Category: Stock Market

Having some ASX blue chip shares in your portfolio is always a good idea.

That’s because blue chips tend to have strong business models and talented and experienced management teams. This can make them lower risk options.

Overall, this can make them a great option if you want a firm foundation to build out your portfolio from.

But which ASX blue chips could be buys? Let’s take a look at three that analysts are tipping as buys:

Coles Group Ltd (ASX: COL)

Analysts at Bell Potter think that supermarket giant Coles could be a top option for investors right now. This is due partly to the hard work it is doing on the modernisation of its supply chain. It said:

In the medium term, 1) higher immigration should support grocery spending, and 2) Coles is entering a period of elevated capex intensity as it reinvests to modernise its supply chain and to catch up to competitors on online and digital offerings, which should help Coles maintain its market position.

Bell Potter has a buy rating and $19.00 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Over at Goldman Sachs, its analysts think Telstra could be an ASX blue chip share to buy right now. It is of course Australia’s leading telecom operator.

The broker likes the company due to its low risk earnings growth and opportunities to unlock value through the monetisation of assets. It explains:

We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn. Although there is some debate around the strategic benefits, we see a strong rationale for monetizing the recurring NBN payment stream, given its inflation-linked, long duration cash flows could be worth $14.5bn to $17.9bn, with no loss of strategic benefit.

Goldman has a buy rating and $4.25 price target on Telstra’s shares.

Woodside Energy Group Ltd (ASX: WDS)

Finally, Morgans thinks that Woodside could be an ASX blue chip share to buy this month. It believes that recent weakness has created an opportunity for investors to buy the energy giant. It said:

WDS’s share price has been under pressure in recent months from a combination of oil price volatility and approval issues at Scarborough, its key offshore growth project. With both of those factors now having moderated, with the pullback in oil prices moderating and work at Scarborough back underway, we see now as a good time to add to positions.

Morgans has an add rating and $36.00 price target on its shares.

The post Why analysts love Woodside and these ASX blue chip shares appeared first on The Motley Fool Australia.

More reading

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• 3 overlooked numbers key to the Telstra share price
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• Why is the Woodside share price racing ahead of the benchmark today?
• Telstra and these ASX 200 income stocks could be top buys this month

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

Sayona Mining Ltd (ASX: SYA) shares were out of form again on Tuesday.

The lithium miner’s shares started the shortened week with a decline of 5% to 3.7 cents.

This latest decline means that its shares are now down a whopping 80% since this time last year.

To put this into context, if you had invested $10,000 into Sayona Mining’s shares in June 2023, you would now have approximately $2,000 left. That’s $8,000 in paper losses that shareholders are nursing.

But why has this happened? Let’s dig a little deeper and find out.

Why are Sayona Mining shares down 80% in a year?

Firstly, it is important to note that Sayona Mining isn’t an isolated case. A good number of ASX lithium stocks have been sold off over the same period.

For example, Core Lithium Ltd (ASX: CXO) shares are down 90% and Liontown Resources Ltd (ASX: LTR) shares are down over 60%.

The catalyst for this has been a collapse in lithium prices due to a surplus of the white metal.

And with many analysts believing that supply will outstrip demand for the foreseeable future, prices could remain at these levels for some time to come. You only need to look at Goldman Sachs’ forecasts for the lithium price to see this.

This could be particularly bad news for Sayona Mining and its shares. That’s because unlike Core Lithium, which has suspended its mining activities, it is continuing to mine lithium despite these low prices.

So much so, the company is actually spending more to pull lithium out of the ground than it receives from buyers. That’s a terrible business model and is burning through its cash reserves at a rapid rate.

Burning cash like kindling

According to its most recent quarterly update, Sayona Mining’s production increased 18% quarter on quarter to 40,439 dry metric tonnes (dmt).

This was achieved with a unit operating cost of A$1,536 of dmt, which was up 10% quarter on quarter. And while its sales volumes more than doubled to 58,055 dmt, it reported an average realised selling price of A$999 per dmt.

This means that it was losing over A$500 for every tonne of lithium it was sending to customers.

As a result, Sayona Mining’s cash balance dropped from A$158 million at the end of December to A$99 million at the end of March.

Clearly something has to change. But judging by the performance of Sayona Mining shares, investors aren’t overly confident that things will improve any time soon.

