Every month, analysts at Morgans pick out their best ASX stock ideas.

These are the ASX stocks that the broker thinks offer investors the highest risk-adjusted returns over a 12-month timeframe. Morgans also highlights that they are supported by a higher-than-average level of confidence.

Among its best ideas for September are the two ASX 200 stocks listed below. Here's what the broker is saying about these top stocks this month:

Lottery Corporation Ltd (ASX: TLC)

Morgans has added Lottery Corporation to its best ideas list this month. It is the company behind lotteries such as Powerball and Keno, as well as online/mobile lottery platform, The Lott.

Its analysts like Lottery Corporation due to its strong free cash flow generation, attractive valuation, and stable business model. They explain:

TLC's FY24 result was impressive, driven by a favourable year for Lotteries and strong active customer growth. Despite lapping a record period of growth in Lotteries, we remain positive on the stock as current lottery volumes continue to perform well. The company mentioned that Saturday Lotto will be the next game to receive an update, which should benefit the base game divisions significantly and likely come with a price increase, offsetting some recent softness.

Additionally, TLC reported a leverage ratio of 2.5x, below the guided range of 3-4x, and has expressed interest in renewing the VIC licence. Based on our estimates, TLC is set to deliver a 4.5% FCF yield and a 4% dividend yield in FY25. The stock trades in line with its historical valuation ranges and we view it as a solid option for investors seeking stability.

The broker currently has an add rating and $5.40 price target on its shares.

Reliance Worldwide Corporation Ltd (ASX: RWC)

Another ASX 200 share that has been added to Morgans' best ideas list is plumbing parts company Reliance Worldwide.

The broker likes Reliance Worldwide due to its defensive qualities, robust balance sheet, and improving demand. It said:

RWC is highly leveraged to an improved demand back drop via its R&R exposure. Recent cost saving measures will make the leverage to improving demand even more appealing, while continued penetration of SharkBite Max and other new products will also assist. This is a great business with defensive characteristics, a healthy balance sheet, new product innovation and operating efficiencies to support future earnings growth.

Morgans currently has an add rating and $5.75 price target on the company's shares.