One thing that investors might want to look for when picking investments is a quality management team. Particularly in the current economic environment which is throwing all sorts of spanners into the works.
Two companies that have management teams that analysts at Morgans rate highly are listed below. Here's what you need to know about them:
Treasury Wine Estates Ltd (ASX: TWE)
This wine company could be an ASX 200 share to buy according to Morgans. The broker has been pleased with the way management has transformed its operations after being shut out of China and believes it is well-placed for double-digit growth over the coming years.
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 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 has an add rating and $13.93 price target on the wine company's shares. Based on the current Treasury Wine share price, this implies 19% upside for investors.
Wesfarmers Ltd (ASX: WES)
Another ASX 200 share which has a highly rated management team is Wesfarmers. It is the owner of a high quality portfolio of retail brands and industrial businesses. Morgans is a fan of the company and believes it could be a top option for investors.
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.
The broker currently has an add rating and $58.50 price target on the company's shares. Based on the current Wesfarmers share price, this suggests potential upside of 27%.
