If you have room in your portfolio for some new additions, then it could be worth checking out the ASX 200 stocks listed below.
They have just been named as top picks by the team at Bell Potter. Here's what the broker is saying about them:
Corporate Travel Management Ltd (ASX: CTD)
Bell Potter is feeling bullish about this travel management solutions company and is forecasting double-digit earnings growth this year and next. In light of this strong growth, the broker feels its shares are cheap. It explains:
We are positive on the Company's growth outlook and market leading position as the corporate travel market continues to recover and view any existing uncertainty regarding the recovery trajectory, macro-outlook, and structural industry headwinds as largely priced in by the market. We therefore see upside risk with CTD: (1) having already exceeded pre-pandemic TTV driven by new client wins; (2) remaining well capitalised; and (3) forecast to deliver strong double-digit earnings growth in FY24-25e. On an FY24e P/E of ~18.0x, which is a ~5% discount to peers, despite also paying a solid dividend, we also think CTD looks value.
Bell Potter has a buy rating and a $21 price target on its shares.
IDP Education Ltd (ASX: IEL)
Another ASX 200 stock that gets the thumbs up from analysts at Bell Potter is language testing and student placement company IDP Education.
The broker likes the company due to its dominant market position and successful track record of M&A. It feels this and structural growth tailwinds mean it deserves a premium valuation. Bell Potter said:
Whilst increased competition in English language testing is likely to impact IELTS volumes, we expect this to be partially offset by strength in the student placement segment supported by strong 1QFY24 student visa data in the Northern Hemisphere and structural growth tailwinds. In addition, the business has a solid dividend yield, relatively low working capital intensity, and has historically maintained strong cash conversion. IEL trades at a premium to its peers on a FY24e EV/EBIT of ~24x, however, we believe this is justified given its dominant market position, potential for M&A and successful track record.
Bell Potter has a buy rating and a $27 price target on the ASX 200 stock.
