2 stellar ASX 200 shares that brokers rate as buys

Here are two high quality ASX 200 shares…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're on the lookout for ASX 200 shares to add to your portfolio, then the two listed below could be worth a closer look.

Here's what you need to know about these shares right now:

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

Image source: Getty Images

Altium Limited (ASX: ALU)

The first ASX 200 share to look at is Altium. It is an electronic design software provider that is best-known for its industry-leading Altium Designer and Altium 365 platforms. The company also has a parts search engine called Octopart that is performing exceptionally well thanks to supply chain disruption.

All in all, Altium appears well-placed for growth over the next decade. Particularly given the growing internet of things and artificial intelligence markets, which are driving strong demand for electronic design software.

Bell Potter currently has a buy rating and $34.00 price target on Altium's shares. Its analysts "believe the company is on track to achieve its FY22 guidance and expect much better subscriber growth in 2HFY22 relative to 1HFY22."

Xero Limited (ASX: XRO)

Another ASX 200 share that could be a top option for investors next week is Xero.

It is a cloud accounting platform provider with ~3.3 million subscribers globally. And while this is a large number and Xero is generating material recurring revenue from these subscribers, it is still only a fraction of its addressable market. Management estimates that to be 45 million subscribers, which means it has only captured 7.3% of its market so far.

Goldman Sachs is a big fan of Xero. Its analysts believe the company is "well-placed to navigate this uncertainty given the stickiness & importance of its software."

The broker has a buy rating and $113.00 price target on Xero's shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Altium and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

Two smiling work colleagues discuss an investment at their office.
Growth Shares

3 amazing ASX growth shares I'd buy and hold for the next decade

These shares could be worth holding tightly to for the long term.

Read more »

Wife and husband with a laptop on a sofa over the moon at good news.
Growth Shares

$5,000 invested in Droneshield shares 4 months ago is already worth…

Investors will be thrilled!

Read more »

Person with a handful of Australian dollar notes, symbolising dividends.
Dividend Investing

1 ASX dividend share and 1 ASX growth stock to buy in April

These ASX shares deliver a one-two punch: income now, growth later.

Read more »

Increasing white bar graph with a rising arrow on an orange background.
Growth Shares

Here's what I consider to be the very best ASX 200 share to buy in April

This business looks heavily undervalued to me.

Read more »

Scared people on a rollercoaster holding on for dear life, indicating a plummeting share price
Growth Shares

3 reasons to buy this red-hot ASX healthcare stock today

Brokers think the biotech share is gearing up for its next big move.

Read more »

Multi-ethnic people looking at a camera in a public place and screaming, shouting, and feeling overjoyed.
Growth Shares

2 ASX stocks that could help turn $10,000 into $1 million

I’d think about adding these ASX shares to your portfolio.

Read more »

Part of male mannequin dressed in casual clothes holding a sale paper shopping bag.
Growth Shares

2 ASX financial stocks that could double – or even triple – in value

If sentiment turns and execution delivers, this could be an opportunity investors won’t want to miss.

Read more »

Rising arrows and a 3D chart, indicating a rising share price.
Growth Shares

2 strong Australian stocks to buy now with $8,000

These businesses have a lot of long-term potential.

Read more »