Day: December 28, 2021

Bell Potter names 2 ASX 200 blue chip shares to buy in 2022

a woman in business wear looks at her phone against the window of a high rise space with a city landscape view of tall buildings outside.

If you’re wanting to buy some blue chip ASX 200 shares then the two listed below could be worth considering.

These blue chips have been named by Bell Potter as some of its top picks for 2022. Here’s what it is saying about them:

National Australia Bank Ltd (ASX: NAB)

The first blue chip ASX 200 share that is rated as a buy is banking giant NAB. The broker likes the bank due to its positive post-COVID outlook and strong balance sheet.

Bell Potter commented: “NAB’s FY21 performance reflected a better credit impairment outcome more than anything else but there was still ongoing momentum across home lending (+2.5%), SME lending (+5.1%) and New Zealand (a whopping +11.2%). Overall, there is nothing to suggest things haven’t improved and the bank rightly remains “optimistic about the long-term outlook for Australia and New Zealand.”

“The longer term operating environment post COVID-19 remains positive for ANZ and NAB. Both are well-provisioned and well-placed to capitalise on post- pandemic opportunities in retail and SME banking,” it added.

Its analysts have a buy rating and $31.00 price target. This compares to the latest NAB share price of $28.89.

TechnologyOne Ltd (ASX: TNE)

In the tech sector, Bell Potter believes Technology One could be an ASX 200 blue chip to buy. It believes the company is well-placed for double digit earnings growth as customers shift to its software-as-a-service (SaaS) offering.

The broker commented: “Technology One is a provider of ERP (enterprise resource planning) software to large corporates and government agencies in Australia, New Zealand, Asia Pacific and the UK. The key competitive advantage of the company is it has developed a fully integrated SaaS solution of its software and is now switching customers to this solution.”

“The migration is now >50% complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to re-rate to that of a pure SaaS company. Buy, Price Target $15.00,” it concluded.

This price target is meaningfully higher than the current Technology One share price of $12.79.

The post Bell Potter names 2 ASX 200 blue chip shares to buy in 2022 appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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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 has no position in any of the stocks mentioned. 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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3 reasons why the Redbubble (ASX:RBL) share price could be a great buy

A man makes an online payment with his laptop and credit card.

There are a few different reasons why the Redbubble Ltd (ASX: RBL) share price could be a good one to consider for the long-term.

Redbubble is an e-commerce platform business. It sells a wide range of products that have designs on them which have been created by artists. Those artists receive a slice of each sale. Items like wall art, phone cases and clothes are among the categories that people can choose to buy.

Morgan Stanley currently rates the business as a buy, with a current price target of $6.50. That’s more than 90% higher than where it is today.

Here are a few compelling reasons why the Redbubble share price could be one to watch.

Large addressable market

Redbubble says that the e-commerce spending in its current addressable product categories in ‘core geographies’ was $300 billion in 2020 and is expected to rise to $400 billion in 2024. That would be growth of more than 9% per annum.

The total global addressable market in its product categories is expected to be more than $1 trillion by 2024.

The company says it’s benefiting from a number of useful macro trends including structural shifts to e-commerce (which are expected to endure), increasing customer demand for unique and meaningful products, a growing creator economy and customers looking for sustainability and corporate responsibility.

Within the company’s core market, more than a third of customers are supposedly seeking something that is “unique and meaningful”.

Management believe that it has “truly global” opportunities with the potential “expand across all geographies”.

Repeat customer spending is growing

Redbubble is seeing a growing number of sales coming from repeating customers.

In FY21, the ASX tech share saw that repeat purchases made up 42% of marketplace revenue (which is revenue after paying the artists). Last financial year, repeat purchases increased 67% year on year to $232 million of marketplace revenue.

Morgan Stanley thinks that returning customers buying products is an important part of Redbubble’s future and can help it achieve its longer-term goals. This could be a helpful factor for the Redbubble share price.

The company continues to invest in new and improved ways to reach customers, including its apps.

It is doing a number of loyalty experiments, with some showing “early positive retention signals.”

Long-term growth plans

The business has a goal of reaching $1.25 billion of marketplace revenue in the longer-term.

It’s going to invest in four key areas. The first is artist activation and engagement. Second, user acquisition and transaction optimisation. Third is customer understanding, loyalty and brand building. Fourth is product range and the third party fulfilment network.

In the shorter-term it is going to invest heavily and grow its global market leadership in the artist product space.

But over the longer-term, this growth is expected to lead to a rising earnings before interest, tax, depreciation and amortisation (EBITDA) margin as operating leverage builds.

Geographic expansion remains a longer-term aspiration for the business.

The post 3 reasons why the Redbubble (ASX:RBL) share price could be a great buy appeared first on The Motley Fool Australia.

