Goldman Sachs names 2 ASX 200 shares as conviction buys

These are strong buys according to Goldman Sachs…

| More on:
A group of businesspeople clapping.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're looking for some new ASX 200 shares to buy, then you may want to check out the ones listed below.

These two ASX 200 shares are rated so highly by the team at Goldman Sachs, that its analysts have put them on the broker's conviction list. They are as follows:

Lifestyle Communities Limited (ASX: LIC)

Goldman Sachs is a big fan of this retirement communities company. It believes Lifestyle Communities has a huge runway for growth over the long term.

The broker currently has a conviction buy rating and $24.25 price target on its shares. Based on the current Lifestyle Communities share price of $18.33, this suggests there is 32% upside for its shares over the next 12 months.

Goldman commented: "In our view the market is not capturing the long-term opportunity for this business to continue to grow its long-term annuity-style earnings with limited incremental capital. We believe the current share price is not pricing in the higher new home settlement potential of the group. 500-600 settlements (~2-3 communities) per year is very achievable with the company's current resources land pipeline."

News Corp (ASX: NWS)

Another ASX 200 share that makes Goldman Sachs' conviction list is News Corp. Its analysts are confident that the media giant's solid growth can continue over the next 18 months.

In light of this, the broker has put a conviction buy rating and $42.20 price target on its shares. Based on the current News Corp share price of $32.51, this implies potential upside of 30% for investors over the next 12 months.

Goldman commented: "With the business continuing to invest and grow its audience, we expect continued strong revenue growth in 2H22/FY23 (+8%/+10%) and increasingly grow earnings. Although some incremental News Media investment was flagged (particularly UK) and REA faces a tough 4Q listings comp, we still expect continued earnings momentum into the 2H (GSe +30% EBITDA growth)."

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 Share Market News

Broker looking at the share price.
Share Market News

5 things to watch on the ASX 200 on Tuesday

Here's what to expect on the local market today.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Broker Notes

Down 16% in 6 weeks: Is this ASX 200 share a bargain buy?

Bell Potter has given its verdict on this beaten down stock.

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 enjoyed a strong start to the trading week today.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop
Opinions

1 ASX 200 dividend stock down 20% to buy right now

This beaten-up ASX share could be a top pick for dividends and stability.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Opinions

2 cheap ASX 200 shares I'd buy in May

I think these stocks are too cheap to ignore.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Share Gainers

Why Gentrack, New Hope, Nuix, and Star Entertainment shares are charging higher

These shares are starting the week strongly. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Core Lithium, Duratec, Galan Lithium, and Michael Hill shares are sinking today

These shares are starting the week in the red. But why?

Read more »