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The S&P/ASX 200 Index (ASX: XJO) is having another disappointing day so far this Tuesday. At the time of writing, the ASX 200 is down by a disappointing 0.6% at just under 7,000 points after bouncing up and down all day. 

But rather than trying to figure that out, let’s instead take a look at the shares currently topping the ASX 200’s volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume so far this Tuesday

Coronado Global Resources Inc (ASX: CRN)

Metallurgical coal company Coronado is a miner that finds itself on this list today. As it currently stands, an eyecatching 20.63 million of this ASX 200 company’s shares have bounced around the ASX this Tuesday.

Again, there’s no news out from the company to speak of, but Coronado has also had a big drop in value on the markets. Its shares are currently down a depressing 4.03% at $1.98 each. But that still leaves Coronado up close to 35% over the past month, to put that into perspective.

South32 Ltd (ASX: S32)

Diversified ASX 200 miner South32 is our next share up this Tuesday. So far today, a notable 21.05 million South32 shares have found a new home. There’s been no fresh news out of the company today.

Thus, it’s likely that this elevated volume is the result of the nasty tumble South32 has endured so far today. The company is currently down by 6.34% at $5.02 a share. However, it remains up close to 20% over the past month.

Nickel Mines Ltd (ASX: NIC)

It’s all about those miners today, it seems. ASX 200 nickel share Nickel Mines is our third and final ASX share experiencing elevated trading volumes on the markets. In this company’s case, a hefty 33.6 million shares of Nickel Mines have changed hands as it currently stands.

As is a theme today, this doesn’t appear to be the result of anything out of the company itself. Rather, another large share price fall seems to be to blame. Nickel Mines is presently down by 4.7% at $1.57 a share. But that comes just after the company hit a new 52-week high only yesterday. 

The post These 3 ASX 200 shares are topping the volume charts on Tuesday appeared first on The Motley Fool Australia.

More reading

• 15% yield! But are these ASX high-yield shares dividend traps?
• 5 ASX mining shares smashing 52-week highs today
• Here’s why the Nickel Mines (ASX:NIC) share price just hit an all-time high
• Here’s why the South32 (ASX:S32) share price has soared 25% in a month
• ASX 200 (ASX:XJO) midday update: CSL and St Barbara charge higher

Motley Fool contributor Sebastian Bowen 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 Bruce Jackson.

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The Kogan.com Ltd (ASX: KGN) share price is soaring on Tuesday despite the company’s silence.

At the time of writing, Kogan’s shares are trading for $5.54, 3.55% higher than their previous close.

Let’s take a look at what might be driving the online retailer’s stock higher.

Why is the Kogan share price gaining today?

Kogan’s stock is in the green today, for the first day since last Wednesday.

That’s despite the broader market spending today in the red. Right now, the S&P/ASX 200 Index (ASX: XJO) is down 0.63% while the All Ordinaries Index (ASX: XAO) has slumped 0.75%.  

However, the Kogan share price plunged 4.1% yesterday and 4.4% on Friday. Thus, today’s gain could be the market correcting itself after the unexplained sell-off.

Additionally, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has spent most of today in the green.

Meaning some of Kogan’s retail peers are also outperforming the broader market.

Like the Kogan share price, Temple & Webster Group Ltd (ASX: TPW) and Dusk Group Ltd (ASX: DSK) are recording better-than-average performances. They’re gaining 0.69% and 3.67% respectively.  Though, most ASX retailers are in the red today. 

Additionally, the pureplay online retailer might be being lumped in with the tech sector on Tuesday.

Right now, the S&P/ASX All Technology Index (ASX: XTX) is up 0.11% while the S&P/ASX 200 Info Tech Index (ASX: XIJ) has gained 0.06%.

Though, today’s boost hasn’t been enough to get the Kogan share price back into the long-term green.

It’s currently down 35% year to date. It has also fallen 57% since this time last year.

