Guzman Y Gomez Ltd (ASX: GYG) shares have continued their positive run and reached a new high of $42.00 on Wednesday.
This means the quick service restaurant operator's shares have now almost doubled in value since listing on the ASX boards earlier this year at $22.00 per new share.
While this is great for early investors, it may not be for prospective investors. Especially with this soon-to-be ASX 200 share trading on eye-watering earnings multiples.
In light of this, there might be better options out there for investors right now. But which ASX 200 shares could be top picks? Let's take a look at two highly rated options:
Arcadium Lithium (ASX: LTM)
With optimism increasing in the lithium industry, now could be a good time to look at Arcadium Lithium.
Especially with analysts at Bell Potter believing that the lithium giant is severely undervalued at current levels. The broker has a buy rating and $7.25 price target on its shares.
Bell Potter likes Arcadium Lithium due to its diversified exposure to the battery making ingredient. It said:
LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. The group has a strong balance sheet and growth portfolio.
REA Group Ltd (ASX: REA)
Goldman Sachs thinks that REA Group could be an ASX 200 share to buy following a recent pullback.
Earlier this week, its analysts put a buy rating and $221.00 price target on the property listings company's shares.
The broker believes REA Group offers one of the best risk/reward profiles in its domestic media coverage. It said:
We believe REA Group, a leading real estate classified business with strong market positions across Australia, Asia and the United States, has one of the best risk/reward profiles in our domestic media coverage. In particular, we are positive on the pricing power of the real estate classified vertical, given that we believe budgets will rise (at the expense of commissions), and within existing budgets, REA, as a leading player in the vertical, under-monetises its lead generation. We also see the current negative sentiment around AU property as more a driver of share prices over earnings. We believe REA is among the highest-quality names in our coverage, given it has the highest ability to continue to drive pricing.
