Given the large number of quality shares on offer on the Australian share market, it can be hard to decide which ones to buy.
This is especially the case when you have to pick shares in what Morgans has described as "abnormal markets."
Luckily for investors, its analysts have been busy crunching the numbers and have named four shares which they believe are standout opportunities in the current market.
The four shares they collectively came up with are as follows:
Oil Search Limited (ASX: OSH)
Morgans believes that this energy producer is the best in the sector and has the potential to generate material returns for investors over the next 12 months. It likes Oil Search due to the strength of its earnings and the quality of its growth profile. The broker has also noted that the market "remains too conservative on the upside potential for the PNG expansion and Alaska projects." It has a $10.54 price target on Oil Search's shares.
Orora Ltd (ASX: ORA)
The broker also believes that this packaging company's shares could generate market-beating returns for investors. It feels that recent share price weakness has created a buying opportunity and has suggested that its shares could climb around ~13% higher from here over the next 12 months.
Treasury Wine Estates Ltd (ASX: TWE)
Another company that the broker believes could generate strong returns for shareholders is this global wine giant. The broker was pleased with its half year result and guidance for FY 2020. It notes that its shares are trading at a discount to its medium-term forward PE ratio and believes they could charge as much as 25% higher to $18.65.
Westpac Banking Corp (ASX: WBC)
Westpac is Morgans' top pick in the banking sector. It prefers Westpac over the rest of the big four due to its strong capital position and relatively low risk profile. It has suggested that investors need not worry about concerns over the bank's high interest-only (IO) home loan exposure. In fact, it feels these concerns have been overblown and notes that Westpac has reduced its IO exposure from 50% to 32% without its asset quality underperforming its peers. It has a $33.00 price target on the bank's shares.
