2 ASX 200 shares to buy at 'attractive levels'

Experts are bullish about these two industry-leading stocks.

| More on:
A happy couple drinking red wine in a vineyard as the Treasury Wine share price rises today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

S&P/ASX 200 Index (ASX: XJO) shares are often the leader in Australia or the local region – we can find compelling businesses on the ASX. But, we just need to buy them at the right price.

Banks like Commonwealth Bank of Australia (ASX: CBA) and miners such as BHP Group Ltd (ASX: BHP) often get all of the attention, but every other business is capable of producing good returns. Experts have revealed why the below two ASX 200 shares are buys.

Worley Ltd (ASX: WOR)

Worley describes itself as a global professional services company of energy, chemicals and resources experts. It partners with customers to "deliver projects and create value over the life of their assets." Worley says:

We're bridging two worlds, moving towards more sustainable energy sources, while helping to provide the energy, chemicals and resources needed now.

Writing on The Bull, Toby Grimm from Baker Young said recent Worley share price weakness (see below) presents an opportunity to buy a quality engineering services company at "attractive levels".

Grimm pointed out that major shareholder Sidara, formerly Dar Group, recently sold 19% of the ASX 200 share. The underwritten block trade ends an "extensive and potential takeover play". The expert noted the transaction doesn't impact Worley's operations or valuation.

The ASX 200 share continues to generate growth – the FY24 first-half result saw aggregated revenue increase 22% to $5.6 million and underlying net profit after tax (NPATA) grow 30% to $188 million.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates describes itself as one of the world's largest wine companies, with 11,300 hectares and winemaking facilities in the world's leading wine regions. Its products are consumed in over 70 countries. It has a number of brands, including Penfolds, Wolf Blass, Blossom Hill, Pepperjack, Squealing Pig and DAOU Vineyards.

Jed Richards from Shaw and Partners calls Treasury Wine Estates a buy following the removal of Chinese tariffs on imported Australian wine. Richards notes the iconic Penfolds brand "remains prominent in China". He then said:

As the world's second largest economy, China is a most attractive market for TWE, enabling this wine giant to diversify its revenue base moving forward. Share price weakness provides an attractive entry point.

The ASX 200 share is reallocating a portion of the Penfolds Bin and Icon tiers from other global markets to progressively re-build distribution to China while maintaining the "strong momentum in those other markets where Penfolds has successfully grown in recent years." It intends to expand its sales, marketing resources and brand investment in China.

Thanks to the removal of Chinese tariffs, demand for the Penfolds bin and Icon portfolio is expected to exceed availability in the short term, so it will implement price increases, which are expected to be effective from early FY25.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Investing Strategies

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Dividend Investing

Buy Rio Tinto and these excellent ASX dividend shares

Goldman Sachs is tipping these dividend shares are top buys.

Read more »

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Investing Strategies

If I invest $5,000 in Yancoal shares today, how much income will I receive in 2025?

Is this coal giant one for the next 12 months?

Read more »

Excited woman holding out $100 notes, symbolising dividends.
Dividend Investing

Global companies just paid a record $512 billion in Q1 dividends. Here's how ASX 200 shares stacked up

ASX dividend stocks increased payouts by 2.0% in Q1, according to Janus Henderson, with BHP dragging on growth.

Read more »

shopping trolley filled with coins representing asx retail share price.ce
Dividend Investing

Should you buy Coles shares for that hefty 6% dividend yield?

Should Coles stock go in your shopping basket?

Read more »

A happy woman and girl kick back on a couch in spa robes with cucumbers on their eyes, indicating they can earn passive income while relaxing.
Dividend Investing

2 of the best passive-income-focused ASX shares to consider buying in June

Wanting passive income? Analysts think these shares could be top options.

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

These ASX dividend shares offer 6%+ yields right now

Analysts think these high yield stocks are in the buy zone.

Read more »

Happy couple enjoying ice cream in retirement.
Dividend Investing

Why I keep loading up on these 2 ASX passive income machines

I can’t stop buying these dividend stocks.

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Blue Chip Shares

4 super ASX 200 blue chip shares to buy

Want some blue chips in your portfolio? Check out these four that analysts rate as buys.

Read more »