Twelve stocks for Christmas

About the author:

Author name:

By Fiona Buchanan

Job title:

Co-Head of Research, Senior Analyst

Date posted:

03 December 2013, 3:02 PM

Sectors Covered:

Property, AREITS

As we move into 2014 we expect Australian equities to re-rate as the markets begin to see evidence of a progressive recovery in earnings. Indeed, we forecast the ASX200 to finish at around 5810 points by the end of 2014.

While we have seen some evidence of a market recovery, recent volatility provides an opportunity to introduce exposure to cyclical stocks in order to ensure that portfolios are well positioned for the year ahead.

Our research team has selected six large cap and six small cap companies we expect to Outperform during 2014. We are looking to companies that are leveraged to the improving domestic economy, and therefore improving consumer confidence and discretionary spending (CWN, HVN, SIV, SUL, SMX), the housing recovery (FKP, FBU, GWA), a commodity price rebound (BHP, SHV), healthcare (SHL) and with a falling AUD, global growth stories (AMC).

Our twelve stocks for Christmas

1. Amcor (AMC) - share price target A$11.07
2. BHP Billiton (BHP) - share price target A$43.10
3. Crown (CWN) - share price target A$18.46
4. Fletcher Building (FBU) - share price target A$10.01
5. FKP Property (FKP) - share price target A$2.38
6. GWA Group (GWA) - share price target A$3.03
7. Harvey Norman (HVN) - share price target A$3.60
8. Sonic Healthcare (SHL) - share price target A$16.91
9. Select Harvests (SHV) - share price target A$5.42
10. Silver Chef (SIV) - share price target A$8.57
11. Super Retail Group (SUL) - share price target A$14.73
12. SMS Management (SMX) - share price target A$5.25

More information

Clients can sign in for more detailed company research. Contact us if you would like to discuss joining Morgans.

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.