If you are looking for investment ideas, then it could pay to listen to what Bell Potter is saying.
That's because the broker has just released its latest top Australian picks that feature in its core portfolio.
It notes that its "Core Portfolio is a diversified, benchmark aware portfolio of 25-35 Australian equities, with a bias towards growth-orientated, quality companies."
Here are three ASX 200 shares that make the cut this month:
Amcor (ASX: AMC)
This packaging giant has been named in the core portfolio. Bell Potter is positive on the company's outlook due to its transformative merger with Berry Global. It believes the transaction positions Amcor for growth and improves the quality of its earnings. It said:
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 $650 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.
CAR Group Limited (ASX: CAR)
CAR Group, the owner of Carsales.com.au, could be a top option for investors according to Bell Potter. It highlights its attractive valuation and positive earnings growth outlook. The latter is expected to be underpinned by its ongoing penetration into large and underpenetrated markets. The broker said:
CAR screens favourably on a risk-adjusted return basis when considering the stability of earnings growth against comparable ASX-listed classifieds platforms. They recently re-iterated full year guidance at their AGM and yet the stock is down 15% from its August highs as valuations have compressed.
We expect EPS CAGR of 12% between FY25-28e driven by ongoing penetration into large and underpenetrated markets with a defined pathway of platform enhancements to extract value from its audience/networks. CAR's Dealer subscription model and wide pay-per-lead price thresholds can protect against volume/price volatility, which is reflected in CAR's stable earnings growth (historical + forecast), and provides for a preferred risk-adjusted return profile versus peers.
WiseTech Global Ltd (ASX: WTC)
This logistics solutions technology features in the broker's Core Portfolio. It likes WiseTech due to its predictable business model, recurring revenue, and ultra low churn rate. It commented:
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.
