If you're looking for some exposure to the financial sector, then the two ASX 200 shares listed below could be top options.
Here's why analysts at Morgans believes these financials shares are in the buy zone right now:
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Macquarie Group Ltd (ASX: MQG)
The first ASX 200 financials share to look at is Macquarie. Morgans is a fan of the investment bank due to its positive long term prospects thanks to its exposure to structural growth markets.
The broker explained:
We continue to like MQG's exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while the company continues to gain market share in Australia mortgages.
Morgans currently has an add rating and $215.00 price target on its shares. Based on the current Macquarie share price of $165.95, this implies potential upside of approximately 30%.
QBE Insurance Group Ltd (ASX: QBE)
This insurance giant could be another ASX 200 financials share to buy according to Morgans. Its analysts like the company due to its cost reduction plans and exposure to rising rates. The broker also sees plenty of value in its shares at the current level.
Morgans commented:
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 [now 13x] FY22F PE.
Morgans has an add rating and $14.45 price target on the company's shares. Based on the current QBE share price of $12.14, this implies potential upside of approximately 19% for investors.
