The ASX 50 index is home to some of the best companies that the Australian share market has on offer.
And while not all shares on the index are necessarily buys right now, two that have been given the thumbs up by Morgans are listed below.
Here's why the broker thinks these ASX 50 shares are strong buys:
CSL Ltd (ASX: CSL)
Morgans believes this biotechnology giant is a great option for investors. Particularly given its positive earnings outlook and the discount its shares trade on compared to long-term average multiples. It explains:
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 $328.20 price target on its shares.
ResMed Inc (ASX: RMD)
Another ASX 50 share that could be a top option according to Morgans is sleep treatment focused medical device company ResMed.
The broker appears to believe weakness caused by weight loss drug concerns is a buying opportunity for investors. It commented:
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.
Morgans has an add rating and $32.82 price target on ResMed's shares.
