The team at Goldman Sachs has been running the rule over a number of ASX 200 shares this month.

Two that the broker rates highly right now are listed below. Here’s what it is saying about them:

Bank of Queensland Limited (ASX: BOQ)

This regional bank could be an ASX 200 share to buy according to Goldman Sachs. It was pleased with its recent trading update and notes that the company is performing better than expected so far in FY 2021. In light of this and recent share price weakness, the broker sees a lot of value in its shares currently.

Goldman Sachs has a buy rating and $9.67 price target on the company’s shares. This compares to the latest Bank of Queensland share price of $7.94.

Goldman commented: “Our recently revised FY22E revenue growth on pro-forma FY21A had been 1.2% and costs of -0.4%. This compares to their updated implied revenue growth guidance of +1% (i.e. at least 2% positive jaws guidance) and expenses of -1%. Therefore, with costs run-rating mildly better than we had expected, we make minor revisions to our FY22/FY23/FY24E EPS of +0.5%/+0.4/+0.1% and our TP moves to A$9.67 from A$9.66. Overall we maintain our Buy recommendation on BOQ, which we believe has more offsets to these mortgage NIM pressures in the form of i) BOQ’s more rate sensitive deposit book, and ii) the continued delivery of ME Bank synergies. Coupled with 33% TSR to our revised TP, we stay Buy.”

Harvey Norman Holdings Limited (ASX: HVN)

This retail giant could be a top option for investors right now. This is due to Goldman’s belief that the company will continue to benefit from strong consumer spending in the home category.

The broker has a buy rating and $6.00 price target on the retailer’s shares. This compares to the current Harvey Norman share price of $5.17.

Goldman explained: “We update our earnings outlook on HVN to reflect the latest trading update. We continue to expect the underlying sales growth vs. pre-COVID levels to remain strong due to the positive housing related spending environment and an overall expected increase in spending for the home category. Additionally, we also update our FX forecasts for HVN, in line with the latest GSe. Overall, this results in a revision of group EBIT outlook by +0.1% and +0.8% respectively over FY22 and FY23e respectively. Our 12m Target Price for HVN remains unchanged at A$6.00 and we maintain a Buy rating on HVN.”

The post Goldman Sachs names 2 ASX 200 shares to buy appeared first on The Motley Fool Australia.

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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 owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are some market leaders of industry within the S&P/ASX 200 Index (ASX: XJO). The ASX 200 shares in this article could be compelling ideas to think about.

Businesses that have strong competitive positions may be good ideas to think about for an investor’s portfolio.

Companies can continually improve their business if they keep investing and focusing on their strengths.

Could these two top ASX 200 shares be worth owning?

JB Hi-Fi Limited (ASX: JBH)

This company is made up of three operating businesses – JB Hi-Fi Australia, The Good Guys and JB Hi-Fi New Zealand.

It sells a wide array of electronics like computers, phones, TVs, as well as other home items like fridges, cooking appliances, air conditioning and so on. Many of the products it sells are integral parts of our homes and lives.

JB Hi-Fi says that its group model is underpinned by five unique competitive advantages – scale, a low cost operating model, quality store locations, supplier partnerships and multichannel capability. Another aspect of its success is that its stores are very effective, with a high level of sales per square metre.

FY21 saw the ASX 200 share’s profitability significantly increase. Whilst total sales went up 12.6% to $8.9 billion, net profit after tax (NPAT) soared 67.4% to $506.1 million.

Analysts were impressed by the FY22 first quarter sales update. Despite restrictions, lockdowns and so on, JB Hi-Fi Australia sales only fell 7.5%, JB Hi-Fi New Zealand sales dropped 6.4% and The Good Guys sales dropped 5.6% in the first three months.

JB Hi-Fi also said that in October, the group had seen sales momentum continue and has benefited from the reopening of stores in NSW and changes to the timing of key product releases compared to prior years.

Credit Suisse rates JB Hi-Fi as a buy, with a price target of $55.86 and thinks it has a very strong position in the retail world.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is one of the oldest ASX 200 shares. It was listed over a century ago.

It has built an investment portfolio of different businesses in different sectors.

Soul Patts is in telecommunications with TPG Telecom Ltd (ASX: TPG) and Tuas Ltd (ASX: TUA), resources with substantial investments in New Hope Corporation Limited (ASX: NHC) and Round Oak, agriculture, property and so on. Brickworks Limited (ASX: BKW) is another major position. Soul Patts also has a large cap ASX share portfolio and a small cap ASX share portfolio.

