If you're in the market for some new ASX 200 shares in July, 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:
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Mineral Resources Ltd (ASX: MIN)
Bell Potter continues to see a lot of value in this mining and mining services company's shares at current levels.
Its analysts like the company due to the diversity of its operations and its strong production growth potential. It said:
Our Buy view is underpinned by MIN's earnings diversification, strong insider ownership, clearly articulated strategies, expertise in contracting and internal growth options at Onslow as well as potential lithium expansions including into downstream. All up, MIN offers diversified exposure to steady income streams from the contracting business and market-driven commodity exposure coupled with earnings derived from both lithium and iron ore.
Bell Potter has a buy rating and $84.00 price target on the ASX share. This implies potential upside of approximately 45% for investors.
Neuren Pharmaceuticals Ltd (ASX: NEU)
Another ASX 200 stock that could be a buy in July according to the broker is Neuren Pharmaceuticals. It is a growing biotechnology company developing treatments for rare diseases of the central nervous system.
Bell Potter is particularly positive on its NNZ-2591 product and believes it could be a key driver of growth in the coming years. It said:
In the last six months, NNZ-2591 reported highly encouraging Phase 2 data in two rare diseases. NEU will once again have first-to-market opportunities in these two rare diseases, assuming future Phase 3 trials are successful. While short-term news will continue to be impacted by Acadia's commercialisation of NEU's first drug, called Daybue, we maintain our BUY recommendation for investors who have a longer 2 to 3-year investment horizon.
Bell Potter has a buy rating and $28.00 price target on its shares. This suggests that upside of 40% is possible for investors.
Perpetual Ltd (ASX: PPT)
The broker believes that this ASX 200 stock could be seriously undervalued by the market. Especially given the recently announced sale of its Corporate Trust (CT) and Wealth management (WM) businesses to private equity firm KKR.
It believes this makes the remaining business cheap compared to peers. It explains:
Perpetual announced a disposal of the Corporate Trust (CT) and Wealth Management (WM) businesses to KKR for $2.175bn. This price was ahead of our expectations ($1.5-1.9bn), and should result in a cash payment to shareholders of between $804m-1,104m or $6.95- 9.55 per share, dependent upon the assumptions, particularly tax and deal costs. We estimate the residual asset management business is being valued at between $1.3-1.6bn or between 3.5x-5.5x EBITDA. We believe this is too low for an international asset manager. Valuing the residual asset management business on 6.3x FY25 would imply a value of $2.1bn or $18.17/per share.
Bell Potter has a buy rating and $27.60 price target on its shares. This reflects ~$18.17 for the remaining business and a forecast cash distribution of ~$9.50. Based on its current share price, this implies potential upside of 28% for investors.
