If you're looking to add some quality shares to your investment portfolio, then you might want to look at the ASX 200 shares listed below.
Here's why analysts are tipping these ASX 200 shares as ones to buy right now:
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TechnologyOne Ltd (ASX: TNE)
The first ASX 200 share that could be in the buy zone right now is TechnologyOne. It is an enterprise software company servicing the government, financial services, health & community services, education, utilities and managed services markets.
Bell Potter is very positive on TechnologyOne. This is largely due to the company's ongoing shift to becoming a SaaS-focused business. The broker expects this to underpin greater recurring revenues and stronger margins, which in turn could support a rerating of its shares. Bell Potter's analysts currently have a buy rating and $14.00 price target on its shares.
The broker commented: "The key competitive advantage of the company is it has developed a fully integrated SaaS solution of its software and is now switching customers to this solution. The migration is now >50% complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to re-rate to that of a pure SaaS company."
Wesfarmers Ltd (ASX: WES)
Another ASX 200 share that could be a buy is Wesfarmers. It is the conglomerate behind retailers such as Bunnings, Kmart, Officeworks, and Target, as well as a collection of chemicals and industrial businesses such as Covalent Lithium and Coregas.
Morgans is a fan of the company and believes it is well-placed for growth over the long term. This is thanks to the strength of its portfolio and its highly-regarded management team. The broker has an add rating and $58.50 price target on its shares.
It said: "WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While COVID-related staff shortages are a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the recent pullback in the share price as a good entry point for longer term investors."
