The team at Morgans has been busy picking out its best ASX 200 share ideas for August.
The first two ASX 200 shares we looked at can be found here. Read on for two more picks:
CSL Limited (ASX: CSL)
Morgans thinks that CSL could be an ASX 200 share to buy. It is the biotherapeutics giant behind the CSL Behring, CSL Vifor, and Seqirus businesses.
The broker sees the company as a key portfolio holding. Especially following recent weakness, which leaves its shares trading at an attractive level. 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.
Its analysts currently have an add rating and a $323 price target on CSL's shares.
Westpac Banking Corp (ASX: WBC)
Morgans remains positive on this ASX 200 bank share. This is because the broker sees opportunities for Australia's oldest bank to deliver the greatest return on equity improvement among the big four. Though, this is reliant on Westpac's business transformation initiatives proving successful.
In addition, with Morgans forecasting a fully franked $1.49 per share dividend in FY 2023, which equates to a 6.8% yield, it feels Westpac is an attractive option for income investors. It explains:
We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful. The sources of this improvement include improved loan origination and processing capability, cost reductions (including from divestments and cost-out), rapid leverage to higher rates environment, and reduced regulatory credit risk intensity of non-home loan book. Yield including franking is attractive for income-oriented investors, while the ROE improvement should deliver share price growth.
Morgans currently has an add rating and a $24.22 price target on the bank's shares.
