Category: Stock Market

Investing in ASX small-cap shares has its risks, but it can also yield outsized gains.

One example is Smart Parking Ltd (ASX: SPZ), whose share price has doubled over the past year. For context, the S&P/ASX Small Ordinaries Index (ASX: XSO) and the All Ordinaries Index (ASX: XAO) have advanced by approximately 6% during the same period.

Can Smart Parking keep doing its smart magic?

Why did Smart Parking shares soar?

As the company name implies, it specialises in cutting-edge parking technology. It provides real-time space availability, efficient space management, and seamless payment solutions.

Smart Parking’s stock has been rising due to the company’s strong business performance. The provider of car parking technology has been rapidly expanding its presence in Australia, New Zealand, and Europe. The number of parking sites under management has increased from 286 in June 2018 to 1,219 in December 2023.

Such rapid expansion of its car parks under management led to strong financial results. In 1H FY24, which ended on 31 December 2023, the company delivered a 20% revenue growth to $26.6 million and a 26% growth in its earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $6.7 million.

The company has been rapidly expanding its presence in Europe. Smart Parking initially focused on growth in the UK, then expanded to New Zealand in FY21, Australia and Germany in FY22, and most recently Denmark.

The company’s total addressable market is growing as the overall market expands. There are 45,000 parking sites in the UK, 90,000 in Germany, and 10,000 in Denmark, totaling 145,000 in these three countries. Smart Parking currently holds less than 1% market share in these areas.

Business outlook

Smart Parking’s growth comes from its operations’ scalability and the ongoing expansion. In March 2024, the company acquired Local Parking Security in the UK, adding 126 new parking management sites.

Management is optimistic about the future. In the 1H FY24 update, the company reaffirmed its target to reach 1,500 sites under management by December 2024, marking a 25% increase from its December 2023 figure.

The company also sees “significant new interest and investment from private equity in the UK private parking management market.” Two transactions in 1H FY24 demonstrate the attractive growth opportunity in the UK, the company added.

How expensive are Smart Parking shares?

Smart Parking shares are valued at a price-to-earnings (P/E) ratio of 28x based on its trailing 12 months’ earnings and 22x based on FY25 earnings estimates by S&P Capital IQ. Compared with a few other ASX technology small-cap shares, using S&P Capital IQ estimates:

• VEEM Ltd (ASX: VEE) shares are valued at 31x FY25 earnings estimates
• DUG Technology Ltd (ASX: DUG) shares are valued at 36x FY25 earnings estimates
• IPD Group Ltd (ASX: IPG) shares are valued at 17x FY25 earnings estimates

The Smart Parking share price is down 1% at $0.54 at the time of writing.

The post Up 102% in a year, can this ASX small-cap technology company keep on rising? appeared first on The Motley Fool Australia.

More reading

• 3 ASX small-cap shares I think have explosive growth potential

Motley Fool contributor Kate Lee 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 Dug Technology, Ipd Group, and Veem. The Motley Fool Australia has positions in and has recommended Ipd Group. The Motley Fool Australia has recommended Dug Technology and Veem. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Last week, the S&P/ASX 200 Index (ASX: XJO) and ASX 200 shares ended the week with a momentous session. After the ASX 200 crossed over 7,900 points on Thursday, last Friday saw the Index hit a fresh new record high of 7,969.1 points.

Well, today, the records have just kept on coming.

After opening at 7,959.3 points this morning, the ASX 200 quickly lept into uncharted territory once again. First, the index crossed the 8,000-point threshold for the first time in history. Then, it climbed all the way up to 8,037.3 points – the ASX 200’s new record high.

Today’s gains are just the latest in what has been an incredibly lucrative run for ASX 200 shares over the past few months. It was only back in late October last year that the ASX 200 was under 6,800 points. From that point to today, the Index has now enjoyed a whopping 18.5% surge.

