Day: July 3, 2022

Analysts name 3 buy-rated ASX growth shares for July

A happy businessman pointing up, inidicating a rise in share price

A happy businessman pointing up, inidicating a rise in share price

If you have room for some new portfolio additions in July, then it could be worth considering the three ASX growth shares listed below.

Here’s what you need to know about these buy-rated shares:

Lovisa Holdings Limited (ASX: LOV)

The first ASX growth share to look at is fast-fashion jewellery retailer Lovisa. It could be a top long term option due to its bold global expansion plans, which will be overseen by its relatively new CEO, Victor Herrero. He previously led Inditex (Zara, Pull & Bear and Massimo Dutti) in China, which could be a key market for the company in the future.

Morgans is very bullish on the company due to its massive store expansion potential. It highlights that “Lovisa now has 81 stores [in the US], representing 0.25 stores for every million people), compared to Australia with 158 stores, 6.15 stores for every million people.” In light of this, the broker feels “we could be at the start of a period of remarkable expansion.” Morgans has an add rating and $24.00 price target on its shares.

Megaport Ltd (ASX: MP1)

Another growth share to look at is this global leading provider of elastic interconnection services. Using software defined networking, Megaport’s global platform allows users to rapidly connect their network to other services across the Megaport Network. After which, services can then be directly controlled by customers via mobile devices, their computer, or its open API.

Goldman Sachs is bullish on Megaport. It notes that the company has an “immense” $129 billion market opportunity and is forecasting very strong growth in the coming years. As a result, it has put a buy rating and $13.10 price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth share to look at is Readytech. It owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government. These businesses operate in market niches that are under-served by both large and small enterprise software competitors. A testament to its quality is its high (and growing) levels of recurring revenue and ultra low churn levels.

Goldman Sachs is also bullish on Readytech. It expects the company to “continue to grow mid-teens organically while making accretive acquisitions.” In light of this, the broker recently resumed coverage on its shares with a buy rating and $4.60 price target.

The post Analysts name 3 buy-rated ASX growth shares for July 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

See The 5 Stocks
*Returns as of June 1 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 MEGAPORT FPO and Readytech Holdings Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd, MEGAPORT FPO, and Readytech Holdings Ltd. 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 did the BrainChip share price crash 30% in June?

A man in a suit face palms at the downturn happening with shares today.

A man in a suit face palms at the downturn happening with shares today.

The BrainChip Holdings Ltd (ASX: BRN) share price had a disappointing month in June.

The semiconductor company’s shares ended the month 30% lower than where they started it.

This was despite BrainChip’s shares being added to the illustrious ASX 200 index during the month.

What happened to the BrainChip share price?

Investors were selling down the BrainChip share price in June amid broad market weakness. With interest rates increasing to combat rising inflation, this put pressure on equities.

This was particularly the case at the higher risk side of the market, where BrainChip certainly sits.

For example, even after June’s decline, the company has a market capitalisation of over $1.4 billion despite its revenue year to date being just $205,000.

When annualised to $820,000, this means its shares are changing hands for a ridiculous 1700 times revenue. And this is before the company has even proven that it has a market for its Akida neuromorphic processor.

In light of this, it is no surprise that when the market wobbles, the BrainChip share price tumbles.

What’s next?

The next 12 months will be very interesting for the BrainChip share price. With the company now commercialising its technology, it will have to let its sales do the talking rather than its press releases or podcasts.

Which may not be as easy as many first thought. Especially given that some of the hyped-up partnerships from the last 2-3 years appear to have amounted to nothing.

For example, its partnership with NASA was big news back in 2020 and is still talked about today as a reason to invest in BrainChip. But this seems to have ended after just three weeks on 18 January 2021 based on NASA data. It’s also worth noting that there was no mention of NASA in its most recent annual report.

So, should sales fail to materialise in a market dominated by some huge tech behemoths such as AMD, Intel, and Nvidia, then there’s a distinct danger that its days as a billion dollar plus company could be numbered.

The post Why did the BrainChip share price crash 30% in June? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Brainchip Holdings Ltd right now?

