2 no-brainer ASX 200 shares to consider buying with just $1,000

There are a number of quality companies for investors to choose from on the Australian share market for a $1,000 investment.

But two of the best ASX 200 shares to buy could be named below. Here's why they might be no-brainer buys right now according to analysts:

NEXTDC Ltd (ASX: NXT)

The first no-brainer ASX 200 share that could be a buy is NEXTDC.

It is a data centre as a service company which is operating and developing a growing number of world class centres in key locations across Australia and the Asia-Pacific.

Demand for capacity in its centres has been growing very strongly in recent years due to more infrastructure shifting to the cloud and the artificial intelligence (AI) megatrend.

Morgans is a big fan of the company and believes it would be a great way to gain exposure to AI. It recently said:

The largest operators in the world are Digital Realty and Equinix. Digital Realty recently reported a record sales quarter during which it sold double the data centre capacity of its previous high and about four times more capacity than it usually sells in a quarter.

This reinforces our view that the significant demand for cloud computing and AI-related digital infrastructure is going to underpin attractive returns and long-term growth. […] Our preferred exposure is NEXTDC. It has 17 operational data centres in Australia and nearly a dozen under construction or about to be built across Australasia and Asia.

Morgans has an add rating and $20.50 price target on its shares.

Xero Ltd (ASX: XRO)

Another no-brainer ASX 200 share to consider for a $1,000 investment is cloud accounting platform provider Xero.

Xero has been growing at a rapid rate in recent years thanks to the shift online and the quality, popularity, and stickiness of its platform. At the last count, the company had almost 4.2 million subscribers globally.

Goldman Sachs believes there's still plenty of growth ahead for the company. In fact, it estimates that Xero has a total addressable market of 100 million+ small businesses. It commented:

We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM. Given the company's pivot to profitable growth and corresponding faster earnings ramp, we see an attractive entry point into a global growth story with Xero our preferred large-cap technology name in ANZ – the stock is Buy rated.

Goldman has a buy rating and $201.00 price target on its shares.

The post 2 no-brainer ASX 200 shares to consider buying with just $1,000 appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has positions in Nextdc and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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