Pilbara Minerals Ltd (ASX: PLS) shares had a strong finish to the week.

The lithium miner’s shares rose 7.5% on Friday to end the period at $4.24.

This followed the release of the company’s third-quarter update, which went down well with investors despite falling short of the market’s expectations.

What are brokers saying about Pilbara Minerals shares

A number of brokers have been looking over the company’s update and have given their verdict on it and Pilbara Minerals’ shares.

Let’s start with Citi, which wasn’t expecting the market to respond positively to the release. However, with the broker believing that we could be at the end of the downstream destocking cycle, it remains positive and reiterated its buy rating and $4.60 price target. It said:

PLS reported operating cashflow of ~$920m, down 3% QoQ but better than SepQ. Cash now A$2.68bn, +0.46bn QoQ. Average selling price down 15% QoQ to US$4840/t or US$5,522 on a SC6 basis vs spot US$4671/t. PLS expects softening prices into JunQ until chemicals pricing stabilises. Production guidance is maintained with costs nudged up. Conference call is tomorrow at 9AM AEST and will likely focus on downstream strategy, pricing environment and ramp up of plant throughput. We expect a market reaction to the downside. Maintain Buy on our view that we are probably at the end of the downstream destocking cycle.

Over at Goldman Sachs, its analysts weren’t overly impressed with the update. However, they retained their neutral rating with a new $4.10 price target. The broker commented:

Pilgangoora achieved an average realised price of US$4,840/t (US$5,522/t SC6.0 CIF China), down ~15% QoQ and ~10% below GSe/consensus, including a spot sale of 15kt based on a new pricing model linked to tolling lithium hydroxide. PLS anticipates continued softening of spodumene prices into the June quarter until pricing for lithium chemicals stabilises, including domestic pricing in China, with this expected to continue in the short term with pricing potentially strengthening in 2H as restocking of inventory levels in China occurs across the supply chain.

‘Softer than we’d hoped’

Morgans was also disappointed but believes there’s value on offer with Pilbara Minerals shares. It has retained its add rating with a reduced price target of $5.00. It said:

3Q production met expectations (-1% on forecast) but pricing was softer than we’d hoped (-5% on forecast, -15% qoq). Realised prices will continue to soften in the coming quarters and we have reduced our forecasts given weak chemical pricing. This reduces our price target to $5ps (- 6%). We still see upside to our DCF valuation and there is the potential for short-term price momentum when the Chinese market strengthens.

The post Here’s what brokers are saying about Pilbara Minerals shares appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• 2 ASX lithium shares this US institutional investor is buying up big (and one it’s selling)
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why Appen, Megaport, Mirvac, and Pilbara Minerals shares are pushing higher 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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Are you searching for big dividend yields? If you are, then read on because listed below are two ASX dividend shares that offer investors big yields.

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

Accent Group Ltd (ASX: AX1)

This retailer could be an ASX dividend share to buy for income investors. It is the fashion and footwear retailer behind brands including Hype DC, The Athlete’s Foot, Glue, and Platypus.

The team at Goldman Sachs is very positive on the company. In fact, it believes the market is overlooking just how positive its outlook is. The broker highlights its expansion potential and exposure to younger consumers as reasons to buy. Particularly given how the latter have less exposure to rising rates and stand to benefit from increases to the minimum wage.

Goldman currently has a buy rating and $3.10 price target on its shares.

As for dividends, Goldman is forecasting a fully franked dividend of 15 cents per share in FY 2023. Based on the current Accent share price of $2.54, this will mean a generous yield of 5.9%.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another option for income investors to consider is actually an ETF. The Vanguard Australian Shares High Yield ETF gives investors with exposure to ASX dividend shares that have higher than average forecast dividends based on broker research.

But rather than just loading up on banks and miners, the ETF has a diverse group of holdings and restricts the proportion invested in any one industry to 40% and 10% for any one company.

Among the ASX dividend shares that you’ll be owning a slice of with this ETF are giants such as BHP Group Ltd (ASX: BHP), Coles Group Ltd (ASX: COL), Commonwealth Bank of Australia (ASX: CBA), and Telstra Corporation Ltd (ASX: TLS).

At present, the Vanguard Australian Shares High Yield ETF trades with an estimated forward dividend yield of 5.5%.

The post These ASX dividend shares have big yields appeared first on The Motley Fool Australia.

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• Is the Vanguard Australian Shares High Yield ETF (VHY) a strong ASX buy for passive income?
• Get a passive income boost from these ASX dividend shares: analysts
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• 5 steps to bring in $1,000 per month in passive income
• The Accent share price has soared 100% in 6 months. Is it still a buy?

