The market is a sea of red on Monday after Australian investors responded to a selloff on Wall Street on Friday night.
While the declines are disappointing, it could have created an opportunity for investors to invest in some shares at a better price.
Two ASX 200 shares that analysts are tipping as buys are listed below. Here's what they are saying:
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Pro Medicus Ltd (ASX: PME)
The first ASX 200 share to look at is Pro Medicus. It is a leading health imaging technology provider offering a range of software and services to hospitals, imaging centres, and health care groups across the globe.
Earlier this month, the company released its full year results and smashed expectations again with some stellar earnings growth.
The team at Morgans were particularly impressed. The broker commented:
Pro Medicus recorded another year of strong growth across all metrics with the key highlight being further EBIT margin expansion to 67% well above expectations, highlighting the operating leverage of the business.
It's an impressive story, and one which we view with longevity. While currently fairly priced, we continue to view this as a strong long-term growth story which will continue to grow into its high multiple. Buyers on any weakness – it's typically short-lived.
Morgans currently has an add rating and $58.18 price target on the company's shares.
REA Group Limited (ASX: REA)
Another ASX 200 share to consider is the ANZ region's leading property listings company, REA Group.
Like Pro Medicus, it was on form in FY 2022, delivering another strong result earlier this month. Once again, it also revealed that it has materially more visitors to its sites than its nearest rival, which appears to be providing it with significant pricing power.
The team at Goldman Sachs were impressed with this result and remain positive on the future. It commented:
Overall we thought the REA result, commentary and cash performance was positive.
Management remains committed to double digit yield growth in FY23E (GSe +11% incl. +6% price, +2% Premiere Plus, +2% strong Premiere All uptake & +1% new products). We remain very confident in the company's ability to hit its double digit growth target, but do note our estimates could be impacted by geographic mix, attachment of new products such as Audience Max & Premiere+ and the use of 'exceptions' that agents have within contracts.
We remain Buy (on CL), with this result and positive yield outlook supporting our recent upgrade of REA.
Goldman has a conviction buy rating and $164.00 price target on REA's shares.
