Goldman Sachs names 2 ASX 200 shares as conviction buys

These are strong buys according to Goldman Sachs…

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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.

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