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 Coles Group and Telstra Group. The Motley Fool Australia has recommended Accent Group and Vanguard Australian Shares High Yield ETF. 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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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:

Mineral Resources Ltd (ASX: MIN)

According to a note out of Morgans, its analysts have retained their add rating on this mining and mining services company’s shares with a trimmed price target of $103.00. Although the broker was a touch underwhelmed with Mineral Resources’ quarterly performance, the result does not impact its very positive longer-term investment view on the company. As a result, it continues to see plenty of value in its shares at the current level. The Mineral Resources share price ended the week at $73.68.

Pilbara Minerals Ltd (ASX: PLS)

A note out of Citi reveals that its analysts have retained their buy rating and $4.60 price target on this lithium miner’s shares. This follows the release of a quarterly update that was short of expectations, particularly in regard to lithium pricing. However, Citi is overlooking this on the belief that we are probably at the end of the downstream destocking cycle. The Pilbara Minerals share price was fetching $4.24 at Friday’s close.

Xero Limited (ASX: XRO)

Analysts at UBS have upgraded this cloud accounting company’s shares to a buy rating with an improved price target of $109.00. According to the note, UBS believes that Xero is well-placed to deliver stronger than expected free cash flow in the coming years. This is due to its belief that the company’s strong growth will continue despite its recent cost reductions initiative. The Xero share price was trading at $93.34 on Friday afternoon.

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

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More reading

• 2 ASX lithium shares this US institutional investor is buying up big (and one it’s selling)
• Here are the top 10 ASX 200 shares today
• Nasdaq rebound! Brokers say these ASX 200 tech shares are buys
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why Appen, Megaport, Mirvac, and Pilbara Minerals shares are pushing higher today

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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) stock Inghams Group Ltd (ASX: ING) could be the source of appealing passive income in the form of dividends. It could play a part in an investor’s nest egg.

Inghams is the largest integrated poultry producer in Australia and New Zealand. While chickens are the core part of the business, it’s also involved with the production of turkey and stock feed.

The ASX agriculture share has been through a lot of volatility over the last few years as it suffers from inflation impacts.

Inghams earnings recap

Inghams’ recent FY23 half-year result showed some of the pain that the business has gone through over the prior 12 months. While core poultry volume was only down 0.6% year over year, the underlying earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 12.2% to $210.2 million and the underlying net profit after tax (NPAT) fell 13.1% to $26.6 million.

But, the comparison to the FY22 second half numbers shows how much the business has already started showing an improvement. Half-over-half, underlying EBITDA rose 32.7% and underlying NPAT was up 885.2%.

Consumer demand returns

Inghams said in the result that poultry demand was seeing “healthy growth” as consumer activity returned to pre-COVID patterns. An industry-wide reduction of chicken volume for sale has underpinned a “favourable pricing environment”. That sounds positive for its ability to pay passive income in the coming periods.

While it was still seeing cost inflation, the company said it was “focused on ensuring customer pricing levels appropriately reflect these ongoing feed and inflationary cost pressures and will pass on further price increases as required.” The company added:

The poultry sector remains a growing sector, holding a significant and growing affordability advantage over red meat and seafood alternatives which is particularly attractive in the current inflationary environment.

Importantly, ongoing discussions with key customers highlights their strategic focus on the poultry segment, reaffirming our optimism for the category over the medium to longer term.

It’s with that in mind that there are projections for good dividends in the next few years from Inghams.

$300 goal of monthly passive income from the ASX 200 stock

In FY24, the business could generate 21.6 cents of earnings per share (EPS) and pay a dividend per share of 14.8 cents (according to Commsec), which would equate to a forward grossed-up dividend yield of 7.5%.

If we think about the monthly $300 target, Inghams doesn’t actually pay monthly. But, we can think of the target of a $3,600 goal which is then divided into 12 equal amounts.

Investors would need 24,325 Inghams shares to get $3,600 of annual passive income in FY24. This many shares would currently come at a cost of around $68,000.

But, that cost could be reduced if we think further ahead to the FY25 payout. Commsec numbers suggest that the ASX 200 stock could pay a total dividend per share of 17.4 cents per share. To achieve $3,600 of annual dividend income with that goal in mind, we’re talking about 20,690 Inghams shares for a cost of around $58,000.

Diversification is a good idea in a passive income portfolio, I wouldn’t put all my eggs in one basket with Inghams, But, I think it can deliver good dividends and growth over the next few years.

The post Want $300 in monthly passive income? Buy 24,300 shares of this ASX 200 stock appeared first on The Motley Fool Australia.

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More reading

• These were the best-performing ASX 200 shares in April
• Looking to buy ASX 200 iron ore shares? Here are 5 reasons not to
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• 5 things to watch on the ASX 200 on Friday

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 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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