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

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Motley Fool contributor Sebastian Bowen has positions in A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PEXA Group. The Motley Fool Australia has recommended A2 Milk, Aub Group, and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX tech stock Integrated Research Limited (ASX: IRI) blew investors’ minds with a 53.75% share price gain on Thursday to close the session at 62 cents.

The share price explosion followed the release of the company’s FY24 trading update.

Integrated Research provides performance management and analytics for IT infrastructure, payments, and communications companies.

Not only did the company report a 93% jump in earnings before interest, taxes, depreciation, and amortisation (EBITDA) over the 10 months ending 30 April, it also upgraded its full-year guidance.

Let’s take a look at the details.

ASX tech stock skyrockets on major financial boost

For the 10 months ending 30 April, Integrated Research reported $59.1 million in total contract value (TCV), up 8% on the previous corresponding period (pcp).

Between February and April, the company secured $8.4 million in new business, including six new customers, mainly in the Americas.

The renewal portfolio continues to perform well with 98% net revenue retention. Unaudited revenue for the period is $61.4 million, an increase of 11% on the pcp.

The company said it had contained cost increases to help deliver a massive 93% boost to EBITDA at $13.9 million.

Full-year 2024 results to ‘materially exceed’ last year

Integrated Research is now guiding FY24 TCV of $75 million to $84 million. This compares to $68.5 million for FY23.

The company expects revenue in the range of $76 million to $85 million. This compares to $69.8 million for FY23.

It anticipates EBITDA of between $18 million to $25 million. This is well above the $12.1 million EBITDA reported for FY23.

Commenting on the market update, CEO John Ruthven said:

We are pleased with our YTD performance and field execution, particularly in securing several key new Collaborate customer wins.

The changes we have made to our sales leadership team and go-to-market approach over the last 12-18 months are starting to bear fruit.

As we progress through May and June, we anticipate a strong finish to the financial year.

ASX tech stock share price snapshot

The Integrated Research share price has risen 70.8% in the year to date. This is a stunning outperformance on the S&P/ASX 200 Information Technology Index (ASX: XIJ), which is up 22.7%

Over the past 12 months, the ASX tech stock has soared 53.75% while the index lifted 43.7%.

That annual gain is equal to today’s stunning one-day increase for the Integrated Research share price.

The company now has a market capitalisation of $69.84 million.

The post ASX tech stock up 54% on positive trading update appeared first on The Motley Fool Australia.

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More reading

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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 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.

Brokers have upgraded these two S&P/ASX 200 Index (ASX: XJO) stocks after recent positive updates from both businesses.

Sometimes a business announcement is positive for a company and can make the current share price cheap. A decline of the share price can also open up value in the minds of some investors.

Let’s look at which two ASX 200 stocks have just been upgraded.

Perpetual Ltd (ASX: PPT)

The broker Bell Potter has put a buy rating on Perpetual shares after the business announced the sale of its wealth management and corporate trust businesses via a scheme of arrangement for A$2.175 billion in cash.

In Bell Potter analysts’ eyes, the sale was a “positive”, according to reporting by The Australian, with the broker saying the decline was “short-signed”.

The expectations for this sale were reportedly between $1.5 billion and $1.9 billion. Bell Potter said:

More to the point, we had assumed that our top of range $1.9bn sale, would incur a $480m tax liability, which may not be the case.

The newspaper reported Bell Potter’s analysis showed the ASX 200 stock’s deal was a demerger rather than a straightforward sale. The Australian reported:

…a new head company was being created and the asset management unit would be demerged and returned to shareholders who would receive the KKR sale proceeds minus the transaction costs and repaid debt.
Bell Potter said questions on tax and transaction costs missed the point.

Goodman Group (ASX: GMG)

Macquarie’s price target on Goodman shares has hiked by 4.4% to $36.37.

A price target is where a broker thinks the share price will be trading in 12 months from now. Therefore, Macquarie suggests Goodman shares could rise by more than 8% in the next year.

