The team at Morgans has been running the rule over a number of ASX 200 shares once again.
Among its best ideas for April are the shares listed below. Here's why they broker rates these ASX 200 shares highly:
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QBE Insurance Group Ltd (ASX: QBE)
Morgans is feeling bullish about this insurance giant's shares and believes they could be in the buy zone. This is due to premium increases, its positive cost-cutting outlook, and attractive valuation. The broker currently has an add rating and $13.50 price target on its shares.
It said: "With strong rate increases still flowing through QBE's insurance book, and further cost-out benefits to come, we expect QBE's earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~14x FY22F PE."
ResMed Inc (ASX: RMD)
Another ASX 200 share that Morgans has on its best ideas listed is ResMed. The broker is very positive on the sleep treatment-focused medical device company due to its long term growth outlook. Morgans has an add rating and $40.46 price target on the company's shares.
Its analysts commented: "While we believe the next few quarters will likely be volatile, as COVID-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer-term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain."
Seek Limited (ASX: SEK)
A final ASX 200 share on the broker's best ideas list is Seek. Although Morgans only has a hold rating, its price target of $32.33 offers enough potential upside to warrant its inclusion. The broker feels Seek is well-placed to benefit from strong ad volumes.
Morgans said: "Of the classifieds players, we continue to see SEK as the one with the most relative upside, a view that's based on the sustained listings growth we've seen over the period. The tailwinds that have driven elevated job ads (~250k currently, +35% on pcp) and updated guidance (FY22 EBITDA updated ~16% at the midpoint to A$490m-A$515m) appear to still remain in place, i.e. subdued migration, candidate scarcity and the drive for greater employee flexibility."
