Day: July 20, 2022

Analysts name 3 exciting small cap ASX shares with major upside potential

happy investor, share price rise, increase, up

happy investor, share price rise, increase, up

If you’re interested in investing at the small side of the market, then you may want to look at the shares below.

These small cap ASX shares have been rated as buys and tipped to have major upside potential. Here’s what you need to know about them:

Adore Beauty Group Limited (ASX: ABY)

The first small cap to look at is Adore Beauty. It is Australia’s leading online beauty retailer. Despite its leadership position and almost 1 million customers, it is still only commanding a modest share of the $11 billion+ Australian beauty and personal care (BPC) market. This gives it a long growth runway as more and more sales shift online.

Morgan Stanley is a fan of the company. It has an overweight rating and $1.90 price target on its shares. This compares favourably to the current Adore Beauty share price of $1.11.

Catapult Group International Ltd (ASX: CAT)

Another small cap to look at is Catapult. It is a global sports technology company that provides elite sporting organisations with real time data and analytics to monitor and measure athletes. It has been growing its annual contract value (ACV) at a solid rate in recent years and expects this to continue in FY 2023. Management recently provided ACV growth guidance of between 20% to 25% with a low ACV churn level in the range of 4.5% to 6%.

The team at Jefferies currently has a buy rating and $2.00 price target on the company’s shares. This compares to the latest Catapult share price of 99.5 cents.

Hipages Group Holdings Ltd (ASX: HPG)

A final ASX small cap share to look at is Hipages. It is a leading online platform provider that provides job leads to tradies from homeowners and organisations looking for qualified professionals. Analysts at Goldman Sachs are very positive on the company due to its belief that the company can capture a significant portion of industry advertising spend in the future. In fact, it has likened Hipages to the early days of Carsales.com Ltd (ASX: CAR) and REA Group Limited (ASX: REA).

Goldman Sachs has a buy rating and $2.50 price target on its shares. This is more than double the current Hipages share price of $1.10.

The post Analysts name 3 exciting small cap ASX shares with major upside potential 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

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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 Catapult Group International Ltd and Hipages Group Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has positions in and has recommended Catapult Group International Ltd and Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Adore Beauty 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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Brokers name 2 ASX dividend shares to buy now

A woman holds a lightbulb in one hand and a wad of cash in the other

A woman holds a lightbulb in one hand and a wad of cash in the other

Are you looking for dividend shares to add to your income portfolio? If you are, then the two listed below could be top options.

Both have been named as buys and tipped to provide attractive yields in the coming years. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to look at is this supermarket, convenience, and liquor store operator.

Coles could be a top option for income investors due to its strong market position, positive exposure to inflation, and its favourable dividend policy. The latter sees the company pay out upwards of 90% of profits as dividends to shareholders.

One broker that is a big fan of Coles is Citi. Its analysts have a buy rating and $19.30 price target on its shares.

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

DEXUS Property Group (ASX: DXS)

Another ASX dividend share to look at is Dexus. It is an Australian real estate company focused on office, industrial and retail properties.

Dexus never rests on its laurels and is always looking for ways to boost its portfolio. For example, during this financial year, the company made a $1.5 billion acquisition of industrial assets. These assets include Jandakot Airport in Perth and a logistics centre leased to Australia Post. It also purchased the Collimate RE and domestic infrastructure business from AMP Limited (ASX: AMP).

Ord Minnett is positive on the company. Last week it upgraded the company’s shares to a buy rating with a $11.50 price target.

As for dividends, it is forecasting dividends per share of 53 cents in FY 2022 and 55 cents in FY 2023. Based on the current Dexus share price of $9.47, this will mean yields of 5.6% and 5.8%, respectively.

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

“The worst thing you can do is nothing”

Motley Fool Chief Investment Officer says right now is not the time to sit on your hands…
As inflation eats away at cash balances Scott Phillips reveals three stocks for investors to consider that could help fight rising prices…
… And Coles Group Ltd isn’t one of them.

Learn More
*Returns as of July 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 positions in and has recommended COLESGROUP DEF SET. 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 Fortescue share price leap 5% on Wednesday?

Happy woman miner with her thumb up signalling Wyloo's commitment to back IGO's takeover of Western Areas nickelHappy woman miner with her thumb up signalling Wyloo's commitment to back IGO's takeover of Western Areas nickel

The Fortescue Metals Group Limited (ASX: FMG) share price finished in the green today.

