If you're looking for ASX 200 shares to buy, then you may want to check out the two listed below.
Both have recently been named as buys by brokers. Here's why they are bullish on them:
BHP Group Ltd (ASX: BHP)
The first ASX 200 share to look at is mining giant BHP. It released its full year results this week and impressed the market with its record operating profits and free cash flow. This allowed the company to reward its shareholders with a bumper US$3.25 per share fully franked dividend in FY 2022.
The team at Morgans were impressed with BHP's performance. In response to the result, the broker has retained its add rating and $48.40 price target on the Big Australian's shares.
Morgans commented:
A strong result from BHP, with earnings slightly ahead of expectations while positively surprising on both dividend and free cash flow (FCF) generation. […] Our long-term preference for BHP over RIO continues to pay dividends (literally), with BHP asserting itself as the better miner and with the stronger growth profile.
Westpac Banking Corp (ASX: WBC)
Another ASX 200 share that is rated as a buy is big four bank Westpac.
Australia's oldest bank is Goldman Sachs' top pick in the sector at the moment. The broker believes Westpac provides the best exposure to rising rates and feels that its shares offer the most upside potential.
Goldman currently has a conviction buy rating and $26.55 price target on the banking giant's shares.
It commented:
We continue to see WBC as our preferred exposure to the A&NZ Financials reflecting: i) its strong leverage to rising rates, ii) while we think its A$8 bn FY24 cost target will now be unachievable, we still forecast a 7% reduction in underlying expenses, iii) its recent market update highlighted that the business is still investing effectively in its franchise, and iv) our 12-mo TP implies a 23% TSR, and we note the stock is trading at a 20% discount to peers, versus the historic average discount of 2%.
