If you are on the lookout for some new investments, then read on.
That's because analysts at Ord Minnett have recently named a couple of ASX 200 stocks that they think are buys.
Here's why they are bullish on these names right now:
Breville Group Ltd (ASX: BRG)
The first ASX 200 stock that could be a buy according to the broker is Breville. It designs, develops, markets, and distributes small electrical kitchen appliances in the consumer products industry.
As well as the eponymous Breville brand, the company's portfolio includes the Kambrook, Baratza, Sagem and Lelit brands.
Ord Minnett believes that the company is on the cusp of a return to form. It said:
Breville has experienced a notable decline in its return on capital over the past five years, but Ord Minnett views FY24 as the cyclic allow for returns. Our projections indicate a rebound as sales growth accelerates and operational leverage improves. This sales growth is expected to stem from improved sales momentum, innovative product development, and recent strategic acquisitions.
Ord Minnett has an accumulate rating and $38.00 price target on its shares.
Insurance Australia Group Ltd (ASX: IAG)
Another ASX 200 stock that could be a buy in December according to Ord Minnett is IAG.
It is a general insurance giant covering Australia and New Zealand. It offers a range of policies for vehicles, homes, businesses, travel, boats, caravans, and landlords, to name just a few.
Ord Minnett notes that IAG recently hosted an investor day. This event left the broker feeling more confident in the company's earnings outlook and its options to grow the business, which was recently boosted by the $855 million acquisition of the insurance business of Queensland motoring group RACQ.
Commenting on the company, the team at Ord Minnett said:
The company is eyeing growth in car and home insurance to fuel this expansion of market share, while Ord Minnett expects the revamp of its reinsurance arrangements will remove a lot of volatility from its earnings performance. IAG is also aiming for improved margins and efficiency via technology investment, which should ameliorate lower investment yields as interest rates fall and any pressure from attritional loss rates.
Post the investor day, we have made no changes to our EPS forecast for FY25, although our FY26 and FY27 estimates rise 2% and 5%, respectively.
Ord Minnett currently has an accumulate rating and $9.30 price target on its shares.
