Looking for ASX 200 stocks to buy? Then look no further!
That's because Goldman Sachs has put buy ratings on these stocks this morning.
Here's what the broker is saying about them:
Endeavour Group Ltd (ASX: EDV)
This first ASX 200 stock that Goldman is tipping as a buy is drinks giant Endeavour Group.
The broker highlights that Endeavour has updated its sales impact estimate in relation to the Woolworths Group Ltd (ASX: WOW) distribution centre strike.
Based on available data, Goldman suspects that there could be an earnings impact of $6 million to $15 million. It explains:
For the Low Case, we assume EDV's disclosed sales impact of ~A$25mn to date and GPM of 24.3% (1H25 GSe) drop-through to EBIT with no CODB savings, implying A$6mn EBIT hit or 1.0%/0.6% 1H25e/FY25e Group EBIT.
For High Case, we expect sales impact of ~A$50mn with same GPM drop-through though also attributing higher transportation cost as the company leverages wider distribution network to maximize stock availability and assume no CODB cost savings. i.e. EBIT impact of ~A$15mn. This would represent 2.4%/1.5% reduction to 1H25e/FY25e Group EBIT.
In light of this minimal impact, Goldman has held firm with its buy rating and $5.50 price target. Based on its current share price of $4.28, this implies potential upside of 29% for investors.
In addition, a 4.6% dividend yield is forecast for FY 2025.
Pro Medicus Limited (ASX: PME)
Another ASX 200 stock that is rated as a buy by Goldman Sachs is health imaging technology company Pro Medicus.
The broker has been impressed with recent contract wins and believes there's more to come. In fact, it boldly stated its belief that "further Visage adoption a matter of when, not if." It then adds:
We remain positive on the PME equity story as one of Australia's best global growth companies, highlighted once again through Trinity Health, driving FY27E EBITDA revisions of +8% (GSe +5% vs. Visible Alpha Consensus Data). We forecast a strong increase in the value and cadence of contract wins over time; however, outsized contracts (i.e. >A$100mn), where visibility is limited in terms of size and timing, could provide material upside.
And while the company's shares are not cheap and trade on sky high multiples, Goldman believes this is justified. It explains:
PME is not cheap, trading on 114x FY26E EV/EBITDA, but we highlight its revenue/margin outlook, unique cloud offering, and significant long-term opportunity. Additionally, with a focus on the US regulatory outlook, we believe MedTech is increasingly being evaluated as a safe haven within healthcare as it is generally more insulated from impending policy volatility.
Goldman has retained its buy rating and lifted its price target by 26% to $278.00. Based on the current Pro Medicus share price of $247.18, this implies potential upside of 12.5%.
