Bell Potter names the best ASX 200 stocks to buy in May

These shares are top picks in May according to its analysts.

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A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate

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If you're in the market for some new ASX 200 stocks in May, then it could be worth listening to what analysts at Bell Potter are saying.

That's because they have just revealed their favoured picks for the month ahead. Three on its list this month are named below. Here's what the broker is saying about them:

Regis Resources Ltd (ASX: RRL)

The first ASX 200 stock that Bell Potter is feeling bullish on this month is Regis Resources. It is a high-margin gold producer and explorer with an all-Australian portfolio.

The broker likes the company due to its unique growth options, local operations, and takeover appeal. It said:

As one of the largest ASX listed gold producers, we are attracted to its all-Australian asset portfolio and organic growth options which are unique at this scale. Furthermore, we see key opportunities in the fundamental, medium-term outlook and, in our view, these may also make RRL an appealing corporate target in the current conducive M&A environment.

Bell Potter has a buy rating and a $2.80 price target on its shares.

ResMed Inc. (ASX: RMD)

Bell Potter remains very bullish on ResMed despite its recent rally and sees it as an ASX 200 stock to buy in May. This is due to its long growth runway in an under penetrated market. It commented:

The market for OSA and chronic obstructive pulmonary disease (COPD) remains under penetrated, and we expect industry volume growth to continue in the 6-8% range for the foreseeable future. In this regard, the competitive dynamics are very much in favour of RMD due to the Philips recall and improving semiconductor availability. Looking ahead, ResMed continues to expect device sales to be sequentially higher throughout CY2023. Furthermore, ResMed is well-positioned to build on its dominant share even after Philips returns to the global market, with the launch of its latest continuous positive airway pressure (CPAP) device, the Air Sense 11.

Bell Potter has a buy rating and a $36.00 price target on ResMed's shares.

Transurban Group (ASX: TCL)

Its analysts also think that Transurban could be an ASX 200 stock to buy. Particularly given how the toll road operator stands to benefit greatly in the current environment due to its inflation-linked revenue stream. It explains:

We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group's current pipeline of growth projects is $3.3 billion (TCL's share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.

Bell Potter has a buy rating and a $15.50 price target on its shares. It also expects a ~5% dividend yield in FY 2024.

Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed and Transurban Group. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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