Before you consider Brainchip Holdings Ltd, 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 Brainchip Holdings Ltd wasn’t one of them.

The online investing service he’s run for over 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.

See The 5 Stocks
*Returns as of June 1 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 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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Top brokers name 3 ASX shares to buy next week

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today

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:

Collins Foods Ltd (ASX: CKF)

According to a note out of Morgans, its analysts upgraded this KFC restaurant operator’s shares to an add rating with a trimmed price target of $11.50. Morgans was impressed with Collins Foods’ full year result. And while its analysts expect inflationary pressures to weigh on its margins in FY 2023, it has still lifted its earnings estimates for the next two financial years to reflect stronger than expected sales growth. This is expected to be supported by resilient consumer demand and strong pricing power. The Collins Foods share price ended the week at $10.02.

IGO Ltd (ASX: IGO)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $17.00 price target on this battery metals miner’s shares. Macquarie is bullish on IGO due to its world class lithium business, which it expects to underpin material earnings growth in the near term. Furthermore, the broker highlights that the company’s shares trade at a discount to lithium peers. The IGO share price was fetching $9.83 at Friday’s close.

Qantas Airways Limited (ASX: QAN)

Analysts at Morgan Stanley have retained their overweight rating but trimmed their price target on this airline operator’s shares to $6.60. This followed the release of a business update which revealed a much stronger balance sheet that Morgan Stanley was expecting. And while the broker has reduced its earnings estimates to reflect higher fuel costs, it expects higher airfares and reduced capacity to provide some relief. The Qantas share price ended the week at $4.45.

The post Top brokers name 3 ASX 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

See The 5 Stocks
*Returns as of June 1 2022

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Motley Fool contributor James Mickleboro has positions in Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods 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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Broker names 2 of the best ASX energy share to buy in FY23

Pilbara Minerals share price ASX lithium shares A stylised clean energy battery flexes its muscles, indicating a strong lift in share price for ASX energy companies

Pilbara Minerals share price ASX lithium shares A stylised clean energy battery flexes its muscles, indicating a strong lift in share price for ASX energy companies

With oil prices still trading at elevated levels, some investors may be interested in gaining exposure to the energy sector.

For those that are, the two ASX shares listed below could be worth considering. They have been named by Bell Potter as two of its top picks in the energy sector for FY 2023.

Here’s what you need to know:

Beach Energy Ltd (ASX: BPT)

The first energy share that Bell Potter is bullish on is Beach Energy. It believes the company is well-placed to benefit from high oil prices in the short term and its growth plans over the medium term.

The broker explained:

BPT should continue to benefit from elevated crude prices in the shortterm, though operating leverage from its Western Flank asset will shrink as gas and LNG production from its growth projects ramp up over the next two years.

The company’s growth ambitions are fully funded; new development wells in the Victorian Otways should be commissioned by the end of FY23, lifting production capacity to plant limits (205TJ/day, gross) while improving marketing of gas volumes on a spot basis. The company’s timely entry into global LNG markets (expected from 1H CY2023), through its Waitsia Stage 2 development, coincides with a robust outlook for LNG prices.

Bell Potter has a buy rating and $2.00 price target on Beach’s shares.

Strike Energy Ltd (ASX: STX)

Another ASX energy share that Bell Potter rates highly is Strike Energy. It believes the company is well-positioned to benefit from the tightening domestic gas market in Western Australia. It also sees a lot of potential in management’s fertiliser plans.

It commented:

STX will benefit from Western Australia’s tightening domestic gas market while pursuing downstream value adding manufacturing. There are multiple upcoming catalysts as its upstream projects progress to production in 2023-24, and as its flagship Project Haber urea fertiliser project is de-risked through FEED and financing.

STX has a strong eye to ESG commitments, with a net zero Scope 1 and 2 target by 2030 and an aspiration to also offset Scope 3; Project Haber and the company’s geothermal project are key carbon offsets.

Bell Potter has a speculative buy rating and 39 cents price target on Strike Energy’s shares.

The post Broker names 2 of the best ASX energy share to buy in FY23 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

See The 5 Stocks
*Returns as of June 1 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 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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