S&P/ASX 200 Index (ASX: XJO) shares are down 0.5% to 8,681 points on Thursday.

Among the 11 market sectors of the ASX 200, consumer staples is in the lead today, up 1.4%.

The materials and mining sector is the laggard, down 2.3%.

Let’s check out some new ratings from the experts.

IDP Education Ltd (ASX: IEL)

The IDP Education share price is $2.12, up 1.9% today. 

Ord Minnett has a buy rating on this ASX 200 consumer discretionary share. 

In a new note, the broker said: 

IDP Education Limited provides student placement services in Asia, Australasia, and internationally. 

IDP Education (IDP) disclosed that it has rejected two unsolicited and non-binding takeover approaches from Blackstone Singapore Pte Ltd, which is part of the global private equity firm Blackstone Inc. The latest proposal offered $2.50 per share in cash.

On our numbers, the bid equates to an FY27 price-to-earnings multiple of approximately 13.2x, but this is on depressed earnings.

Unsurprisingly, IDP’s Board has unanimously rejected the proposal, stating that it “substantially undervalues IDP and is not in the best interest of shareholders”.

The Directors highlighted that it considers the approach highly opportunistic, given the international education sector is facing significant headwinds (we point to policy uncertainty and weaker student visa issuance across key markets), which have temporarily depressed valuations.

Further, it does not factor in the upside from IDP’s multi-year transformation program.

Macmahon Holdings Ltd (ASX: MAH)

The Macmahon Holdings share price is $1.14, up 2% today. 

Ord Minnett has a hold rating on this ASX 200 materials share. 

The broker commented: 

Macmahon Holdings Limited engages in the process of surface mining, underground mining and mining support, and civil infrastructure services to mining companies in Australia and Southeast Asia.

Macmahon Holdings (MAH) has agreed to acquire Aspect Engineering Solutions in a transaction valued at an enterprise value to earnings before interest and tax (EV/EBIT) multiple of approximately 5–6x, depending on the final earn-out.

The deal will be funded from existing cash reserves and includes an upfront payment of $30 million, annual retention payments of $6million over five years, and performance-based earn-outs of $15–30 million.

MAH can choose to settle the retention and earn-out payments in shares rather than cash.

The acquisition looks financially attractive.

After incorporating the acquisition costs and earnings contribution from Aspect into our numbers, our EPS estimates are revised higher by 3% in FY27 and 6% in FY28. Our target price increases to $1.10 from $1.00 following the positive earnings changes.

Transurban Group (ASX: TCL)

The Transurban share price is steady at $12.96 on Thursday.

Morgans has a trim rating on this ASX 200 industrials share. 

The broker said: 

TCL has increased its exposure to the Sydney market via acquisition of additional equity stakes in key tollroads.

While we view positively the deployment by TCL of capital into markets and assets that it knows well, we struggle to see the cashflow benefit for investors at the acquisition price paid particularly in the context of the higher rate environment.

Target price -50 cps to $12.03/s as a result of the forecast update and adjusting our DCF discount rate higher to part-risk for the rise in risk-free rates.

We retain a TRIM rating at current prices, given potential TSR of -3%.

The post Buy, hold, sell: IDP Education, Macmahon Holdings, Transurban shares appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn from a $950,000 superannuation balance?
• How much passive income can I make from a $100,000 ASX share portfolio?
• IDP Education vs G8 Education: Which battered ASX stock could rebound?
• 3 excellent ASX dividend shares with 5%+ yields
• 5 things to watch on the ASX 200 on Tuesday

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

Xero Ltd (ASX: XRO) shares have climbed higher in Thursday lunchtime trade.

At the time of writing, the ASX tech shares are up around 3% and are changing hands at $57.70 each.

It’s great news for investors after the stock has suffered considerable losses over the past 12 months.

The shares have fallen around 22% over the past month, are down 49% for the year-to-date, and are also a huge 63% lower than this time last year.

What on earth is going on with Xero shares?

The cloud-based accounting software company has been smashed by a tech-sector wide selloff over the past year. This was driven by concerns that AI could replace the core services of companies like Xero. At the same time, investors were spooked that tech companies had quickly become overinflated and far above fair value.

There was also an investor rotation away from growth stocks and into defensive assets earlier this year, fuelled by ongoing global volatility and inflation concerns.

There hasn’t been any price sensitive news out of the company since May, so there isn’t any indication that the continued share price decline recently is down to any company specific factors.

It’s likely that, more recently, investors have been taking their profits off the table after the shares briefly rebounded in July and part of August.  

Over the past month, there has also been a renewal of macroeconomic pressures. These include the September interest rate hike, higher-than-expected inflation figures, and sky-high 10-year bond yields. 

Is there any upside left for the ASX tech shares? Or can we expect another rebound?

If expert sentiment is anything to go by, we could see a strong share price rebound over the next 12 months.

Market Index data shows the majority of brokers have a buy rating on the stock. The $112 average target price implies an upside of around 92%, at the time of writing.