The post Why is the Kogan (ASX:KGN) share price leaping 4% today? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Down 36% in 2022, should investors jump on the Kogan (ASX:KGN) share price?
• What’s the outlook for ASX retail shares like Kogan (ASX:KGN)?
• These are the 10 most shorted ASX shares
• Why Blackmores, BWX, Kogan, and Magellan shares are dropping

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended Harvey Norman Holdings Ltd. and Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Macquarie Group Ltd (ASX: MQG) share price could offer decent upside from current levels.

That’s the view of analysts at Morgans, which have just named the investment bank as one of their best ideas for March.

What does Morgans think about the Macquarie share price?

According to the note, Morgans has picked out its best ideas for the month of March. These are the ASX shares that the broker believes offer the highest risk adjusted returns over a 12-month timeframe and are supported by a higher than average level of confidence.

And while Morgans actually only has a hold rating on Macquarie’s shares, its price target is meaningfully higher than where it is trading today, so it makes the list.

The note reveals that the broker has a price target of $200.00 on its shares at present. This implies potential upside of 13% over the next 12 months based on the current Macquarie share price of $176.67.

In addition, Morgans is expecting a decent dividend yield over the next 12 months. Its analysts are forecasting a $6.63 per share dividend in FY 2022. This equates to a 3.8% yield at current levels, which stretches the total return on offer with Macquarie’s shares to 17%.

What did the broker say?

Morgans sees value in the current Macquarie share price and growth opportunities for the bank in infrastructure and renewables.

Its analysts commented: “We still see MQG as relatively inexpensive and continue to like its exposure to long-term structural growth areas such as infrastructure and renewables. Near term MQG is likely to face earnings pressure from the impact of soft economic conditions but remains well positioned to ride out the current Covid-19 period and seize opportunities on the other side.”

In respect to renewables, Macquarie spoke about some of its plans in the space at the AFR Summit today.

Macquarie’s CEO, Shemara Wikramanayake, said: ”Agriculture is another big source of emissions, a lot bigger here than overseas.”

In light of this, Macquarie is working with the CSIRO to produce new types of plant feed that reduces emissions. It is also focusing on other solutions to help the globe transition away from fossil fuels and combat catastrophic climate change.

Based on what Morgans is saying, its analysts see a big opportunity for Macquarie with these activities.

The post Broker tips Macquarie (ASX:MQG) share price to rise 13% appeared first on The Motley Fool Australia.

More reading

• Why the Pilbara (ASX:PLS) share price is a buy right now: expert
• Is the ASX set to welcome yet another BNPL share? Macquarie-backed company gears up for IPO
• Is Macquarie (ASX:MQG) gearing up to ink its next big deal?
• ‘We are accountable’: Macquarie (ASX:MQG) weighs in on the future of green hydrogen
• 2 big-cap ASX shares that even this small-cap expert recommends

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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Electro Optic Systems Holdings Limited (ASX: EOS) share price is in the red this week amid changes to the S&P/ASX 300 Index.

The company’s shares are currently swapping hands at $1.655 each, down 3.5%. The Electro Optic share price has lost almost 9% in the past week.

Let’s take a look at what is happening with Electro Optic lately.

Removal from ASX 300

Electro Optic Systems has been removed from the S&P/ASX 300 Index. Investors were informed of this decision in an announcement to the market after close on Friday.

Other shares facing the axe from the index include Mount Gibson Iron Limited (ASX: MGX), Opthea Limited (ASX: OPT), and Marley Spoon Ag (ASX: MMM).

Joining the ASX 300 club are Aussie Broadband Limited (ASX: ABB), Core Lithium Limited (ASX: CXO), and MA Financial Group Limited (ASX: MAF) among others. The changes will take effect prior to open on March 22.

This news comes on the back of a tough year for the defence, space, and communications company. Since the start of the year, the Electro Optic share price has slipped more than 28%.

Electro Optic shares took a hit on 28 February amid the release of the company’s full-year earnings results for 2021. It reported a 12.2% drop in its underlying revenue to $14.3 million, while its net loss improved 32% to $16.8 million.

