Buy these 2 impressive ASX 200 shares in June 2022: experts

BlueScope is one of the ASX shares that experts really like right now.

| More on:
A white and black clock face is shown with three hands saying Time to Buy reflecting Citi's view that it's time to buy ASX 200 banks

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

Key points

  • Experts really like these two ASX shares in June 2022
  • BlueScope Steel is benefiting from strong steel prices in the US and Australia
  • CSL is Australia’s largest healthcare business and is currently looking to acquire Vifor Pharma

We’re coming into the final month of the Australian tax year. June 2022 could be a good month to invest in some of the S&P/ASX 200 Index (ASX: XJO) shares that experts have picked out as opportunities.

Different brokers have different opinions on various ASX 200 shares. However, when several brokers all think a business is a buy then it could be worth paying attention to that optimism. Or they could all simultaneously be wrong!

After all of the recent volatility of the ASX share market, the below two picks are highly recommended right now.

BlueScope Steel Limited (ASX: BSL)

BlueScope is a large steel business with operations in Australia and the US.

It’s currently rated as a buy by at least five brokers, including Citi. The broker has a price target of $22.50 on the business. That implies a possible rise of the BlueScope Steel share price of more than 20% over the next year. Other brokers have even more optimistic price targets.

Citi points to strong steel prices in the US which means things are looking good for potential profit generation by North Star and the North American coated business.

The Australian steel division is also benefiting from strong steel prices and better than expected contributions from the downstream businesses. However, it has seen softer than expected domestic despatch levels, due to a range of supply chain disruptions including the flooding on the east coast, rail outages, and COVID-19 impacts.

However, the ASX 200 share expects ongoing strength in raw material prices, combined with supply chain disruptions.

It now expects underlying earnings before interest and tax (EBIT) for the second half of FY22 to be in the range of $1.375 billion and $1.475 billion, which was an upgrade from the previous range of $1.2 billion to $1.35 billion.

In early trading on Tuesday, the BlueScope Steel share price is down 2% to $18.14.

CSL Limited (ASX: CSL)

CSL is one of the largest companies on the ASX. The healthcare giant provides various products including protein-based therapies and vaccines.

It’s currently rated as a buy by at least five brokers, including Citi. The broker has a price target on the business of $335, implying a potential upside of more than 20% on the current CSL share price of $274.05.

The broker points to positives that could boost the CSL share price including the acquisition of Vifor Pharma and strong demand for its products. Earlier in May, the company told investors that the regulatory approval process will take “a few more months”.

Management is still confident of completing the acquisition. It’s looking forward to expanding its presence in the rapidly growing nephrology market, as well as leveraging the companies’ combined expertise.

Based on the current earnings estimates for CSL, Citi thinks the CSL share price is valued at 39x FY22’s estimated earnings and 31x FY23’s estimated earnings.

This ASX 200 share is expecting to generate net profit after tax (NPAT) in FY22 of between US$2.15 billion and $2.25 billion in constant currency terms.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. 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 Scott Phillips.

More on Broker Notes

A white and black clock with the words Time to Buy in blue lettering representing the views of two experts who say it's time to buy these ASX shares
Broker Notes

Brokers name 3 ASX shares to buy today

Brokers are bullish on these ASX shares...

Read more »

Group of people toasting with wine
Broker Notes

Treasury Wine share price celebrates Friday with a more than two-year high

Looks like it's time for some fine wine.

Read more »

cochlear happy, share price rise, up, increase
Healthcare Shares

Cochlear share price takes off despite guidance miss

The healthcare giant's stock is surging despite its apparent guidance miss.

Read more »

A woman uses her mobile phone to make a purchase.
Broker Notes

2 ASX 200 shares set to soar if we manage to avoid a recession: experts

Could lithium and building supplies stocks be set to gain if recession fears fade?

Read more »

tradie holding a laptop computer displaying ASX share price and scratching his head looking confused
Broker Notes

Are Rio Tinto shares a buy? See what top brokers are saying

The miner's share price has struggled to make ground in recent months.

Read more »

Three Archer Materials scientists wearing white coats and blue gloves dance together in their lab after making a discovery
Healthcare Shares

Buy this ASX 200 company as its costs are actually falling: Firetrail

Rampant inflation means almost every company has to grapple with higher expenses. But here's an exception.

Read more »

An analyst wearing a dark blue shirt and glasses sits at his computer with his chin resting on his hands as he looks at the CBA share price movement today
Technology Shares

Here’s what Goldman Sachs thinks of the Xero share price

What's being said about Xero's shares this week?

Read more »

Broker looking at the share price.
Broker Notes

Morgans names 2 ASX shares to buy today

These ASX shares have been named as buys by analysts at Morgans...

Read more »