This business has grown its dividend every year for the last two decades. It has achieved this by having a range of asset classes, with mostly defensive and contrarian investments that it picks for the long-term. The reliable cashflow it generates both funds the growing dividend and can be re-invested into more opportunities.

A recent merger with the listed investment company (LIC) Milton will allow the ASX 200 share to jump on investment opportunities in a number of different target asset classes and thematics. It’s looking at private equity, structured high yield, emerging companies, global equities, ‘real’ assets, property, health and ageing, energy transition, agriculture, financial services and education.

Whilst the Soul Patts share price has a 15% upside to the Morgans price target of $36.78, it’s only rated as a hold at the moment by that broker.

The post Are these 2 leading ASX 200 shares worth owning? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts on Friday

Motley Fool contributor Tristan Harrison owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks. The Motley Fool Australia owns and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Westpac Banking Corp (ASX: WBC) share price has been a poor performer in recent weeks.

For example, since the start of November, the banking giant’s shares have lost approximately 19% of their value.

Is the weakness in the Westpac share price a buying opportunity?

One leading broker that is sitting on the fence with the Westpac share price is Goldman Sachs. Last week the broker retained its neutral rating on Australia’s oldest bank’s shares.

Though, it is worth noting that with a price target of $25.60, Goldman still sees 23% upside for the Westpac share price over the next 12 months.

Furthermore, its analysts are forecasting a fully franked 5.8% dividend yield in FY 2022. If you add this into the equation, this brings the total return on offer to almost 29%. Not bad for a neutral rating!

What did the broker say?

The main reasons Goldman Sachs isn’t overly positive about the Westpac share price are the bank’s margin outlook and doubts over management’s bold cost reduction plans.

Goldman explained: “We remain Neutral rated on WBC, reflecting: i) the significant reset in the margin at the FY21 result provides a weak platform for revenue growth in FY22E; ii) with expenses disappointing in 2H21, we believe the potential for WBC to reach its FY24 cost target of A$8.0 bn should be more heavily discounted than previously was the case, and we note that our like-for-like FY24E cost forecast is c. A$8.6 bn; and iii) the benefits to non-interest income from increased economic activity are set to be offset by a loss of income from divestments.”

Though, the broker does acknowledge there is potential upside risk from “higher interest rates, outperformance on NIM management, better than expected performance on cost management.”

The post Is the Westpac (ASX:WBC) share price a buy after falling 19% in 6 weeks? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update
• Westpac (ASX:WBC) share price higher on $3.5bn buyback update
• Could rumours over a Westpac (ASX:WBC) mega-merger ever become facts?
• RBA maintains interest rate but removes 2024 reference. What could this mean for ASX shares?

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Rio Tinto Limited (ASX: RIO)

According to a note out of Morgan Stanley, its analysts have upgraded this mining giant’s shares to an overweight rating with an improved price target of $110.50. The broker believes there is upside risk to expectations thanks to an improving housing outlook in China and strong demand for aluminium. Morgan Stanley also highlights that the company’s shares have pulled back materially from recent highs. The Rio Tinto share price was trading at $95.83 at the end of the week.

Webjet Limited (ASX: WEB)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating but trimmed their price target on this online travel agent’s shares to $6.90. The broker has been looking at the Omicron variant of COVID-19 and the impact it could have on travel markets. While it does expect it to push back Webjet’s recovery, it remains positive. Goldman continues to see a long term growth story in the Webjet business. The Webjet share price was fetching $5.49 at Friday’s close.

Westpac Banking Corp (ASX: WBC)

Analysts at Morgans have retained their add rating and $30.50 price target on this banking giant’s shares. According to the note, the broker believes the market is pricing Australia’s oldest bank’s shares as a value trap. However, it doesn’t believe this is the case and instead sees significant value in them. All in all, it feels the recent pullback is a buying opportunity for investors. The Westpac share price ended the week at $20.85.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Fortescue CEO steps down, Westpac buyback update
• Evergrande officially defaults, downgraded by Fitch. What next?
• Westpac (ASX:WBC) share price higher on $3.5bn buyback update
• Analysts name 2 ASX dividend shares to buy now
• Could rumours over a Westpac (ASX:WBC) mega-merger ever become facts?

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Webjet Ltd. and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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