Just days earlier, on February 25, Electro Optic shares charged 12% higher on a satellite update. Electro Optic announced its subsidiary SpaceLink had made several satellite “breakthroughs”, including an upgraded design. The company believes this will boost profit due to improved margins on cost.

Electro Optic share price summary

The Electro Optic share price has plunged more than 66% in the past 52 weeks, while it is down almost 26% in the past month alone.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 4% over the past year.

The company has a market capitalisation of about $252 million.

The post What’s impacting the Electro Optic (ASX:EOS) share price this week? appeared first on The Motley Fool Australia.

More reading

• Could this ASX defence share be set to benefit from the Ukraine crisis?
• Electro Optic (ASX:EOS) share price plunges 13% on net loss
• Electro Optic (ASX:EOS) share price rockets 18% on ‘breakthrough’ satellite news

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia owns and has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Investors in the Australian Foundation Investment Co. Ltd (ASX: AFI), or AFIC for short, presumably want to see one thing from the AFIC share price: outperformance of the S&P/ASX 200 Index (ASX: XJO). AFIC has been around for decades. But over the past 20 years or so it has had to confront the rise of the exchange-traded fund (ETF).    

Index ETFs mirror the indexes they track, with a very small management fee. As such, investors now have alternatives to a Listed Investment Company (LIC) like AFIC if they want a broad-based and diversified ASX share investment under a single ticker code.

So AFIC investors might be delighted to find that AFIC has indeed topped out the ASX 200 over 2022 so far. This year has proven to be an exceptionally wild and volatile one thus far, as most ASX investors would be aware of. 

The ASX 200 itself has spent the year going backwards. On today’s pricing, the ASX 200 has lost 7.63% of its value. But in contrast, the AFIC share price has only lost 5.9%. That’s a meaningful outperformance of more than 1.7% over 2 months or so.

So how has AFIC done it?

AFIC share price beats out the ASX 200 over 2022 thus far

By differentiation, of course. BHP Group Ltd (ASX: BHP) is now the largest ASX 200 share on the index by far, thanks to its recent ASX unification. But as of 31 January, it remains the second-largest holding in AFIC’s share portfolio. In it’s place, we have Commonwelath Bank of Australia (ASX: CBA).

AFIC has also diverted more capital to Macquarie Group Ltd (ASX: MQG) than the other major big four bank shares. In fact, Wesfarmers Ltd (ASX: WES) and Transurban Group (ASX: TCL) occupy more weighting in AFIC’s portfolio than Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd. (ASX: NAB). And Australia and New Zealand Banking Group Ltd (ASX: ANZ) was only the 12th largest position in AFIC’s portfolio, versus its 6th place in the ASX 200. That has helped AFIC mitigate the effects of ANZ’s near-11% plunge this year so far. 

So it’s likely due to portfolio differences like these that have helped AFIC to outperform the ASX 200 over 2022 thus far. Let’s see what the rest of 2022 holds in store for AFIC. 

The post Index beater! How has the AFIC (ASX:AFI) share price outperformed the ASX 200 in 2022? appeared first on The Motley Fool Australia.

More reading

• Which new investments are predicted to help the AFIC (ASX:AFI) share price and dividends?
• AFIC (ASX:AFI) is the biggest LIC on the market. But how does its performance stack up?
• Why is the AFIC (ASX:AFI) share price sliding lower today?

Motley Fool contributor Sebastian Bowen owns National Australia Bank Limited. 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 Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Arafura Resources Limited (ASX: ARU) share price is launching upwards today despite no word having been released by the company.

However, there have been several happenings over the last few days that could be boosting the stock.

At the time of writing, the Arafura Resources share price is 20.5 cents, 7.89% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.49%, while the All Ordinaries Index (ASX: XAO) has slipped 0.6%.

Let’s take a look at what might be driving the rare earths developer’s stock lately.

