If you're looking to bolster your portfolio with some new ASX 200 shares, then you may want to consider the two listed below. Both have recently been named as buys by the team at Morgans.
Here's what the broker has to say about these ASX shares:
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Treasury Wine Estates (ASX: TWE)
The first ASX 200 share to consider is Treasury Wine. Morgans believes the wine giant's shares are undervalued, particularly given its recent restructuring.
And while it acknowledges that it will take time to recover its lost earnings in China, the broker remains positive on the future.
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."
In respect to its restructure and valuation, the broker said: "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."
Morgans has an add rating and $14.06 price target on the company's shares.
Westpac Banking Corp (ASX: WBC)
Another ASX 200 share that Morgans is bullish on is Westpac. It believes the shares of Australia's oldest bank are severely undervalued and offer significant upside over the next 12 months. Particularly given its belief that things are nowhere near as bad as the recent Westpac share price weakness would indicate.
The broker explained: "WBC shares have been sold off heavily following the FY21 result announcement, such that out of the major banks, WBC is now trading on the lowest FY22F P/NTA multiple, the lowest FY22F P/E multiple and the highest FY22F dividend yield. Such multiples or yields could only be justified if WBC is a value trap, which we think it is not. We believe the challenges facing WBC are not severe enough for WBC to be thought of as a value trap."
Morgans suspects that the market assumes "that WBC only manages to reduce its annual cost base to $9.5bn by FY24F (compared with an underlying cost base of $10.2bn in FY20), experiences NIM contraction of 50bps from 2H21 to 2H24F and conducts no further capital management".
However, the broker expects "WBC to do notably better than this and we consequently believe that the extent of pessimism being reflected in WBC's current share price is overdone".
Morgans has an add rating and $29.50 price target on the banking giant's shares.
