With a new month just around the corner, now could be a good time to look at making some new additions to your portfolio.
And two ASX 100 shares that could be great candidates are listed below. They have been named as best ideas by leading brokers. Here's why they are bullish on them:
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CSL Ltd (ASX: CSL)
Bell Potter thinks that this biotechnology leader could be one of the best ASX 100 shares to buy now. The broker has the company's shares on its Australian equities panel. These are its favoured Australian equities that offer attractive risk-adjusted returns over the long term.
Bell Potter currently has a buy rating and $327.42 price target on CSL's shares.
It likes the company due to its positive margin outlook, which it expects to underpin above-average earnings growth in the coming years. Its analysts explain:
CSL presents an attractive buying opportunity as we anticipate the start of a margin recovery phase for CSL, driving above-market earnings growth over the next few years. CSL trades at a 12-month forward PE of ~28x, representing a discount to its 10-year average of ~31x and a substantial discount to its 5 year average of ~35x. Furthermore, the company will continue to deleverage the balance sheet over the next few years. Net Debt/EBITDA is currently 2x (FY24E) and is expected to fall below 1x by FY26. Given the company's proven quality and growth prospects, we believe significant upside remains.
Woolworths Group Ltd (ASX: WOW)
Goldman Sachs thinks that this supermarket giant is one of the best ASX 100 shares to buy now.
In response to the company's full year results this week, its analysts have kept Woolworths on their coveted conviction list with a buy rating and $40.10 price target. Based on its current share price of $35.73, this implies potential upside of 12.2% for investors over the next 12 months.
Goldman believes that Woolworths is well-positioned for growth in the coming years for a number of reasons. This includes its vast loyalty program and omni-channel advantage. It explains:
We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as its ability to pass through any cost inflation to protect its margins, beyond market expectations. The stock is trading below its historical average (since 2018), and we see this as a value entry level for a high-quality and defensive stock.