Why is the Arafura Resources share price soaring today?

The Arafura Resources share price is well and truly in the green on Tuesday.

Today’s movements follow the stock’s 5% fall yesterday. It also fell 9% over Thursday and Friday.

Thus, today’s gains could be a market correction after its multi-day sell-off.

It could also feasibly be a reaction to recent news from S&P Dow Jones Indices. On Friday evening, the body announced Arafura Resources will be added to the All Ords on 21 March.

Its addition to the index tracking the 500 largest companies on the ASX could see trade in the rare earths company’s stock increase later this month.

That’s because funds tracking the index will be forced to snap up its shares.

At the same time, fund managers mandated to only trading in All Ords shares might prick their ears towards the stock.

Finally, The Arafura Resources share price might be being supported by the value of rare earths in 2022.

According to reporting from Reuters – published last week – China has called on rare earth producers to help lower the price of minerals needed for electric vehicles and the like.

The publication stated that the price of rare earths were near record highs on Friday.

Interestingly, stock in Arafura Resources’ rare earth-focused peers, Lynas Rare Earths Ltd (ASX: LYC) and Iluka Resources Limited (ASX: ILU) are down 2.7% and 3.7% respectively right now.

Despite today’s gains, the Arafura Resources share price is 8% lower than it was at the start of 2021.

The post Why is the Arafura Resources (ASX:ARU) share price leaping 8% today? appeared first on The Motley Fool Australia.

More reading

• Broker sees 19% upside for Telstra (ASX:TLS) share price and 4% dividend yield
• Diversification? Why VAS is really a bet on banks and miners
• Why is the Polynovo (ASX:PNV) share price sinking to a new multi-year low?
• Broker names 3 of the best ASX 200 shares to buy in March
• This ASX energy share is combatting its sector’s sell-off to hit 9-year highs

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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Earlier today the Telstra Corporation Ltd (ASX: TLS) share price dropped to a 2022-low of $3.80.

When the telco giant’s shares hit that level, it meant they were down a sizeable 10% since the start of the year.

Is the weakness in the Telstra share price a buying opportunity?

One broker that is likely to see the weakness in the Telstra share price as a buying opportunity is Morgans.

A recent note reveals that the broker has an add rating and price target of $4.56 on the telco giant’s shares.

Based on the current Telstra share price of $3.82, this implies potential upside of 19% for investors over the next 12 months.

But that doesn’t include the dividends that the broker is expecting Telstra to distribute. It continues to expect Telstra to pay a fully franked 16 cents per share dividend in FY 2022.

And while you may be too late for its interim dividend for FY 2022, which is in the process of being paid, don’t worry because this time next year Morgans expects Telstra to be preparing another interim dividend of the same value.

So, if we include this dividend into the equation to give us a 12-month yield of 4.2%, the total return on offer stretches to over 23%.

What did the broker say?

Morgans has previously stated that its positive view on the Telstra share price is underpinned by improving industry dynamics and its belief that the telco is undervalued on a sum of the parts (SOTP) basis.

It commented: “Industry dynamics have turned positive (NBN and mobile prices are increasing after 5 years of decline; TLS’s targets imply they continue to rise). The SOTP for TLS is worth more than the current share price (and steps to release this value are underway; albeit timing is unclear).”

The post Broker sees 19% upside for Telstra (ASX:TLS) share price and 4% dividend yield appeared first on The Motley Fool Australia.

More reading

• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Analysts name 2 ASX 200 dividend giants to buy in March
• These 3 ASX 200 shares are topping the volume charts on Friday
• The Telstra (ASX:TLS) share price has tumbled 9% in 6 weeks. What’s happening?
• Telstra (ASX:TLS) share price in the red amid new satellite deal

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 owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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When an ASX investor buys an exchange-traded fund (ETF), one of the reasons you will probably hear is ‘diversification‘. Yes, index funds, in particular, can be enormously useful in diversifying a concentrated portfolio with one easy investment. Take the most popular index in the world, the US’s S&P 500 Index. One unit of an S&P 500 ETF, such as the iShares S&P 500 ETF (ASX: IVV), represents an investment of roughly 500 of the largest companies on the US markets. You might think the same could be said of the Vanguard Australian Shares Index ETF (ASX: VAS).