As we went through last week, ASX investors mostly have the big four bank stocks to thank for this latest high for the Australian share market. All four of the big banks have surged in recent months, and hit new 52-week highs.

But it has been Commonwealth Bank of Australia (ASX: CBA) shares that have shone the brightest. Over the past week alone, CBA has hit a series of new record highs. Just today, it clocked yet another one, topping out at $133.30 a share.

As it stands today, the ASX 200 is now up 5.27% year to date in 2024 so far. The index is also up 9.98% over the past 12 months.

Check all of that out for yourself below:

Is it too late to buy ASX 200 shares?

With the brisk and rather unusual rally the ASX 200 has been enjoying in recent months, particularly after today’s new record high, many investors might be wondering whether they should keep buying ASX shares or wait for the inevitable pullback.

Well, one ASX expert is decidedly of the former opinion.

David Bassanese, chief economist at exchange-traded fund (ETF) provider BetaShares, still reckons there’s plenty of value in ASX shares.

Here’s some of what he wrote in an insight this morning before market open:

Local economic concerns however did not stop the S&P/ASX 200 rising by an encouraging 1.8% last week, bringing it close to the 8,000 level – and to my year end target of 8,250. Following Wall Street’s good close on Friday, the futures market is suggesting our market will crack the 8,000 market this morning!

Being relatively cheap and unloved, the Australian market could become part of the ‘great rotation’ if global investors start to seek opportunities outside of the high priced and over loved US large cap technology stocks such as Nvidia.

It’s not hard to see where Bassanese is coming from. Yes, the ASX is at a new record high today. But its 2024 performance actually looks rather muted when compared to other global markets.

For example, while the ASX 200 might be up just over 5% in 2024 to date, the American S&P 500 Index (SP: .INX) is up a far more impressive 18.4% over the same period. Japan’s Nikkei 225 has done even better, rising 23.7% in 2024 so far.

So, it will be very interesting to see what happens to the ASX 200 Index after this momentous Monday. If Bassanese is on the money, we could well see even more new highs.

The post ASX 200 shatters record. Why it could still be ‘relatively cheap’ to invest appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• $20,000 stashed away? Here’s how I’d use it to target a $1,750-a-month passive income
• Here’s how the ASX 200 market sectors stacked up last week
• Top 4 reasons why more Aussies are managing their own superannuation
• Investing in ASX shares? Why CEO pay DOES matter when misaligned

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

The Qantas Airways Limited (ASX: QAN) share price has seen plenty of volatility over the past five years, as the chart below shows. With COVID-19’s effects in the rearview mirror, some investors may wonder whether the ASX travel share is a bargain.

Airlines normally trade on a much lower valuation than other sectors, as measured by the price-to-earnings (P/E) ratio. If the earnings of a low P/E stock can grow, then the business could be an undervalued opportunity.

Now that the travel industry has returned to a new normal let’s examine where its earnings may go and whether, in the eyes of one expert, it’s an opportunity.

Stronger case for the airline

A lot has happened in the last five to ten years, but UBS thinks Qantas is in a better position than before COVID-19 for a few different reasons.

First, the domestic market is “less competitive”.

Second, Qantas’ loyalty division is contributing more earnings before interest and tax (EBIT).

Third, gearing (debt on the balance sheet) is lower.

Fourth, Qantas is ramping up its fleet renewal, whereas in the last cycle, it spent less on capital expenditures.

The first three UBS arguments suggest an improvement in earnings stability. The fourth point is “double-edged” — profit before tax growth may be damped by higher depreciation and financing (with higher interest rates), but the investment in the air fleet “improves the competitive resilience of the cost base and customer experience.”

Is the Qantas share price a buy?

UBS noted that earnings hardly changed in the three years before COVID-19, with forward underlying profit before tax steady at around $1.4 billion. Meanwhile, the enterprise valuation to earnings before interest, tax, depreciation, and amortisation (EBITDA) ratio multiple doubled from 2.5x to 5x, and the Qantas share price lifted by 143%.

