If you're lucky enough to have $5,000 to invest in ASX 200 shares, then it could be worth considering the two named in this article.
Brokers think they are both top buys right now and see potential for strong returns over the next 12 months. Here's what you need to know about them:
Image source: Getty Images
Light & Wonder Inc. (ASX: LNW)
Goldman Sachs thinks Light & Wonder could be an ASX 200 share to buy this month. It is a cross-platform global games company that provides gambling products and services.
Its analysts are bullish on Light & Wonder due to its strong earnings growth outlook. This is expected to be underpinned by market share gains in both Australia and the lucrative North American market. The broker said:
LNW is well-placed to continue winning market share in ANZ and North America gaming operations, driving earnings growth of +12% (2-year CAGR) to achieve its FY25 AEBITDA target of US$1.4bn, which we believe has not been factored into market expectations (GSe +3% above VA consensus). Additionally, we believe SciPlay is out indexing the social casino segment driven by higher monetisation rates and modest user growth, despite headwinds in the broader social gaming industry.
Goldman currently has a buy rating and $190.00 price target on its shares. This implies potential upside of approximately 14% for investors.
Treasury Wine Estates Ltd (ASX: TWE)
Morgans thinks that this wine giant could be an ASX 200 share to buy this month.
The broker sees a lot of value in the company's shares at current levels. It also notes that the acquisition of DAOU Vineyards has the potential to be a bit of a game changer for the company. It explains:
It may take some time for the market to digest TWE's acquisition of Paso Robles luxury wine business, DAOU Vineyards (DAOU) for US$900m (A$1.4bn) given it required a large capital raising. The acquisition is in line with TWE's premiumisation and growth strategy and will strengthen a key gap in Treasury Americas (TA) portfolio. Importantly, DAOU has generated solid earnings growth and is a high margin business. It consequently allowed TWE to upgrade its margins targets. While not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation.
Morgans has an add rating and $15.03 price target on its shares. This suggests that they could rise 22% from where they trade today.
