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:

Codan Limited (ASX: CDA)

According to a note out of Macquarie, its analysts have retained their outperform rating and $11.60 price target on this metal detector focused technology company’s shares. This follows the release of a trading update which revealed that it expects to report a record profit of $100 million in FY 2022. This was in line with the broker’s forecasts. Outside this, Macquarie feels that solid results from recently acquired businesses could boost confidence in future M&A optionality. The Codan share price ended the week at $7.87.

Endeavour Group Ltd (ASX: EDV)

A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $8.10 price target on this drinks giant’s shares. This follows an investor day update which revealed the company’s growth plans. This includes an increase in its growth capex to fund store expansions, hotel acquisitions, and its digital business. Goldman was pleased with its plans and is comfortable that the company’s balance sheet can fund this increased capex obligation. The Endeavour share price was fetching $7.25 at Friday’s close.

Pilbara Minerals Ltd (ASX: PLS)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and $4.00 price target on this lithium miner’s shares. This follows the results of Pilbara Minerals’ fifth BMX auction. Macquarie notes that the auction received a winning bid of US$5,955 per dry metric tonne, which was well-ahead of its forecasts. In addition, Macquarie highlights that current lithium prices are significantly higher than its forecasts, which could mean major revisions to its earnings estimates if they don’t retreat. The Pilbara Minerals share price was trading at $2.91 at the end of the week.

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

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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 Goldman Sachs. The Motley Fool Australia has recommended Macquarie 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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If you’re looking to boost your income portfolio with some new dividend shares next week, then the two listed below could be worth considering.

Here’s why analysts are positive on these dividend shares right now:

Centuria Industrial Reit (ASX: CIP)

The first buy-rated ASX dividend share to look at is Centuria Industrial.

Thanks to strong demand for industrial property, Centuria Industrial has been growing its rental income and funds from operations (FFO) strongly in recent years. Pleasingly, this continued during the first half of FY 2022, with the company reporting further strong growth.

Macquarie is positive on the company’s outlook thanks to ongoing demand for these properties. It currently has an outperform rating and $4.27 price target on the company’s shares.

As for dividends, Macquarie is forecasting dividends per share of 17.3 cents in FY 2022 and then 17.8 cents in FY 2023. Based on the current Centuria Industrial REIT share price of $3.38, this will mean yields of 5.1% and 5.3%, respectively.

Charter Hall Social Infrastructure REIT (ASX: CQE)

Another first ASX dividend share that could be in the buy zone is the Charter Hall Social Infrastructure REIT.

It is a real estate investment trust that invests in social infrastructure properties. These include properties such as bus depots, police and justice services facilities, and childcare centres.

Goldman Sachs is a fan of the Charter Hall Social Infrastructure REIT, highlighting its solid like for like rental growth and 100% occupancy rate during the first half. Another positive is its lengthy leases, with the REIT boasting a weighted average lease expiry of 14.6 years. This provides good visibility on its future earnings and dividends.

The broker currently has a conviction buy rating and $4.20 price target on its shares and is forecasting dividends per share of 17.2 cents in FY 2022 and 18.3 cents in FY 2023. Based on its current share price of $3.57, this implies yields of 4.8% and 5.1%, respectively.

The post Analysts name 2 ASX dividend shares to buy with 5% yields appeared first on The Motley Fool Australia.

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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 Scott Phillips.

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There are a handful of ASX shares that I think would make excellent buys to hold for the long term.

Companies with long-term growth plans and large potential markets can generally produce good compound returns over the coming years, in my opinion.

I believe those elements together with recent share price volatility make the two ASX shares below even more attractive. Let’s take a closer look.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is an ASX healthcare share that has seen a hefty decline since the beginning of the year, but its FY22 result showed a lot of progress.

The company points out that breast cancer screening presents a “significant opportunity” for the business. There are 92 million women screened globally each year, with 39 million in the United States. Volpara has reached a market share of 35.5% of US women having a Volpara product used on their images and data, compared to 32% in FY21.

There are plenty of other metrics that make this company a great long-term investment, in my opinion. Its average revenue per user (ARPU) continues to climb. ARPU was US$1.40 in FY21 and grew to US$1.51 in FY22. Growth here can be achieved by selling more modules to more clients.

Volpara’s subscription revenue rose by 37% year on year to NZ$24.8 million over the year. It came with a gross profit margin of 91%, which allows the business to invest that growth profit into growth areas of the business growth such as marketing and research and development.

One focus for the ASX share in FY23 is to expand its total addressable market, which could help lengthen the company’s long-term growth runway.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador describes itself as a growth capital fund that is focused on the IT sector, actively managed by “an experienced team with demonstrated sector experience.”

It aims to provide exposure to a portfolio of IT companies that have global addressable markets. Bailador invests in private technology companies at the expansion stage.

