Day: March 13, 2022

2 fantastic ASX 200 growth shares to buy according to analysts

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If you’re looking for growth shares, then look no further. Listed below are two ASX 200 growth shares which have been tipped for strong growth in the future.

Here’s why analysts rate them as buys:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX 200 growth share to consider is Domino’s. It is one of the world’s largest pizza chain operators with ~3,200 stores across the ANZ, Asia-Pacific, and European regions.

Its shares have fallen like dominoes in 2022 due to a softer than expected performance during the first half in Asia and a de-rating of growth shares.

The team at Morgans believe this has created a buying opportunity for investors and has recently upgraded its shares to an add rating with a $115.00 price target.

It said: “DMP remains a growth story. It has a platform to deliver a positive trajectory of sales and earnings as its store rollout strategy continues and network efficiencies increase. After a period of sustained weakness in the share price, we think now is the time to give DMP another look. We upgrade to ADD.”

NextDC Ltd (ASX: NXT)

Another ASX 200 growth share that could be a buy is NextDC. It is a leading data centre operator which appears well-placed to benefit from the structural shift to the cloud.

Especially given its world class network of data centres and its expansion into edge centres. The company also has its eyes on the Asia market and has opened up offices in a couple of key markets.

Citi is a fan and was impressed with its half year results. It currently has a buy rating and $14.55 price target on NextDC’s shares.

The broker said: “NXT delivered a strong result with increasing utilisation of Gen 2 assets driving solid revenue growth and margin expansion, while revenue metrics improved HoH (revenue per MW up 7% HoH). While the current backlog underpins FY23e earnings, we have lowered our forecasts to reflect a slower ramp and conversion of the pipeline. We maintain our Buy call and see the conversion of Hyperscale customer commitments in Sydney and Melbourne as the next key catalyst.”

The post 2 fantastic ASX 200 growth shares to buy according to analysts appeared first on The Motley Fool Australia.

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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.

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Motley Fool contributor James Mickleboro owns NEXTDC Limited. 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 Dominos Pizza Enterprises Limited. 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 200 dividend shares with top yields

Are you looking for dividend shares to buy? If you are, then you might want to look at the shares listed below that have been named as buys by analysts.

Here’s why these ASX 200 dividend shares could be worth considering right now:

National Australia Bank Ltd (ASX: NAB)

The first ASX 200 dividend share that could be in the buy zone is NAB. This is due to its strong position in business banking, the positive outlook for interest rates, and its acquisition of Citi’s Australian consumer business. The latter will fill a gap in its offering and support its future growth.

Bell Potter is very positive on NAB and has a buy rating and $32.50 price target on its shares.

The broker is also expecting attractive yields in the coming years, with fully franked dividends per share of 132.5 cents in FY 2022 and 134.5 cents in FY 2023. Based on the current NAB share price of $29.94, this will mean yields of 4.4% and 4.5%, respectively, over the next couple of years.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 dividend share to look at is Australia’s largest telecommunications company, Telstra.

It could be a quality option for income investors due to its increasingly positive outlook. This follows years of earnings declines and dividend cuts brought about by the rollout of the NBN.

The key to its positive outlook will be the T25 strategy, which has management targeting solid and sustainable growth in the coming years. Combined with 5G and rational industry competition, some analysts are tipping Telstra to soon increase its dividend for the first time in almost a decade.

In the meantime, the team at Morgans is expecting fully franked 16 cents per share dividends in FY 2022 and FY 2023. Based on the current Telstra share price of $3.84, this will mean yields of 4.2%.

Morgans has an add rating and $4.56 price target on its shares.

The post 2 buy-rated ASX 200 dividend shares with top yields appeared first on The Motley Fool Australia.

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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 over ten 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.

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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 owns and has recommended Telstra Corporation Limited. 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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Top brokers name 3 ASX shares to buy next week

Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Lovisa Holdings Ltd (ASX: LOV)

According to a note out of Morgans, its analysts have retained their add rating and $24.00 price target on this fashion jewellery retailer’s shares. The broker has been looking at the retail sector and picked out Lovisa as one of its top picks. It likes the company due to its belief that it will continue to grow whatever happens to consumer sentiment. Especially with its new management team and global expansion plans. The Lovisa share price ended the week at $17.89.