The post Why are Sayona Mining shares down 80% in a year? appeared first on The Motley Fool Australia.

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• Here is the latest lithium price forecast through to 2027

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. 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.

If you haven’t taken a look at the Zip Co Ltd (ASX: ZIP) share price recently, you might be in for a bit of a shock. Zip, the ASX buy now, pay later (BNPL) stock that took the ASX by storm a few years ago, had an exceptionally rough few years following its stunning 2020.

Since peaking at over $12 a share back in early 2021, investors have endured a precipitous collapse of capital. By mid-2022, the BNPL stock was under 50 cents a share, which was succeeded by a new 52-week low of just 26 cents a share in October 2023.

But ever since then, the Zip share price has staged a stunning recovery. At market close on Tuesday, Zip finished trading at $1.29 a share, up 7.53%. That came after the company hit $1.60 a share back in March.

As it stands today, Zip shareholders have enjoyed a 107.26% return year to date, as well as a gain of 157% over the past 12 months.

Check all of that out for yourself below:

This recovery for the Zip share price can be put down to a number of positive updates from the company.

Most recently, investors appear to have been buoyed by Zip’s April quarterly update, which revealed a 14.6% rise in transaction volumes, as well as a 26.6% rise in quarterly revenues to $219.2 million.

So there would be more than a few Zip shareholders that would have welcomed these gains with gusto. However, one ASX expert is urging caution on the Zip share price moving forward.

ASX expert gives Zip share price a sell rating

As reported by The Bull, John Athanasiou of Red Leaf Securities has just issued the Zip share price with a ‘sell’ rating. Athanasiou doesn’t like the look of what he sees in the BNPL stock right now. He cited valuation concerns and inflationary pressures in Zip’s key markets for his negative view. Here’s what Athanasiou had to say in full:

Revenue of $219.2 million in the third quarter of fiscal year 2024 was up 26.6 per cent on the prior corresponding period. The revenue margin improved to 9.1 per cent. The shares have risen from 59 cents on January 3 to trade at $1.185 on June 6.

We believe the share price has risen too rapidly and is trading at a premium. We’re also concerned about inflationary pressures in the US impacting consumer spending. Investors may want to consider taking a profit at these levels.

That strikes a starkly different tone from the positive broker opinion we covered back in April. At the time, we went through the bullish views of ASX broker UBS. UBS maintained a buy rating on the Zip share price following its April quarterly results. That was alongside a 12-month share price target of $1.55.

Only time will tell which of these two ASX experts is on the money regarding this BNPL stock. They can’t both be right.

The post Has the Zip share price ‘risen too rapidly’? appeared first on The Motley Fool Australia.

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• Why these 3 top ASX 300 stocks dragged the benchmark lower this week

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 Zip Co. 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.

Qantas Airways Limited (ASX: QAN) shares could be a great option for investors that are looking for outsized returns.

That’s the view of analysts at Goldman Sachs, which feel that the airline operator’s shares are being severely undervalued by the market.

In light of this, the broker feels that anyone buying today could enjoy a big return on their investment over the next 12 months.

What is the broker saying about Qantas shares?

According to a recent note, the broker has put a buy rating and $8.05 price target on its shares.

Based on the current Qantas share price of $6.16, this implies potential upside of just over 30% for investors between now and this time next year.

To put that into context, a $20,000 investment would become $26,000 if Goldman Sachs is on the money with its recommendation.

Three big reasons to buy

There are three big reasons why Goldman thinks Qantas shares are in the buy zone right now. The first is that its improved earnings capacity is not being reflected in its valuation. It said:

We expect QAN’s earnings capacity to sustainably improve relative to pre-COVID, which is not reflected in Qantas’ current valuation.

In addition, the broker feels that this unwarranted discount will disappear in time once the company demonstrates that its earnings are sustainable at these levels. It adds:

As noted previously, our FY24/25 PBT remains 51%/61% ahead of pre-COVID level despite relatively conservative/cautious RASK forecast settings. We forecast QAN’s FY24e/25e EPS to be at 49%/68% ahead of FY19. Despite this, QAN’s market cap is 4% below and EV is 7% below pre-covid levels. We believe that QAN’s continued demonstration of earnings sustainability will be the key driver of earnings revision hence share price going forward.

