The Endeavour Group Ltd (ASX: EDV) share price is rising with the market on Wednesday.
In morning trade, the drinks companyâs shares are up over 1% to $6.67.
Where next for the Endeavour share price?
It could be onwards and upwards from here according to a couple of leading brokers.
Goldman Sachs, for example, is bullish on the company and has recently put a buy rating and $7.80 price target on its shares.
Based on the current Endeavour share price, this implies potential upside of 17% for investors from current levels. In addition, Goldman expects dividend yields of approximately 3.3% in FY 2023 and 3.6% in FY 2024.
The broker is positive largely due to Endeavour’s leadership position in a defensive category. It commented:
We remain positive on EDV given its clear leadership in a resilient category with proven strong sales execution and high consumer loyalty. We believe that the companyâs investments in digitalization enabling targeted pricing and promotions as well as increasing automation of cost items will provide the operational agility required in a fast changing consumer environment. Additionally, our sensitivity analysis suggests that the risk of NSW gaming regulatory risk is largely factored in and hence more clarity around execution could provide upside catalysts.
Who else is bullish?
Another broker that is bullish is Morgans. In fact, its analysts named the company on the brokerâs best ideas list again this month with an add rating and $7.80 price target.
Morgans believes recent weakness in the Endeavour share price has created a buying opportunity for investors. It commented:
We believe the share price weakness over the past six months on the back of an uncertain regulatory environment (eg, potential introduction of cashless gaming cards in NSW) has shifted the balance of risks to the upside with EDVâs underlying business remaining strong. The company possesses a broad network of retail liquor stores/hotel venues, well-known brands (eg, Dan Murphyâs and BWS) and dominant market positions.
The post Why brokers tip double-digit gains from the Endeavour share price appeared first on The Motley Fool Australia.
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More reading
- 2 of the best defensive and safe ASX 200 shares to buy now: broker
- Morgans names 3 of the best ASX shares to buy in March
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 no position in any of the stocks mentioned. 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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