With a new year approaching, now could be a good time to look at making some new additions to your portfolio.
If you have $10,000 available to invest in the share market, I would be investing it evenly across the ASX shares listed below.
Here's why I think they would be top options for investors in 2023:
Image source: Getty Images
CSL Limited (ASX: CSL)
The first ASX share I would invest $10,000 into in 2023 is CSL. This biotherapeutics giant has a world-class portfolio of therapies and vaccines that generate billions of dollars in revenue each year.
But management never rests on its laurels. Each year, it invests in the region of 11% of its revenue back into research and development activities. This ensures that it has a pipeline of potentially lucrative products to support its future growth.
In addition, the company never shies away from an acquisition if it believes it will add value. This was evident earlier this year when CSL completed the acquisition of Vifor Pharma for $16 billion. This has added some leading iron deficiency, dialysis, and nephrology products to its arsenal.
And while the recent exit of its long-serving CEO adds an element of uncertainty, I'm confident the promotion of its COO, Dr Paul McKenzie, to the top job was a great move. After all, the company notes that Dr McKenzie has a "deep understanding of CSL's strategy, culture and operations". This should ensure that it is business as usual for CSL.
Finally, I'm not alone in seeing value in the CSL share price. A recent note out of Citi reveals that its analysts have reiterated their buy rating and $340.00 price target. This implies more than 17% upside from current levels, which I believe offers a compelling risk/reward.
Life360 Inc (ASX: 360)
Another ASX share that I would buy for 2023 is Life360. It is the technology company behind the world's leading real-time, location-sharing app, taken up by more than 40 million users.
In addition, Life360 has acquired a couple of companies involved with wearables and items tracking recently. This provides it with cross-selling opportunities to its massive user base.
But that's not where it stops. Life360 is likely to continue leveraging its user base to disrupt other markets. It has done this previously with its roadside assistance offering, Driver Protect. Looking ahead, it has been tipped to enter "insurance, item & pet tracking, senior monitoring, home security and/or identity theft", according to analysts at Bell Potter.
Speaking of which, its analysts are very positive on the Life360 share price at its current level and have a buy rating and $9.00 price target. This suggests potential upside of more than 60% for investors over the next 12 months.
It is also worth noting that Bell Potter doesn't expect Life360 to be an unprofitable tech company for long. It is forecasting positive free cash flow from Q3 or Q4 of next year. It also believes that its cash balance won't sink below US$50 million before then. Goldman Sachs has echoed this view recently.
I also agree and believe that once profitability is achieved, it could support a material re-rating for its shares in 2023.
