The team at Morgans regularly picks out its best ASX share ideas.
These are the ASX shares that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence.
Among its best ideas for the month of July are the two top ASX 200 shares listed below. Here's what the broker is saying about them:
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CSL Limited (ASX: CSL)
Morgans believes that this ASX 200 biotherapeutics giant's shares are a buy in July. The broker currently has an add rating and a $323 price target on its shares.
Its analysts describe CSL as a key portfolio holding and see a lot of value in its shares at current levels. The broker 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.
Goodman Group (ASX: GMG)
Another ASX 200 share that Morgans is tipping as a buy in July is integrated industrial property company, Goodman Group. Morgans currently has an add rating and a $24 price target on its shares.
While the broker acknowledges that the property sector is facing headwinds from rising interest rates, it feels Goodman is better positioned than most. It explains:
GMG rarely screens cheap against domestic peers, but within the context of its offshore peers, it consistently delivers higher returns at lower levels of leverage and at a comparable price to book ratio. […] With continued increases in interest rates and persistent inflation (most notably construction costs), risks abound the REIT sector. This drives our preference for beds and sheds, reflecting the strength of those underlying operating markets. Given the duration risk from higher rates, we prefer more active managers who can grow AUM and add value from an active buy, build, manage strategy.
