The ASX 200 index is home to a good number of high-quality companies with strong business models and positive growth outlooks. But which ASX 200 shares could be buys?
Two that analysts at Goldman Sachs think could be worth considering are listed below. Here's what you need to know about them:
Cochlear Limited (ASX: COH)
Goldman Sachs is positive on Cochlear and believes it could be an ASX 200 share to buy.
Cochlear is a leading player in the development, manufacture, and distribution of cochlear implantable devices for the hearing impaired.
Goldman believes that the company is well-positioned to continue its growth and win market share in the future. It commented:
Given we believe COH has one of the strongest/broadest portfolios in recent memory, and having taken advantage of the strong sales momentum in FY23 to increase investment into growth/commercialisation initiatives (including DTC campaigns which appear increasingly impactful), we see limited reasons why COH won't continue to gain steady share through FY24E and beyond.
Goldman Sachs has a buy rating and a $280 price target on Cochlear's shares.
Endeavour Group Ltd (ASX: EDV)
Another ASX 200 share that Goldman Sachs is bullish on is Endeavour. It is the drinks giant behind a huge network of hotels and the BWS and Dan Murphy's brands.
The broker sees the recent weakness in the company's share price as a great buying opportunity. Particularly given its defensive qualities and positive earnings growth outlook. It said:
Most attractive valuation amongst Staples peers: We continue to see defensiveness in the company's Retail business with relative market share of ~35% vs COL liquor of ~13%, 5.2mn active My Dan's members. EDV is currently trading at FY24e P/E of 18.4x with FY23-25e EPS CAGR of ~5%, which is the cheapest vs WOW, COL, WES.
Goldman has a conviction buy rating and a $6.60 price target on the company's shares.
