There are plenty of options to choose from on the ASX 200 index, but which ones could be buys next week?
Two that could be worth considering according to brokers are listed below. Here's why they rate these ASX 200 shares as buys:
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Seek Ltd (ASX: SEK)
The first ASX 200 share that has been named as a buy is Seek. It is the online employment classifieds platform giant with operations across 12 countries.
The team at Morgans is positive on the company. This is because it believes Seek will benefit from a number of tailwinds that will support increased reliance on the company's products and services. It said:
Of the classifieds players, we continue to see SEEK as the one with the most relative upside, a view that's based on the sustained listings growth we've seen over the period. The tailwinds that have driven elevated job ads (~210k currently, broadly flat on the robust pcp) and strong FY22 result appear to still remain in place, i.e. subdued migration, candidate scarcity and the drive for greater employee flexibility. With businesses looking to grow headcount in the coming months and job mobility at historically high levels according to the RBA, we see these favourable operating conditions driving increased reliance on SEEK's products.
Morgans currently has an add and $28.40 price target on Seek's shares.
Sonic Healthcare Limited (ASX: SHL)
Another ASX 200 share that is rated highly is Sonic Healthcare. It is a healthcare company offering pathology, diagnostic imaging, and primary care medical services across a network of operations spanning the ANZ, European and North American markets.
Thanks to its strong balance sheet, the team at Citi believe the company could be in a position to continue adding to this network in the near future to support its growth. It commented:
SHL announced a binding agreement to acquire Diagnosticum, a laboratory group in southeast Germany with 15 labs and 25 pathologists. SHL will pay €190m (cash, debt free) / ~A$310m. […] The transaction is in-line with the company's long-term strategy of deploying capital through acquisitions (>40 since FY07). SHL estimates that the top-5 players in Germany only have a 40-50% market share (SHL being #1), leaving room for further consolidation. We rate SHL Buy,
In light of this, Citi has a buy rating and $40.00 price target on its shares.
