A new month is just about here so what better time to look at your portfolio and make some new additions.
But which shares should you buy? Listed below are two ASX 200 shares that the team at Bell Potter believe are buys. Here's what it is saying:
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Costa Group Holdings Ltd (ASX: CGC)
This horticulture company could be an ASX 200 share to buy in August. Costa operates ~7,300 hectares of farming assets across five key categories and three regional hubs.
Bell Potter believes that it is well-placed for growth and sees it as a great inflation hedge. It commented:
CGC has deployed ~$540m of capital since CY19 through the acquisition of citrus properties, development of berry acreage in Morocco and China and investment in mushroom and tomato capacity. A return on this investment is expected to be the main driver of earnings through to CY23e. In addition we are seeing favourable YTD pricing trends across the majority of CGC's product portfolio which provides insulation against inflationary cost pressures.
Bell Potter has a buy rating and $3.75 price target on the company's shares. This compares favourably to the current Costa share price of $2.57.
TechnologyOne Ltd (ASX: TNE)
Another ASX 200 share that could be in the buy zone is TechnologyOne. Bell Potter likes the enterprise software provider due to its shift to a software as a service (SaaS) business model. Its analysts expect this to underpin stronger margins and equally strong earnings growth.
The broker explained:
The migration [to a fully integrated SaaS solution] is now around three quarters 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 rerate to that of a pure SaaS company.
Bell Potter has a buy rating and $12.50 price target on the company's shares. This compares to the latest TechnologyOne share price of $11.72.
