The jury is out on the Core Lithium Ltd (ASX: CXO) share price at the current level.
After rising strongly over the last 12 months, as you can see below, a leading broker recently voiced its concern over the lithium developer's valuation.
In light of this, investors may be better off waiting for a more attractive entry point further down the line and focusing on cheap ASX 200 shares instead.
In respect to the latter, listed below are two ASX 200 shares that brokers think are cheap at current levels. They are as follows:
QBE Insurance Group (ASX: QBE)
The team at Morgans believe that this insurance giant's shares are cheap at the current level. As a result, the broker has QBE's shares on its best ideas list with an add rating and $14.89 price target.
The broker highlights that QBE's shares trade on single digit forward earnings multiples despite its improving outlook. The latter is being underpinned by cost reductions, premium increases, and interest rate hikes. It said:
With strong rate increases still flowing through QBE's insurance book, and further cost-out benefits to come, we expect QBE's earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~9.1x FY23F PE.
REA Group Limited (ASX: REA)
Goldman Sachs thinks that this property listings company's shares could be cheap. At 19x estimated forward operating earnings, its analysts highlight that REA Group's shares are trading at a 20% discount to historic levels.
As a result, the broker has put a conviction buy rating and $158.00 price target on its shares. Goldman commented:
Following the recent decline in share prices, REA/DHG are now trading on 19x/13x 12mf EBITDA, which we see as very attractive vs. historical levels (>20% discount) & given our long term constructive view on yield and mid-cycle earnings, we re-iterate our positive view on the sector (REA most preferred).
