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The market is a sea of red on Monday after Australian investors responded to a sell-off on Wall Street on Friday night.
While the declines are disappointing, it could have created an opportunity for investors to invest in some stocks at a better price.
Listed below are two ASX 200 stocks that analysts are tipping as they are bought. This is what they are saying:
The first ASX 200 share to look at is Pro Medicus. It is a leading provider of medical imaging technology, offering a variety of software and services to hospitals, imaging centers and healthcare groups around the world.
Earlier this month, the company released full-year results and again beat expectations with stellar earnings growth.
The Morgans team was particularly impressed. The broker commented:
Pro Medicus posted another year of strong growth across all metrics, highlighting the further expansion of the EBIT margin to 67%, well above expectations, highlighting the operating leverage of the business.
It is an impressive story, and one that we see with longevity. While it is currently reasonably priced, we continue to see this as a strong long-term growth story that will continue to grow to its high multiple. Buyers in any weakness, it is usually short-lived.
Morgans currently has an additional rating and price target of $58.18 on the company’s shares.
REA Group Limited (ASX: REA)
Another ASX 200 stock to watch is the ANZ region’s leading property listing company, REA Group.
Like Pro Medicus, it was on form in fiscal 2022 and delivered another strong result earlier this month. Once again, it also revealed that it has materially more visitors to its sites than its closest rival, which appears to be giving it significant pricing power.
The Goldman Sachs team was impressed with this result and remains optimistic about the future. He commented:
Overall, we think the REA result, feedback and cash yield were positive.
Management remains committed to double-digit performance growth in FY23E (GSe +11% including +6% price, +2% Premiere Plus, +2% Premiere All acceptance and +1% new products). We remain confident in the company’s ability to achieve its double-digit growth target, but note that our estimates could be affected by geographic mix, the addition of new products such as Audience Max and Premiere+, and the use of “exceptions.” that the agents have within the contracts. .
We continue to Buy (in CL), with this result and positive performance outlook supporting our recent REA upgrade.
Goldman has a buy conviction rating and a $164.00 price target on REA shares.