The team at Morgans has been busy picking out its best ASX 200 share ideas for November.
The first two ASX 200 shares we looked at can be found here. Read on for two more picks:
Aristocrat Leisure Limited (ASX: ALL)
The first ASX 200 share that Morgans has on its list this month is Aristocrat Leisure. It is a gaming technology company with a portfolio of world-class poker machines and digital games.
Its analysts believe the company is well-placed to grow strongly organically over the long term and has the firepower to accelerate this growth inorganically. It 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 $46 price target on its shares.
Wesfarmers Ltd (ASX: WES)
Morgans is also a fan of this conglomerate and has it on its best ideas list. It is the ASX 200 share behind brands such as Bunnings, Kmart, Officeworks, Priceline, and WesCEF.
The broker likes Wesfarmers largely due to its retail portfolio, which it believes is well-positioned in the current environment thanks to its focus on value. It explains:
WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. We believe WES's businesses, which have a strong focus on value, remain well-placed for growth and market share gains in a softening macroeconomic environment.
Morgans has an add rating and a $55.15 price target on the company's shares.
