If you are on the lookout for some ASX 200 shares to buy, then read on!
That's because Goldman Sachs has just named four shares that it thinks investors should be buying now.
The broker notes that these shares align with its "preference for high-quality companies that we believe are delivering both strong and relatively certain earnings growth." Let's see what Goldman is tipping as buys:
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Aristocrat Leisure Ltd (ASX: ALL)
Goldman believes that gaming technology company Aristocrat Leisure is an ASX 200 share to buy. This morning, the broker has upgraded its shares to a buy rating with a $78.00 price target. This implies potential upside of 13% for investors. Commenting on the upgrade, its analysts said:
We upgraded to Buy given best-in-class land-based gaming execution and high degree of US exposure and balance sheet optionality. Although ALL has traded strongly since its FY24 result, we see further upside as its PER discount to 'high growth' ASX names is below its 10Y average.
CAR Group Limited (ASX: CAR)
Another ASX 200 share that the broker is tipping as a buy is carsales.com.au owner CAR Group. Goldman has a buy rating and $45.30 price target on its shares, which suggests that upside of 14% is possible. The broker thinks that new product launches and its market leadership will help drive strong earnings growth. It said:
We believe CAR is well-placed to deliver sustainable double-digit earnings growth through the cycle as it benefits from its globally diversified portfolio of market-leading classified businesses. New product launches (i.e., payments) and its dominant market position support Australian growth, and although CAR is facing headwinds in the US, we see a stronger 2H25 outlook (particularly in A$), while Korea/Latin America are tracking well.
Telstra Group Ltd (ASX: TLS)
Another ASX 200 share offering 14% upside according to Goldman Sachs is telco giant Telstra. The broker has a buy rating and $4.50 price target on its shares. Its analysts like Telstra's defensive qualities and positive growth outlook. They said:
Our preferred defensive name into CY25; we are confident in its ability to deliver Mobile/InfraCo growth, ongoing cost efficiencies, and strong shareholder returns benefiting from portfolio mgmnt/mid-single digit DPS growth. The 'T30' update in late 2H25 should be a positive catalyst.
Xero Ltd (ASX: XRO)
Finally, Goldman sees cloud accounting platform provider Xero as an ASX 200 share to buy. It has a buy rating and $201.00 price target, which implies potential upside of 16% for investors. The broker is forecasting more strong top line growth in 2025. It said:
We are positive on the CY25 outlook as given that accelerating product cadence is supporting subscriber and ARPU growth in ANZ and abroad. However, we expect a step-up in US investment this year, presenting risk to consensus margins – but are increasingly positive on this opportunity.
