Morgans says these 3 ASX 200 stocks are buys

These ASX 200 stocks are highly recommended following their results releases.

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If you're looking for some new portfolio additions, then you may want to take a look at the three ASX 200 stocks that Morgans is tipping as a buy.

Here's what the broker is saying about these stocks:

Lovisa Holdings Ltd (ASX: LOV)

The first ASX 200 stock that could be a buy according to Morgans is Lovisa. In response to its FY 2023 results, the broker has retained its add rating on the fashion jewellery retailer's shares with an improved price target of $27.50.

Morgans was pleased with the company's plan to enter the lucrative China market. It said:

LOV grew substantially in FY23 to finish the year with an 801-store network in 39 countries. We believe it plans to enter mainland China in FY24, paving the way for significant longer-term growth […]We have increased our long-run earnings estimates.

Qantas Airways Limited (ASX: QAN)

Following its FY 2023 release, the broker has also retained its add rating on this airline operator's shares with an improved price target of $8.60.

Morgans believes that Qantas' shares are trading at a very attractive level given its positive outlook. The broker said:

Whilst we were hoping for a stronger message from QAN around earnings growth being delivered in FY24, outlook commentary was upbeat nonetheless. QAN reiterated its FY24 EBIT margin targets and also said that travel demand remains very strong and that it is seeing solid trading into the 1H24. From here, 1H24 guidance likely provided in Oct/Nov will be the key share price catalyst. With QAN trading on its lowest P/E multiple in years (FY24F of 5.4x post buybacks), risk remains materially skewed to the upside.

TPG Telecom Ltd (ASX: TPG)

Finally, TPG Telcom could be an ASX 200 share to buy according to Morgans. Following a better-than-expected FY 2023 result, the broker has retained its add rating and lifted its price target to $6.00. It said:

TPG's underlying result was slightly better than expected and guidance was marginally raised. So too was capex, but because largely the transformation is going well. Returns still sit below cost of capital but are trending higher as pricing rationality remains. We expect this trend to remain positive and supportive. We retain our Add and upgrade our target price to $6.00.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa and Tpg Telecom. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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