The broker thinks that if Qantas’ earnings can remain stable during this cycle, then there could be a positive re-rating for Qantas shares again.

What catalyst would cause this?

UBS suggests it doesn’t need a catalyst, just as long as no negative catalysts could hold it back. For example, Qantas has “strong exposure to consumer and business travel demand”. However, UBS believes investors are already compensated for that with a single-digit earnings multiple.

According to the UBS estimates, the Qantas share price is valued at 6.75 times FY24’s estimated earnings. It’s also valued at 6 times FY27’s estimated earnings and 5.5 times FY28’s estimated earnings.

UBS rates it as a buy, with a price target of $7.50. That implies a rise of around 20% in the next 12 months, though that return is not guaranteed.

The post Is the Qantas share price too low to ignore? appeared first on The Motley Fool Australia.

More reading

• Buy Coles and this quality blue chip ASX 200 share in July
• Top brokers name 3 ASX shares to buy today
• Why did ASIC take a look when Qantas shares fell last year?
• 10 ASX shares to buy in FY25
• Why did the Qantas share price fly backwards in FY 2024?

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 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.

S&P/ASX 200 Index (ASX: XJO) real estate share Lifestyle Communities Ltd (ASX: LIC) is under heavy selling pressure today.

Lifestyle Communities shares closed Friday trading for $12.57. In early afternoon trade on Monday, shares in the retirement communities company are changing hands for $10.44, down 17.0%.

For some context, the ASX 200 is up 0.9% at this time and hitting new record highs.

Here’s what investors are mulling over today.

ASX 200 real estate share catching legal headwinds

The Lifestyle Communities share price is tanking today following media accounts that some residents are taking legal action involving allegedly misleading marketing practices and questionable exit fees charged when residents sell their homes.

Retired policeman Geoff Gauci bought a Lifestyle Communities development at Wollert, in Melbourne, where owners buy the dwelling and lease the land.

According to Gauci (quoted by ABC News):

The way it was presented to me and my wife, I expected everything to be above board, knowing that I’m dealing with Lifestyle, a publicly listed company. I did my homework, and I checked on them. And I would have assumed that everything was kosher.

18 months later, he had a decidedly different take on the ASX 200 real estate share.

“To me, it’s like I’m in a financial prison. I’ve got to bail myself out in order to get out, and it’s just wrong,” he said.

And Gauci is not alone.

As ABC News reports:

80 residents at the Wollert Lifestyle Community have quietly lodged a claim against Lifestyle Communities in the Victorian Civil and Administrative Tribunal (VCAT) over fees they believe are excessive and in breach of the law.

The ASX 200 real estate share earns roughly $13 million a year from exit fees.

Lifestyle Communities responds

This morning, Lifestyle Communities responded to ABC’s coverage.

Management said they’ve been engaging with the group of homeowners since February 2024. However, those homeowners have not been satisfied with the company’s responses and have commenced legal proceedings.

The company said it “respects the rights of homeowners to pursue the VCAT pathway and believes this is the appropriate forum for resolution of the matter”.

Noting that its policies are consistent with other industry operators, the ASX 200 real estate share said it rejects the allegations made in the VCAT applications and will defend them accordingly.

“Deferred management fees are permissible in all states except for South Australia. In Victoria, most land lease operators charge a deferred management fee,” the company stated.

Additionally, Lifestyle Communities highlighted that, “All fees clearly articulated and explained on our website and in our marketing materials.”

Homeowners sign off on fee acknowledgements at each stage of the sales process.

With today’s intraday losses factored in, the ASX 200 real estate share is down a painful 42% over 12 months.

The post Why this ASX 200 real estate share is plunging 17% today appeared first on The Motley Fool Australia.

