The team at Morgans has been busy looking at the plethora of results that have been flooding in this month.
Two ASX shares that it believes performed strongly are listed below. Here's why it was impressed enough to put buy ratings on their shares:
Corporate Travel Management Ltd (ASX: CTD)
This corporate travel specialist could be an ASX share to buy according to Morgans. It was impressed with the company's strong performance during FY 2022 and notes that it beat its guidance. Overall, the broker has seen enough to keep the company as its top pick in the travel sector.
Morgans also sees plenty of upside for its shares. In response to its FY 2022 results, the broker has retained its add rating and $25.65 price target on the company's shares. This compares favourably to the latest Corporate Travel Management share price of $20.66.
Its analysts explained:
CTD's FY22 result beat its guidance, our forecast and consensus following a particularly strong 4Q22 recovery. Unlike its peers, CTD was profitable at the bottom line (NPAT and not just EBITDA). Strong cashflow, a strong balance sheet (no debt) and a final dividend (sign of confidence) and were other key highlights.
4Q22 trends bode well for strong earnings growth in FY23 despite macro uncertainty, restricted airline capacity and question marks over when China will reopen. Our forecasts are largely unchanged. CTD remains our key pick of the travel sector.
Super Retail Group Ltd (ASX: SUL)
Morgans remains positive on this retail conglomerate. It was pleased with Super Retail's full year results and believes that it should have a strong first half to FY 2023.
In response to its results, the broker has retained its add rating with an improved price target of $13.00. This implies major upside from the latest Super Retail share price of $10.07.
The broker commented:
SUL surprised the market by reporting much more resilient earnings in FY22 than had been forecast. EBIT of $397m was 15% higher than our estimate due to 4% higher sales and 110 bp higher margins.
With no signs yet that the consumer is pulling back in Australia, it looks likely that 1H23 earnings will be resilient, especially against lockdown-affected comps. We still model a 17% y/y decline in PBT in FY23, but we have pulled that number up by 6% after today's strong result.
