If you are in the process of building a retirement portfolio, then you may want to check out the quality ASX 200 shares listed below.
They have been named as buys and tipped to generate great returns for investors. Here's what you need to know about them:
CSL Ltd (ASX: CSL)
The first ASX 200 retirement share that could be a top option for investors right now is CSL. It is a biotechnology giant with operations spanning plasma therapies, vaccines, and kidney disease treatments.
Morgans sees value in its shares at current levels and highlights that they are trading at a discount to long-term averages. The broker has an add rating and $315.35 price target on its shares. It commented:
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.
And while Morgans' price target isn't far off now, it is worth noting that analysts at Macquarie are even more positive. They have an outperform rating and $330.00 price target on its shares. And with the broker tipping strong earnings growth over the coming years, it sees scope for its shares to rise to $500 within three years.
QBE Insurance Group Ltd (ASX: QBE)
Another ASX 200 share that could be a good option for a retirement portfolio is insurance giant QBE Insurance.
Goldman Sachs thinks highly of the company and feels that trading conditions are very favourable right now. So much so, it recently put a buy rating and $20.50 price target on its shares. This implies potential upside of 20% for investors over the next 12 months.
It believes that the company is well-placed thanks to the commercial rate cycle. It said:
QBE is a global commercial insurer with three main geographical operations across Australia Pacific, International (encompassing Europe) and North America. 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.
Another positive is that the broker is expecting QBE to provide investors with good dividend yields in the near term. It is forecasting yields of 5.25% in FY 2024 and then 5.6% in FY 2025.
