Are you struggling to decide which ASX 200 shares to buy now Commonwealth Bank of Australia (ASX: CBA) shares are so expensive?
If you are, then have a listen to what Bell Potter has to say about a couple of shares that feature in its Core Portfolio.
The broker highlights that its Core Portfolio is a diversified, benchmark aware portfolio of 25-35 Australian equities, with a bias towards growth-orientated, quality companies.
Two key active positions are named below:
Amcor (ASX: AMC)
Bell Potter thinks that Amcor could be an ASX 200 share to buy following the transformative acquisition of Berry Global.
It believes the merger will support strong earnings growth in the coming years. In addition, the combination should make for a less cyclical business with defensive earnings. It explains:
The investment thesis for Amcor is based on its transformative merger with Berry Global, which positions the company for a period of significant growth and quality improvement. The merger is expected to drive two years of double-digit EPS growth, fuelled by an estimated $590 million in synergies, with 80% anticipated to be realised within the first 24 months.
Beyond the near-term earnings growth, the merger also creates a more resilient and less cyclical business by increasing its exposure to the defensive home & personal care and pharmaceutical sectors.
WiseTech Global Ltd (ASX: WTC)
Finally, Bell Potter has named WiseTech Global as a key active holding in its portfolio.
It likes the logistics solutions technology company due to its highly predictable business model, low churn rate, and strong growth outlook. The latter is being underpinned by both organic growth and acquisitions, such as the proposed takeover of E2 Open. It said:
WiseTech is a leading global provider of software solutions to the logistics industry, with its market-leading CargoWise One platform used by many of the world's largest logistics providers. The company's quality is underpinned by a highly predictable business model, with around 95% of its revenue being recurring and a customer churn rate of less than 1%. This provides clear and consistent cash flow, enabling a distinct path to deleverage, with management confident in reducing ND/EBITDA from ~3x in FY26 to 1.7x in FY27.
Growth is set to scale both organically, through a potentially new commercial model, and inorganically, with the recent E2open acquisition representing a significant opportunity to accelerate penetration into adjacent markets like trade.
