The S&P/ASX 200 Index (ASX: XJO) was on form last week and recorded a solid gain. The benchmark index rose 2% over the period to end at 6126.2 points.
While a number of shares climbed higher, some recorded stronger than average gains. Here’s why these were the best performers on the ASX 200 last week:
Treasury Wine Estates Ltd (ASX: TWE)
The Treasury Wine Estates share price was the best performer on the index with an impressive 17.6% gain. This follows the release of its full year results for FY 2020. For the 12 months, the wine company reported a 6% decline in net sales revenue to $2,649.5 million and a 22% decline in EBITS to $533.5 million. Treasury Wine Estates’ performance was impacted by challenging conditions in the US wine market and the COVID-19 pandemic. The latter impacted the sales of high margin luxury products. However, news that sales in China rebounded very strongly in June went down well with investors.
Corporate Travel Management Ltd (ASX: CTD)
The Corporate Travel Management share price wasn’t far behind with a 17% gain last week. The travel sector was on form last week, possibly due to Russia claiming to have a working COVID-19 vaccine. In addition to this, a week earlier Corporate Travel Management was the subject of a broker note out of Morgans. According to the note, its analysts upgraded its shares to an add rating with a $12.85 price target. This was largely on valuation grounds, but also on the belief that corporate travel markets might be stronger than expected.
Flight Centre Travel Group Ltd (ASX: FLT)
The Flight Centre share price was on form last week and recorded a 15% gain. As well as getting a boost for the above-mentioned reason, Flight Centre released an update on its operating cash outflows. According to the release, Flight Centre has surpassed its key target of a monthly net operating cash outflow of $65 million. A $53 million net operating cash outflow was recorded in July, comfortably below its target. This outflow reduces to $43 million if you include the $10 million per month net benefit flowing from the Job Keeper wage subsidy.
NRW Holdings Limited (ASX: NWH)
The NRW Holdings share price was a positive performer and climbed 13% over the period. This may have been driven by bargain hunters after a sizeable decline a week earlier. One broker that certainly believes the NRW share price is in the buy zone is UBS. Earlier this month it put a buy rating and $3.15 price target on the contractor’s shares.