Day: July 17, 2022

Analysts have named these top growth shares as buys

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

The Australian share market is home to plenty of companies with the potential to grow strongly in the coming years.

Two such shares are listed below. Here’s why analysts rate them as growth shares to buy:

Nitro Software Ltd (ASX: NTO)

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

Goldman Sachs is very positive on the company and believes it has significant long term growth potential. And with its shares falling heavily this year, it feels they are trading at a discount for investors.

The broker 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 Sachs has a buy rating and $2.35 price target on the company’s shares.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX growth share to look at is wine giant Treasury Wine. It is the company behind the 19 Crimes, Penfolds, and Wolf Blass brands, to name just three.

The team at Morgans are feeling very bullish right now. Particularly with its shares trading at an attractive level compared to its global wine sector peers. Morgans explained:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

The broker has an add rating and $13.93 price target on the company’s shares.

The post Analysts have named these top growth shares 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

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

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 recommended Nitro Software Limited and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/XA02JZl

Top brokers name 3 ASX shares to buy next week

A white and black clock face is shown with three hands saying Time to Buy reflecting Citi's view that it's time to buy ASX 200 banks

A white and black clock face is shown with three hands saying Time to Buy reflecting Citi's view that it's time to buy ASX 200 banks

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:

Costa Group Holdings Ltd (ASX: CGC)

According to a note out of Goldman Sachs, its analysts have retained their buy rating but trimmed their price target on this horticulture company’s shares to $3.65. This follows the release of a trading update which didn’t go down well with the market but was well-received by Goldman Sachs. Its analysts believe that the company’s pricing is outpacing cost inflation and will support margin expansion. All in all, the broker believes Costa is well positioned to deliver strong earnings growth through to FY 2024. The Costa share price ended the week at $2.54.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

A note out of Citi reveals that its analysts have retained their buy rating but cut their price target on this pizza chain operator’s shares to $92.95. While Citi acknowledges that inflation and labour shortages could impact the company’s performance, it remains positive. Its bullish view is predicated on potential upside from possible M&A activity, upside to long term store rollout plans, and sales rebounding later in 2022 once it has cycled through abnormal comps. The Domino’s share price was fetching $71.13 at the end of the week.

Santos Ltd (ASX: STO)

Analysts at Morgans have retained their add rating but cut their price target on this energy producer’s shares to $9.30. According to the note, the broker has lifted its oil price forecasts for the coming years. However, this has been offset by higher weighted average cost of capital assumptions. Nevertheless, the broker remains positive and has named Santos as a key sector pick. The Santos share price ended the week at $6.99.

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

Three inflation fighting stocks no ones’ talking about

Savvy Motley Fool investors may have already found three stock moves to help fight inflation.
Three ASX stocks that could be hiding right under your nose.

Learn More
*Returns as of July 1 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

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 recommended COSTA GRP FPO and 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.

from The Motley Fool Australia https://ift.tt/XkKDuWx

Looking for ASX shares to buy? Here are two analysts rate as buys

Iluka share price 3D white rocket and black arrows pointing upwards

Iluka share price 3D white rocket and black arrows pointing upwards

Are you looking for shares to buy next week when the market reopens? If you are, then you may want to consider the two listed below.

Here’s what you need to know about these ASX shares that have been rated as buys:

Breville Group Ltd (ASX: BRG)

The first ASX share that has been rated as a buy is leading appliance manufacturer, Breville.

As well as the eponymous Breville brand, the company has a growing portfolio of brands including Kambrook, Lelit, and Sage. Thanks to the popularity of these brands, its international expansion, and management’s relentless investment in research and development, Breville has been growing its sales and earnings at a solid rate for a decade.

The good news is that the team at Morgans believe Breville is well-placed to continue its growth in the coming years. It commented:

In our opinion, BRG deserves to trade at a premium multiple. It is positioned to deliver double-digit sales growth consistently over the next few years as it grows its market share, notably in geographies into which it has recently launched.

The broker currently has an add rating and $25.00 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX share that has been named as a buy is NextDC. It is a data centre operator providing scalable, on-demand services to support outsourced data centre infrastructure and cloud connectivity for enterprises of all sizes.

Thanks to increasing demand driven by the structural shift to the cloud, it has been growing at a rapid rate for a number of years. Goldman Sachs expects this trend to continue and notes that it has a “compelling” growth profile. It commented:

Although acknowledging the ongoing rotation towards value may impact NXT shares, we believe the company has a compelling growth profile, a proven and profitable business model, and digital infrastructure characteristics that continue to attract significant strategic interest. Hence we re-iterate our Buy (on CL) for NXT.

