If you are lucky enough to have $5,000 to invest into ASX 200 shares, then it could be worth listening to what Bell Potter is saying about the three in this article.
Here's why it is bullish on these names:
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Flight Centre Travel Group Ltd (ASX: FLT)
Bell Potter believes that this travel agent giant's shares are being undervalued by the market. Particularly given its belief that lower interest rates could boost consumer travel spending. It explains:
With peak tariff uncertainty passed, we don't think upside is being priced into FLT at ~$13. Trading at 11.2x 12MF P/E and with 18% EPS growth 2yr CAGR, we think there is potential for the stock to re-rate closer to historical average around ~14x. They have continued to take cost out of the business and have grown corporate TTV to help de-risk the overall cyclical nature of the business. With 2 rate cuts from the RBA, and more on the horizon, we think that the consumer can loosen the purse in FY26, with travel a likely beneficiary of this.
James Hardie Industries PLC (ASX: JHX)
Another ASX 200 share that could be a best buy according to the broker is James Hardie.
Its analysts highlight that the building materials company's shares have been hammered following the announcement of a proposed acquisition. Bell Potter thinks this has created a buying opportunity for a company that stands to benefit from long term structural tailwinds. It said:
In our view, JHX 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. Post JHX announcing its intent to purchase AZEK, the share price has fallen from ~25%. While debate still wages around the merits of the deal, we retain JHX in our focus list as we see upside from these levels.
Telix Pharmaceuticals Ltd (ASX: TLX)
A final ASX 200 share to consider buying is radiopharmaceuticals company Telix.
Bell Potter believes it is well-positioned for growth over the coming years. And while its shares trade on higher than average multiples, the broker believes that its growth outlook justifies this. It said:
TLX is building a vertically integrated radiopharmaceutical specialist company providing research, product development, isotope production, supply chain management and distribution in order to capture most of the margin in these highly valued assets for medical imaging and therapy. The company aims to initially dominate the urology space with a range of products for imaging, therapy and surgery. Valuations are attractive, with 12MF P/E now at 38x, supported by a 2yr EPS CAGR of 46%.
