If you would like to add some high-quality ASX shares to your portfolio in June, you might want to see what is on offer in the illustrious ASX 50 index. This is the index that is home to the 50 largest companies on the Australian share market.
Among the 50 are two ASX shares in particular that brokers are saying positive things about. They are as follows:
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Cochlear Limited (ASX: COH)
The first ASX 50 share that could be a buy is Cochlear.
It is a leading manufacturer and distributor of cochlear implantable devices for hearing impaired globally. This is a great market to be in given the world's ageing population.
Goldman Sachs is a fan of Cochlear. Particularly now that trading conditions have improved materially since COVID headwinds eased. It said:
Looking forward, we continue to express a general preference for the device/drug names over the service providers in the current environment, on the basis of: i) stronger pricing power; ii) more assured volume profiles; iii) more resilient/expanding market shares; and iv) stronger balance sheets.
We believe Cochlear screens well on these fundamental factors, and largely avoids the margin uncertainties prevalent across other verticals. We expect a sequential improvement in momentum through 2H23 (further elective volume improvement and new processor launch momentum, potentially tempered by some moderation in Acoustics). We forecast above guidance in FY23E (GSe: $306m vs. $290-305m) and believe shares will now be further supported by a newly announced multi-year buyback program (GSe: $75m/year).
Goldman Sachs currently has a buy rating and $265.00 price target on Cochlear's shares.
CSL Limited (ASX: CSL)
This biotherapeutics company could be another ASX 50 share to buy.
Morgans is bullish on CSL and believes it would be a key holding for most portfolios. Particularly given its favourable post-COVID outlook. The broker explains:
A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long-term forward multiple of ~30x.
Morgans currently has an add rating and $337.92 price target on CSL's shares.
