Morgans names more of the best ASX 200 shares to buy in May

These ASX 200 shares are highly rated by analysts at Morgans in May.

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The team at Morgans has been busy picking out its best ASX 200 share ideas for May.

The first two ASX 200 shares we looked at can be found here. Read on for three more picks:


Morgans thinks that this biotech giant would be a great option this month. Especially given its attractive valuation and strong earnings per share growth outlook. 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.

The broker has an add rating and $315.35 price target on CSL's shares.

ResMed Inc. (ASX: RMD)

Another ASX 200 share that Morgans is tipping as a strong buy is sleep disorder treatment company ResMed.

Its analysts feel that concerns over weight loss drugs disrupting its market are unwarranted. As a result, it believe ResMed's long-term growth outlook remains very positive. It said:

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 $34.11 price target on its shares.

Washington H Soul Pattinson & Company Ltd (ASX: SOL)

A third ASX 200 share that is on Morgans' best ideas list this month is investment house Soul Patts.

The broker likes the company due to its positive long term track record and diversified business. It explains:

SOL's investment portfolio includes a diversified pool of assets ranging from listed equities (both large cap and emerging companies), private equity, property and structured yield. On a 20-year horizon, SOL's annualised TSR is 12.5% vs the All Ords accumulation index of 9%. SOL has a 20-year history of increased dividend distributions, with a 20-year CAGR of c.8%. In our view, SOL's management team continues to deliver both organic and inorganic growth over the long term. We continue to like the SOL story, particularly its track record of growing distributions.

Morgans has an add rating and $35.60 price target on the company's shares.

Motley Fool contributor James Mickleboro has positions in CSL and ResMed. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, ResMed, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended ResMed and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended CSL. 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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