The ASX 50 index is home to some of the highest quality companies that the region has to offer.
While not all shares in the index are necessarily in the buy zone, two that could be are listed below.
Here’s why analysts rate these ASX 50 shares highly:
Cochlear Limited (ASX: COH)
The first ASX 50 share to look at is Cochlear. It is one of the world’s leading hearing solutions companies with a portfolio of industry-leading cochlear implant products such as the Nucleus System and the Baha System.
In addition, it has a wide global distribution network. Combined with its high level of investment in research and development, this leaves it well-positioned to benefit from the ageing population tailwind.
Analyst at Macquarie are positive on the company. In response to its full year results last month, the broker put an outperform rating and $256.00 price target on the company’s shares.
Xero Limited (ASX: XRO)
Another ASX 50 share that is rated as a buy is Xero. It is a provider of a cloud-based business and accounting solution to small and medium sized businesses. It has been growing strongly over the last few years and looks well-positioned to continue the trend in the years to come.
This is thanks to its international expansion, acquisitions, the transition to the cloud, and its burgeoning app ecosystem. The company recently introduced its App Store in the ANZ and UK markets. Much like Apple’s App Store, this will allow Xero to earn royalties on third party apps that its subscribers use. This has the potential to be a very lucrative revenue stream in the future.
One broker that is particularly positive on Xero is Goldman Sachs. It currently has a buy rating and $165.00 price target on its shares. Goldman believes Xero has the potential to deliver strong revenue growth over multiple decades.