Bell Potter names 3 of the best ASX 200 shares to buy for FY24

These could be top options for the new financial year.

| More on:
A man holding a cup of coffee puts his thumb up and smiles while at laptop.

Image source: Getty Images

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

The team at Bell Potter has been running the rule over a number of ASX shares and sectors and has named its top picks.

Among its picks are the three ASX 200 shares below. Here's why it thinks these are three of the best buys as we enter FY 2024:

Brickworks Limited (ASX: BKW)

The first ASX 200 share that Bell Potter has picked out as a buy is building products and property development company Brickworks. It has a buy rating and a $27 price target on its shares. The broker commented:

Whilst the company's Building Products division faces a difficult outlook for FY24e, we are attracted to the structural post COVID-19 ecommerce/supply chain tailwinds supporting BKW's industrial property trust, where ~90% of leased asset value is located in suburbs surrounding the new Badgerys Creek airport in Western Sydney. […] In addition, Brickworks retains a further ~5,200ha operational land located on urban fringes of cities across Australia and North America, providing long-term development option value.

IDP Education Ltd (ASX: IEL)

Bell Potter remains bullish on this language testing and student placement company despite the loss of its monopoly in Canada. In fact, its analysts believe the recent pullback has created an excellent opportunity for investors to buy a market-leading company exposed to structural growth tailwinds. It has a buy rating and a $27.40 price target on its shares. The broker explains:

In our view, the recent re-rating of the stock presents an opportunity for investors to buy an established market leader in education experiencing strong structural growth tailwinds and paying a solid dividend. In addition, the business requires relatively low capital expenditure and working capital intensity and has historically maintained strong levels of cash conversion (~100% in FY22). Whilst IEL still trades at a premium to its peers on a FY24e EV/EBIT of ~24x, we believe this is justified given its market leading position, potential for M&A and successful track record.

Life360 Inc (ASX: 360)

In the tech sector, Bell Potter rates Life360 highly. It currently has a buy rating and a $9 price target on its shares. And while the broker acknowledges that recent acquisitions haven't been as successful as hoped, it remains very positive on the key core business. It said:

Life360 develops and operates a mobile app for families – called Life360 – that provides a range of safety features including communications, driving safety and location sharing. The company has also made two acquisitions – Jiobit and Tile – so that now it not only connects and protects people but also pets and things. The core business has been performing very well though the acquisitions have had a difficult 12 to 18 months due to supply chain constraints and/or a drop in consumer electronics demand. The overall outlook, however, is positive with recent price rises in the core business driving strong top line growth and the recently commenced bundling of Tile products with subscriptions to provide a further boost to subscription revenue.

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Idp Education, and Life360. The Motley Fool Australia has positions in and has recommended Brickworks. The Motley Fool Australia has recommended Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

A miner stands in front oh an excavator at a mine site
Broker Notes

Broker says buy the dip on ASX 200 uranium share with 69% upside

Shaw and Partners says this ASX uranium stock is trading at an attractive price point right now.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Broker Notes

Bell Potter says these ASX stocks are top buys

Let's see why the broker is feeling so bullish on these names.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Buy this ASX All Ords stock for huge returns and a great dividend yield

Bell Potter thinks this buy-rated stock could deliver the goods for investors over the next 12 months.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these stocks.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

Top broker says these ASX stocks can rise 35% in a year

Let's see why Bell Potter thinks these shares could rise strongly over the next 12 months.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

These ASX shares could rise 20% to 50%

Analysts are tipping these shares to rise strongly over the next 12 months.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 small-cap ASX healthcare shares 'with strong prospects'

Fund manager IML discusses why these 3 ASX healthcare shares are likely to rise in value.

Read more »