If you have retirement on the horizon, then now could be the time to start thinking about building an investment portfolio that is appropriate for this stage of your life.
But what sort of ASX shares would be suitable for someone that is retiring? Let's take a look at a couple of shares that analysts think would be great options for investors:
Flight Centre Travel Group Ltd (ASX: FLT)
The first ASX share that could be a good option for an investor that is retiring is Flight Centre.
Flight Centre is headquartered in Brisbane and has company-owned leisure and corporate travel businesses across 24 countries. It has also licensed its name in a further 90 countries.
As well as the eponymous Flight Centre brand, it operates the Aunt Betty, Corporate Traveller, FCM, Stage & Screen, and Travel Associates brands.
Morgans is a big fan of the company and believes its shares are undervalued at current levels. Particularly after its strong full year results release in August. It said:
FLT's FY24 result was in line with its recent update. The highlights were the increase in its revenue margin to 11.4% vs 10.4% in FY23, the 2H24 NPBT margin of 1.7% and strong operating cashflow up 170% on the pcp. FLT said that its outlook is positive however in line with usual practice, FY25 guidance won't be provided until the AGM in November.
Morgans has an add rating and $25.35 price target on the company's shares. This implies potential upside of 17% for investors. It also expects a dividend yield approaching 3% in FY 2025.
Medibank Private Ltd (ASX: MPL)
Analysts at Ord Minnett think that private health insurance giant Medibank could be an ASX share to buy.
Ord Minnett was pleased with the company's performance in FY 2024. It notes that Medibank's net profit after tax came in ahead of consensus expectations. And while the company's policyholder growth was softer than expected, it highlights that this was offset by positive business mix and a higher gross margin.
So, with Medibank having defensive qualities and trading with an undemanding valuation, Ord Minnett thinks that now would be a good time to buy. Its analysts explain:
With low growth expected and an undemanding P/E ratio, we view Medibank as a defensive stock that investors should own. We maintain our Accumulate recommendation, but lift price target to $4.25 from $4.15, reflecting higher earnings expectations.
The broker has an accumulate rating and $4.25 price target on its shares. This suggests that upside of 17% is possible over the next 12 months. A dividend yield greater than 4% is expected in FY 2025.
