Morgans names more of the best ASX 200 stocks to buy in May

These ASX 200 stocks have been given the thumbs up by analysts at Morgans.

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The team at Morgans has been busy picking out its best ASX 200 share ideas for May.

These are the shares that its analysts think offer the highest risk-adjusted returns over a 12-month timeframe. They are also supported by a higher-than-average level of confidence.

The first two ASX 200 stocks we looked at can be found here. Read on for two more picks:

Seek Ltd (ASX: SEK)

Morgans is a big fan of this job listings giant and believes it is the top pick in the classifieds space. This is due to favourable tailwinds that it expects to support another strong result in FY 2023.

The broker explained why the ASX 200 stock made its best ideas list in May. It said:

Of the classifieds players, we continue to see SEEK as the one with the most relative upside, a view that's based on the sustained listings growth we've seen over the period. The tailwinds that have driven elevated job ads (~210k currently, broadly flat on the robust pcp) and strong FY22 result appear to still remain in place, i.e. subdued migration, candidate scarcity and the drive for greater employee flexibility. With businesses looking to grow headcount in the coming months and job mobility at historically high levels according to the RBA, we see these favourable operating conditions driving increased reliance on SEEK's products.

Morgans has an add rating and $28.40 price target on Seek's shares.

Xero Limited (ASX: XRO)

Morgans remains very bullish on this cloud accounting platform provider. It highlights the company's strong cash generation and sticky platform as reasons to be positive.

The broker also believes that recent share price weakness has created a rare buying opportunity for investors. Morgans commented:

XRO is a high quality cash generative business with impressive customer advocacy and duration. Over the last 12 months rising interest rates and competition have made things harder for Xero. However, we see the current short-term weakness as a rare opportunity to buy a high quality global growth company at a discount to the life time value of its current customer base.

The broker has an add rating and $97.00 price target on the ASX 200 stock.

Motley Fool contributor James Mickleboro has positions in Seek and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Seek. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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