive acquisitions. Macquarie is positive on the company. Earlier this month the broker put an outperform rating and $74.85 price target on its shares.