The team at Morgans has been busy picking out its best ASX 200 share ideas for June.
The first two ASX 200 stocks we looked at can be found here. Read on for two more picks:
Aristocrat Leisure Limited (ASX: ALL)
Morgans thinks that this gaming technology company is an ASX 200 stock to buy right now. The broker has an add rating and $45.00 price target on its shares.
Its analysts believe the company is well-placed for growth over the long term. Particularly given its organic growth opportunities and strong balance sheet. The broker explains:
We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses; (2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE; and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn.
Santos Ltd (ASX: STO)
If you're interested in gaining exposure to the energy sector, then Santos could be the ASX 200 stock to buy. Morgans has the company on its best ideas list with an add rating and $8.75 price target.
The broker likes Santos due to its diversified earnings base and positive growth outlook. It said:
The resilience of STO's growth profile and diversified earnings base see it well placed to outperform against the backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa's development. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.
