If you're in the market for some new ASX 200 shares in August, then it could be worth listening to what analysts at Bell Potter are saying.
That's because they have just revealed their favoured picks for the month ahead.
Three on its list this month are named below. Here's what the broker is saying about them:
Amotiv Ltd (ASX: AOV)
The first ASX 200 share that Bell Potter is tipping as a buy is Amotiv, which was until recently known as GUD Holdings.
It likes the auto parts retailer due to its undemanding valuation, expansion opportunity, and resilient businesses. It said:
We are Buy-rated on Amotiv and consider it to be fundamentally a good business and we note upside may exist from APG's geographic expansion which is not in our earnings forecasts. The legacy auto business has been reasonably strong to date in an environment where there is increased risk around service trade down and deferral. The stock's valuation is not demanding at 13x FY25 PE. Overall, our Buy rating for AOV is predicated on the relative resilience of the legacy auto business and improving momentum in new car sales, which should be favourable for APG's earnings.
Bell Potter has a buy rating and $12.80 price target on its shares.
James Hardie Industries plc (ASX: JHX)
The broker is also tipping this building products company as an ASX 200 share to buy in August.
Bell Potter believes the company's earnings are going to continue expanding thanks to structural drivers. In light of this, it feels its current valuation is attractive. It said:
In our view, James Hardie is poised for continued earnings expansion, driven by the structural shift towards fibre cement in the US. Households in the US continue to shift to fibre cement cladding from vinyl/timber, providing a multi-year runway for JHX's revenue and profit growth. With a strong market position, premium brand, and pricing power, JHX is poised to capitalise on structural growth in the fibre cement market and cyclical tailwinds from potential rate cuts. Following a recent pullback, James Hardie Industries is trading at an attractive 12-month forward PE of 21x. Considering the company's strong earnings growth prospects and robust fundamentals, this represents an attractive entry point.
The broker has a buy rating and $53.39 price target on its shares.
Mineral Resources Ltd (ASX: MIN)
Bell Potter continues to rate this mining and mining services company as an ASX 200 share to buy.
It likes Mineral Resources due to its production expansion potential and diversified operations. It explains:
In contrast to its peers, MIN completes everything from engineering, to construction, to all aspects of operations in-house. Our Buy view is underpinned by MIN's earnings diversification, strong insider ownership, clearly articulated strategies, expertise in contracting and internal growth options at Onslow as well as potential lithium expansions including into downstream. All up, MIN offers diversified exposure to steady income streams from the contracting business and market-driven commodity exposure coupled with earnings derived from both lithium and iron ore.
Bell Potter has a buy rating and $85.00 price target on Mineral Resources' shares.
