Top broker Goldman Sachs reckons these 5 ASX retail shares are ripe for buying, and yesterday's market wipeout made all but one of them a bit cheaper.
The S&P/ASX 200 Index (ASX: XJO) is rebounding on Tuesday, up 0.3% to 7,672.2 points at the time of writing. In earlier trading, the benchmark index lifted 0.84% to an intraday high of 7,713.7 points.
Meantime, ASX retail shares are leading the ASX 200 today, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) up 1.29%.
Let's check out the retail stocks that Goldman is backing for good share price growth in FY25.
5 ASX retail shares offering FY25 upside
Goldman Sachs has recently retained or upgraded the following ASX retail shares to buy ratings.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Goldman has a buy rating on Domino's with a 12-month share price target of $41.30.
Domino's is one of the ASX 200's most beaten-up stocks in recent times. The pizza stock is down 49.5% year to date and 40.9% over the past 12 months.
However, yesterday, the ASX retail share outshone its peers as one of only two ASX 200 stocks to finish in the green. Domino's shares lifted 0.9% yesterday, while the ASX 200 tanked 3.48%.
The Domino's share price is currently $29.95, up 0.54%. This implies a potential 38% upside for investors who buy today.
Goldman says:
We see 2H24 results as still challenged, though expect an improving 1H25 outlook with Asia reverting to flat SSS in first 7 weeks, then 3% in 1H25.
Treasury Wine Estates Ltd (ASX: TWE)
Goldman is raising its glass to Treasury Wine shares with a 12-month target price of $14.70.
The Treasury Wine share price is up 9.21% in the year to date and down 1.06% over the past 12 months.
Treasury Wine shares slipped 3.89% yesterday. Today, the ASX retail wine share is up 0.78% to $11.68. Based on Goldman's target price, this implies a potential 26% upside in FY25.
Supply Network Ltd (ASX: SNL)
Supply Network shares are also among Goldman's ASX retail stocks to buy. The broker has a share price target of $27.40 on the consumer discretionary ASX small-cap stock.
Supply Network shares lost 5.18% of their value yesterday. The Supply Network share price is currently $24.05, up 0.38%.
Breville Group Ltd (ASX: BRG)
Goldman says Breville shares are a buy and has a 12-month price target of $30 on the ASX retail stock. The broker is expecting good results from the company this earnings season.
The broker says:
We see 2H24 sales +9.3% YoY (+3% vs Factset) on first-time US sell-in to Target, improving HSD EMEA sales and -1% APAC from sluggish ANZ though strong S. Korea.
Yesterday, Breville shares fell 4.28%. Today, the Breville share price is $28.38, up 2.23%.
Light & Wonder Inc. CDI (ASX: LNW)
Goldman reckons Light & Wonder shares will rise to $190 a pop over FY25.
The Light & Wonder share price fell 6.13% yesterday. The stock is currently trading for $153.98, up 0.61%.
Based on Goldman's tip, this ASX retail share offers a potential 23% upside for investors who buy today.