More reading

• Why Aussie Broadband, Bellevue Gold, Lifestyle Communities, and Star shares are falling

Motley Fool contributor Bernd Struben 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another strong gain. At the time of writing, the benchmark index is up 0.9% to 8,029.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price is down 17% to $2.96. Investors have been selling this broadband provider’s shares following the release of its guidance for FY 2025. Aussie Broadband is guiding to EBITDA of $125 million to $135 million. This includes a $10 million investment in a new digital-first challenger brand, Buddy. The new offering leverages artificial intelligence (AI) to manage connections, upgrades, outages and usage through an app, website, and live chat. The AI-enhanced program is targeting 100,000 customers within three years.

Bellevue Gold Ltd (ASX: BGL)

The Bellevue Gold share price is down 4.5% to $1.94. This has been driven by the release of the gold miner’s quarterly update this morning. Bellevue revealed that its production ramp up remains on track with total production of 42,705 ounces and gold sold of 44,418 ounces during the quarter. This means that production for the six months to 30 June 2024 came to 80,043 ounces, which was around the midpoint of its guidance range of 75,000-85,000 ounces. It seems that the market was expecting stronger production for the period.

Lifestyle Communities Ltd (ASX: LIC)

The Lifestyle Communities share price is down almost 17% to $10.48. This follows media reports alleging that some retirees feel trapped with their land lease communities contracts. Lifestyle Communities responded to the reports, stating that it has “been engaging with the group of homeowners since February 2024. The homeowners have not been satisfied with our responses and have made applications to the Victorian Civil and Administrative Tribunal (VCAT).” It also adds that it “takes its compliance obligations extremely seriously and has obtained legal advice throughout its 21 years to ensure it operates in accordance with relevant legislation, and its policies are consistent with other industry operators.”

Star Entertainment Group Ltd (ASX: SGR)

The Star Entertainment share price is down over 1.5% to 50.2 cents. This has been driven by news that the casino operator has been forced to pause electronic gaming due to a software issue. It notes that following planned upgrades, certain systems have been disrupted due to system performance issues identified in post-upgrade testing. Electronic gaming machines will remain offline until the issue is resolved.

The post Why Aussie Broadband, Bellevue Gold, Lifestyle Communities, and Star shares are falling appeared first on The Motley Fool Australia.

More reading

• Why it’s lights out at ASX-listed Star Casino until further notice
• Aussie Broadband share price implodes 18% amid AI investment
• Top 5 investment themes exciting ASX shares investors in FY25
• Up 23% since May, are investors on the punt with Star Entertainment shares?
• Here are the top 10 ASX 200 shares today

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

The All Ordinaries Index (ASX: XAO) is up 0.8% hitting new all-time highs, and it’s getting plenty of support from this soaring ASX All Ords stock.

Shares in the investment software provider closed on Friday trading for $1.07. In earlier trade, they leapt to $1.30, up 21.5%. After some likely profit-taking, shares are currently changing hands for $1.14 apiece, up 6.5%.

Any guesses?

If you said Bravura Solutions Ltd (ASX: BVS), give yourself a virtual gold star.

Here’s what’s piquing investor interest in the ASX All Ords stock today.

Bravura share price leaps on guidance increase

The Bravura share price is storming higher today after the company upgraded its FY 2024 guidance.

The ASX All Ords stock unaudited earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance for the full financial year to around $25 million. That’s up from the previous guidance of between $18 million and $25 million.

This now sees cash EBITDA guidance of around $10 million.

Management credited the improved guidance on the company’s transformation over the year, which stabilised its business and continued progress towards rightsizing its cost base. The company noted that the scale and pace of its FY 2024 transformation had outperformed its budget planning expectations.

Commenting on the guidance increase boosting the ASX All Ords stock today, Bravura CEO Andrew Russell said:

We are pleased to deliver EBITDA performance that is ahead of guidance. This is further confirmation of the execution progress of our strategy to reset and energise the Bravura business.

We have returned to profitability, are growing our cash EBITDA margin and have a healthy balance sheet. We intend to provide further updates on our capital management strategy at our full-year results presentation in August.

