If you're concerned by the recent market volatility and would like to add some defensive and safe ASX 200 shares into your portfolio, then read on!
Listed below are two ASX 200 shares on the Morgans best ideas list that have defensive qualities. Here's what the broker is saying about these shares:
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Endeavour Group Ltd (ASX: EDV)
This drinks business could be an ASX 200 share to buy according to Morgans. Especially given recent share price weakness, which it believes has shifted the risk to the upside for investors. The broker currently has an add rating and $7.80 price target on its shares and expects a 3.8% dividend yield in FY 2023. It commented:
We believe the share price weakness over the past six months on the back of an uncertain regulatory environment (eg, potential introduction of cashless gaming cards in NSW) has shifted the balance of risks to the upside with EDV's underlying business remaining strong. The company possesses a broad network of retail liquor stores/hotel venues, well-known brands (eg, Dan Murphy's and BWS) and dominant market positions.
Wesfarmers Ltd (ASX: WES)
Another defensive ASX 200 share to consider is Wesfarmers. Morgans is bullish on the Bunnings and Kmart owner due to its strong balance sheet and focus on value. It believes the latter is supportive of growth even in the current tough economic environment. The broker currently has an add rating and $55.50 price target on its shares and is forecasting a 4% yield this year. It said:
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. We believe WES's businesses, which have a strong focus on value, remain well-placed for growth despite softening macro-economic conditions.
