With the global economy entering an uncertain period, many investors are understandably looking to add some defensive ASX 200 shares to their portfolios.
But which defensive shares could be good additions right now? Two ASX 200 shares that have defensive qualities and have been rated as buys by analysts recently are listed below.
Here's why they could be top options for investors in the current environment:
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Coles Group Ltd (ASX: COL)
This ASX 200 supermarket share could be a great pick if you're looking for defensive options.
You only need to look at the company's performance during the pandemic to see just how defensive its operations are. It delivered strong profits while most companies were getting thumped.
The team at Morgans is very positive on the company and has an add rating and $19.60 price target on its shares. It commented:
Trading on 22.5x FY24F PE and 3.6% yield, we continue to see COL as offering good value with the company's healthy balance sheet and defensive characteristics putting it in a good position to navigate through a weaker economic environment. In our view, the unwinding of local shopping trends should continue to be a tailwind and further trading down from consumers will also be positive given COL's strong Own Brand offering. Add rating retained.
Endeavour Group Ltd (ASX: EDV)
Another defensive option for investors to consider buying is drinks business, Endeavour. As one of the biggest owners of retail liquor stores, an historically defensive category, it appears well-placed to handle whatever happens in the economy.
Morgans is also a fan of Endeavour and has an add rating and $7.80 price target on its shares. It commented:
We believe the share price weakness over the past six months on the back of an uncertain regulatory environment (eg, potential introduction of cashless gaming cards in NSW) has shifted the balance of risks to the upside with EDV's underlying business remaining strong. The company possesses a broad network of retail liquor stores/hotel venues, well-known brands (eg, Dan Murphy's and BWS) and dominant market positions.
