If you’re looking for growth shares to buy, then you may want to consider the two listed below that brokers are bullish on.

Here’s what you need to know about these growth shares:

Cochlear Limited (ASX: COH)

The first ASX growth share for investors to look at is Cochlear. It is one of the world’s leading hearing solutions companies, which is a great position to be in given ageing populations around the world and the market’s significant barriers to entry.

Analysts at Morgans are very positive on the company, particularly given its improving earnings profile post-pandemic.

Morgans commented:

Cochlear maintains a dominant position in the implantable hearing solutions segment. While we continue to believe a full recovery from Covid-based disruptions still has time to play out, improving demand and strong pipeline, coupled with management’s increasing confidence, suggests an improving earnings profile.

The broker currently has an add rating and $244.50 price target on Cochlear’s shares. Based on the current Cochlear share price of $208.59, this implies potential upside of 17% for investors.

Nitro Software Ltd (ASX: NTO)

Another ASX growth share that analysts rate highly is Nitro. It is a technology company that provides businesses of all size with integrated PDF productivity and eSignature tools.

Unfortunately, the Nitro share price has fallen heavily this year despite reporting strong growth. This has been driven by significant weakness in the tech sector, particularly for loss-making companies.

And while Nitro is not expected to be profitable for a few more years, the team at Goldman Sachs believe investors should look beyond this. Especially given that it is well-funded and has a huge market opportunity to grow into in the future.

Goldman Sachs commented:

We appreciate that a material re-rate likely requires a change in sentiment towards unprofitable tech companies, however we think NTO screens attractively relative to tech peers and on a longer-term view. Our focus now shifts to NTO’s execution on its pipeline of new business and e-sign cross-sell opportunities, with concerns over balance sheet now eased. We see NTO as an attractive long-term growth opportunity at a discounted valuation.

Goldman has a buy rating and $2.35 price target on the company’s shares. Based on the current Nitro share price of $1.18, this suggests almost 100% upside for investors.

The post Analysts say these top ASX growth shares are buys appeared first on The Motley Fool Australia.

More reading

• 2 highly rated small cap ASX shares that analysts say have huge potential
• Analysts say investors should buy these top ASX shares
• Broker says the Cochlear share price is in the buy zone following Oticon acquisition
• Top brokers name 3 ASX shares to buy today
• 2 medical tech ASX shares Morgans loves right now

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Nitro Software 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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If you’re looking to combat rising inflation with some dividend shares, then the two listed below could be worth considering.

Analysts have recently named these ASX 200 dividend shares as buys. Here’s what you need to know about them:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share to look at is mining giant BHP.

It has been tipped as a top option for investors due to the high levels of free cash flows it is generating from its portfolio of world class operations. This is being underpinned by favourable commodity prices and bodes well for dividend payments in the near term.

For example, Citi recently upgraded the company’s shares to a buy rating with a $56.00 price target. While it wasn’t overly impressed with BHP’s production during the recent quarter, it commented that there is “too much cash flow to ignore.”

Citi is expecting this cash flow to support fully franked dividends per share of ~$4.86 in FY 2022 and then ~$4.89 in FY 2023. Based on the current BHP share price of $44.95, this implies yields of 10.8% and 10.9%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX 200 dividend share that analysts rate as a buy is banking giant NAB.

For example, the team at Goldman Sachs recently retained their conviction buy rating on the bank’s shares with a $34.17 price target.

Goldman Sachs likes NAB due to its balance sheet mix, which the broker feels provides the best exposure to the domestic system growth. It also highlights that NAB’s franchise is performing strongly, growing at or above system growth in most segments, and expects this to continue.

Its analysts are forecasting attractive dividends in the near term. They have pencilled in fully franked dividends of $1.52 per share in FY 2022 and $1.65 per share in FY 2023. Based on the current NAB share price of $30.82, this implies yields of 4.9% and 5.35%, respectively.

The post Brokers name 2 ASX 200 dividend shares to buy now appeared first on The Motley Fool Australia.

More reading

• NAB share price lifts amid Suncorp rumours
• Why GrainCorp, Link, NAB, and Pendal shares are sinking today
• The NAB share price is in reverse today. Here’s why
• Why are ASX 200 mining shares in the green today?
• Why are ASX 200 mining share prices slipping today?

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 Scott Phillips.

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Well, today has been quite an interesting day for the South32 Ltd (ASX: S32) share price. Soon after market open this morning, South32 shares shot up, climbing as high as $4.51 a share (up more than 2%). That stood in stark contrast to the broader S&P/ASX 200 Index (ASX: XJO), which opened deep in the red and has been steadily falling all day. The ASX 200 has now finished up the trading day down 1.75% at well under 6,950 points.

Saying all of that, South32 did end up falling back to earth. After climbing as high as $4.51 a share, the diversified miner is now back at $4.37 a share at the end of today’s trading session, down by 0.91%. But the strange thing is that most other ASX mining shares, especially the larger ones, had a far worse time of it today.