Data is similar on TradingView. The majority (six out of seven) of analysts have a buy/strong buy rating on Xero shares. The $113.34 average target price implies an upside of around 94%. But some think the shares have the potential to jump 148% higher to $144.40 each, at the time of writing.

Last month, the team at Macquarie Group Ltd (ASX: MQG) flagged that US growth and AI monetisation could act as key catalysts for Xero shares. They added that the acquisition of Melio has dramatically expanded what Xero can chase in terms of market size.

Citi, Morgan Stanley and UBS are also positive on Xero shares. The three brokers both have a buy rating on the stock and forecast a target price of $113.60, $130, and $125 respectively.

Michael Gable from Fairmont Equities is less optimistic. He has a sell rating on Xero shares and is concerned that increasing bond yields and interest rates could continue to be a headwind for technology stocks like Xero.

The post Xero shares crash 63% in a year: Is there any upside left? appeared first on The Motley Fool Australia.

More reading

• How much could the Macquarie share price rise in the next year?
• How much passive income can I earn from a $950,000 superannuation balance?
• Down 60%, is this ASX growth share now too cheap to ignore?
• 2 ASX shares tipped to grow 62% or more in the next 12 months
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Motley Fool contributor Samantha Menzies 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 and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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.

Retiring at 60 with $750,000 in superannuation sounds like a pretty good position to be in.

But leaving work seven years before reaching Age Pension age means your savings will need to do more of the heavy lifting.

So, would $750,000 be enough to enjoy a comfortable retirement at 60?

Let’s look at the numbers.

How much superannuation do you need for a comfortable retirement?

According to the Association of Superannuation Funds of Australia (ASFA), a single retiree who owns their home outright needs approximately $56,166 a year to enjoy a comfortable retirement.

That covers everyday living expenses alongside things like private health insurance, leisure activities, holidays, and maintaining a reasonable standard of living.

ASFA also estimates that a single person needs around $630,000 in superannuation at age 67 to fund that lifestyle, assuming some support from the Age Pension.

But our hypothetical retiree wants to finish working at 60. That means funding an additional seven years of living expenses before reaching Age Pension age.

And those seven years could make a meaningful difference to their superannuation balance.

Could dividends cover the costs?

Let’s imagine our retiree invests their $750,000 in a relatively defensive portfolio of dividend-paying ASX shares and other income-producing investments.

This might include shares like Coles Group Ltd (ASX: COL), Telstra Group Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).

If the portfolio generates an average dividend yield of 4%, it would initially provide approximately $30,000 a year in passive income.

That is a reasonable starting point, but it falls short of ASFA’s comfortable retirement estimate.

To cover annual spending of $56,166, our retiree would need to find another $26,166 from their portfolio in the first year. That money would have to come from selling investments.

So, while a 4% dividend yield provides a substantial contribution, investment performance will play an important role in determining how long the retirement savings last.

What would be left at 67?

Let’s consider two scenarios.

In both cases, we will assume annual spending remains at $56,166 and the portfolio continues producing a dividend yield equivalent to 4% of its value.

Scenario 1: No capital growth

In the first scenario, the investments generate their 4% dividend yield but experience no capital appreciation.

Because annual withdrawals are more than the income being generated, the portfolio gradually becomes smaller.

After seven years, the original $750,000 would have fallen to approximately $543,000.

That is around $87,000 below ASFA’s current $630,000 benchmark for a comfortable retirement at 67.

Our retiree would still have substantial savings, but their financial position would be noticeably weaker than when they stopped working.

Scenario 2: 3% annual capital growth

Now let’s imagine the portfolio achieves 3% annual capital growth alongside its 4% dividend yield. That represents a total annual return of approximately 7%.

Under this scenario, the retirement balance would only reduce to approximately $718,000 at age 67.

That is around $88,000 above ASFA’s current benchmark.

Even after funding seven years of retirement, the portfolio would have retained most of its original value.

For me, that demonstrates just how significant investment returns can be when retiring early.

Of course, neither scenario is guaranteed. Dividends can change, markets can fall, and returns rarely arrive at a consistent rate.

It is important to remember that these calculations also exclude inflation, fees, and taxes. In particular, the cost of a comfortable retirement is likely to rise over those seven years, making the comparison with today’s $630,000 benchmark less favourable.

Foolish takeaway

For me, $750,000 would be a promising starting point for retirement at 60.

The numbers suggest that retiring seven years early could be achievable, particularly if investments continue growing alongside their dividend income.

But with potentially decades of retirement still ahead, I would want a reasonable financial buffer to account for rising living costs and periods of weaker investment returns.

The post Is $750,000 in superannuation enough to retire at 60? appeared first on The Motley Fool Australia.

More reading

• Why this top broker is buying Charter Hall, Soul Patts, and Wesfarmers shares
• My favourite ASX passive income shares for retirees
• Down 20%: Is the Wesfarmers share price a top buy?
• How much passive income can I earn from a $950,000 superannuation balance?
• How much passive income can I make from a $100,000 ASX share portfolio?

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