These ASX 200 shares could be buys…
The post Morgans rates these ASX 200 shares as buys appeared first on The Motley Fool Australia. –
If you’re looking to bolster your portfolio with some new ASX 200 shares in December, then you may want to consider the two listed below.
Both have recently been named as buys by the team at Morgans. Here’s what they have to say about these ASX 200 shares:
BHP Group Ltd (ASX:BHP)
If you’re happy to invest in the resources sector, then BHP could be an ASX 200 share to consider according to Morgans. Its analysts believe the company is a relatively low risk option in the sector and see a lot of value in its shares at the current level.
Morgans has an add rating and $45.70 price target on BHP’s shares.
The broker commented: “We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors.”
“While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile,” it added.
Treasury Wine Estates (ASX:TWE)
Another ASX 200 share to consider is Treasury Wine. Morgans believes the wine giant’s shares are undervalued, particularly given its recent restructuring. And while it acknowledges that it will take time to recover its lost earnings in China, the broker remains positive on the future.
Morgans has an add rating and $14.06 price target on the company’s shares.
It commented: “TWE has the China reallocation risk and it will take 2-3 years to recover these earnings in new markets. However, outside of China, its key markets, particularly the US, are recovering faster than expected from COVID.”
“The new business units centred around the brands, are now fully in place and we are excited to see what they can earn with TWE effectively creating the benefits of a demerger without the extra costs. It also demonstrates that the SOTP is worth materially more than the whole. It shines a light on Penfolds and its best-in-class margins and may ultimately lead to corporate activity in some form in the future. We rate this management team highly,” it concluded.
Should you invest $1,000 in BHP right now?
Before you consider BHP, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
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 Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.