VAS is the most popular ETF on our share market. It is an index fund that tracks the S&P/ASX 300 Index (ASX: XKO). This index, as you might imagine, tracks 300 of the largest ASX shares on our share market. Diversified, right?

Well, not as much as you’d think.

What’s in an index?

See, an index fund is usually weighted by market capitalisation. That means that the largest companies on the index also have the largest weighting in the ETF. Woolworths Group Ltd (ASX: WOW) has a far larger presence in VAS than say IGA-owner Metcash Ltd (ASX: MTS), for example. This isn’t a big deal, most index funds follow a similar arrangement.

Over time, it allows the winners in an index to contribute more to the index’s overall performance. But in VAS’s case, we have recently seen the fund become far more concentrated than it used to be. That’s thanks in large part to BHP Group Ltd (ASX: BHP). Earlier this year, BHP ended its dual-listing structure, which saw its London Stock Exchange listing dissolved, and those shares return to the ASX boards. Thus, BHP is now a far larger company on the ASX than it used to be.

That means it’s also a larger holding in VAS. As a matter of fact, as of 31 January, BHP alone made up 10.88% of VAS’s entire portfolio.

Next up, we have Commonwealth Bank of Australia (ASX: CBA), with a 7.41% weighting.

CSL Limited (ASX: CSL) is next, worth 5.77%.

But National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking Group Ltd (ASX: ANZ), and Westpac Banking Corp (ASX: WBC) were VAS’s 4th, 5th and 6th most-weighted shares respectively. That’s with a corresponding 4.12%, 3.47% and 3.45% weighting. And Macquarie Group Ltd (ASX: MQG) was the 7th, at 3.01%.

That’s a total of 21.46% of VAS’s total holdings for the big four and Macquarie alone. More than a fifth.

VAS-t diversification?

Throw in BHP’s 10.88% and Rio Tinto Limited‘s (ASX: RIO) 1.92% and we have a total of 34.26% of VAS’s total holdings in banks and miners. More than third.

So almost one dollar in every three invested in VAS goes to these two miners and five bank shares. That’s not exactly what one might call a high level of diversification. And this diversification would deteriorate even further if an investor holding the Vanguard Australian Shares Index ETF in their portfolio also happened to hold any of those companies too.

Now, other index funds like the iShares S&P 500 ETF are also top heavy. But, by contrast, IVV’s top holding is only worth 6.91% of the entire portfolio. That’s a big difference from 10.88%.

That said, there’s nothing inherently wrong with VAS’s structure. That’s how index funds are supposed to work. But just be wary of the kinds of diversification you are getting with an ASX index ETF. It might not be as diverse as you might think.

The post Diversification? Why VAS is really a bet on banks and miners appeared first on The Motley Fool Australia.

More reading

• Think VAS is the best ASX index fund? These ETFs have beaten it over the past decade…
• What’s going so wrong for ASX ETFs in 2022 so far?
• Hot ETF? Here’s how the VAS (ASX:VAS) share price has performed in 2022 so far…

Motley Fool contributor Sebastian Bowen owns National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia has recommended Macquarie Group Limited, Westpac Banking Corporation, and iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Polynovo Ltd (ASX: PNV) share price has continued to decline, sending investors for the exits.

Since the beginning of 2022, the company’s shares have lost 38% to hit a multi-year low of 83.5 cents today.

Although a slight rebound has occurred during afternoon trade, its shares are still down 2.85% to 93.8 cents.

Below, we take a look at what is impacting the company’s share price of late.

Polynovo shares continues to attract short interest

Following the company’s first half results, negative sentiment around the Polynovo share price continues to induce investors holding short positions.

