History shows that buy and hold investing is a great way to grow your wealth.
But which ASX shares could be candidates for long term investments?
Well, two that analysts are very bullish on are listed below. Here's why they could be top buy and hold options:
Pro Medicus Limited (ASX: PME)
The first ASX share that could be a great buy and hold option is Pro Medicus. It is a leading provider of radiology information systems (RIS), Picture Archiving and Communication Systems (PACS), and advanced visualisation solutions across the globe.
Goldman Sachs is very bullish on Pro Medicus' long term outlook due to its belief that it is the incumbent technology leader in radiology. It commented:
In our view, PME is well positioned into FY25 given a full year benefit of some large and high profile contracts, in addition to the accelerating frequency and size of new contract wins. We see PME's software Visage 7 as an industry leading solution with two distinct advantages relative to peers — speed and cloud capabilities — that have influenced the choice of PACS vendor.
Given this, PME is benefiting from an industry network effect, and we forecast share gains to 13% in FY30E (c.7% today) as more hospitals move to modern systems. PME is expanding into adjacent solutions including AI and Cardiology which could provide significant upside given we believe PME is the incumbent technology leader in radiology, and is well-placed to take share in both markets.
The broker currently has a buy rating and a $136.00 price target on its shares.
Treasury Wine Estates Ltd (ASX: TWE)
Another ASX share that could be a great long term option for investors is Treasury Wine.
It is a global wine company with an international portfolio of wine brands. This includes Penfolds, Beringer, Lindemans, Wolf Blass, and 19 Crimes. It also recently added to this with the major acquisition of DAOU Vineyards in the United States.
Speaking of which, Morgans is very positive about the company's outlook thanks to this acquisition. It explains:
It may take some time for the market to digest TWE's acquisition of Paso Robles luxury wine business, DAOU Vineyards (DAOU) for US$900m (A$1.4bn) given it required a large capital raising. The acquisition is in line with TWE's premiumisation and growth strategy and will strengthen a key gap in Treasury Americas (TA) portfolio.
Importantly, DAOU has generated solid earnings growth and is a high margin business. It consequently allowed TWE to upgrade its margins targets. While not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation.
Morgans has has an add rating and $14.03 price target on the company's shares.
