Below, we look at two compelling S&P/ASX 200 Index (ASX: XJO) shares you may wish to consider adding to your portfolio.
One stock has been under intense selling pressure in 2024 while the other has seen its share price rocket.
And David Thang, Sequoia Wealth senior private wealth adviser, has a buy rating on both (courtesy of The Australian).
Here's why.
Image source: Getty Images
Two ASX 200 shares tipped as buys
The first ASX 200 share Thang has a buy rating on is lithium miner and diversified resources producer Mineral Resources Ltd (ASX: MIN).
With lithium and iron ore prices both in the doldrums in 2024, the Mineral resources share price is down 57.4% year to date.
But as Thang points out, that sharp fall makes it a potential long-term bargain at current valuations.
According to Thang:
The unloved iron ore and lithium sector has seen the share price more than halve since May. Mineral Resources screens as attractive on valuation grounds, and the successful deleveraging of the balance sheet is crucial moving forward.
Mineral Resources reported its full-year financial results (FY 2024) on 29 August. While investors were disappointed by the suspension of dividend payouts, that's all part of the ASX 200 share turning its focus to cutting its debt load.
"As Onslow Iron volumes increase, group cash flow is expected to increase significantly, facilitating a rapid deleveraging of the balance sheet from early 2025," management said on the day of the results announcement.
The Mineral Resources share price is down 0.1% in afternoon trade on Tuesday, at $30.36 a share. That sees the miner with a market cap of $5.9 billion.
Which brings us to the second ASX 200 share Thang tips as a buy, biopharmaceutical company Telix Pharmaceuticals Ltd (ASX: TLX).
The Telix Pharmaceuticals share price has been on fire this year. Following a series of successes with its drug trials, shares have leapt 77% in 2024. The company also strengthened its balance sheet by issuing $650 million in convertible bonds.
And Thang sees more potential outperformance ahead for the biotech stock. He said:
The radiopharmaceuticals company has a promising emerging pipeline of products. The company recently transitioned from loss-making to profit, and drug approvals will be a key driver for its continued long-term success.
Telix Pharmaceuticals reported its half-year results on 23 August.
Highlights included a 65% year on year jump in revenue for the six months, which came in at $364 million. Net profit after tax of $29.7 million was up from a loss of $14.3 million in the prior corresponding half.
The Telix Pharmaceuticals share price is up 1.8% today at $17.86. That gives the ASX 200 share a market cap of $6.0 billion.
