2 ASX 200 (ASX:XJO) shares that brokers rate as buys

These ASX 200 shares are highly rated by brokers…

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If you're looking for S&P/ASX 200 Index (ASX: XJO) shares to buy, then you may want to consider the two listed below.

Here's why these ASX 200 shares have been named as buys:

Goodman Group (ASX: GMG)

The first ASX 200 share to consider is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of in-demand properties.

Goodman focuses on investing in and developing high quality industrial properties in strategic locations. These are close to large urban populations and in and around major gateway cities globally. This strategy has proven to be very successful and underpinned strong earnings growth over the last decade.

Citi is very positive on the company and expects its solid growth to continue. So much so, the broker has a buy rating and $26.00 price target on its shares.

Last month Citi commented: "GMG's FY21 EPS was +2% above guidance and +1%/+0.5% above consensus/Citi, with the beat vs our estimate driven by higher investment income and lower interest expense/tax. FY22 EPS guidance was introduced at 10% growth or 72.2c, -2% below consensus and -3.5% below our prior estimate. However, we see upside to guidance and the share price, and re-iterate our Buy rating."

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX 200 share that is highly rated is this global wine giant. Although it is facing disruption after being effectively shut out of the China market, its North American operations have picked up the slack. This led to a better than expected result in FY 2021.

The team at Morgans are very positive on Treasury Wine. They also believe its shares are undervalued at the current level. The broker has an add rating rating and $14.01 price target on its shares.

It commented: "TWE has the China reallocation risk and it will take 2-3 years to recover these earnings in new markets. However, outside of China, its key markets, particularly the US, are recovering faster than expected from COVID."

"The new business units centred around the brands, are now fully in place and we are excited to see what they can earn with TWE effectively creating the benefits of a demerger without the extra costs. It also demonstrates that the SOTP is worth materially more than the whole. It shines a light on Penfolds and its best-in-class margins and may ultimately lead to corporate activity in some form in the future. We rate this management team highly," the broker added.

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

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