A new year is on the horizon, so what better time to look at making some new additions to your portfolio.
To help you on your way, let's see which ASX 200 shares analysts at Bell Potter have named as best buys for 2025.
Two shares that make the list this time around are listed below. Here's what the broker is saying about them:
CSL Ltd (ASX: CSL)
The first ASX 200 share that Bell Potter is tipping as a best buy in 2025 is biotechnology company CSL.
The broker believes that the company is destined to deliver strong earnings growth in the coming years thanks to the key CSL Behring business. It said:
We expect CSL will achieve guidance of "annual double-digit earnings growth" over the mid-term driven largely by the legacy plasma business, Behring, particularly its immunoglobulin sales. While CSL's Seqirus and Vifor business units do face near-term headwinds (reduced flu market demand and generic iron competition), these two units combined only contribute less than a third of total earnings.
In light of this strong earnings growth outlook, its analysts think that CSL's shares are undervalued right now. Bell Potter adds:
CSL continues to be a high quality, global operator with a multi-year gross margin recovery well underway to drive earnings expansion. The stock is currently trading at a 12m forward PE 27% and 19% below 5- and 10-year averages, respectively.
The broker has a buy rating and $345.00 price target on the company's shares.
Life360 Inc (ASX: 360)
Bell Potter thinks that this location technology company could be a best buy in 2025.
It highlights that Life360 has a huge growth opportunity as it coverts its massive user base into paid subscribers. It explains:
Life360 develops and operates a mobile app for families – called Life360 – that provides a range of safety features including communications, driving safety and location sharing. The app is used globally by over 75 million people and, of these, there are around 7 million paying subscribers. The penetration rate, therefore, is around 10% and the company has a stated long term target of 30% so there is the potential for the paying subscriber base to triple from here.
It also notes that the company has additional growth areas and looks likely to join the illustrious ASX 100 index next year. It said:
Life360 is also adding new verticals – like advertising, pet and elderly tracking – which provide additional areas of growth. The next potential catalysts are when Life360 releases its Q4/2024 result in February – we expect a strong result towards the upper end of the guidance ranges – and the S&P/ASX index rebalance in March where we see a good chance Life360 will be added to the Top 100.
Bell Potter has a buy rating and $26.75 price target on its shares.
