The ASX 50 could be a good place to look for investment options…
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The S&P/ASX 50 index is home to 50 of the largest listed companies on the Australian share market. This means the index is home to many of the highest quality and most well-known companies that the ANZ region has to offer.
Two ASX 50 shares to consider are below:
Lendlease Group (ASX: LLC)
The first ASX 50 share to look at is Lendlease. It is a global property and infrastructure company that is going through a major transformation.
This has seen Lendlease divest its struggling engineering business and shift its business model and earnings mix to be more in line with the highly successful Goodman Group (ASX: GMG).
Analysts at Goldman Sachs are positive on its transformation and believes its shares could re-rate to higher multiples once it begins to demonstrate that it is successfully executing on its new strategy.
For now, though, the broker still sees a lot of value in its shares at the current level. Goldman has a buy rating and $16.54 price target on the company’s shares.
Another ASX 50 share to look at is Xero. It provides small and medium sized businesses with a cloud-based full service business and accounting solution.
Analysts at Goldman Sachs are also positive on Xero. They believe the company it is well-placed for strong top line growth. In fact, the broker feels it could deliver strong revenue growth for multiple decades if everything goes to plan.
The key to this will be its international expansion and the successful monetisation of its app ecosystem. The latter has been boosted in recent years through the acquisition of a number of companies that have strengthened its offering such as Tickstar and Planday.
Goldman Sachs currently has a buy rating and $153.00 price target on its shares.
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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.