How has the ASX All Ords stock been tracking?

With today’s intraday gains factored in, the Bravura share price is up an impressive 122% over the past 12 months.

Investors have been bidding up the ASX All Ords stock amid some strongly improving financial metrics.

At its half-year results, released on 20 February, Bravura reported a positive cash EBITDA of $300,000 for the six-month period.

Gross revenue was up 7.4% year on year to $127 million, and losses narrowed massively. Net loss of $1.6 million over the half year was a marked improvement from the net loss of $190.9 million in the prior corresponding period.

The ASX All Ords stock will announce its FY 2024 full-year results on 14 August.

The post Guess which ASX All Ords stock just leapt 22% on improved guidance appeared first on The Motley Fool Australia.

More reading

• Why Atturra, Bravura, Core Lithium, and Opthea shares are racing higher today
• 3 best ASX tech shares of FY24

Motley Fool contributor Bernd Struben 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 Bravura Solutions. 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.

The S&P/ASX 200 Index (ASX: XJO) has started the week strongly on Monday. In afternoon trade, the benchmark index is up 0.9% to 8,030.9 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are storming higher:

Atturra Ltd (ASX: ATA)

The Atturra share price is up 7% to 78.2 cents. Investors have been buying this technology services company’s shares after it announced an agreement to acquire Exent Holdings. Attura is paying $6 million in upfront consideration with earn-out/post-completion consideration of up to $2 million in cash. Management notes that it is a strategically aligned acquisition that helps Atturra extend its advisory and consulting capabilities outside of Canberra and Defence and expand the practice nationally. The transaction is expected to complete on or around 31 July.

Bravura Solutions Ltd (ASX: BVS)

The Bravura Solutions share price is up almost 5% to $1.12. This follows the release of a guidance update from the wealth management software solutions company. Bravura advised that it is upgrading its FY 2024 EBITDA guidance to approximately $25 million. This is up from its previous guidance range of $18 million to $22 million. Management advised that its upgraded guidance follows a successful transformation execution over the course of the year which has resulted in the stabilisation of the business and continued progress towards rightsizing the cost base.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 9% to 12 cents. Investors have been buying this lithium miner’s shares this month following a couple of positive updates. One was the release of an update on its production in FY 2024. Core Lithium advised that it exceeded its FY 2024 production guidance with production of 95,020 dry metric tonnes (dmt) of spodumene concentrate. This led to Core Lithium reporting an unaudited cash balance of $87.6 million at 30 June. Also going down well with investors was the release of the company’s exploration update last week.

Opthea Ltd (ASX: OPT)

The Opthea share price is up 8% to 40 cents. This morning, the clinical-stage biopharmaceutical company revealed that it has successfully completed the fully underwritten retail component of its entitlement offer. The retail entitlement offer raised approximately A$55.9 million, which brought the total raised to a whopping A$227.3 million at 40 cents per new share. The net proceeds will fund the company through the anticipated Phase 3 topline data readouts for COAST (Combination OPT-302 with Aflibercept Study), and ShORe (Study of OPT-302 in combination with Ranibizumab). In addition, the funds are intended to be used to progress chemistry, manufacturing, and controls activities, Biologics License Application preparations for FDA approval, and for general corporate purposes.

The post Why Atturra, Bravura, Core Lithium, and Opthea shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• Guess which ASX All Ords stock just leapt 22% on improved guidance
• Top 5 investment themes exciting ASX shares investors in FY25
• Here 3 ASX lithium shares to watch for FY25
• Why did Goldman Sachs just upgrade Core Lithium shares?
• Up 20% in a week, why is the Core Lithium share price racing higher again today?

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 Bravura Solutions. The Motley Fool Australia has recommended Atturra. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a euphoric start to the week’s trading for the S&P/aSX 200 Index (ASX: XJO) and most ASX shares this Monday. After touching a new record high late last week, the ASX 200 is at it again today, climbing over 8,000 points for the first time ever.

