Why Goldman Sachs rates these ASX 200 shares as top buys

If you’re looking to strengthen your portfolio with some new ASX 200 shares, then you may want to consider the two listed below.

Both have recently been named as buys by analysts at Goldman Sachs. Here’s what they have to say about these ASX 200 shares:

Breville Group Ltd (ASX: BRG)

This kitchen appliance manufacturer could be an ASX 200 share to buy according to Goldman Sachs.

Goldman Sachs believes that Breville is well-placed for growth over the coming years. In fact, the broker is forecasting double-digit earnings growth despite the tough economic environment. It explained:

[We] expect BRG will continue to execute on GP margin expansion. We remain supportive of BRG’s characteristics as a high quality name in a secular growth category and believe they will be able to demonstrate revenue and EBIT CAGR of 7.6% and 11.1% over FY22-25.

Goldman has a buy rating and $22.70 price target on its shares. This compares to the latest Breville share price of $20.30.

Qantas Airways Limited (ASX: QAN)

Another ASX 200 share that has been named as a buy by Goldman Sachs is Qantas.

It is of course the flag carrier airline of Australia and the operator of the Qantas and Jetstar brands. The company also has a lucrative loyalty business and an important freight business.

Goldman is a big fan of the company. It has been impressed with its post-pandemic transformation. It commented:

Notwithstanding a decline in unit revenues (and group capacity still at 96% of pre-COVID), our estimated FY24e EPS sits 65% above pre-COVID levels. Despite this, QAN’s market capitalisation is 1% below pre-COVID levels (EV 14% lower). We acknowledge broader macro uncertainty at this point in the cycle, but we believe the current share price does not reflect the group’s improved earnings capacity.

Goldman has a conviction buy rating and $8.30 price target on its shares.