If you’re looking for a few new additions to your portfolio in April, then look no further. Analysts at Morgans have picked out a number of ASX 200 shares that they class as their best ideas for the month ahead.
These are the shares they think offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence.
The first three we looked at can be found here. Whereas below are three more ASX 200 shares that the broker rates highly:
Santos Ltd (ASX: STO)
If you’re looking to gain exposure to booming energy prices, then Morgans believes Santos could be a good way to do it. Its analysts have an add rating and $9.00 price target on the company’s shares.
It explained: “We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development.”
Transurban Group (ASX: TCL)
Another ASX 200 share that Morgans likes is toll road operator Transurban. The broker expects the company’s dividends to rebound strongly as traffic volumes improve post-COVID. Morgans has an add rating and $14.29 price target on Transurban’s shares.
It commented: “TCL owns a pure play portfolio of toll road concession assets located in Melbourne, Sydney, Brisbane, and North America. This provides exposure to regional population and employment growth and urbanisation. […] Watch for rapid recovery in DPS alongside traffic recovery and WestConnex acquisition prospects.”
Wesfarmers Ltd (ASX: WES)
Morgans is very positive on this conglomerate. It currently has an add rating and $58.50 price target on the company’s shares. It rates Wesfarmers highly due to the strength of its retail portfolio and its talented management team.
The broker commented: “WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While COVID-related staff shortages are 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.”