Some investors might think May is the time to “sell and go away”. However, here are the ASX 200 shares brokers think could beat the market.
ASX 200 shares to buy in May
Graincorp Ltd (ASX: GNC)
The typically slow-moving Graincorp share price is up a surprising 20% year-to-date. Its shares lifted into 8-year highs following a positive business update that upgraded 2023-24 earnings by an additional $25 million.
In anticipation of its first-half results on 13 May, Morgans is forecasting earnings before interest, taxes, depreciation, and amortisation (EBITDA) growth of 29%. This is underpinned by a record east coast grain crop and further contributions from its strategic initiatives.
Furthermore, the broker retained an add rating with a target price of $6.17. The Graincorp share price is currently fetching for $5.21.
Northern Star Resources Ltd (ASX: NST)
The Northern Star share price has steadily pushed lower on the back of weaker gold prices. However, the company continues to perform well operationally with a recent 8% increase in reserves to 21Moz.
Macquarie, impressed by the upgrades, believes there is considerable upside to long-term forecasts. An outperform rating was retained with a $12.20 target price.
The Northern Star share price is down 20% year-to-date and are currently trading for $10.93 at the time of writing.
Premier Investments Limited (ASX:PMV)
Macquarie has upgraded its estimates for retail earnings by 3.2%. The broker believes underlying trading is exceeding expectations and is confident in the company’s ability to meet current consensus forecasts.
More recently, Premier Investments announced that it will repay $15.6 million in JobKeeper benefits following strong trading performance offsetting the costs of recent lockdowns in Queensland and Western Australia.
The broker is bullish on Premier Investments shares with an outperform rating and a $31 target price.
Its shares are currently trading at $26.13, not far off its record all-time high of $27.33.
Seven West Media Ltd (ASX: SWM)
Seven’s third-quarter trading update highlights TV advertising revenue growth at the upper end of the guidance range of 7-10%. Its net debt guidance by the end of FY21 was also better than what Credit Suisse had expected.
The broker believes Seven is cycling through easy FY20 comparables and forecasts 20% growth in TV advertising in the second half. An outperform rating was retained with a target price of 80 cents. This represents a significant upside compared to its current trading price of 48 cents.
At the time of writing, Seven’s share price is trading for 47 cents.