Although the ASX 100 index may not be as widely followed as the benchmark ASX 200 index, what it lacks in attention it makes up for in quality.
Among the 100 companies included in the index are some of the biggest and brightest that Australia has to offer.
But which ASX 100 shares could be buys?
Two that analysts think could be worth considering are listed below. Here's what you need to know about them:
Aristocrat Leisure Limited (ASX: ALL)
The first ASX 100 share that could be a buy is Aristocrat Leisure.
It is a gaming technology company with a portfolio of world-class businesses involved in poker machines, digital games, and real money gaming.
The team at Morgans is very positive on Aristocrat and believes it is well-placed for growth over the long term. 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
Morgans has an add rating and a $45 price target on its shares.
Cochlear Limited (ASX: COH)
Another ASX 100 share that has been named as a buy is Cochlear.
It is a leading player in the development, manufacture, and distribution of cochlear implantable devices for the hearing impaired.
Thanks to its industry-leading technology, favourable industry tailwinds, wide distribution network, and ongoing investment in research and development, Cochlear has been growing at a solid rate for over a decade.
Goldman appears to believe this can continue. It said:
Looking forward, we continue to express a general preference for the device/drug names over the service providers in the current environment, on the basis of: i) stronger pricing power; ii) more assured volume profiles; iii) more resilient/expanding market shares; and iv) stronger balance sheets. […] We believe Cochlear screens well on these fundamental factors, and largely avoids the margin uncertainties prevalent across other verticals. […] We forecast above guidance in FY23E (GSe: $306m vs. $290-305m) and believe shares will now be further supported by a newly announced multi-year buyback program.
Goldman Sachs has a buy rating and a $265 price target on Cochlear's shares.
