Month: April 2022

2 highly rated blue chip ASX 200 shares brokers rate as buys

Three people in a corporate office pour over a tablet, ready to invest.

Three people in a corporate office pour over a tablet, ready to invest.

Have you got room for a blue chip or two in your portfolio? If you have, then take a look at the blockbuster blue chip shares listed below.

Here’s why they are highly rated:

CSL Limited (ASX: CSL)

The first blue chip ASX 200 share for investors to look at is CSL. It is one of the world’s leading biotechnology companies, comprising the CSL Behring and Seqirus businesses. It is also looking to add to its portfolio with the acquisition of Vifor Pharma.

This will build on its leadership position in plasma therapies and vaccines by adding treatments for iron deficiency, dialysis, and nephrology.

CSL’s shares have been underperforming over the last couple of years. This has been driven by plasma collection headwinds. However, these headwinds are beginning to ease and collections are becoming easier again.

In light of this, the team at Citi believe now could be a good time to invest. It recently reaffirmed its buy rating and $335 price target. This compares favourably to the latest CSL share price of $273.30.

REA Group Limited (ASX: REA)

Another ASX 200 blue chip share for investors to look at is REA Group. It is the dominant player in real estate listings in the Australian market.

REA has been tipped to continue its growth in the coming years. This is due to the strength of the housing market, new revenue streams, cost cutting, price increases, its international operations, and acquisitions. The latter has seen REA grow its presence in mortgage broking through the acquisition of Mortgage Choice.

Goldman Sachs is very positive on the company and has a buy rating and $170.00 price target on its shares. This compares to the latest REA share price of $129.42.

The post 2 highly rated blue chip ASX 200 shares brokers rate as buys 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

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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 positions in and has recommended CSL Ltd. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Why analysts say investors should buy these beaten down ASX shares

If you’re looking for investment options, then the two beaten down shares listed below could be worth considering.

Here’s what analysts are saying about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator’s shares are down 38% since the start of the year. This has been driven by a softer than expected performance in Japan and concerns over inflationary pressures.

While this is disappointing, the team at Morgans appear to believe it has created a buying opportunity for investors. The broker recently retained its add rating and put a $100 price target on its shares.

Based on the current Domino’s share price of $75.31, this implies potential upside of approximately 33%.

Morgans commented: “We upgraded to ADD after the result and, although inflationary pressures have worsened since then, we continue to believe there is meaningful upside to the current share price over the next 12 months.”

Life360 Inc (ASX: 360)

Another ASX share that has been beaten down is Life360. It is the company behind the hugely popular Life360 app, which is the world’s leading real time, location-sharing app used by families across the world to stay safe and communicate.

This week the company revealed that it now has 38.2 million global monthly active users, which was up 36% year on year. From these users, Life360 generated a 73% increase in annualised monthly revenue to US$166.1 million.

However, softer cash flows and news that it has cancelled its US listing plans weighed on the LIfe360 share price, which is now down 58% since the start of the year.

Bell Potter remains positive on the company and has retained its buy rating with a $8.25 price target. This implies over 100% upside for investors.

The broker said: “[An] 18% decrease in the PT to $8.25 which is >100% premium to the share price so we maintain our BUY recommendation. We believe the market reaction is unwarranted and likely driven by the poor operating cash flow in Q1 but we expect the cash flow to materially improve in Q2 and Q3 and then be positive in Q4.”

The post Why analysts say investors should buy these beaten down ASX 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 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 James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. 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 Scott Phillips.

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These were the worst performing ASX 200 shares last week

Man stands with head on his hands in front of a downward graph.

Man stands with head on his hands in front of a downward graph.

The S&P/ASX 200 Index (ASX: XJO) fought hard late in the week but was unable to recover from a selloff on Tuesday. The benchmark index fell 0.5% over the period to 7,435 points.

While a good number of shares tumbled with the market, some fell more than most. Here’s why these were the worst performers on the ASX 200 last week:

EML Payments Ltd (ASX: EML)

The EML Payments share price was the worst performer on the ASX 200 with a massive 40% decline. Investors were selling the payments company’s shares following the release of a surprisingly bad trading update.  EML has downgraded its earnings guidance following a tough third quarter which saw EML report a 22% decline in underlying net profit after tax and amortisation.

Life360 Inc (ASX: 360)

The Life360 share price wasn’t too far behind with a decline of 24.5% over the four days. Investors were selling the location technology company’s shares despite its quarterly update revealing a 129% increase in revenue to US$52.7 million and a 73% jump in annualised monthly revenue to US$166.1 million. The weakness appears to have been driven by weaker than expected cash flows and news that the company is scrapping its US dual listing plans. This appears to have sparked fears that a capital raising will be soon required.

Silver Lake Resources Limited (ASX: SLR)

The Silver Lake share price was out of form and sank 12.3% during the week. The catalyst for this decline was the release of the gold miner’s quarterly update. Silver Lake reported production of 53,822 ounces of gold. And while this left it positioned to meet its FY 2022 production guidance, management warned that COVID-19 related labour shortages could disrupt its operations and thus withdrew its guidance.

ResMed Inc (ASX: RMD)

The ResMed share price was a poor performer and tumbled 9.9% last week. The majority of this decline came on Friday following the release of the sleep treatment company’s quarterly update. ResMed posted a 12% increase in revenue to US$864.5 million and a 2% lift in earnings per share to US$1.32. Goldman Sachs points out that this missed consensus estimates by 5% and 9%, respectively.

The post These were the worst performing ASX 200 shares last week 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 James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments and Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Analysts name 2 ASX 200 dividend shares to buy next week

Australian dollar notes rolled into bundles.

Australian dollar notes rolled into bundles.

Are you looking for some dividend options for your portfolio? If you are, check out the two ASX 200 dividend shares listed below.

Here’s why they have been tipped to as buys:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share for investors to consider is this retail giant.

Coles is of course one of the big two supermarket operators with over 800 stores (and growing). It also operates over 900 liquor retail stores and over 700 Coles express stores.

The company is currently in the process of building smart distribution centres to support this network and boost its margins. Together with its track record of same store sales growth, this has many analysts forecasting solid earnings and dividend growth over the 2020s.

Citi is very positive on Coles. This week the broker responded to the company’s third quarter update by retaining its buy rating and $19.30 price target on its shares.

As for dividends, Citi has pencilled in fully franked dividends per share of 63 cents in FY 2022 and 72 cents in FY 2023. Based on the current Coles share price of $18.70, this will mean yields of 3.4% and 3.9%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share to look at is Coles’ former parent, Wesfarmers.

It is the conglomerate behind a high quality portfolio of retail assets as well as a collection of industrial businesses.

Morgans is a fan of the company and has an add rating and $58.50 price target on its shares. The broker highlights that Wesfarmers has a high quality portfolio, is run by a highly regarded management team, and has a strong balance sheet. The latter could be supportive of further M&A activity in the future.

In respect to dividends, Morgans is forecasting fully franked dividends per share of $1.62 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $49.41, this will mean yields of 3.3% and 3.7%, respectively.

The post Analysts name 2 ASX 200 dividend shares to buy next week 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 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 positions in and has recommended COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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