Should you invest $1,000 in Redbubble right now?

Before you consider Redbubble, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Redbubble wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor Tristan Harrison 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 has no position in any of the stocks mentioned. 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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2 buy-rated ASX dividend shares

a smiling woman sits at her computer at home with a coffee alongside her, as if pleased with her investments.

The Australian share market is home to a good number of shares offering attractive dividend yields.

But which ones should you buy over others? Here’s are two that analysts rate as buys right now:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is this footwear focused retail group. It is the name behind a number of popular store brands such as The Athlete’s Foot, HYPE DC, and Platypus. The company also has exclusive distribution of several brands in the Australian market, including Reebok.

Although FY 2022 will be a difficult year because of lockdowns, the company has been tipped to resume its solid growth next year by the team at Bell Potter.

In light of this, the broker believes it is well worth sticking with Accent and recently reiterated its buy rating and put a $3.05 price target on its shares.

As for dividends, Bell Potter is forecasting dividends per share of 9.1 cents in FY 2022 and 13.5 cents in FY 2023. Based on the latest Accent share price of $2.38, this represents yields of 3.8% and 5.7%, respectively.

Mineral Resources Limited (ASX: MIN)

Another ASX dividend share analysts have named as a buy is Mineral Resources. It is a mining and mining services company with exposure to two commodities – iron ore and lithium. While the former has been acting as a drag on its performance, record high lithium prices are limiting the damage.

It is because of the latter that the team at Macquarie remain very positive on Mineral Resources. Last week the broker reaffirmed its outperform rating and lifted its price target to $79.00. Macquarie believes lithium prices will remain at record level for the next four years.

The broker has also lifted its dividend estimates for the coming years. It now expects fully franked dividends per share of $1.67 in FY 2022 and then $2.25 in FY 2023. Based on the latest Mineral Resources share price of $54.99, this will mean yields of 3% and 4.1%, respectively.

The post 2 buy-rated ASX dividend shares appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

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 has recommended Accent Group. 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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Brokers say these 2 top ASX shares are buys in 2022

ASX shares upgrade buy Woman in glasses writing on buy on board

There are some leading ASX shares that are rated as buys for 2022 by brokers.

Analysts are always on the lookout for opportunities that are good value and could generate attractive returns for investors.

Share prices are always changing and management are usually working on development plans.

These two businesses are deemed to be opportunities:

Tyro Payments Ltd (ASX: TYR)

Tyro is currently rated as a buy by at least three brokers, including Ord Minnett.

The broker has a price target of $4.30 on the business, which suggests a potential upside of more than 50%. Tyro continues to grow and Ord Minnett thinks that the ASX share can deliver growth in the second half of FY22 as well.

Tyro Payments has regularly been giving investors updates about the transaction value that is being processed through its systems.

In FY22, Tyro saw December (to 17 December) transaction volume growth of 38% to $2 billion. November growth was 43%. October growth was 34%. Both August and September saw growth of at least 20%, despite the lockdowns in both Sydney and Melbourne.

The ASX share says that it’s a tech company providing payments and business banking, taking on “the big guys”. Management say that the business is well positioned to continue to accelerate growth, with tailored payment solutions which is driving strong merchant base and transaction value growth.

There are a number of growth drivers for the business, including adding new ‘verticals’, increasing its market share of existing verticals and achieving operating leverage as platforms continue to scale which will help grow profit margins.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is currently rated as a buy by at least three different brokers, including Credit Suisse.

The broker has a price target on the furniture and homewares business of $15.89. That’s more than 50% higher than where it is today.

A key highlight for the broker is the ongoing fast growth of sales despite the large amount of growth already experienced in FY21.

Management say that the business continues to experience strong tailwinds, including the ongoing adoption of online shopping due to structural and demographic shifts. Management also say the company is a long-term growth story.

For the period of 1 July to 15 October 2021 it saw growth of sales 56%. Whilst the full year earnings before interest, tax, depreciation and amortisation (EBITDA) margin is expected to be between 2% to 4%, the first half is expected to be higher than this level.

The ASX share says that as its scale increases its operating leverage, it will allow for an acceleration of investment in future growth and taking market share. It’s investing in things like marketing, technology development, product range and the overall customer experience.

Increasing scale will help with costs like product sourcing, logistics and marketing.

This business has the ultimate goal of becoming the largest retailer (online and offline) for furniture and homewares in its home market.

The post Brokers say these 2 top ASX shares are buys in 2022 appeared first on The Motley Fool Australia.

Should you invest $1,000 in Tyro Payments right now?

Before you consider Tyro Payments, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tyro Payments wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Temple & Webster Group Ltd and Tyro Payments. The Motley Fool Australia has recommended Temple & Webster Group Ltd and Tyro Payments. 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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