Another reason to buy Qantas shares is their valuation in comparison to peers. It highlights that the Flying Kangaroo trades at almost double the discount that they have traded at in recent times. It feels this discount is excessive. The broker adds:

QAN is trading at PE discount of 29% vs US+regional peers vs historical 5Y average discount of 14%. Given QAN’s more conservative revenue profile, recent operational performance improvements, which implies that further investment in customer service would not be required, we believe that the discount is excessive.

All in all, Goldman appears to believe that this makes Qantas a great option for investors that are looking for some new additions to their portfolios right now.

The post 3 big reasons to buy Qantas shares now appeared first on The Motley Fool Australia.

More reading

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• 3 of the best ASX blue chip shares to buy in June
• Here’s where I see the Qantas share price ending in FY 2025
• Here are the top 10 ASX 200 shares today
• Why Qantas could be one the best shares to buy in the Asia-Pacific

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. 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.

There are a lot of options for income investors on the Australian share market. So many it can be hard to decide which ASX dividend shares to buy.

To narrow things down, let’s take a look at a few that Goldman Sachs is tipping as buys this month. They are as follows:

Challenger Ltd (ASX: CGF)

The broker thinks that this annuities company could be an ASX dividend share to buy right now.

It likes Challenger due to its exposure to the superannuation market and the favourable sales environment for annuities. It explains:

CGF is Australia’s largest retail and institutional annuity provider across Term and Lifetime annuities with a funds management business. We are Buy rated on the stock. We like CGF because: 1) it has exposure to the growing superannuation market across Life and Funds Management; 2) higher yields should drive a favorable sales environment for retail annuities as well as an improvement in margins; 3) its annuity book growth looks well supported through a diversified distribution strategy.

In respect to dividends, the broker is forecasting fully franked dividends of 26 cents per share in FY 2024 and then 27 cents per share in FY 2025. Based on the current Challenger share price of $6.68, this will mean dividend yields of 3.9% and 4%, respectively.

The broker currently has a buy rating and $7.50 price target on its shares.

QBE Insurance Group Ltd (ASX: QBE)

Goldman Sachs also thinks that this insurance giant could be a top ASX dividend share for income investors to buy.

It likes the company due to its exposure to commercial rates. It explains:

We are Buy-rated on QBE because 1) QBE has the strongest exposure to the commercial rate cycle. 2) QBE’s achieved rate increases continue to be strong & ahead of loss cost inflation. 3) North America on a pathway to improved profitability. 4) Valuation not demanding. 5) Strong ROE.

The broker is forecasting dividends per share of 62 US cents (94 Australian cents) in FY 2024 and 63 US cents (95.5 Australian cents) in FY 2025. Based on the current QBE share price of $18.36, this equates to dividend yields of 5.1% and 5.2%, respectively.

Goldman has a buy rating and $20.90 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

A third ASX dividend share that Goldman Sachs is bullish on right now is Super Retail. It is the owner of popular store brands BCF, Supercheap Auto, Macpac, and Rebel.

The broker believes the company is well-positioned to navigate the tough operating environment thanks to its vast loyalty program. It said:

We believe SUL will display resilience in a softer economic environment that is built upon its competitive advantage of high loyalty (~11.0m active members accounting for >75% of sales) and this will be further bolstered as the company launches the Rebel loyalty program and continues to build personalisation capabilities. Hence, we are Buy-rated on SUL.

Goldman expects Super Retail to pay fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on its current share price of $13.21, this will mean yields of 5.1% and 5.5%, respectively.

The broker has a buy rating and a $17.80 price target on its shares.

The post Goldman Sachs says these 3 ASX dividend shares are buys appeared first on The Motley Fool Australia.

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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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Challenger. 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) share prices are always changing, which can open up compelling buying opportunities with the right businesses at the right price.

In this article, I’m going to examine where one leading fund manager is seeing value amid recent volatility and shifting valuations.  

Audinate Group Ltd (ASX: AD8)

This is the company behind Dante, a media networking solution that’s used in the professional audio-visual industry. It is used for numerous purposes including universities, conferences, recording studios, amusement parks, zoos, houses of worship, arenas and stadiums, theatres and so on.

Fund manager Philippe Bui from Medallion Financial Group wrote on The Bull that Audinate is a buy because this ASX tech share “still appears to be in the early stages of a long-term growth trajectory.”

