A new financial year is here so what better time to look at your portfolio and make some changes.
But which shares should you buy? Analysts at Bell Potter are lending a helping hand by picking out the best shares to buy in FY 2023.
Listed below are three ASX 200 shares the broker rates as buys for the new financial year. They are as follows:
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Costa Group Holdings Ltd (ASX: CGC)
The first ASX 200 share that Bell Potter believes could be a top option in FY 2023 is Costa. It is Australia's largest horticulture company with ~7,300 hectares of farming assets across five key categories and three regional hubs.
Bell Potter has a buy rating and $3.75 price target on the company's shares. This compares to the current Costa share price of $2.86. It commented:
CGC has deployed ~$540m of capital since CY19 through the acquisition of citrus properties, development of berry acreage in Morocco and China and investment in mushroom and tomato capacity. A return on this investment is expected to be the main driver of earnings through to CY23e. In addition we are seeing favourable YTD pricing trends across the majority of CGC's product portfolio which provides insulation against inflationary cost pressures.
Liontown Resources Limited (ASX: LTR)
Bell Potter remains positive on the battery minerals space due to its belief that the supply side is facing significant hurdles in respect to meeting increasing demand. So, with Liontown already signing offtake agreements with the likes of Tesla, it expects the company to profit greatly when production commences in 2024.
Bell Potter currently has a speculative buy rating and $3.06 price target on the ASX 200 lithium share. This compares favourably to the current Liontown share price of $1.06. It said:
Kathleen Valley is expected to commence production in 2024 and ultimately ramp-up production to 550ktpa SC6 by 2026. Key catalysts are now final project scope and costings, FID [now approved] and commencing project development.
TechnologyOne Ltd (ASX: TNE)
Another ASX 200 share that Bell Potter rates as a buy in FY 2023 is TechnologyOne. While the broker expects the tech sector to remain under pressure as rates rise, it believes stocks "with reasonable cash flows/earnings […] will continue to perform well – even in a rising interest rate environment."
Bell Potter has a buy rating and $12.50 price target on the company's shares. This compares to the latest TechnologyOne share price of $10.71. The broker commented:
The migration [to a fully integrated SaaS solution] is now around three quarters complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to rerate to that of a pure SaaS company.