But let’s talk about the Star Entertainment Group Ltd (ASX: SGR) share price.

Star might be an ASX 200 share. But it is not enjoying the same kind of goodwill that most of its fellow stocks are this Monday. While the ASX 200 might be up by around 0.9% at the time of writing, Star shares have gone the other way.

At present, this casino operator and gaming stock has crashed by a painful 2.9%, down to 45.5 cents a share.

This will no doubt come as a bitter blow for Star’s embattled investors. Until today, the casino operator was on a bit of a run, rising more than 8.5% between 4 July and last Friday.

So what has ruined Star’s share price recovery so decisively this week?

Why is the Star share price crashing on the ASX today?

Well, today’s market-bucking slump is likely a consequence of the ASX announcement from Star early this morning before market open.

This filing revealed that Star has a number of planned upgrades to its gaming systems that have “been “disrupted due to system performance issues”. The casino operator planned the upgrades to prepare for the introduction of cashless gaming.

The issues were reportedly discovered “in post-upgrade testing”, prompting all electronic gaming machines and electronic table games in The Star’s three properties to be switched off on 13 July 2024 from 10pm “until the issue is resolved”.

Here’s more of what Star had to say about this disruption:

The decision was taken by The Star to ensure compliance with relevant regulations, and to maintain the Company’s commitment to safer gambling procedures.

The Star is working closely with its external provider Konami to address the operational issues as soon as possible and will provide an update once operations return to normal.

Treasury Brisbane, The Star Gold Coast and The Star Sydney remain open with table games, restaurants, bars and entertainment available.

So it’s clear why investors are passing over Star shares on the ASX today. Despite the euphoric mood of the broader market.

Star weathers yet another setback

This news was arguably the last thing Star investors wanted to wake up to today. The company has endured a series of scandals and setbacks over the past few years. These include investigations into its ability to hold gaming licenses in Sydney and high turnover at its top levels.

These setbacks helped make Star one of the ASX 200’s worst-performing shares in FY2024. The company shed 54% of its value over the 12 months to 30 June.

Star shares have also crashed more than 85% from where they were five years ago.

Check all of that out for yourself below:

Investors will no doubt hope that this latest company problem will be resolved quickly and that Star’s electronic gaming machines and tables will be back online soon. But we’ll have to wait and see what happens.

The post Why it’s lights out at ASX-listed Star Casino until further notice appeared first on The Motley Fool Australia.

More reading

• Why Aussie Broadband, Bellevue Gold, Lifestyle Communities, and Star shares are falling
• Up 23% since May, are investors on the punt with Star Entertainment shares?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Is it time to buy FY24’s worst-performing ASX shares?

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.

With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Flight Centre Travel Group Ltd (ASX: FLT)

According to a note out of the Macquarie equities desk, its analysts have retained their outperform rating on this travel agent giant’s shares with an improved price target of $26.80. Macquarie is feeling positive about Flight Centre and continues to rate it as its top pick in the sector. It likes the company due to its potential for market share growth. Macquarie also sees scope for Flight Centre to outperform consensus estimates and thinks that changes to its business model give the company a sizeable total addressable market. This gives it a long runway for growth. The Flight Centre share price is trading at $22.25 today.

IGO Ltd (ASX: IGO)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $7.15 price target on this battery materials miner’s shares. In its weekly lithium price update, the broker has once again named IGO as its only buy-rated ASX lithium stock. This is largely due to the Greenbushes operation. It highlights that Greenbushes is the lowest cost lithium asset in its coverage. In addition, it notes that its expansion should take Greenbushes production capacity from ~1.5Mtpa today to ~2.4Mtpa. And that this expansion is one of the most economically compelling brownfield lithium projects. The IGO share price is fetching $6.04 at the time of writing.

