If you're in the process of building or refreshing an ASX retirement portfolio, then it could be worth looking at the ASX 200 shares listed below.
They are high-quality businesses and have recently been named as buys by analysts. Here's why they could be top picks for retirees:
Telstra Group Ltd (ASX: TLS)
Bell Potter thinks that Telstra could be an ASX 200 retirement share to buy right now. The broker currently has a buy rating and $4.30 price target on the telco giant's shares.
It likes the company due to its reasonable valuation and attractive dividend yield compared to the big four banks. It explains:
We believe the stock looks reasonable value on an FY25 PE ratio of c.20x when all of the comps in the S&P/ASX 20 trade on >20x. We also believe the forecast fully franked yield of 4.8% is attractive when CBA's forecast yield is now <4%. The yield is comparable, however, to the other banks but Telstra's dividend is expected to grow whereas the banks are not so much.
Treasury Wine Estates Ltd (ASX: TWE)
Another ASX 200 retirement share that could be a buy is Treasury Wine. It is a leading wine company that owns a portfolio of popular brands such as Penfolds, Wolf Blass, and 19 Crimes.
Goldman Sachs thinks its shares are undervalued and has put a buy rating and $15.20 price target on them.
The broker likes the company due to its positive earnings growth outlook, which is being underpinned partly by the key Penfolds brand. It said:
Our Buy rating on TWE is premised on accelerating double-digit EPS growth in FY24-27e driven by 1) continued global expansion of Penfolds, especially post the removal of China import tariffs on Australian wine; our recent channel checks suggest positive reception to the returning Australian sourced Penfolds and we expect a ~63pct pre-tariff recovery by 2027.
Woolworths Limited (ASX: WOW)
Over at Goldman Sachs, its analysts think that this supermarket giant and Big W owner could be an ASX 200 retirement share to buy now.
The broker currently has a buy rating and $36.20 price target on its shares.
Goldman likes the company due to its leadership position in a defensive market. It also believes Woolworths is well-placed to benefit from the growth in online food shopping. It explains:
Our Buy thesis is based on 1) robust supermarkets growth of ~4% in FY23-26E driven by strong population growth and a rational, oligopoly environment; 2) omni-channel leader further extending share gains due to its early mover advantage in digitalization and omni-channel execution. By 2030E, we expect WOW to be the dominant leader in online with ~50% share in a space that is expected to go from 5% to 10% of the total grocery market; 3) loyalty/retail media further margin opportunities: Woolworth's strong digital and omni-channel advantage is further reinforced through a virtuous cycle of loyalty and retail media (Cartology). WOW is also trading below fair value.
