3 of the best ASX 200 stocks to buy in December

Bell Potter has been busy running the rule over a number of sectors this week.

This has led the broker to pick out ASX 200 stocks that it believes are among the best to buy in December ahead of the new year. Let's see what it is recommending to clients:

Bega Cheese Ltd (ASX: BGA)

This diversified food company's shares have been named as a buy by Bell Potter with a $7.00 price target,

The broker highlights that its strategy leaves it well-placed to grow its earnings per share by upwards of 20% per annum through to 2028. It said:

Following recent restructuring announcements, with regard to the closure of Strathmerton and winding down of the PCA operations, there appears a clear pathway towards a $250-270m EBITDA target. If successful in generating this return and having consideration for the cash costs to achieve this target (c$85- 100m), it would imply a share price of $8.00-9.00ps (at BGA's historical ~12x EBITDA multiple). In effect, BGA now has a clearly articulated strategy to generating >20% p.a. EPS growth to FY28e. Trading on a FY25-28e PEG ratio of ~1x, BGA is one of the more compelling growth exposures in the sector. Buy, Price Target $7.00

Centuria Industrial REIT (ASX: CIP)

This industrial property company is another ASX 200 stock that gets the seal of approval from Bell Potter. It has a buy rating and $3.65 price target on its shares.

Bell Potter highlights that its shares are trading at a sharp discount to their net tangible assets (NTA). This comes at a time when the broker believes there is a strong chance of higher valuations for its properties driven by cap rate compression. It said:

The capital transaction market for industrial has improved significantly across CY25, and indeed, we see strong runway for the sector and in turn valuations into CY26 with material levels of dry powder capital already raised awaiting deployment. Coming into 1H26 and FY26 result periods, we anticipate revaluation uplift driven by cap rate compression as well as net effective rental growth given +5.8% trailing LFL NOI growth that we think is cycling trough levels. CIP provides access to a best in class, scaled, east coast portfolio of industrial property yet trades at a c. -14% discount to NTA.

Generation Development Group Ltd (ASX: GDG)

A third ASX 200 stock that is rated highly by the broker is Generation Development Group.

It is a provider of investment bonds and investment-linked lifetime annuities that offer tax-efficient solutions for wealth accumulation, estate planning, and regular retirement income.

The broker has a buy rating and $8.40 price target on its shares.

It is positive on the company's outlook, noting that its investor day targets were comfortably ahead of expectations. It said:

FY28 managed account targets provided at the investor day were ahead of consensus forecasts, incorporating +$28-33bn net inflows and implying +33% compound FUM growth at the mid-point. Expectations for +50% EBITDA margins were also reiterated. Trading on 32x FY28 PE we view the risk-reward as positively asymmetric with: (1) run-rate net inflows of +$8bn likening to +$24bn before new mandates and partnerships; (2) adviser install base utilisation of 35%; and (3) a request for proposal with large superannuation funds flagged to complete within 6-12 months.

The post 3 of the best ASX 200 stocks to buy in December appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2025