The S&P/ASX 200 Index (ASX: XJO) is home to a large number of high quality companies. This can make it hard to decide which ones to buy ahead of others.
To help narrow things down, I have picked out two ASX 200 shares that brokers rate very highly. Here's what they are saying about them:
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Goodman Group (ASX: GMG)
The first ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with operations across the world.
Goodman currently has $62 billion of total assets under management and over 1,600 customers globally. Among its portfolio are warehouses, data centres, large scale logistics facilities, and business and office parks. These properties are greatly in demand with end users due to being located in key gateway cities around the world. This has led to a sky high occupancy rate and robust earnings growth in recent years.
Morgan Stanley is a fan of Goodman. It was pleased with its strong start to FY 2022 and appears confident its positive form can continue. It has an overweight rating and $26.50 price target on Goodman's shares.
South32 Ltd (ASX: S32)
Another ASX 200 share to consider is South32. This mining giant produces a wide range of commodities including alumina, aluminium, bauxite, energy and metallurgical coal, manganese, nickel, silver, lead, and zinc. It will also soon add copper to this with the acquisition of an interest in the Sierra Gorda copper mine in Chile.
Thanks to this diversity, and particularly its exposure to aluminium, South32 has been tipped to generate significant free cash flow in the coming years.
It is largely for this reason that Goldman Sachs currently has a conviction buy rating and a $4.40 price target on its shares. But it doesn't stop there. The broker is also forecasting double-digit dividend yields through to at least FY 2026.