Goldman Sachs currently has a conviction buy rating and $14.20 price target on its shares.

The post Looking for ASX shares to buy? Here are two analysts rate as buys appeared first on The Motley Fool Australia.

Our #1 Strategy for today’s inflation drenched markets

The ABC recently reported that inflation in the UK has hit an eye watering 40 year high.
Meanwhile the Reserve Bank believes that by the end of the year inflation in Australia will climb to levels not seen since 1990.
As prices surge we’ve uncovered 3 “inflation fighting” stocks we think could hand investors outsized returns as the market recalibrates.
And as Scott Phillips put it
“There’s one thing to avoid at all costs when inflation hits.
And that’s doing nothing.”
We reveal details on these three “inflation fighting” stocks here.

Learn More
*Returns as of July 1 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor James Mickleboro has positions in 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 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.

from The Motley Fool Australia https://ift.tt/caN5lA2

2 rising ASX shares of companies with a market stranglehold

A surprised and curious male investor drinks black coffee while reading the latest news on rising ASX shares in the newspaperA surprised and curious male investor drinks black coffee while reading the latest news on rising ASX shares in the newspaper

In troubled times such as now, it can be helpful to narrow one’s focus.

One way an investor could do this is to concentrate on buying ASX shares of companies that are absolutely dominant in their field.

Having a monopoly or near-monopoly allows a business more flexibility to increase prices if inflation pressures force their supply costs to surge.

The IML Australian Smaller Companies Fund this week revealed two such players it holds that are seeing their share prices start to move upward.

‘A very strong market position’

In the June quarter when the S&P/ASX 200 Index (ASX: XJO) lost a painful 12.4%, Tassal Group Limited (ASX: TGR) shares amazingly gained more than 33%.

According to IML, multiple takeover offers from Canadian suitor Cooke Inc pushed up the demand for the ASX share. 

“Cooke is now a significant shareholder in the company,” read an IML memo to clients.

“Tassal, which is based in Tasmania, has a very strong market position as the number one salmon producer in Australia.”

IML analysts said that after “investing heavily” in the business over the past few years, Tassal is now in a position to start a new era of “significant free cash flow“.

The business will also enjoy a couple of external tailwinds.

“The company has also been successfully raising its prices as global demand for protein increases and salmon producers are set to benefit from this increased demand,” read the memo.

“Tassal’s position as the largest salmon producer in Australia has been underpinned by Tasmania’s announcement that no new fish leases will be permitted for at least the next 12 months.”

Tassal shares also pay out a handy dividend yield of 3.1%.

Bouncing back after the pandemic

New Zealand casino operator SkyCity Entertainment Group Limited (ASX: SKC) did well to see its share price remain flat during a quarter when the rest of the market was absolutely punished.

IML analysts reckon conditions can only get better from here on.

“The company’s Auckland casino property has been materially impacted by COVID restrictions over the last 2 years but has bounced back after the NZ government announced an easing of COVID restrictions in March.”

SkyCity’s financial guidance last month showed the strong comeback, the memo stated. 

“The company released earnings guidance in mid-June which confirmed a stronger than expected recovery in Auckland gaming revenues and increased EBITDA guidance for financial year 2022 of NZ$135 million, which was significantly higher than expectations.”

The price of this ASX share looks attractive, according to IML analysts.

“[SkyCity is] trading on a FY2023 dividend yield of 5%, a PE multiple of 15 times and a free cash flow multiple of less than 10 times, given it has largely completed its significant capex programme.”

The post 2 rising ASX shares of companies with a market stranglehold appeared first on The Motley Fool Australia.

Our #1 Strategy for today’s inflation drenched markets

The ABC recently reported that inflation in the UK has hit an eye watering 40 year high.
Meanwhile the Reserve Bank believes that by the end of the year inflation in Australia will climb to levels not seen since 1990.
As prices surge we’ve uncovered 3 “inflation fighting” stocks we think could hand investors outsized returns as the market recalibrates.
And as Scott Phillips put it
“There’s one thing to avoid at all costs when inflation hits.
And that’s doing nothing.”
We reveal details on these three “inflation fighting” stocks here.

Learn More
*Returns as of July 1 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Tony Yoo 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.

from The Motley Fool Australia https://ift.tt/cFwT5Qv