The team at Morgans has been busy picking out its best ASX 200 share ideas for December.
The first two ASX 200 shares we looked at can be found here. Read on for two more picks:
Morgans has Aristocrat Leisure on its list again this month. It is a gaming technology company with a portfolio of world-class poker machines and digital games, as well as a fledgling real money gaming offering.
The broker believes the ASX 200 share is well-placed to grow strongly organically over the long term. It also notes that it has the balance sheet strength to supercharge its growth with acquisitions. Morgans said:
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.
ResMed Inc (ASX: RMD)
Another ASX 200 share that Morgans rates highly is sleep disorder treatment company ResMed.
Its analysts appear to believe the recent selloff due to Ozempic concerns has created a buying opportunity for investors. It explains:
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.