ASX investors are always on the lookout for compelling ASX 200 investments.
Often, Australian investors gravitate towards businesses that they know and love. This makes ASX 200 retail stocks especially popular.
After the FY25 earnings season, JP Morgan Chase & Co. (NYSE: JPM) released new research notes, revealing the price targets on three popular ASX 200 retail stocks.
Let's see whether they are attractively valued based on today's share prices.
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Premier Investments Ltd (ASX: PMV)
ASX 200 retail company Premier Investments owns a portfolio of popular retail brands, including Peter Alexander and Smiggle, as well as a major investment in Breville Group Ltd (ASX: BRG).
Premier Investment shares have fallen 28% for the year to date. On Friday, Premier Investments shares closed at $17.64, which is just above its 52-week low of $17.53. After reviewing its FY25 results in August, JP Morgan assigned an 'Overweight' rating and price target of $23.90 on the ASX 200 retail stock.
Justifying this rating, JP Morgan wrote:
We have an Overweight rating on Premier Investments underpinned by the exceptional growth of Peter Alexander in Australia, with sales having doubled over the past 5 years. Smiggle is a turnaround opportunity, but has struggled over the past 12 months following a significant loss of senior divisional leadership.
Super Retail Group Ltd (ASX: SUL)
Super Retail Group operates four popular Australian brands, Supercheap Auto, Rebel, BCF (Boating, Camping, and Fishing), and Macpac.
Super Retail Group shares have risen 8% for the year to date, which is roughly in line with the S&P/ASX 200 Index (ASX: XJO). On Friday, Super Retail shares closed at $16.45. After reviewing its FY25 result, JP Morgan placed an 'Overweight' rating and price target of $15.90 on the stock.
JP Morgan wrote:
The company is an effective operator across its brands, with the increased price competition in the Auto industry becoming more rational, aiding Super Cheap Auto's sales and margin outlook. Moderating gross margins for Rebel continue to act as a headwind for the company in the near term, although we expect management to improve on in-store sales execution and stock loss management. Current valuation levels of ~15x 1 year forward P/E screens cheap against the rate cut macro backdrop and recovering Auto price competition.
Temple & Webster Ltd (ASX: TPW)
Temple & Webster is Australia's leading online retailer of furniture and homewares. It is known for its wide range, stocking over 200,000 products.
Temple & Webster shares have soared 76% for the year to date, making it a standout ASX 200 investment for the year to date. On Friday, Temple & Webster shares closed at $22.92.
After reviewing its FY25 result, JP Morgan placed a 'Neutral' rating and price target of $26.20 on Temple & Webster shares.
Explaining this rating, JP Morgan said:
In the near-term, we expect TPW will deliver strong top-line growth as market penetration improves, supported by a structural shift to e-Commerce furniture/ homewares sales, with longer-term value as scale drives material operating leverage.
