Amid all of the volatility over 2023, some S&P/ASX 200 Index (ASX: XJO) shares are looking like opportunities to buy according to analysts.
A business can seem attractive in a variety of different ways – it may have been oversold. Or maybe it's going to deliver a lot of growth and today's valuation seems cheap for that potential growth.
Brokers are always on the lookout for ASX (200) shares that could be good value. Share prices change every day, so any business could be worth jumping on at the right time.
Let's look at two of the ASX 200 shares that have been rated as buys.
Domain Holdings Australia Ltd (ASX: DHG)
Domain is the business that owns the second most popular property portal in Australia – Domain.com.au.
According to reporting by The Australian, the broker Jefferies has decided to increase its rating on the company to a buy.
The price target on the business by the broker is $4.38. A price target is where the broker thinks the Domain share price will be in 12 months from now. In this case, Jefferies is suggesting that the ASX 200 share could rise by 12%.
One of the things that may be attracting Jefferies to the company is how it's a lot cheaper – the business is down by over 30% from November 2021.
In the three months to March 2023, digital revenue was down 1% year over year, and total revenue was down around 4% year over year. FY23 costs are expected to be around $255 million, which is at the higher end of its prior guidance, which reflected its aim of balancing "cost discipline with longer term growth initiatives" that will scale its marketplace strategy.
It also warned that its FY23 earnings before interest, tax, depreciation and amortisation (EBITDA) margin is expected to fall. It includes the issue of FY23 second-half listing volumes being hurt by consumer confidence shocks, including interest rate increases.
But, the ASX 200 share did say it's committed to long-term profit margin improvement.
Orica Ltd (ASX: ORI)
The company describes itself as one of the world's leading mining and infrastructure solutions providers. It's involved in the production and supply of explosives, blasting systems, mining chemicals and geotechnical monitoring.
The broker Jarden Securities has increased its rating on the ASX 200 share to a buy, with a price target of $17.15. That implies a possible rise of around 10% over the next 12 months.
It was only a couple of months ago that the business announced its FY23 half-year result, which showed underlying earnings before interest and tax (EBIT) growth of 32%, statutory net profit after tax (NPAT) of $122.6 million while underlying earnings per share (EPS) was flat at 36 cents.
Orica said that earnings increased in all regions year over year, thanks to "embedded commercial discipline, strong customer demand, manufacturing utilisation and increased earnings from advance technology offerings."
For the FY23 outlook, the company said its strong performance is expected to continue in the second half.
The ASX 200 share expects the EBIT improvement drivers to remain, including anticipated growth of global commodities demand, as well as increased adoption of advanced technology offerings.
