Morgans has put these ASX shares on its Christmas wishlist

With Christmas less than a week away, the team at Morgans has been busy looking at which ASX shares it would like Santa to leave under the tree this year.

On this occasion, the broker is focusing on the retail sector and has picked out three shares that it wants to unwrap on Christmas morning. It said:

Perhaps you’re super organised this year and have bought all your presents already. If so, reward yourself by writing a note to Santa with a wish list of stocks you’d like to see in your stocking on Christmas morning. We have, and this year we’d love to receive share certificates in BLX, SUL and UNI.

An ASX share that is too cheap

The first ASX share that Morgans wants to find under the tree is speciality retailer Beacon Lighting Group Ltd (ASX: BLX). The broker currently has an add rating and $2.60 price target on its shares. It said:

We think retail demand for BLX’s lighting products will remain resilient through 1H23 and into 2H23, but even when consumer demand inevitably softens, we believe its strategy to develop its Trade (and International) business will offset and outweigh the cyclical downturn. At an FY24F PE of just 13.0x, we think BLX is too cheap for the growth it offers over the longer term.

A Super pick for 2023

The next ASX share for investors to buy is Super Retail Group Ltd (ASX: SUL). It is the retail conglomerate behind brands such as Super Cheap Auto and Rebel Sport. Morgans has an add rating and $13.00 price target on its shares. It said:

Though not a growth story as such, we see SUL as a well-run retailer that is well placed to surprise positively on earnings. Consumer demand is holding up well across most of its brands, while its investment in inventory is likely to allow it to hold gross margins. SUL has more than $250m in franking credits and we wouldn’t be surprised to see a special dividend at some point.

A retailer with a strong customer base

A final ASX share that Morgans wants for Christmas is youth fashion retailer Universal Store Holdings Ltd (ASX: UNI). Its analysts have an add rating and $6.50 price target on its shares. The broker commented:

UNI is benefiting from robust demand from its youthful (and fully employed) core customer. It has displayed excellent discipline around pricing and it has attractive growth opportunities across three channels: retail, online and now wholesale too.

The post Morgans has put these ASX shares on its Christmas wishlist 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 positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. 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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