Once a month, the team at Morgans 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. They are also supported by a higher-than-average level of confidence.
Among its best ideas for the month of November are the two ASX 200 shares listed below. Here's what the broker is saying about them:
CSL Limited (ASX: CSL)
Morgans continues to rate this biotherapeutics giant as one of its best ideas. Especially after recent weakness means that CSL's shares are trading at a huge discount to historical levels. The broker appears to believe this could make now one of the best buying opportunities in a long time. It said:
While shares have struggled of late, we continue to view CSL as a key portfolio holding and sector pick, 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 trading at 25x, a substantial discount (20%) to its long-term average.
Morgans has an add rating and a $328.20 price target on the company's shares.
ResMed Inc (ASX: RMD)
Another beaten-down ASX 200 share that the broker has on its best ideas list is ResMed. It believes the sleep treatment company is well-positioned for long-term growth despite the emergence of weight loss drugs like Ozempic. In light of this, it sees recent weakness as a buying opportunity. Morgans said:
While weight loss drugs have grabbed headlines and investor attention, we see these products having little impact on the large, underserved sleep disorder breathing market, and do not view them as category killers. Although quarters are likely to remain volatile, nothing changes our view that the company remains well placed and uniquely positioned as it builds a patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.
The broker has an add rating and a $32.74 price target on ResMed's shares.