2 ASX 200 shares Goldman Sachs rates as buy

Here are two quality ASX 200 shares Goldman Sachs rates as buys…

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With so many shares to choose from on the Australian share market, it can be hard to decide which ones to buy over others.

To narrow things down, listed below are two ASX 200 shares that are highly rated by analysts at Goldman Sachs. Here’s what you need to know about them:

Elders Ltd (ASX: ELD)

The first ASX 200 share to look at is Elders. It is one of Australia’s largest agribusiness companies and has an increasingly positive outlook. This is thanks to the success of its transformation plan and acquisitions.

In addition, Goldman Sachs notes that Elders is well-placed to benefit from the rationalisation of the rural services industry, margin expansion opportunities, and the benefits of its large scale systems modernisation project.

Goldman currently has a conviction buy rating and $17.65 price target on its shares.

The broker said: “Looking forward, we view strong operating conditions as a catalyst to help accelerate the transformation of the business, capturing momentum to improve earnings sustainability.”

REA Group Limited (ASX: REA)

Another ASX 200 share that Goldman Sachs rates highly is REA Group. It is the dominant player in real estate listings in the Australian market.

REA looks well-placed for growth in the coming years thanks to a combination of acquisitions, price increases, its international operations, and its strong market position in Australia.

In respect to the latter, a record 13.2 million people visited its local site in October. This is the equivalent of 65% of Australia’s adult population. Furthermore, on average, there were 3.3x more visits than the nearest competitor each month during the first half of FY 2022.

Goldman Sachs has a buy rating and $167.00 price target on its shares.

The broker expects its solid form to continue in FY 2023. It said: “We forecast FY23 EBITDA growth of +7%, assuming (1) -5% listings headwinds offset by +6% price and +3% depth/new products (such as Audience Max/Connect).”

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 recommended Elders Limited and REA Group Limited. 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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