Analysts are just getting back into the swing of things after reporting season and the research reports are starting to flow.

I’ve picked out three companies that brokers have tipped for differing fortunes.

Let’s have a look.

Mesoblast Ltd (ASX: MSB)

Bell Potter published a research report last week which said that the outlook for Mesoblast’s short term revenue growth “remains highly attractive”.

There are also some pivotal events in the wings next year, including the interim readout on the clinical study for Mesoblast’s drug Ryoncil to be used in adults to treat graft versus host disease, and the headline data for a study of another compound in treating chronic lower back pain.

Bell Potter said:

Both are substantially larger markets than paediatric GvHD, nevertheless the market remains cautious. Australian biotech has had a difficult 12 months with several randomised clinical trials failing to meet clinical endpoints and we expect this has undermined investor confidence in the sector and is a contributing factor to the recent MSB share price.

The broker said the lower back pain drug could be a blockbuster in its own right, but the bar for approval was high.

They added:

Randomised controlled trials in pain management are difficult, however, the first Phase 3 in this indication achieved highly statistically significant reductions in pain from baseline. Since then patient selection criteria has been tightened and clinical endpoints refined in moves which we believe enhance the prospects for meeting the clinical endpoints in next year’s headline data readout.

Bell Potter has a $4.45 price target on Mesoblast shares compared to $1.98 currently.

Dicker Data Ltd (ASX: DDR)

Computer hardware company Dicker Data has just announced a deal to buy Sektor Group in New Zealand for $111.8 million.

Broker UBS said the motivation for the deal was to drive more growth in the southeast Asian region, “and further bolster its dominant Trans-Tasman offering within high margin technology”.

UBS said it was a positive incremental step for Dicker Data with the deal transacted at an attractive multiple.

The broker added:

Given the transaction consideration is entirely cash and no explicit management retention arrangements have been disclosed, retention of key personnel and vendor/ reseller relationships will be important to successful integration.

UBS has a neutral recommendation on Dicker Data shares and a $15.40 price target compared to $16.08 currently.

ASX Ltd (ASX: ASX)

Macquarie released a new research report into ASX, saying they were cautious on the company due to leadership transition and downside earnings risk from potential higher than expected capital expenditure.

The broker increased their price target from $52 to $53. However, it remains well below the current price of $61.10.

They also have an underperform rating on the company. At the time of writing, ASX is valued at $11.96 billion.

The post Buy, hold, sell: Mesoblast, Dicker Data, ASX shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Mesoblast, Transurban, NextDC shares
• Top brokers name 3 ASX shares to buy next week
• 2 ASX 200 shares tipped to rise 39% to 130%
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Cameron England 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are plenty of ASX shares offering attractive dividend yields right now.

But when it comes to building passive income, I think it pays to look beyond the size of the next dividend.

After all, a company that can maintain and gradually grow its dividends could be far more rewarding over the long term than one offering a high yield that proves unsustainable.

With that in mind, here are three ASX dividend shares that could be worth considering for passive income.

APA Group (ASX: APA)

The first ASX dividend share to look at is APA Group. 

It owns and operates a vast network of energy infrastructure across Australia, including gas pipelines, processing facilities, storage assets, and electricity transmission infrastructure.

One of the best things about APA is that much of its revenue comes from long-term agreements with customers that need access to its infrastructure. This provides a degree of predictability to its cash flows, which is particularly important for a company paying regular distributions to shareholders.

Speaking of which, for FY 2027, APA is forecast to offer a dividend yield of approximately 5.3%.

Transurban Group (ASX: TCL)

Another ASX dividend share that could be a strong option for income investors is Transurban.

It owns and operates major toll roads in Australia and North America, generating revenue whenever motorists use its networks.

One of Transurban’s strengths is that its roads are already an established part of how people travel around major cities.

Whether motorists are commuting to work, making deliveries, or travelling for other reasons, there is an ongoing need for roads that help them avoid congestion.

And as populations grow, traffic volumes could increase over time, driving its dividend higher.

For FY 2027, Transurban is guiding to a 72 cents per share dividend, which represents a yield of around 5.4% at current prices.

Woolworths Group Ltd (ASX: WOW)

A final ASX dividend share that could be worth considering is Woolworths.

Woolworths is one of Australia’s largest retailers, with millions of customers shopping at its supermarkets every week.

This gives it a substantial and recurring source of revenue, even when households are cutting back on discretionary purchases.

The opportunity now is for management to improve the company’s operating performance and rebuild earnings after a tough period.

If Woolworths can regain momentum while keeping costs under control, there is potential for profits and dividends to grow over the coming years.

In the meantime, the market is expecting a dividend yield of around 2.9% in FY 2027.

The post Why these excellent ASX dividend shares could be strong buys for passive income appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target $2,000 a week in passive income
• Buy, hold, sell: Mesoblast, Transurban, NextDC shares
• Woolworths vs JB Hi-Fi: Which ASX shares to buy now?
• ASX 200 defensive sectors outperform amid volatile trading
• How much superannuation do I need to generate $100,000 per year in passive income?

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Monday, the S&P/ASX 200 Index (ASX: XJO) had a strong start to the week. The benchmark index rose 0.75% to 8,783.2 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 to rise

The Australian share market looks set to edge higher on Tuesday following a mixed start to the week in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% higher. On Wall Street, the Dow Jones rose 0.4%, but the S&P 500 edged 0.05% lower and the Nasdaq dropped 0.45%.

Buy GenusPlus shares

Bell Potter thinks GenusPlus Group Ltd (ASX: GNP) shares could offer major upside potential. This morning, in response to news of an acquisition, the broker has retained its buy rating and $12.80 price target on the infrastructure services provider’s shares. It said: “We view the UCG deal as strategic. The UCG acquisition will fast-track GNP’s multimarket growth strategy across the Communications, Transmission, Wind, Rail and Gas sectors. The UCG acquisition also provides a platform to extend GNP’s existing construction and maintenance capabilities in New Zealand.”

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$93.21 a barrel and the Brent crude oil price is up 1.25% to US$106.02 a barrel. Concerns over attacks on Saudi Arabian airports were partly to blame for the rise.

Dividends being paid

Today is payday for the shareholders of a number of ASX 200 shares. This includes steel manufacturer BlueScope Steel Ltd (ASX: BSL), investment platform provider Hub24 Ltd (ASX: HUB), and gold miner Ramelius Resources Ltd (ASX: RMS). BlueScope will be paying its shareholders a 135 cents per share dividend.

Gold price falls

ASX 200 gold shares Genesis Minerals Ltd (ASX: GMD) and Capricorn Metals Ltd (ASX: CMM) could have a subdued session on Tuesday after the gold price edged lower overnight. According to CNBC, the gold futures price is down 0.55% to US$4,193.6 an ounce. A stronger US dollar and inflation concerns weighed on the gold price.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Monday
• ASX 200 defensive sectors outperform amid volatile trading
• Here are the top 10 ASX 200 shares today
• 9 ASX 200 shares upgraded by brokers this week

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 GenusPlus Group. The Motley Fool Australia has recommended GenusPlus Group and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.