The mining giant’s share price closed 5.23% higher on Wednesday at $17.90. For perspective, the S&P/ASX 200 Index (ASX: XJO) also climbed 1.65% today.

Let’s take a look at what happened to the Fortescue Metals share price today.

Iron ore futures rise

The company’s shares lifted amid a positive day for the materials sector.

Indeed, Fortescue was not the only exploration company to rise today. The share price of BHP Group Ltd (ASX: BHP) increased 1.37% while Rio Tinto (ASX: RIO) shares gained 2.18%.

The S&P/ASX 200 Materials Index (ASX: XMJ) also rose 2.5% today. ASX 200 lithium shares, in particular, lifted today amid concerns of a shortage of battery materials.

Meantime, it was reported iron ore prices may be buoyed by lower production guidance from Brazilian iron ore giant Vale SA (NYSE: VALE), according to Bloomberg. This may support commodity prices for iron ore and present an opportunity for competitors, the publication noted.

Iron ore futures in Singapore lifted by 2.8% while Dalian Commodity Exchange futures gained 1.5% in Asian markets, Bloomberg reported.

Jeffries analysts predicted demand for iron ore will increase due to the impacts of China’s stimulus. The broker said in comments cited by Bloomberg:

Based on our analysis, iron ore and coal should be the best of the major commodities in mining for the rest of this year.

However, as my Foolish colleague James reported yesterday, Goldman Sachs analysts are predicting iron ore prices to lower in 2023 to US$100 per tonne. But, for 2022, Goldman has placed a US$120 per tonne price forecast on iron ore.

Share price snapshot

The Fortescue share price has lost nearly 29% in the past year, while it has shed nearly 7% year to date.

For perspective, the benchmark ASX 200 index has lost nearly 7% in the past year.

Fortescue has a market capitalisation of more than $55.1 billion based on the current share price.

The post Why did the Fortescue share price leap 5% on Wednesday? appeared first on The Motley Fool Australia.

3 Stocks for Runaway Inflation

As the world suffers price shocks… and the cost of everything seems to be ticking higher…
These 3 ASX stocks could be the answer to runaway inflation. Boasting key qualities companies need to not only survive but actively thrive when costs surge.
Act fast – because in times of inflation, the worst thing you can do is… nothing.

Learn More
*Returns as of July 1 2022

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Motley Fool contributor Monica O’Shea 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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‘Elevated prices’ give AGL share price a shot at 26% upside: JP Morgan

A woman sits on a chair with laptop on her lap and a smile on her face with a graphic image of a climbing jagged arrow tangled around her feet and lifting them comfortably so they are raised against a backdrop of many lightbulbs with one large lightbulb showing a dollar sign.A woman sits on a chair with laptop on her lap and a smile on her face with a graphic image of a climbing jagged arrow tangled around her feet and lifting them comfortably so they are raised against a backdrop of many lightbulbs with one large lightbulb showing a dollar sign.

The AGL Energy Limited (ASX: AGL) share price closed 2.7% higher on Wednesday. The utilities share finished trade at $8.37 a share.

Top broker JP Morgan says the company has the most to gain from increased wholesale electricity prices.

According to a report in the Australian Financial Review (AFR), JP Morgan has upgraded its guidance on AGL Energy from neutral to overweight.

It has also increased its 12-month share price target for AGL from $9.15 to $10.60.

Why JP Morgan is bullish on the AGL share price

Analyst Mark Busuttil said, “higher wholesale prices have a material impact on earnings and value”.

JP Morgan projects average wholesale electricity prices of $208 per megawatt hour in 2022. This is a 93% upgrade. The broker also projects $179 per megawatt hour in 2023 (a 92% upgrade) and $116 per megawatt hour in 2024 (up 45%).

Busuttil said the key risk is operational, with an increasing likelihood of unplanned outages at baseload plants.

AGL has endured extended outages at its Loy Yang A coal power plant in Victoria.

Net profits to grow exponentially

JP Morgan now forecasts AGL Energy to earn a net profit of $239 million in FY22. It is tipping a net profit of $555 million in FY23 and $1.32 billion in FY24.

The broker acknowledges that today’s commodity prices are not sustainable.

However, “the challenges in addressing current constraints mean that we expect elevated prices for some time”.

The AGL share price is up 36% in the year to date.

The post ‘Elevated prices’ give AGL share price a shot at 26% upside: JP Morgan 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

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen 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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