UBS has just released a new research report naming their top ASX large-cap stocks.

The report takes into account the results from the most recent earnings season, as well as the macroeconomic environment going forward.

The broker says they are the “most compelling” opportunities drawn from a wider list of 30 stocks.

Sectors they are avoiding include the banks and consumer stocks, which could be buffeted by higher interest rates.

But they see ongoing tailwinds for the industrial and mining sectors.

Let’s see who they like specifically.

BHP Group Ltd (ASX: BHP)

UBS likes BHP for its 55% exposure to copper, which is its preferred commodity.

They said they are “constructive on the fundamental outlook for copper (and) expecting a protracted period of elevated prices”.

They have a price target of $62 on BHP shares.

Charter Hall Group (ASX: CHC)

The broker says this company is trading on a lower price-to-earnings ratio than the S&P/ASX 200 Index (ASX: XJO) despite offering higher earnings per share growth in FY27.

They added:

Earnings per share growth will be much more resilient this hiking cycle due to a higher proportion of recurring earnings, resilient institutional capital flows and tailwinds from FY26.

UBS has a price target of $24 on Charter Hall shares.

Insurance Australia Group Ltd (ASX: IAG)

IAG is UBS’ top pick among the insurance companies, reflecting its robust home and motor policy pricing, leverage to higher bond yields, and potential upside from its proposed RAC acquisition.

If that deal does not go ahead, UBS said a buyback was possible.

UBS has a price target of $9.10 on IAG shares.

Light & Wonder Inc (ASX: LNW)

UBS said this gambling company was trading at a low multiple despite guiding to mid to high-single-digit earnings growth.

The broker said the industry had strong dynamics and iGaming was growing well.

The broker has a price target of $210 on Light & Wonder shares.

Mineral Resources Ltd (ASX: MIN)

UBS said MinRes is entering a “cash harvest” phase, which should support deleveraging and increased shareholder returns.

They added:

Governance concerns have eased, with a credible succession plan now in place. Combined with a materially improved outlook, the stock’s valuation appears increasingly attractive.

UBS has a price target of $72 on MinRes shares.

Megaport Ltd (ASX: MP1)

The broker said the company’s Latitude division was reshaping its earnings profile through long-duration AI compute contracts and accelerating annual recurring revenue growth.

They said guidance had been upgraded, with further upside risk, liquidity remains strong, and any incremental revenue carried high earnings conversion.

UBS has a price target of $29 on Megaport shares.

Orica Ltd (ASX: ORI)

UBS said it expected resilient global mine production activity and the integration of recent acquisitions to drive 7% compound growth over three years.

They have a price target of $27 on Orica shares.

Sigma Healthcare Ltd (ASX: SIG)

The broker said Sigma had ongoing sales strength across existing and new stores at Chemist Warehouse in Australia and overseas.

The company was also “leveraging structural tailwinds in back of store and health & beauty, plus gross margin expansion and operating leverage from cost management in time”.

UBS has a price target of $3.15 on Sigma shares.

Ventia Ltd (ASX: VNT)

The infrastructure services company, UBS said, had a growth outlook of 8% compound over three years, “supported by increased infrastructure investment, government outsourcing, and defence spending”.

UBS has a price target of $7 on Ventia shares.

The post UBS’ top nine ASX large-cap stock picks appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc and Megaport. The Motley Fool Australia has recommended BHP Group and Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Planning for retirement with a firm idea of what sort of income you might expect from your superannuation is a recipe for peace of mind.

The Association of Superannuation Funds of Australia (ASFA) calculates the amount you need for a comfortable retirement at $56,166 for singles and $78,998 for couples.

Keep in mind that this assumes the retiree owns their own home and will draw a part pension.

But what about if you want to live off dividends from your superannuation alone?

In that case, it’s a good idea to run the numbers on the level of superannuation savings you’ll need.

How much superannuation will I need to earn $2,000 a week?

If you’re aiming for $2,000 per week, or $104,000 per year, you’d need $1.04 million in superannuation if you were able to generate returns of 10% per year.

While some shares do have dividend yields around this mark, it’s unlikely that you’d be able to replicate this high level of returns across a portfolio without being exposed to a high level of risk.