Why the positivity? Goodman just released its FY24 third-quarter update.

The ASX 200 stock reported, as at 31 March 2024, it had $12.9 billion of development work in progress (WIP) across 82 projects. Data centres under construction currently represent approximately 40% of WIP. In the latest quarter, it completed $0.8 billion of developments, with 96% of year-to-date completions committed. The business now has a $80.5 billion total property portfolio.

Goodman’s rental performance continues to be strong, with 4.9% like-for-like net property income growth on properties in its partnerships.

The good performance enabled the business to increase its FY24 operating earnings per security (EPS) growth to 13%.

The post These 2 ASX 200 stocks just received broker upgrades! appeared first on The Motley Fool Australia.

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More reading

• 2 magnificent ASX dividend shares I’ll be buying more of in May
• Why this ASX 200 stock is making front-page news across the country
• Why Judo Capital, NAB, Paladin Energy, and Perpetual shares are falling today
• Goodman share price hits record high on second FY24 guidance upgrade
• 5 things to watch on the ASX 200 on Wednesday

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

The S&P/ASX 200 Index (ASX: XJO) is experiencing a sell-off today, down 0.99% to 7,726.9 points at the time of writing.

This is a sizeable 2.3% fall from the benchmark index’s all-time high set on 2 April at 7,910.5 points.

AMP has published its predictions for where the ASX 200 will be by the year’s end, as well as its tips on how other asset classes, such as cash, bonds and property, will perform over the rest of 2024.

But first, let’s recap what the ASX 200 has done so far this year…

The ASX 200 began the year with a rally…

The ASX 200 started the year with a bit of weakness over the first few weeks following an outstanding Santa Rally that saw it move 11.95% higher between 31 October and 31 December.

But that new year nervousness gave way to positivity from about mid-January, and the ASX 200 moved pretty steadily towards its April peak.

The fire in its belly during those few months was optimism that there would be several interest rate cuts in the United States, possibly beginning in the first half of 2024, due to falling inflation.

The expectation in Australia was for a cut in the later part of the second half of the year.

But things have changed.

US inflation surprised on the upside last month, which threw a bucket of cold water on the idea of rate cuts any time soon.

Australia’s March inflation rate followed the same pattern, which has also cast doubt over whether there will be a rate cut here in 2024 at all.

In fact, some economists suggest there might even be a hike!

In a new blog, AMP chief economist Dr Shane Oliver says Australia is still at risk of a recession, and there is volatility ahead for the ASX 200.

How will the ASX 200 finish the year?

AMP expects the ASX 200 to return 9% this year and to rise to about 7,900 points by the year’s end.

That’s just shy of its April high and indicates more volatility ahead and a rougher road for the economy.

Dr Oliver points out that ASX 200 valuations were stretched following the Santa Rally, and uncertainty about the economy and the prospect for rate cuts means share price gains are likely to be constrained.

Dr Oliver said:

Easing inflation pressures, central banks moving to cut rates and prospects for stronger growth in 2025 should make for good investment returns this year.

However, with a high risk of recession, delays to rate cuts and significant geopolitical risks, the remainder of the year is likely to be far rougher and more constrained than the first three months were.

What about cash, bonds and commercial property?

In terms of other assets besides ASX 200 shares, Dr Oliver predicts:

Bonds are likely to provide returns around running yield or a bit more, as inflation slows, and central banks cut rates.

Unlisted commercial property returns are likely to be negative again due to the lagged impact of high bond yields & working from home.

Cash and bank deposits are expected to provide returns of over 4%, reflecting the back up in interest rates.

What will happen to house prices and the currency?

Dr Oliver said Australian home prices are likely to see “more constrained gains in the year ahead as the supply shortfall remains, but still high interest rates constrain demand and unemployment rises”.

He added:

The delay in rate cuts and talk of rate hikes risks renewed falls in property prices as its likely to cause buyers to hold back and distressed listings to rise.

