The S&P/ASX 200 Index (ASX: XJO) went up more than 1% today in a positive start to the week.

It was another strong day for some of the ASX 200 gold miners. The Saracen Mineral Holdings Limited (ASX: SAR) share price rose by 11.3% and the St Barbara Mining Limited (ASX: SBM) share price went up 7.5%.

Elders Ltd (ASX: ELD) was a top performer within the ASX 200

Agri business Elders reported its half-year result today, causing the share price to rise almost 10%.

Elders reported that statutory net profit after tax (NPAT) went up by 90% to $52 million. Underlying NPAT rose 68% to $47.6 million. Operating cash flow jumped 309% to $27.4 million.

The company declared the same interim dividend as last year at 9 cents per share.

It said that the result reflected a solid performance from its Rural Products with the gross margin boosted by recent winter crop confidence, high prices for both cattle & sheep and steady earnings in Real Estate and Financial Services.

Elders was one of the best performers in the ASX 200.

Virgin Australia Holdings Limited (ASX: VAH) closer to a white knight?

The administrators of Virgin have moved the rescue process to a bidder shortlist.

According to Vaughan Strawbridge, lead partner of the administrators, each bidder is well funded and possesses deep aviation experience. Each of the bidders has a plan which could secure the future of thousands of employees.

The ABC has reported those remaining bidders are Bain Capital and BGH Capital, US aviation firm Indigo Partners, and New York-based investor Cyrus Capital Partners.

Ramsay Health Care Limited (ASX: RHC) keeps making progress

The ASX 200 private hospital operator continues to make announcements regarding agreements it has achieved with health bodies.

Today the healthcare business said it has finalised the agreement with Western Australia and it has also finalised the agreement with NHS England.

The market sent the Ramsay share price up more than 3% today in positive reaction.

Returns as of 7/4/2020

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders Limited and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More reading

• Why this overlooked ASX 200 stock just got upgraded by 3 leading brokers to “buy”
• Why the Ramsay share price is climbing
• Why ASX iron ore miners like BHP aren’t afraid of the China trade war
• 3 top Warren Buffett quotes to start off your week
• Virgin narrows its shortlist down to 4 suitors

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The listed real estate sector is finding support today, but there’s one stock in particular that’s capturing the attention of brokers.

The stock in the limelight is Charter Hall Group (ASX: CHC) as three leading brokers upgraded their recommendation on the stock to “buy” following its latest update released last week.

The Charter Hall share price jumped 2.5% to a two-month high of $8.10 when the S&P/ASX 200 Index (Index:^AXJO) added 1% on Monday.

More fuel in the tank

While the group may not be the best performer in the sector as the Stockland Corporation Ltd (ASX: SGP) share price surged 4.4% and the Vicinity Centres (ASX: VCX) increased 4% to $1.45, experts believe there’s plenty of room for Charter Hall to outperform.

UBS is one that believes in the upside as it upgraded the stock to “buy” from “neutral”.

“A concern of real estate valuations, funds flows/capital raisings and transactions in a COVID-19 world has seen CHC underperform the AREIT market by 11% over the past 3 months,” said the broker who put a 12-month price target of $9.80 on the stock.

“On rebased earnings CHC is trading on a 14x PE multiplied with growth of 6% from FY21.”

Limited retail exposure

The diversified property portfolio of the group will give some protection against the looming structural risks facing retail landlords.

Credit Suisse believes there is too much focus on Charter Hall’s retail exposure.

“At 30 Apr 2020, CHC had A$18.0bn of Office and A$8.1bn of Industrial FUM pre any gross-up from its Long WALE exposure,” said the broker.

“Importantly, we estimate Retail provides only ~25% of ‘base’ earnings (i.e. pre any performance or transaction fees).”

Credit Suisse lifted its rating on the stock to “outperform” from “neutral” with a 12-month price target of $9.17 a share.

One of the safest ASX property stocks you can buy

JP Morgan also took the opportunity to upgrade its call on Charter Hall to “overweight” from “neutral”. There were a few reasons for this, including management’s update that showed little impact from the coronavirus fallout on group earnings.

It also noted that the group is among the lowest risk and most defensive property stocks in the Australian real estate investment trust (A-REIT) sector.

Further, Charter Hall can grow its industrial platform through transactions like sale and leaseback and JP Morgan sees scope for the stock to re-rate.

The broker’s price target on Charter Hall is $9 a share.

More reading

• 2 high yield ASX dividend shares to buy for 2021
• 3 industries that may never recover from COVID-19
• Why ASX iron ore miners like BHP aren’t afraid of the China trade war
• 3 top Warren Buffett quotes to start off your week
• How is the ASX 200 soaring despite rising unemployment?

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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