Take BHP Group Ltd (ASX: BHP). BHP shares ended the day down by 1.55% at $44.95 each. Fortescue Metals Group Limited (ASX: FMG) plunged by 2.76%. It was a similar story with Rio Tinto Limited (ASX: RIO), which lost 2.09%.

Energy share Woodside Petroleum Limited (ASX: WPL) was a standout loser, dropping by more than 3%. Even the ‘safe haven’ gold shares couldn’t save the resources sector. ASX 200 gold miner Northern Star Resources Ltd (ASX: NST) lost 2.75% today

So South32’s performance seems very mild compared to these sobering moves.

But why have investors spared South32 from the worst of the falls today?

What spared the South32 share price today?

Well, it’s hard to say. There’s been nothing out of South32 today, save for a share buyback notice. The company has consistently been executing share buybacks, which could lend support to a company’s share price.

But South32 has also been the recipient of some broker love this week, which could also be helping the market to put a floor under the company’s shares. As my Fool colleague James covered just yesterday, broker Morgans recently called South32 one of its “best ideas”. Morgans currently rates South32 as an “add”, with a 12-month share price target of $6.10. That’s almost 40% above its current share price.

This optimism comes from what Morgans sees as South32’s diverse portfolio of metals and minerals, many of which are “ESG-friendly”. It’s also expecting big things from the company when it comes to dividends over the coming few years.

So perhaps it was this bullish thesis that steadied investors’ hands when it came to the South32 share price today. No doubt such an optimistic share price prediction was warmly received by existing shareholders.

The post Why did the South32 share price beat the other ASX 200 miners today? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares clocking multi-year highs on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Blockdown! Why is the Block share price crashing by 16% today?
• ASX 200 midday update: CBA’s Q3 update impresses, Xero and Block crash
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Sebastian Bowen 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 Scott Phillips.

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It was another red day for the Allkem Ltd (ASX: AKE) share price on Thursday.

The lithium miner’s shares dropped almost 5% to $10.70.

This means the Allkem share price is now down 25% from the record high of $14.27 it reached in April.

Is the weakness in the Allkem share price a buying opportunity?

Firstly, while the Allkem share price has fallen heavily in recent weeks, it is impossible to know if it has found a bottom yet. And given how high up the risk scale lithium miners are, their shares are likely to remain under pressure for as long as the market volatility continues.

But that aside, I think the Allkem share price is attractively priced for long-term focused investors.

This is due to the significant free cash flow its diverse operations are already generating and its plans to increase production materially in the coming years.

Growth plans

In respect to the latter, Allkem recently revealed plans to increase lithium production three-fold by 2026 in order to maintain a 10% share of the global lithium market over the next decade.

This means that Allkem remains well-placed to benefit greatly from the sky-high prices that lithium is commanding due to the seemingly insatiable demand from the electric vehicle and renewable energy markets.

Though, it is worth remembering that as supply increases and catches up with demand, those high prices are likely to fade.

Low costs

Fortunately for Allkem, it has some of the lowest costs in the industry. This should ensure that it remains highly profitable even when prices eventually pull back to more normal levels.

During the most recent quarter, Allkem reported a cash cost per tonne of US$349 for its Mt Cattlin spodumene concentrate and US$3,811 per tonne for its Olaroz lithium carbonate. This is meaningfully lower than the mid-to-long term prices being forecast by a leading broker.

A recent note out of Goldman Sachs reveals that its commodities team is forecasting the following for lithium prices.

Lithium spodumene concentrate:

• US$1,750 per tonne in 2023
• US$950 per tonne in 2024
• US$900 per tonne in 2025
• Long-run average of US$800 per tonne

Lithium carbonate:

• US$20,500 per tonne in 2023
• US$17,180 per tonne in 2024
• US$14,468 per tonne in 2025
• Long-run average of US$11,500 per tonne

Even using the long-run average prices, which are down materially from current levels, Allkem will be operating with very attractive margins.

This bodes well for its earnings in the coming years and ultimately dividends when the company stops investing in growth opportunities.

Foolish takeaway

All in all, with the Allkem share price trading at 9x FY 2023 earnings (based on Citi’s forecast of earnings per share of $1.18), I think it could be a top option for investors looking for opportunities in the resources sector.

The post Why I think the Allkem share price is in the buy zone appeared first on The Motley Fool Australia.

More reading

• Falling ASX 200 mining shares ‘an opportunity to invest in sector leaders’: broker
• Low charge: Is the party over for ASX lithium stocks?
• Expert warns investors about lithium and battery mineral ASX shares
• Here’s why ASX lithium stocks are rocketing higher today
• What will the lithium price be in 2025?

Motley Fool contributor James Mickleboro has positions in Orocobre 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 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 Scott Phillips.

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