On Wednesday, we looked at a couple of ASX 200 shares that analysts at Bell Potter have named on its Australian equities panel this month. You can read about them here.
These are the shares that it believes "offer attractive risk-adjusted returns over the long term."
Bell Potter also highlights that when identifying its picks, it considers the current macro-economic backdrop and investment environment, focusing on quality companies with proven track records, capable management, and competitive advantages.
Two more ASX 200 shares that make the list in February are named below. Here's what the broker is saying about them:
James Hardie Industries plc (ASX: JHX)
Bell Potter thinks that James Hardie could be one of the best ASX 200 shares to buy right now.
It is a global building materials company and the largest global manufacturer of fibre cement products.
The broker likes James Hardie due to the structural shift towards fibre cement in the United States. It believes this will drive an earnings expansion in the coming years. It said:
In our view, James Hardie is poised for continued earnings expansion, driven by the structural shift towards fibre cement in the US. Households in the US continue to shift to fibre cement cladding from vinyl/timber, providing a multi- year runway for JHX's revenue and profit growth.
With a strong market position, premium brand, and pricing power, JHX is poised to capitalise on structural growth in the fibre cement market and cyclical tailwinds from potential rate cuts.
Bell Potter has a buy rating and $64.00 price target on its shares. This implies potential upside of almost 20% for investors from current levels.
WiseTech Global Ltd (ASX: WTC)
A second ASX 200 share that Bell Potter has on its Australian equities panel in February is WiseTech Global.
It is the leading logistics solutions technology company behind the dominant CargoWise platform.
Bell Potter likes the company due to its strong growth outlook driven by its low churn levels, new product launches, and strategic acquisitions. It explains:
WTC has a high degree of recurring revenue (80-85%) and should continue to grow its revenue/earnings from further customer wins. We see CargoWise as the market leader in freight forwarding software and expect growth to accelerate due to the launch of three new products, as well as ongoing global roll-out wins.
All up, WTC is a growth story with strategic acquisitions representing upside potential enabling WTC to benefit from large-scale global rollouts and consolidation within the logistics sector.
Bell Potter has a buy rating and $136.25 price target on its shares. While this implies only modest upside of 6% for investors, it is worth noting that Morgan Stanley believes that significantly more is possible.
It has an overweight rating and $160.00 price target, which suggests that its shares could rise approximately 25%.
