The team at Morgans has a best ideas list that it updates every month.
To be included on this list, an ASX share has to offer the highest risk-adjusted returns over a 12-month timeframe and be supported by a higher-than-average level of confidence.
A couple of shares from the super exclusive ASX 50 index that have made the list this month are named below. Here's why the broker is bullish on them:
CSL Limited (ASX: CSL)
This biotherapeutics company could be an ASX 50 share to buy according to Morgans.
The broker believes that CSL's outlook is very positive now after COVID headwinds dissipated and tailwinds emerged. In addition, the broker feels that its shares are trading at a level that could be classed as "good value" historically. It explains:
A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long-term forward multiple of ~30x.
Morgans has an add rating and $337.92 price target on CSL's shares. This compares to the latest CSL share price of $302.82.
Seek Ltd (ASX: SEK)
Another ASX 50 share that Morgans rates highly is job listings giant Seek.
Its analysts are positive on the company due to their belief that it will benefit from a number of tailwinds in the near term. These tailwinds are expected to lead to increased reliance on the company's products and services. It explains:
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 and $28.40 price target on Seek's shares. This compares favourably to the current Seek share price of $23.85.
