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As its name implies, the ASX 200 index is home to 200 shares for investors to choose from.
But which ones could be buys?
Well, to help narrow things down for you, I have picked out a couple of ASX 200 shares that Goldman Sachs rates very highly.
Here’s what the broker is saying about these shares right now:
Endeavour Group Ltd (ASX: EDV)
The first ASX 200 share that has been given the thumbs up by analysts at Goldman Sachs is Endeavour.
It is the drinks giant behind brands such as Dan Murphy’s, BWS, Pinnacle Drinks, Langtons, Jimmy Brings, and Paragon Wine Estates. In addition, the company has a network of 344 hotels and scalable digitalâ¯platforms.
Goldman Sachs is a big fan of the company and believes its shares are good value based on its leadership position, defensive qualities, and positive outlook. It said:
Most attractive valuation amongst Staples peers: We continue to see defensiveness in the company’s Retail business with relative market share of ~35% vs COL liquor of ~13%, 5.2mn active My Dan’s members. EDV is currently trading at FY24e P/E of 18.4x with FY23-25e EPS CAGR of ~5%, which is the cheapest vs WOW, COL, WES.
The broker currently has a buy rating and $6.40 price target on the company’s shares.
Woolworths Limited (ASX: WOW)
Another ASX 200 share that has been named as a buy by analysts at Goldman Sachs is Woolworths.
It is of course Australia’s largest supermarket operator. In addition, it owns Big W and has a growing pet care business.
Goldman Sachs likes Woolworths due to its industry leadership and potential for further market share gains. This is thanks to its loyalty program and omni-channel advantage. The broker explains:
We are Buy rated (on Conviction List) on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as pass through any cost inflation to protect its margins, beyond market expectations.
Goldman has a buy rating and $42.30 price target on its shares.
The post Why Goldman Sachs rates these ASX 200 shares as buys appeared first on The Motley Fool Australia.
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More reading
- 7 must-see results this ASX reporting season before buying or selling
- ‘Attractive’: 2 ASX 200 shares to buy right now from the boom sector for 2024
- Top brokers name 3 ASX shares to buy next week
- Brokers say these ASX dividend shares are buys next week
- Top ASX dividend shares to buy in February 2024
Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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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