This comes despite the company reporting solid growth over the last 6 months, particularly across the United States segment.

Notably, management refrained from providing a meaningful outlook for H2 FY22, which may have caused investors to sell Polynovo shares.

Previously, the company stated that challenging market conditions caused by COVID-19 created headwinds for the company.

On 2 March, the Australian Securities & Investments Commission (ASIC) released its short position report, indicating an increased short interest in Polynovo shares.

As such, Polynovo took up sixth place with the highest number of investors shorting its shares at 8.92%. This is a 3.2% increase from the same time last month when Polynovo had a short interest of 8.64%.

Given the scope of short positions being taken up, it appears investors believe the company’s performance will be inconsistent.

What do the brokers think?

Following Polynovo’s financial scorecard for H1 FY22, Wilsons further cut its 12-month price target for the company’s shares by 22% to $1.11.

It appears the broker is acknowledging that Polynovo is underperforming its expectations for FY22 thus far.

In addition, Macquarie had a similar tone, slashing its rating by 44% to $1.60 per Polynovo share. Based on the current share price, this implies an upside of roughly 70.5% for investors.

Polynovo share price summary

Over the past 12 months, the Polynovo share price has continued its downward trend to post a 60% loss.

In comparison, the S&P/ASX 200 Healthcare (ASX: XHJ) sector has gained around 2.6% in the same timeframe.

Based on today’s price, Polynovo presides a market capitalisation of about $618.68 million and has approximately 661.69 million shares outstanding.

The post Why is the Polynovo (ASX:PNV) share price sinking to a new multi-year low? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• ASX 200 (ASX:XJO) midday update: Rio Tinto, South32 storm higher, PointsBet sinks
• These are the 10 most shorted ASX shares
• Polynovo (ASX:PNV) share price stung 4% as H1FY22 net loss wreaks havoc
• These are the 10 most shorted ASX shares

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended POLYNOVO FPO. 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 Bruce Jackson.

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The team at Morgans has been running the rule over a number of ASX 200 shares following the completion of earnings season.

Among its best ideas for March are the shares listed below. Here’s why they broker rates these ASX 200 shares highly:

Treasury Wine Estates Ltd (ASX: TWE)

This wine company is a key pick for the broker. It believes Treasury Wine’s shares are trading at a very attractive level, particularly given its strong growth outlook.

It said: “TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The company recently reported an impressive 1H22 result despite facing a number of material headwinds. The foundations are now in place for TWE to deliver strong double digit growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.”

Morgans currently has an add rating and $13.93 price target on the Treasury Wine’s shares.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 share that the broker rates highly is Wesfarmers. It is a big fan thanks to the strength of its portfolio of retail brands and strong balance sheet. And while it acknowledges that trading conditions are not easy, it remains confident on the future and sees recent share price weakness as a buying opportunity.

Morgans explained: “WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart, Target and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While Covid-related staff shortages are proving to be a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the recent pullback in the share price as a good entry point for longer term investors.”

The broker currently has an add rating and $58.50 price target on Wesfarmers’ shares.

Westpac Banking Corp (ASX: WBC)

Finally, this banking giant is another of Morgans’ best ideas for March. It believes the bank’s shares are very attractively priced, with significant upside potential ahead.

The broker commented: “WBC is our preferred major bank. We believe WBC offers the most compelling valuation of the major banks. In terms of quality of overall risk profile, we believe WBC is a close second to CBA. On credit risk, we believe WBC is positioned relatively defensively due to its loan book being more skewed to Australian home lending.”

Morgans has an add rating and $29.50 price target on Westpac’s shares.

The post Broker names 3 of the best ASX 200 shares to buy in March appeared first on The Motley Fool Australia.

More reading

• Is the Westpac (ASX:WBC) share price the best bank idea for dividends?
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Could Wesfarmers (ASX:WES) be gearing up for an electrifying investment?
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Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Treasury Wine Estates Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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