Morgans names the best ASX 200 shares to buy in September

Morgans thinks strong returns could be on offer with these ASX 200 shares.

| More on:
A businessman lights up the fifth star in a lineup, indicating positive share price for a top performer

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Once a month, the team at Morgans picks out its best ASX share ideas.

These are the ASX shares that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe. They are also supported by a higher-than-average level of confidence.

Among its best ideas for the month of September are the two ASX 200 shares listed below. Here's what the broker is saying about them:

Treasury Wine Estates Ltd (ASX: TWE)

The first ASX 200 share that could be a buy in September according to Morgans is Treasury Wine.

The broker believes the wine giant's shares are great value, particularly given the company's positive outlook. It also notes that its shares could get a big boost if China removes tariffs on Australian wine. It said:

Given TWE's undemanding valuation compared to other luxury brand owners, we see value in TWE. With Penfolds outperforming expectations (makes up ~72% of our valuation) and a clear strategy to improve performance at Treasury America and Treasury Premium Brands, we expect earnings to accelerate from the 2H24 onwards. While risks remain, we back this management team to deliver. The key near term share price catalyst is if China removes the tariffs.

Morgans has an add rating and a $13 price target on its shares.

Westpac Banking Corp (ASX: WBC)

Morgans remains positive on this ASX 200 banking giant's shares despite its poor performance this year. The broker likes Australia's oldest bank due to its attractive valuation and generous dividend yield. It explains:

We endorse an ADD rating for WBC. WBC has a similar asset base, funding mix and domestic retail concentration as the premium priced CBA. However, its growth, profitability and ROE have been significantly weaker than this larger competitor, which is ultimately reflected in WBC's lower earnings and asset-based trading multiples and higher cash yield. If WBC can materially improve its business performance (this is not without significant risk of disappointment) then an investment in its stock could deliver attractive returns as the share price rerates upwards and cash returns to investors lift.

Morgans has an add rating and a $22.58 price target on the bank's shares.

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

More on Broker Notes

Man sits smiling at a computer showing graphs
Broker Notes

Morgans names more of the best ASX 200 shares to buy in December

These ASX 200 shares have been given the thumbs up by analysts at Morgans in December.

Read more »

A young man goes over his finances and investment portfolio at home.
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Broker Notes

Morgans names the best ASX 200 shares to buy in December

Morgans is expecting strong returns from these top ASX 200 shares over the next 12 months.

Read more »

A man sits at a desk holding a small replica house in his hand, upset at the sale of his property.
Real Estate Shares

The 2 ASX real estate shares everyone's piling on to right now

Property stocks have been rocketing the past few weeks, and these companies are the ones investors are flocking to.

Read more »

Miner and company person analysing results of a mining company.
Resources Shares

Buy or sell? Brokers argue best play for ASX 200 iron ore share, up 30% in 2 months

There are conflicting opinions among the experts.

Read more »

A person sitting at a desk smiling and looking at a computer.
Investing Strategies

'Ahead of expectations': Why this ASX stock could make you smile in a few years

Sometimes the stock price doesn't reflect the business performance. This is when long-term investors can pounce.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A young boy points and smiles as he eats fried chicken.
Share Gainers

'Double-digit earnings growth': 2 fast-rising ASX shares not too late to buy

Get on these stocks before all their potential is realised, say Celeste analysts. So what are you waiting for?!

Read more »