If you’re looking for some new additions to your portfolio, then you may want to read on.
Listed below are two ASX 200 shares that broker are tipping as buys right now. Here’s what you need to know:
Australia and New Zealand Banking Group Ltd (ASX: ANZ)
If you’re looking for exposure to the banking sector, then ANZ could be worth considering. It is the top pick in the sector for the team at Morgans right now. As a result, its analysts have an add rating and $34.50 price target on the bank’s shares.
Morgans commented: “We believe ANZ is the most compelling of the major banks on a valuation basis. We expect ANZ to continue to focus on absolute cost reduction over the medium term. ANZ has de-risked its loan book over recent years – particularly its institutional loan book – such that the quality of its loan book has improved. While ANZ’s Australian home loan book has been growing below system over recent months, we expect a disciplined margin performance from ANZ.”
IDP Education Ltd (ASX: IEL)
This language testing and student placement company has been tipped as an ASX 200 share to buy by Goldman Sachs. While it acknowledges that the immediate term is volatile due to COVID-19, it highlights that its long term growth potential is significant. So much so, Goldman’s three-year CAGR estimate for earnings per share is 69%. In light of this, the broker has a buy rating and $34.00 price target on IDP’s shares.
Its analysts explained: “The long term growth opportunity for IEL is compelling. The company is reinvesting in digital capability that will increase its competitive advantage and strengthen its relationship with tertiary education institution clients. We estimate IEL to have <5% market share of the Canada and UK markets, with significant opportunity to gain share in a highly fragmented and under-penetrated market.”