Some of its investments include Siteminder Ltd (ASX: SDR), Straker Translations Ltd (ASX: STG), InstantScripts, Nosto and Mosh.

Typically, it’s looking for businesses that are run by the founders, have been in operation for two to six years, have a proven business model with attractive unit economics, international revenue generation, a huge market opportunity and the ability to generate repeat revenue.

Some of the types of areas the ASX share likes to look at include subscription-based internet businesses, online marketplaces, software, e-commerce, high-value data, online education, telecommunication appliances and services.

I think it could be a good opportunity because of the long-term investment approach it takes with its holdings, which themselves are attractive long-term businesses.

At the end of April 2022, it had net tangible assets (NTA) per share (pre-tax) of $1.99. The current Bailador share price of $1.36 at Friday’s close is at an attractive discount to that NTA level.

These factors are why I think the underlying portfolio is likely to continue to perform well over the coming years, particularly starting at this lower valuation of the Bailador share price.

The post 2 ASX shares I think are great long-term buys appeared first on The Motley Fool Australia.

More reading

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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 positions in and has recommended Bailador Technology Investments Limited and VOLPARA FPO NZ. The Motley Fool Australia has positions in and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Bailador Technology Investments 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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S&P/ASX 200 Index (ASX: XJO) shares are under increasing pressure to reduce their emissions to help mitigate global warming.

ASX 200 shares that are seen to be high emitters tend to be left off the investment lists of environmental, social, and corporate governance (ESG) focused retail investors and funds.

But this year Russia’s invasion of Ukraine, and the resulting boycotts of Russian oil, gas and coal, have demonstrated how reliant the world still is on fossil fuels.

While European nations have led the global charge in championing renewable energy, many are finding it could take several years to wean themselves off Russia’s fossil fuels.

Meanwhile, here in Australia, the newly elected Labor government has more ambitious emissions reduction targets than the outgoing Coalition, putting additional pressure on ASX 200 shares to do more on the environmental front.

A big opportunity for ASX 200 shares

Addressing the Labor government’s more ambitious 2030 emissions targets, David Gilmour, portfolio analyst & ESG specialist at Yarra Capital Management, said that this presents “the largest opportunity on our pathway to net zero emissions: making dirty cleaner”.

“For too long, sustainability investment has centred on future facing industries, like renewables, and blatantly ignored the dirtiest industries,” he said. “The focus has been on the cure to emissions, with no consideration to prevention. Divestment has been the weapon of choice.”

With the electricity sector in the United States only accounting for about a third of emissions, Goldman Sachs believes the biggest cuts by 2030 will be delivered by oil and gas producers, diversified metals and mining, and aluminium, where you’ll find few ESG investors holding shares.

According to Gilmour:

Domestically it’s a similar story. Like the US, Australia’s electricity sector only accounts for around 30% of total emissions. Labor’s new target for a 43% reduction on emissions to 2030 (based on 2005 levels) will require substantive efforts from industry and transport.

He added that “the electricity sector is already stretched to its limit with a forecast 49% reduction by 2030 from today’s levels.”

Without additional cuts from the electricity sector, Labor will need to achieve a 22% reduction in emissions from other sources to achieve its target. That compares to the Coalition’s former forecast for a 1% increase.

The case for investing in these ‘dirty’ shares

Which brings us to 3 ‘dirty’ ASX 200 shares Yarra holds positions in.

Noting that Yarra supports Labor’s proposal to strengthen the existing Safeguard Mechanism, Gilmour said, “Investors must also play an important role. We believe strongly in company engagement over exclusion; the former can lead to outperformance, while the latter shifts ownership to parts of the market with less oversight and deprives companies of capital when they need it most.”

He said this was the reason Yarra was invested in ASX 200 shares unlikely to top the list of ESG investors, like Alumina Limited (ASX: AWC) and Worley Ltd (ASX: WOR).

According to Gilmour:

That’s why we are shareholders in high emitters such as Alumina, a company with a harder pathway to net zero but has the capability to benefit from the transition. AWC is already among the lowest emitters among major alumina producers, is pursuing early-stage technologies and is a clear beneficiary of green capex given the expected growth in demand for aluminium (39% demand growth to 2030).

We are also overweight on Worley, which is well positioned to capture higher structural demand from energy transition work over and above its traditional work for the oil & gas industry.

The recently rebranded ASX 200 energy share, Woodside Energy Group Ltd (ASX: WDS), also makes the cut.

“Early this year we established a position in Woodside Petroleum (WPL), a company which predominantly produces gas and has a new strategy to invest $US5bn in new energy opportunities by 2030,” Gilmour said.

“Our focus remains on working with management to strengthen its 2030 interim target and lower its reliance on offsets,” he added.

Some food for thought for ESG investors running their slide rules across potential ASX 200 shares.

The post Why we’re still buying ASX 200 shares that are ‘high emitters’: fundie appeared first on The Motley Fool Australia.

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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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