If you have room for some new investments, then you might want to consider the two ASX 200 shares listed below.
Both are rated highly by one of Australia's leading brokers, Morgans. Here's why its analysts are bullish on these ASX 200 shares:
IDP Education Ltd (ASX: IEL)
The first ASX 200 share that Morgans is a fan of is this student placement and language testing company.
With its shares down 18% since the start of the year, the broker believes they are trading at a very attractive level for investors. Particularly given its belief that IDP will grow its earnings per share by a compound annual growth rate (CAGR) of 38.2% over the next two years. It commented:
IEL's recovery (Australia Student Placement) and momentum (other divisions) support the strong growth expected in FY23. Structural demand, market share gains, technology-led client retention, operating leverage and acquisitions (especially IELTs distribution) can see IEL compound growth long-term. Value has emerged, however IEL's near-term multiples see the stock susceptible to short-term volatility.
Morgans currently has IDP Education on its best ideas list for November with a $31.10 price target.
Pro Medicus Limited (ASX: PME)
Another ASX 200 share that the broker has on its best ideas list is this health imaging technology company.
The broker likes Pro Medicus due to the quality of its offering and favourable long term industry tailwinds. Like IDP, Morgans is expecting this to drive very strong earnings growth (CAGR of 23.8%) over the next two financial years. It commented:
We like the space, with high single digit organic volume growth and long-term industry tailwinds. Profitability in the business is backed up by long-term contracted revenues with some of the world's largest hospital systems and growing pipeline of tenders which we view will provide continued growth over the medium to long term. We view the business as best-in-class as it heads into CY22 with a step-change in billable contracts following the significant volume and value of contracts signed over the last 12-18 months. The recent market weakness in high growth tech names has provided an opportunity for reasonable entry points.
Morgans has an add rating and $58.18 price target on the company's shares.
