The team at Morgans has been busy picking out its best ASX share ideas for March.
These are the shares that its analysts 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 shares we looked at can be found here. Read on for the next three:
CSL Limited (ASX: CSL)
Morgans is a very big fan of this biotherapeutics giant and has an add rating and $337.92 price target on its shares. It believes CSL is a great COVID exit trade. The broker explained:
A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long term forward multiple of ~30x.
Treasury Wine Estates Ltd (ASX: TWE)
Another ASX 200 share that Morgans is bullish on is Treasury Wines. It has an add rating and $15.05 price target on the wine giant's shares. The broker is forecasting strong earnings growth over the coming years. It said:
TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings 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.
Westpac Banking Corp (ASX: WBC)
Finally, Morgans has an add rating and $25.80 price target on Westpac's shares. It is feeling very positive on the bank's potential to improve its key return on equity metric. It commented:
We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful. The sources of this improvement include improved loan origination and processing capability, cost reductions (including from divestments and cost-out), rapid leverage to higher rates environment, and reduced regulatory credit risk intensity of non-home loan book. Yield including franking is attractive for income-oriented investors, while the ROE improvement should deliver share price growth.