Ramsay Health Care Limited (ASX: RHC)

A note out of Citi reveals that its analysts have a buy rating and $75.00 price target on this private hospital operator’s shares. The broker highlights that the company’s 53% owned Ramsay Santé business is aiming to acquire Swedish listed GHP Specialty Care for 228 million euros or ~30x 2021 EBIT. While Citi feels this is quite expensive, it believes the transaction would complement Ramsay’s Nordic-based Capio business. Overall, regardless of this deal completing, the broker feels Ramsay is well-placed for several years of positive earnings momentum as the pandemic subsides. The Ramsay share price was fetching $60.71 at Friday’s close.

Whitehaven Coal Ltd (ASX: WHC)

Analysts at Goldman Sachs have retained their buy rating and lifted their price target on this coal miner’s shares to $4.70. Goldman increased its valuation to reflect an increasingly positive thermal coal price outlook due to supply side issues in Indonesia, Australian, and Russia. In addition, it sees a compelling de-gearing and capital returns story emerging. The Whitehaven Coal share price ended the week at $4.04.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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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 over ten 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 January 12th 2022

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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 recommended Lovisa Holdings Ltd and Ramsay Health Care Limited. 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 ASX dividend shares with yields above 5%

Some ASX dividend shares offer income yields of more than 5%. Banks are certainly not offering that level of income from savings accounts at the moment.

But a business isn’t worth buying just because it pays a dividend, even if the yield is large.

The share price also has to make sense for it to be an attractive valuation.

Here are two ASX dividend shares with attractive yields and good valuations according to brokers:

Nick Scali Limited (ASX: NCK)

Nick Scali is rated as a buy by the broker Citi, with a price target of $17.60. At the current Nick Scali share price, Citi thinks that it will pay a grossed-up dividend yield of 9.5% in FY22.

The FY22 half-year result from the furniture business was stronger than the broker was expecting and it still has more good sales lined up with its order book.

In the first six months of FY22, Nick Scali grew its revenue by 5.4% to $180.3 million, though net profit fell by 6.6%. It paid an interim dividend of $0.35 per share.

The ASX dividend share explained that more than half of its store network was closed during the first quarter. There were also production delays, particularly in Vietnam, which was in lockdown for a period of three months.

Nick Scali’s gross profit margin increased 30 basis points to 64.3%, though the acquired business Plush had a gross profit margin of 54.8%.

January 2022’s outstanding order bank was 70% higher than last year.

Over the long-term, the company is aiming to reach at least 85 Nick Scali stores and 90 to 100 Plush stores.

The online division of Nick Scali is making a high level of profit – half-year revenue was $13.7 million, with earnings before interest and tax (EBIT) of $8 million.

GQG Partners Inc (ASX: GQG)

GQG is a fund manager with around US$90 billion of funds under management (FUM).

Since the start of the year, the GQG share price has fallen by more than 25%.

But its FUM on 31 December 2021 was US$91.2 billion. The FUM only fell 1.5% to US$89.8 billion by 28 February 2022, so GQG shares have fallen much further in percentage terms.

The company noted in the monthly FUM update for February 2022 that there has been extraordinary volatility, but it has continued to see positive net flows. It added $1.6 billion of net flows in February, taking the company to $2.5 billion in net new flows in the year to date.

All of the fund manager’s investment strategies show outperformance over three and five years.

It also noted that the ASX dividend share has very limited direct exposure to Russia in its investment strategies.

GQG has committed to paying a high level of profit out as a dividend for investors. In the recently-reported result for the period ending 31 December 2021, it paid out 90% of its profit generated since the initial public offering (IPO).

The business is currently rated as a buy by the broker Morgans with a price target of $2.27. based on the broker’s FY22 expectations, GQG has a forecast dividend yield of 7.1%.

The post 2 ASX dividend shares with yields above 5% 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 over ten 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 January 12th 2022

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. 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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