The Australian share market is home to some of the largest mining companies in the world. But which of these ASX 200 mining shares could be top additions to your portfolio?

To narrow things down, let’s take a look at which mining giants Goldman Sachs is currently recommending as buys. Here’s what the broker is saying:

Rio Tinto Ltd (ASX: RIO)

Goldman Sachs believes that Rio Tinto is an ASX 200 mining giant to buy.

It is of course one of the world’s largest miners with a diverse portfolio spanning multiple commodities such as aluminium, copper, iron ore, and lithium.

Goldman Sachs reckons Rio Tinto is a buy because of its attractive valuation, strong free cash flow generation, and production growth outlook. It explains:

We are Buy rated (on CL) on RIO due to: (1) compelling relative valuation vs. peers, (2) Strong FCF and dividend yield with our bullish view on iron ore, aluminium and copper prices, (3) Strong production growth in 2023 & 2024, (4) Pilbara turnaround (~50% of group NAV), (5) Compelling high margin low emission aluminium exposure.

Goldman has a buy rating and $136.20 price target on its shares.

South32 Ltd (ASX: S32)

Another ASX 200 mining giant that Goldman Sachs is bullish on is South32.

It is a diversified mining and metals company producing alumina, aluminium, bauxite, energy and metallurgical coal, manganese, nickel, silver, lead and zinc.

Goldman Sachs is a fan of the company and has a buy rating and $4.90 price target on its shares. It believes its shares are also attractively priced, particularly given the huge dividend yields that could be coming in the near term.

Its analysts commented:

We upgrade S32 to Buy (from Neutral) on attractive valuation: Trading at ~0.95xNAV (A$4.6/sh) and on an implied TSR of ~29%, and an attractive NTM EV/EBITDA multiple of ~2.1x vs. the sector average of 4.5x. We assume the share buyback continues (at ~US$250mn p.a) and S32 pays out 50% of earnings (40% ordinary, 10% special dividend component) with the FY23 full year result. On our estimates, S32 is on a supportive dividend yield of c. 5% in FY23, increasing to 14% in FY24.

The post Goldman Sachs says these ASX 200 mining giants are buys appeared first on The Motley Fool Australia.

(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

• Don’t miss out on these high yield ASX dividend shares: analysts
• Looking to buy an ASX 200 mining stock? Here are 3 reasons to consider South32 shares
• Experts say these 2 ASX 200 dividend stocks are buys for passive income
• What’s going on with Rio Tinto shares and lithium?
• Bought $5,000 worth of Rio Tinto shares last February? Guess how much passive income you’ve already grabbed?

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.

from The Motley Fool Australia https://ift.tt/dEG9DK4

The S&P/ASX 200 Index (ASX: XJO) started the week out on the wrong foot, falling 0.22% to close at 7,263.3 points.

It followed a similar slump on Wall Street on Friday. Major New York-based indices slipped between 0.1% and 0.3% amid news negations on boosting or removing the United States’ debt ceiling stalled, as Reuters reports.

The S&P/ASX 200 Real Estate Index (ASX: XRE) and the S&P/ASX 200 Financials Index (ASX: XFJ) were among today’s worst-performing sectors, falling 0.7% and 0.6% respectively.

But not all was bad on the bourse. The S&P/ASX 200 Energy Index (ASX: XEJ) gained 1% while the S&P/ASX Information Technology Index (ASX: XIJ) jumped 1.5%.

So, with all that in mind, let’s take a look at the top-performing ASX 200 shares today.

Top 10 ASX 200 shares countdown

The biggest gain on the index today was posted by BrainChip Holdings Ltd (ASX: BRN).

The ASX 200 stock rose 8.5% to close Monday’s session at 51 cents, despite no news having been released by the AI technology company.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
BrainChip Holdings Ltd (ASX: BRN)	$0.51	8.51%
Kelsian Group Ltd (ASX: KLS)	$6.79	3.35%
Nanosonic Ltd (ASX: NAN)	$5.40	2.86%
WiseTech Global Ltd (ASX: WTC)	$73.01	2.54%
Sims Ltd (ASX: SGM)	$14.91	2.33%
Sayona Mining Ltd (ASX: SYA)	$0.235	2.17%
Santos Ltd (ASX: STO)	$7.38	1.93%
NIB Holdings Limited (ASX: NHF)	$8.29	1.59%
Beach Energy Ltd (ASX: BPT)	$1.395	1.45%
Xero Limited (ASX: XRO)	$109.50	1.39%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

(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

• Here are the 3 most heavily traded ASX 200 shares on Monday
• ASX 200 energy shares charging higher as G7 nations stress ‘important role’ of gas
• Guess which ASX 200 director has been stocking up on company shares before they trade ex-dividend tomorrow
• Medibank or NIB shares? Only one is a buy according to Goldman Sachs
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Brooke Cooper 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 Nanosonics, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Nanosonics, WiseTech Global, and Xero. The Motley Fool Australia has recommended NIB Holdings. 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/j4Siywn

It’s never a good sign when short-seller interest in an ASX share is on the rise. Yet this is the situation that is confronting those who own ASX 200 lithium stock Lake Resources N.L. (ASX: LKE) this week.

