2 top ASX income shares that analysts love

There's a reason that analysts have put buy ratings on these shares.

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Are you searching for some ASX income shares to buy this week?

If you are, then you may want to check out the two listed below that analysts think are top buys right now.

Here's what they are saying about them:

Healthco Healthcare and Wellness REIT (ASX: HCW)

Analysts at Bell Potter think that Healthco Healthcare and Wellness REIT could be an ASX income share to buy. It is Australia's largest diversified healthcare REIT with a portfolio including hospitals, aged care, childcare, government, life sciences, and primary care and wellness property assets.

The broker likes the company due to its attractive valuation and exposure to a significant addressable market. It explains:

HCW has underperformed the REIT sector last 3 months (-10% vs. +22% XPJ) following bond yield reversion and is attractively priced at 20% discount to NTA (but only REIT to record flat to positive valuation movement at 1H24) with double digit 3 year EPS CAGR given high relative sector debt hedging and ability to grow its $1bn development pipeline via attractive YoC spread to marginal cost of debt. Longer term, HCW has significant scope for growth with an estimated $218 billion addressable market where an ageing and growing population should underpin long-term sector demand.

Bell Potter is forecasting dividends per share of 8 cents in FY 2024 and 8.3 cents in FY 2025. Based on its current share price of $1.15, this equates to yields of 7% and 7.2%, respectively.

The broker has a buy rating and a $1.50 price target on its shares.

QBE Insurance Group Ltd (ASX: QBE)

Over at Goldman Sachs, its analysts think that this insurance giant could be an ASX income share to buy.

It likes the company for a number of reasons. This includes its undemanding valuation. Goldman explains:

We are Buy-rated on QBE because 1) QBE has the strongest exposure to the commercial rate cycle. 2) QBE's achieved rate increases continue to be strong & ahead of loss cost inflation. 3) North America on a pathway to improved profitability. 4) Valuation not demanding. 5) Strong ROE.

The broker expects this to support partially franked dividends of 62 US cents (93 Australian cents) per share in FY 2024 and then 63 US cents (95 Australian cents) per share in FY 2025. Based on its current share price of $17.84, this equates to yields of 5.2% and 5.3%, respectively.

Goldman has a buy rating and a $20.90 price target on QBE's shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. 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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