The team at Morgans has been busy picking out its best ASX 200 share ideas for July.
The first two ASX 200 stocks we looked at can be found here. Read on for two more picks:
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Aristocrat Leisure Limited (ASX: ALL)
The first ASX 200 stock that Morgans believes is a best buy for July is Aristocrat Leisure. It is a gaming technology company with a portfolio of world-class businesses involved in poker machines, digital games, and real money gaming.
Morgans believes that Aristocrat is well-positioned for growth over the long term. The broker explains:
We have three key reasons for being positive on ALL. They are: (1) long-term organic growth potential. ALL is better capitalised than many of its competitors and has what we regard as a strong platform to continue investment in design and development in both its land-based gaming and digital businesses; (2) strong cash conversion and ROCE. ALL is a capital-light business despite its ongoing investment in Gaming Operations capex and working capital. It has a high level of cash conversion and ROCE; and (3) strong platform for investment. ALL has funding capacity for organic and inorganic investment in online RMG, even after the recent buyback. Its current available liquidity is $3.8bn
The broker has an add rating and a $45 price target on its shares. This compares favourably to the latest Aristocrat share price of $38.69.
Mineral Resources Ltd (ASX: MIN)
Another ASX 200 stock that Morgans rates as a buy is Mineral Resources. It is a mining and mining services company with operations across energy, iron ore, and lithium.
Morgans believes that Mineral Resources is well-placed to benefit from iron ore and lithium demand. It also highlights that its production growth plans should help to offset any metal price volatility. It explains:
MIN is a founder-led business and top tier miner and crusher that has grown consistently despite barely issuing a share over the last decade. Also helping our investment view is that MIN's diversification leaves it far more capable of tolerating volatility in lithium markets than its peers in the sector. We see MIN's lithium / iron ore market exposures as an ideal combination to benefit from the China re-opening increase in demand during 1H'CY23. We also see MIN as well placed to grow into its valuation, even if we see unexpected metal price volatility, given the magnitude of organic growth in the pipeline.
The broker currently has an add rating and a $93 price target on its shares. This compares to the latest Mineral Resources share price of $72.56.
