Every month, analysts at Morgans pick out their best ASX stock ideas.
These are the ASX stocks that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe. Morgans notes that they are supported by a higher-than-average level of confidence.
Among its best ideas for March are the two ASX 200 stocks listed below. Here's what the broker is saying about them:
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CSL Ltd (ASX: CSL)
The broker believes investors should be snapping up this biotechnology company's shares following a period of weakness. It has an add rating and $315.40 price target on its shares.
Morgans highlights it positive earnings growth outlook and attractive discount to long-term average multiples. 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.
Mineral Resources Ltd (ASX: MIN)
Morgans continues to believe that Mineral Resources is a great ASX 200 stock to buy right now. It has an add rating and $71.00 price target on the mining and mining services company's shares.
One of the key reasons why it is bullish is the company's organic growth potential. It explains:
MIN is a founder-led business and top-tier miner and crusher that has grown consistently despite barely issuing a share over the last decade. Also helping our investment view is that MIN's diversification leaves it far more capable of tolerating volatility in lithium markets than its peers. We see MIN's lithium / iron ore market exposures as an ideal combination to benefit from the China gradual recover. We also see MIN as well placed to grow into its valuation, even if we see unexpected metal price volatility, given the magnitude of organic growth in the pipeline.
