Why analysts say investors should buy these top ASX shares

Analysts are saying that these shares are in the buy zone…

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A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate

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There are a lot of shares to choose from on the Australian share market. To narrow things down, listed below are two ASX shares that are highly rated by analysts.

Here’s what they are saying about them:

Lifestyle Communities Limited (ASX: LIC)

The first ASX share to look at is Lifestyle Communities. It owns and manages affordable independent living residential land lease communities. At the last count, Lifestyle Communities had 26 residential land lease communities under contract, in planning, in development or under management.

Goldman Sachs is a fan of the company and believes it is well-placed to benefit from Australia’s ageing population and the structural growth in land lease living.

It explained:

We believe LIC is well positioned to benefit from shifting demographic trends, as its business helps address some critical emerging social issues. Its core business is to provide affordable housing to an ageing population, addressing a key social issue that is becoming more prevalent as the proportion of over 50’s increases.

We expect as this population cohort continues to grow, this should deliver structural growth for the industry; we expect demand to far outpace supply at current build rates.

Goldman has a conviction buy rating and $24.65 price target on its shares.


Another ASX share that could be a buy in July is NextDC.

It is a leading data centre operator which has been growing at a consistently strong rate for a number of years. This has been driven by the ongoing structural shift to the cloud, which is underpinning significant demand for data centre capacity.

Morgans is very positive on NextDC and appears confident its strong growth will continue for a long time to come.

The broker said:

We retain our Add recommendation and highlight that NXT remains our preferred pick given substantial structural growth, quality management, significant barrier to entry and, in our view, improving competitive advantage with regional/edge sites.

We see a clear pathway for long-term growth, substantially higher EBITDA and material free cash flow, over the medium term.

Morgans has an add rating rating and $13.01 price target on NextDC’s shares.

Motley Fool contributor James Mickleboro has positions in NEXTDC Limited. 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 Scott Phillips.

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