Coles Group Ltd (ASX:COL) and this ASX 50 share have been named as buys by Goldman Sachs…
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As its name implies, the S&P/ASX 50 index is home to the 50 largest listed companies on the Australian share market.
This means the index is home to many of the highest quality and most well-known companies that the ANZ region has to offer.
Two ASX 50 shares that are highly rated are listed below:
Coles Group Ltd (ASX: COL)
Coles is of course one of Australia’s largest supermarket operators. It has been a solid performer over the last 12 months due to its defensive qualities, strong market position, and rational competition.
This led to the supermarket giant reporting a 6.9% increase in sales to $37.4 billion and a 7.1% lift in net profit after tax to $951 million in FY 2020 despite the pandemic. Pleasingly, this strong form has continued in FY 2021, with Coles reporting stellar sales growth for the three months ended 30 September.
Goldman Sachs thinks Coles is a great option for investors. It has a buy rating and $20.50 price target on its shares at present.
Lendlease Group (ASX: LLC)
Another ASX 50 share which comes highly rated is Lendlease. It is a global property and infrastructure company which had a disappointing time in FY 2020. This led to the company reporting a loss of $310 million.
The good news is that its outlook is becoming increasingly positive. This is due to the divestment of its struggling engineering business and the announcement of a major new strategy. The latter is shifting its earnings mix and business model favourably and looks to have positioned it perfectly for long term growth.
This is expected to be supported by some major urbanisation projects such as Thamesmead Waterfront in London and a partnership with Google in the San Francisco Bay Area.
Goldman Sachs is also a fan of Lendlease. It has a buy rating and $16.74 price target on the company’s shares. The broker notes that its shares are trading at a discount to peers and expects this to narrow if it executes its new strategy successfully.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.