If the market volatility is getting you down, it might be a good idea to add some defensive ASX shares to your portfolio to shore things up.
But which shares fit the bill? Two defensive ASX shares that Goldman Sachs has just named as buys are listed below. Here's what the broker is saying about them:
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Endeavour Group Ltd (ASX: EDV)
The first defensive ASX shares that Goldman is recommending is drinks company, Endeavour. The broker is a fan of the company due to its industry-leading position, attractive valuation, and positive growth outlook.
In respect to the latter, earlier this week the broker said:
We tweak FY23-25e group sales by 0.6-0.7% respectively and EBIT by +1.2%-1.3% largely due to higher than expected Hotels sales despite slightly lower 2H23 margins. Our updated forecasts imply 4.4% sales CAGR and 8.3% EPS CAGR FY22-25e.
Goldman Sachs currently has a buy rating and $7.50 price target on Endeavour's shares.
Woolworths Limited (ASX: WOW)
Another defensive ASX share that Goldman Sachs has named as a buy this week is Woolworths Group. It is of course the retail giant behind Woolworths supermarkets and Big W, among others.
Much like Endeavour, the broker is forecasting solid earnings growth from the company despite the tough economic environment. Earlier this week, in response to the company's quarterly update, the broker commented:
We tweak our FY23-25e group sales by ~+1% and NPAT by 0.4%-1.1% respectively. This is due to slightly higher sales across all key business segments while our margin views remain intact. Our updated forecasts imply FY22-25e ~3.4% sales CAGR and ~9.6% CAGR for EBIT/NPAT respectively.
Goldman currently has a conviction buy rating and $42.80 price target on Woolworths shares.
