Recently, I've been looking at shares that Goldman Sachs has tipped to surprise during earnings season. You can read about the first two shares here.
Continuing with that theme, listed below are two more ASX 200 shares the broker believes could positively surprise this month. Here's what the broker is expecting:
Healius Ltd (ASX: HLS)
According to the note, Goldman Sachs believes this healthcare company could be a stronger than expected performer in FY 2021. It notes that, in hindsight, the consensus view that Australian COVID testing volumes would steadily fall through FY 2021 was far too conservative. In fact, testing volumes remained steady through most of the period despite little virus, before spiking in June.
Goldman expects this to underpin above consensus earnings growth in FY 2021. It commented: "We estimate an incremental EBITDA contribution of c.60% per test and, whilst the market does not want to over-capitalize these tailwinds, it is increasingly clear that Covid-testing will remain a meaningful component of pathology test mix for years to come and, in the near term, likely drives earnings above current consensus expectations (we forecast +5%/+6% above FY21/FY22E Visible Alpha EBITDA respectively)."
The broker also notes that Healius has balance sheet optionality following the sale of Medical Centres, its corporate restructure, and strong earnings from COVID testing. It suspects that there could be further updates on buybacks or M&A activity.
Goldman has a buy rating and $5.00 price target on Healius shares.
Super Retail Group Ltd (ASX: SUL)
Another company that Goldman Sachs believes could outperform expectations in FY 2021 is Super Retail. It notes that the retail group behind the BCF, Macpac, Rebel, and SuperCheap Auto brands is a major beneficiary of the international travel restrictions.
This is particularly the case for its SuperCheap Auto and outdoor businesses, which the broker believes will deliver above consensus earnings in FY 2021. This is expected to be driven by strong trading momentum and margin expansion. Pleasingly, its analysts expect this momentum to continue and underpin the strengthening of the company's balance sheet.
Goldman commented: "Amongst the key discretionary categories, we view Super Retail's trading momentum to persist for longer given its favorable category exposure towards domestic reopening, although the current lockdowns are expected to be a temporary setback to the same. Importantly, over the longer term, we view SUL's balance sheet strength as an opportunity to permanently pivot away from higher leverage that the group has tended to maintain in the past, invest in efficiency improvement projects and omni-channel capabilities or offer capital return to the shareholders."
The broker currently has a buy rating and $15.00 price target on Super Retail's shares.
