Morgans names 2 ASX 200 shares to buy

These ASX 200 shares could be buys…

| More on:
A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements

Image source: Getty Images

The S&P/ASX 200 Index (ASX: XJO) is home to a good number of quality options that could be in the buy zone right now.

Two that the team at Morgans believe are buys are listed below. Here’s why its analysts rate these ASX 200 shares highly:

QBE Insurance Group Ltd (ASX: QBE)

Morgans is positive on this insurance giant and has named it as an ASX 200 share to buy. Its analysts currently have an add rating and $13.70 price target on its shares. This compares favourably to the current QBE share price of $11.29. The broker sees a lot of value in QBE’s shares at the current level, particularly given its improving outlook.

The broker commented: “We see QBE as likely having positive underlying momentum into next year. QBE has been putting through top-line rate increases of around 9%, which should assist margin expansion into FY22. With QBE’s balance sheet recently reset, pricing tailwinds evident and the stock relatively inexpensive trading on ~12.8x FY22F PE.”

Woodside Petroleum Limited (ASX: WPL)

Another ASX 200 share that Morgans thinks is in the buy zone is this energy producer. The broker has an add rating and $29.95 price target on its shares. This suggests major upside for the Woodside share price, which is currently fetching $21.80. Its analysts are very positive on its upcoming merger with the petroleum assets of BHP Group Ltd (ASX: BHP).

Morgans explained: “We believe WPL has benefited from being in the right place, at the right time. With: 1) BHP/WPL having an existing relationship, 2) BHP eager to boost its ESG profile, and 3) WPL being a quality operator (safe hands which is important for BHP).”

“From an economic standpoint we think WPL is clearly getting the better of the deal, with synergies not baked into deal metrics and BHP willing to accept a discount. The deal is transformative, lifting WPL into being a top 10 global E&P with +2 billion barrels of 2P reserves, with EBITDA of US$4.7bnpa and growth options,” it concluded.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Blue Chip Shares

A group of people in suits watch as a man puts his hand up to take the opportunity.
Blue Chip Shares

2 ASX blue-chip shares this top fund manager thinks are good value

Wilson Asset Management offers its thoughts on a couple of blue-chip shares.

Read more »

A women cheers with clenched fists having read some good news on her laptop.
Blue Chip Shares

2 top blue chip ASX 200 shares to buy now according to experts

These blue chip ASX 200 shares could be buys...

Read more »

Red buy button on an apple keyboard with a finger on it.
Blue Chip Shares

Brokers name 2 ASX 200 blue chip shares to buy

These blue chip shares are rated highly by analysts...

Read more »

Woman with money on the table and looking upwards.
Dividend Investing

2 ASX dividend shares I’d buy with $1,000

Brickworks and Wesfarmers are two of the leading ASX dividend shares I’d consider.

Read more »

A man with a yellow background makes an annoncement, indicating share price changes on the ASX
Broker Notes

Broker names 3 more ‘champion’ ASX 200 shares to buy and hold

Here are three more "champion stocks" for buy and hold investors...

Read more »

a woman holds a facebook like thumbs up sign high above her head. She has a very happy smile on her face.
Blue Chip Shares

Broker names 2 of the ‘best’ blue chip ASX 200 shares to buy now

These ASX 200 shares are rated highly by a leading broker...

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Blue Chip Shares

2 strong blue chip ASX 200 shares to buy after the market selloff according to analysts

These blue chip shares could be buys...

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Blue Chip Shares

2 ASX 200 shares that analysts say are buys

Here are two ASX 200 shares to buy...

Read more »