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.
