The team at Goldman Sachs has been busy reviewing earnings season this week.
The good news for investors is that the broker believes a few ASX shares are flying under the radar now and could be in the buy zone.
Two such ASX shares that Goldman rates highly post-earnings season are listed below. Here's what it is saying about them:
Cochlear Limited (ASX: COH)
Goldman Sachs was impressed with this hearing solutions company's performance in FY 2022. Particularly given the tough trading conditions it was facing. Looking ahead, the broker suspects Cochlear could hit the top of its guidance range in FY 2023. It commented:
In a highly challenging year Cochlear delivered +17% NPAT growth to reach the upper-half of the guided range. In our view, the backdrop for this year appears relatively more favourable, and we see clear scope for COH to deliver at the upper-end of another solid guidance (+8-13% to $290-305m, with further accretion possible from the Oticon Medical transaction, which is yet to close).
The broker has a buy rating and $247.00 price target on Cochlear's shares.
Reliance Worldwide Corporation Ltd (ASX: RWC)
Goldman highlights that this plumbing parts company's shares have fallen since its results. It feels this was due to its soft start to FY 2023. However, the broker sees this as a buying opportunity given its defensive qualities. It said:
RWC announced FY22 results in line with both GSe and Visible Alpha Consensus on 22nd of August. The company provided an update on July trading, with sales down -3% resulting in the share price falling 7% on the day and down 19% to date. We consider RWC as more defensive within the building materials sector as a high portion of its revenues are derived from repairs in the R&R sector.
Goldman Sachs currently has a buy rating and $4.85 price target on the Reliance Worldwide's shares.