Each week, my Fool colleague James takes stock of the most shorted shares on the ASX. Last week, Lake shares made the cut of the top ten, with 8% of the company’s shares being held in a short position. But on today’s list, we revealed that this short interest had risen by a significant 0.7% to 8.7%.

Short selling is a practice that enables an investor (usually a professional or institutional investor) to profit from a share’s falling value. The process works by allowing an investor who owns shares to ‘loan’ the shares out to another investor (the shorter) with a promise of returning them at a later, agreed-upon date.

The shorter then immediately sells the shares and buys them back at the agreed date. If the shares have fallen in value over that time, the shorter makes a profit.

So the fact that Lake Resources is one of ASX’s top ten most-shorted shares tells us that a lot of money is being wagered that the Lake share price will fall substantially going forward.

But why the big surge in short-seller interest over the past week?

Why are short sellers betting against Lake Resources shares?

Well, that’s hard to answer. There haven’t been any news or announcements out of Lake Resources itself, such as an earnings report or trading update, that might explain this surge in pessimism.

There are a few possible causes we can point to, however. The first is the news that a major international lithium company has just posted an unexpectedly soft earnings report. As my Fool colleague James revealed this morning, Sociedad Quimica y Minera de Chile (NYSE: SQM) released a quarterly update last Friday. This revealed softer profits thanks to a hit in demand resulting from high stockpiles across the battery supply chain.

Perhaps some investors anticipated this, and upped their short positions in Lake Resources shares accordingly.

The other factor is Lake’s share price. Lake Resources shares have had a tough year, remaining down more than 20% as of today’s pricing. However, the company is also up an impressive 45% since late April, when the company was asking just 42 cents a share:

Runs of that size over just a few weeks tend to raise eyebrows. So perhaps investors are betting that Lake shares will come back to earth over the next few weeks and months, and deliver some hefty profits for shorters in the process.

Whatever the reason for Lake’s high short-seller interest, it is certainly worth taking note of for any current shareholders.

At the current Lake Resources share price, this ASX 200 lithium stock has a market capitalisation of approximately $860 million.

The post Why is short interest in Lake Resources shares soaring? appeared first on The Motley Fool Australia.

(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

• Here are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Are ASX 200 lithium shares approaching a ‘tipping point’ for ripper revenues?
• Here are the 3 most heavily traded ASX 200 shares on Monday

Motley Fool contributor Sebastian Bowen 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/iplxJED

The good news for income investors is that there are plenty of dividend stocks to choose from on the ASX.

But if you’re struggling to decide which ones to buy over others, don’t worry. That’s because listed below are a couple of ASX dividend stocks that come highly recommended by experts. Here’s why they are tipping them as buys:

Charter Hall Retail REIT (ASX: CQR)

The first ASX dividend stocks that could be a buy is the Charter Hall Retail REIT. It invests in high quality Australian supermarket anchored convenience and convenience-plus shopping centres.

The team Citi is positive on the company and has a buy rating and $4.50 price target on its shares.

The broker likes the Charter Hall Retail REIT due to its “defensive net property income growth despite rising interest rate profile.” It also expects the company to be able to pass through higher inflation to tenants.

All in all, Citi is expecting this to allow the company to pay dividends of 26 cents per share in both FY 2023 and FY 2024. Based on the current Charter Hall Retail share price of $3.74, this will mean 6.95% dividend yields for investors.

Premier Investments Limited (ASX: PMV)

Another ASX dividend stock that has been named as a buy is Premier Investments. It is the retail group behind popular brands including Peter Alexander and Smiggle.

Macquarie is very positive on the company and has an outperform rating and $30.50 price target on its shares.

The broker was pleased with Premier Investments’ recent recent half-year results, noting that they came in ahead of expectations. Overall, it feels the result supports its analysts’ preference for the stock over other Australian retailers.

Looking ahead, the broker is forecasting fully franked dividends per share of $1.24 in FY 2023 and then 97 cents in FY 2024. Based on the latest Premier Investments share price of $24.60, this will mean yields of 5% and 3.95%, respectively, for income investors.

The post Experts are tipping these ASX dividend stocks as buys appeared first on The Motley Fool Australia.

(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

• Brokers say these ASX dividend shares are buys
• These ASX income shares have very big forecast dividend yields
• How I’d try to turn a $20k ASX share portfolio into a second income of $6,000 a year
• 2 ASX 200 shares I’d buy for global long-term returns
• Why Citi says these ASX 200 dividend shares are buys

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 Premier Investments. 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/ZhXHtId