Dr Oliver said the Australian dollar is likely to rise to US 70 cents over the next 12 months as the overvalued American dollar falls.

He adds that, “… in the near term the risks for the $A are on the downside as the Fed delays rate cuts and given the still high risk of an escalating conflict in the Middle East”.

What’s going on in the Australian economy?

Dr Oliver said a recession is “probably the main threat” for the Australian economy today.

While the rate of inflation is still falling, retail sales came in lower than expected in March. In fact, in per capita terms, we have now seen seven straight quarters of declining sales, despite strong population growth. This indicates a serious tightening of the belts among Australians.

Dr Oliver also said the ABS Household Spending Indicator slowed to 2.1% year over year in March.

The trade surplus fell again in March due to lower commodity prices and stronger imports.

“Trade looks likely to be a big detractor from March quarter GDP growth, possibly by as much as 1 percentage point,” Dr Oliver said.

AMP’s take on the housing crisis

Building approvals rose less than expected in March, with the housing shortage worsening. Home values rose 0.6% in April — the 15th consecutive month for growth, largely due to the undersupply.

Dr Oliver commented:

So far this year approvals are running around an annual pace of just 154,000 dwellings, which is well below underlying demand for housing of around 250,000 dwellings a year on the back of record immigration levels and well below the objective of Australian governments to build 240,000 dwellings a year.

The post Here’s where the ASX 200 will finish the year: AMP appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
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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 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.

Passive income investors have a lot of options on the Australian share market.

So much so, it can be hard to decide which ASX 200 dividend stocks to buy.

But never fear, listed below are four options that are rated highly by brokers. They are as follows:

APA Group (ASX: APA)

Analysts at Macquarie think that APA could be an ASX 200 dividend stock to buy. It is an energy infrastructure company that owns, manages, and operates a diverse portfolio of gas, electricity, solar and wind assets.

As for dividends, the broker is forecasting dividends per share of 56 cents in FY 2024 and 57.5 cents in FY 2025. Based on the current APA Group share price of $8.69, this equates to 6.4% and 6.6% dividend yields, respectively.

Macquarie has an outperform rating and $9.40 price target on the company’s shares.

Coles Group Ltd (ASX: COL)

The team at Morgans think that this supermarket giant would be a great option for passive income investors.

It is expecting Coles to pay fully franked dividends of 66 cents per share in FY 2024 and 69 cents per share in FY 2025. Based on the current Coles share price of $16.33, this implies yields of approximately 4% and 4.2%, respectively.

The broker currently has an add rating and $18.95 price target on its shares.

Rio Tinto Ltd (ASX: RIO)

Goldman Sachs’ analysts think that mining giant Rio Tinto could be a top ASX 200 dividend stock to buy right now.

Particularly given its generous dividend yield. The broker is forecasting fully franked dividends per share of US$4.29 (A$6.52) in FY 2024 and then US$4.55 (A$6.91) in FY 2025. Based on the latest Rio Tinto share price of $130.51, this will mean yields of approximately 5% and 5.3%, respectively.

The broker has a buy rating and $138.90 price target on the miner’s shares.

Transurban Group (ASX: TCL)

Transurban could be another ASX 200 dividend stock to buy according to analysts at Citi. It is a toll road giant with a growing number of important roads across both Australia and North America.

Citi’s analysts are expecting some good yields from its shares in the coming years. The broker is forecasting dividends per share of 63.6 cents in FY 2024 and 65.1 cents in FY 2025. Based on the current Transurban share price of $12.90, this will mean yields of 4.9% and 5%, respectively.

Citi has a buy rating and $15.50 price target on its shares.

The post Buy Rio Tinto and these ASX 200 dividend stocks for a passive income boost appeared first on The Motley Fool Australia.

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More reading

• 3 safe ASX dividend shares to own for the next 10 years
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Goldman Sachs Group, Macquarie Group, and Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group, Coles Group, and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.