If you earned a 5% return you’d need superannuation savings of $2.08 million.

I’d suggest this is too low a benchmark to aim for given the benefits which accrue to retirees from franking credits.

Retirees who pay no tax are eligible for a full refund on the tax paid by companies they invest in, which for fully franked dividends is a 30% rate.

In practical terms this means a 5% dividend turns into a 7.14% dividend once franking credits are factored in.

So let’s assume you can earn a 7.5% return – this would mean you would need $1.38 million in superannuation savings.

So, what sort of shares might generate the sort of return you are after?

At the upper end of the spectrum Centuria Office REIT (ASX: COF) is forecasting paying dividends of 9 cents per share in FY27, which at the current share price equates to a dividend yield of 10.8%.

Arena REIT (ASX: ARF) has guided to a dividend yield of 7.3%, while HealthCo Healthcare and Wellness REIT (ASX: HCW) is currently on track to pay an 8% yield this year.

Among infrastructure companies, Atlas Arteria Ltd (ASX: ALX) is expected to pay a forward dividend yield of 9.7%, while APA Group Ltd (ASX: APA) has a trailing dividend yield of 5.48%.

Betashares Australian Dividend Harvester ETF (ASX: HVST) is paying 5.67%, while WAM Income Maximiser Ltd (ASX: WMX), which pays monthly dividends, is paying 4.58%.

If your superannuation needs a top up, be sure to read up on concessional contributions, which are tax-effective contributions you can make to your superannuation, up to a cap of $32,500 – which includes contributions made by your employer.

The post How much is needed in superannuation to target $2,000 a week in passive income appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Stellar Resources Ltd (ASX: SRZ) shareholders are sitting on phenomenal gains over the past 12 months, but the analysts at Shaw and Partners believe there’s more upside to be had as the company’s Heemskirk tin project progresses towards production.

The company’s shares are up 1045% over 12 months, increasing from as low as 2 cents during the period to be changing hands for 35.5 cents at the time of writing.

Globally-significant project in development

The Heemskirk project, the company says, is “the highest-grade undeveloped tin project in Australia and the third highest-grade globally of peer company projects”.

Stellar has so far defined a resource of 13.36 million tonnes at a grade of 0.86% tin, for 115,300 tonnes of contained tin, and exploration is ongoing.

The company recently released new drilling results from the Severn deposit at the project, and Stellar said, significantly, “the intersections occur outside of the Severn Resource at shallower depths and along trend to the south of the high-grade Montana Resource”.

This meant there was the potential for the Severn and Montana resource zones to link up, the company said.

Stellar said it has immediately started follow-up drilling to test that theory, while “a second drill rig is testing additional zones along the Severn trend outside the resource to the north of Montana”.

The company added:

Prefeasibility Study work continues with focus on optimising mining and processing configuration through either a standalone operation or utilising existing nearby infrastructure, as well as mine scheduling for potential incorporation of the Severn extension plus Montana into increased production capacity. Tin prices continue to hold near all-time highs and at the time of writing this release remain above US$54,000, as tightening of global supply and disruption concerns continue, supporting the strategic case for Stellar’s Heemskirk Tin Project with unencumbered offtake in a stable Tier-1 jurisdiction.    

Stellar Managing Director Simon Taylor said the new drilling results were a major development.

He said:

This potential scale expansion offers significant development upside, and we are now undertaking the work to develop the resource at Severn into these new areas to incorporate into the prefeasibility study and any future definitive feasibility study. Evaluating the integration of these potential resource extension high-grade zones into our planning will allow us to deliver a thoroughly optimised prefeasibility study that maximizes long-term shareholder value.

Shares looking cheap

Shaw and Partners said in its new research note on the company that joining the two deposits would be advantageous for mine design and scheduling.

The broker has a price target of 66 cents on Stellar, compared to 35.5 cents at the time of writing.

This would constitute an 85.9% return if achieved. Stellar is valued at $120.7 million.

The post Up more than 1000% over a year, how much more upside does this ASX mining stock have? appeared first on The Motley Fool Australia.

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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 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.