Rio Tinto Ltd (ASX: RIO)

Analysts at Morgan Stanley have retained their overweight rating and $142.00 price target on this mining giant’s shares. According to the note, the broker highlights that there is speculation that Rio Tinto could be interested in making a blockbuster US$32 billion acquisition of Canadian diversified miner Teck Resources. The miner appears to be attracted to Tech Resources’ copper exposure. Outside this, the broker likes Rio Tinto due to its belief that copper demand will continue to accelerate. It also feels positive on aluminium prices as cost curves rise. In light of this, it feels that the mining giant’s shares are good value at current levels. The Rio Tinto share price is trading at $120.08 on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Are Rio Tinto shares a buy on a pullback?
• Top 10 most traded ASX shares and US stocks in June
• Where to invest $10,000 into ASX 200 shares
• These are the 10 most shorted ASX shares
• Here’s how the ASX 200 market sectors stacked up last 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 Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The BHP Group Ltd (ASX: BHP) share price is marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining stock closed Friday trading for $43.40. In morning trade on Monday, shares are changing hands for $43.78 apiece, up 0.8%.

For some context, the ASX 200 is also up 0.76% at this same time.

This comes after the miner released an update on the legal group action proceedings in the United Kingdom related to the 2015 Samarco Fundao iron ore tailings dam collapse in Brazil.

Here’s what’s happening.

Legal proceedings

The BHP share price is marching higher after the miner advised it had entered into an agreement with Vale on the ongoing legal proceedings in the United Kingdom involving more than 600,000 claimants.

The Fundao Dam was owned and operated by Samarco, a non-operated 50/50 joint venture between BHP Brasil and Vale.

The tailings dam collapse killed 19 people and caused massive environmental damage. It also heaped pressure on the BHP share price at the time.

“BHP Brasil is fully committed to supporting the extensive ongoing remediation and compensation efforts in Brazil through the Fundacao Renova,” the miner stated last year.

Fundacao Renova is a not-for-profit, private foundation. It was established after the dam collapse to implement 42 remediation and compensatory programs in Brazil.

Today, the ASX 200 miner reiterated:

BHP Brasil remains committed to continue supporting the local remediation efforts in Brazil through the Renova Foundation. Those efforts have already provided approximately US$3.5 billion in compensation and direct financial aid in relation to the dam failure to approximately 430,000 people to 31 May 2024.

However, neither BHP nor Vale believes the court proceedings against them in the UK should continue.

“BHP does not consider that it is liable to the claimants in the English Proceedings and will continue to defend the English Proceedings,” the miner stated.

BHP added:

BHP believes the English Proceedings are unnecessary because they duplicate matters already covered by the existing and ongoing work of the Renova Foundation and legal proceedings in Brazil.

In March this year, a new claim was filed against Vale and the Dutch subsidiary of Samarco in the Netherlands on behalf of approximately 78,000 Brazilian claimants for compensation relating to the dam collapse. BHP is not a defendant in the Netherlands case.

BHP share price gains on Vale agreement

Today, the BHP share price is lifting after the company said it had entered into an agreement with Vale that would see each of them pay half of any potential payouts in the English Proceedings, the Netherlands Proceedings and other proceedings in Brazil, without any admission of liability for these proceedings.

Both miners already contribute 50% to the funding of the Renova Foundation.

BHP brought a contribution claim against Vale in December 2022 because the English Proceedings were not brought against Vale. The ASX 200 miner said it would now withdraw that contribution claim against Vale in light of the new agreement.

The BHP share price is down 3% over 12 months.

The post BHP share price marching higher amid legal cost sharing agreement with Vale appeared first on The Motley Fool Australia.

More reading

• It’s official, Aussies are getting richer! Here’s how
• Top 10 most traded ASX shares and US stocks in June
• Own BHP shares? Here’s your Q4 preview
• Top 4 reasons why more Aussies are managing their own superannuation
• Investing in ASX shares? Why CEO pay DOES matter when misaligned

Motley Fool contributor Bernd Struben 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.