2 ASX 200 shares rated as buys by leading brokers
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Brokers are always on the lookout for S&P/ASX 200 Index (ASX: XJO) shares that could be opportunities to buy.
Share prices are changing all the time, which can open up different investment opportunities for investors. A drop in share price could turn expert opinion from a hold to a buy on a business.
Results and business updates can change an expert’s view on a business as well. Sometimes a positive outlook can have a boosting influence on the share price of ASX 200 shares.
Let’s have a look at two of the latest ratings.
New Hope Corporation Limited (ASX: NHC)
New Hope has been rated as outperform by the broker Macquarie, with a target price of $6. A target price is where the broker is guessing that the New Hope share price will be in 12 months.
The New Hope share price has risen by more than 160%, Macquarie is suggesting it won’t move much from here.
The broker notes the big dividend. When New Hope announced its FY22 result, it revealed that its realised price for coal went up 178% to $282 per tonne, with net profit after tax (NPAT) rising 1,146% to $983 million.
With that, the ASX 200 share declared a final ordinary dividend of 31 cents per share and a final special dividend of 25 cents per share. That’s a total of 56 cents, so the combined final dividend equates to a grossed-up dividend yield of 13%. The total FY23 grossed-up yield was 19.9%.
In FY23, New Hope is expected by Macquarie to pay a grossed-up dividend yield of 38.5%. However, profit and the dividend are expected to reduce significantly.
IDP Education Ltd (ASX: IEL)
IDP Education has been rated as a buy by the broker UBS with a price target of $35.50. That suggests that the Idp Education share price could rise by more than 25%.
The broker noted the acquisition that the ASX share recently announced which helps it enter the African market.
Let’s have a quick look at what was in that update.
The global education services ASX 200 share, which operates in more than 50 countries, is acquiring Intake Education for up to $83 million.
It’s described as a leading student placement agency that has operations across Nigeria, Ghana, Kenya, Philippines, Thailand, Taiwan, India and the UK.
The IDP Education interim CEO Murray Walton said:
The geographic footprint of Intake complements IDP’s global network. Intake is the market leader for UK study in several countries and has the largest and most respected agency in West Africa which will accelerate IDP’s growth ambitions in this emerging region.
Using UBS’ profit predictions, the IDP Education share price is valued at 44 times FY23’s estimated earnings and 31 times FY24’s estimated earnings.