With the market going through a very turbulent time, a number of ASX 200 shares have been hit hard.
Two that have been beaten down in 2022 and could be great value now are listed below. Here’s what analysts are saying about them:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
This pizza chain operator’s shares have been sold off this year. This has been driven by weakness in Japan and concerns over inflationary pressures.
Nevertheless, the team at Morgans remains positive on the company and appears to see the recent share price weakness as a buying opportunity.
Morgans likes the company due to its very positive long term growth outlook. It said:
DMP is the largest Domino’s franchisee outside the US and one of the largest quick-service restaurant companies in the world. It is an affordable option that has performed well historically even in times of inflation or slower economic growth.
The engine of DMP’s growth is its ability to roll out new stores all over the world. It added 438 stores to its global network in the year to June 2022, a pace of expansion that we forecast to accelerate to nearly 600 in FY23. This will take the total to almost 4,000 stores, up fourfold over a ten-year period. Over the next ten years, DMP expects to grow organically to 7,250 stores in the 13 countries in which it currently operates. This means DMP expects to more than double in size again by 2033, not including any future acquisitions.
Morgans has an add rating and $90.00 price target on the company’s shares. This compares favourably to the latest Domino’s share price of $54.15.
Goodman Group (ASX: GMG)
Another ASX 200 share that has fallen hard this year is Goodman. It is an integrated commercial property company with a focus on industrial assets.
Goldman Sachs believes the weakness in the Goodman share price is a bit of a gift to investors. Particularly given the quality of the company and its positive growth outlook.
Its analysts thought the company’s shares were great value last month when they were down 22% year to date. Goodman’s shares have fallen even further since then, which is likely to have the broker licking its lips now. It previously commented:
Year to date, GMG shares are down ~22% [now 39%!], underperforming the ASX200 by ~17% and the ASX200 REIT index by ~5%. We estimate that GMG currently trades on a P/E to growth ratio of ~2.2x (vs. 5-yr historical average of ~2.7x). GMG offers an estimated FY22-24e earnings CAGR of ~14%, screening relatively attractively on a growth adjusted basis relative to our REIT coverage average of ~4%.
Goldman has a buy rating and $25.40 price target on the company’s shares. This compares nicely to the latest Goodman share price of $16.23.
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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 has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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