Bui points out the ASX 200 share is “growing quickly” in the video segment of the market, yet the Audinate share price has fallen close to 30% since March 2024. He thinks it’s at an “attractive entry point” after the decline and the “strong” report it revealed in February.

In that FY24 half-year result, revenue rose by 47.7% to US$30.4 million, while net profit after tax (NPAT) grew from A$5.1 million to A$4.7 million.

The fund manager revealed that Audinate is the top holding in its ASX shares growth fund.

Challenger Ltd (ASX: CGF)

Challenger is an ASX 200 financial share which is the largest provider of annuities in Australia.

After a difficult period when interest rates were close to 0%, Challenger is recovering. It’s now able to offer annuities with more appealing yields to older Australians who want an income stream with interest rates now being much higher. Challenger says 2.5 million Australians are set to retire over the next 10 years, which could drive demand for annuities.

The fund manager said Challenger shares were trading on an “undemanding” price/earnings (P/E) ratio multiple, and it has a fully franked dividend yield of around 4%. According to the forecast on Commsec, the Challenger share price is valued at under 13x FY24’s estimated earnings.

Bui noted that Challenger recently reaffirmed that it expects its FY24 annual result to be at the top end of its normalised net profit before tax guidance range of between $555 million and $605 million.

The post ‘Attractive entry point’: Fundie says buy these ASX 200 shares now appeared first on The Motley Fool Australia.

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

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a very disappointing session and dropped deep into the red. The benchmark index fell 1.3% to 7,755.4 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to fall again

It looks set to be another red day for the Australian share market on Wednesday despite a reasonably positive session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.55% lower. On Wall Street, the Dow Jones fell 0.3%, but the S&P 500 rose 0.3% and the Nasdaq stormed 0.9% higher. Both the S&P 500 and Nasdaq closed at record highs. This was thanks largely to Apple shares, which rose 7% due to its AI news.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.2% to US$77.87 a barrel and the Brent crude oil price is up 0.3% to US$81.85 a barrel. Optimism over summer fuel demand has boosted oil prices this week.

Collins Foods CEO resigns

The Collins Foods Ltd (ASX: CKF) share price will be on watch today after the KFC restaurant operator announced the exit of its CEO. According to the release, the Drew O’Malley has informed the board of his intention to step down effective 1 July. Kevin Perkins will remain in the role of interim managing director and CEO as the board undertakes a local and international CEO search. Perkins has been in charge on an interim basis while Mr O’Malley was on an extended leave of absence.

Gold price rises

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a better day after the gold price rose overnight. According to CNBC, the spot gold price is up 0.2% to US$2,331.3 an ounce. Traders were bidding the precious metal higher ahead of the release of US inflation data and the US Federal Reserve meeting.

Judo Capital joins the ASX 200

The ASX 200 index has a new member. After the market close on Tuesday, S&P Dow Jones Indices announced that building materials company CSR Ltd (ASX: CSR) will be removed from the ASX 200 index next week. This is subject to shareholder and final court approval of the scheme of arrangement which will see the company acquired by Compagnie de Saint-Gobain. Replacing CSR in the illustrious index will be business lender Judo Capital Holdings Ltd (ASX: JDO).

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

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Motley Fool contributor James Mickleboro has positions in Collins Foods and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia has recommended Apple and Collins Foods. 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) investors will know tomorrow morning whether the US Federal Reserve will keep interest rates on hold or surprise markets with a rate cut. While there are no guarantees, the world’s most influential central bank will almost certainly not move to increase rates.

Either way, the Federal Open Market Committee will announce its decision overnight Aussie time tonight.

Should the FOMC move to cut rates from the current 23-year high 5.25% to 5.50% target range, I imagine the ASX 200 will have an absolute cracker of a day tomorrow.

That’s because markets have virtually priced out any odds of an interest rate cut this week.

This is despite the Bank of Canada cutting rates last week by 0.25% to the new 4.75%. The European Central Bank followed suit the next day, dropping rates by 0.25% to the new 3.75%. This was the first easing by the ECB since 2019, despite the bank noting that inflation in some areas was proving sticky.

But with the latest batch of US labour data showing the nation added 272,000 jobs in May, far surpassing consensus expectations of 185,000, investors are all but ruling out an interest rate cut announcement from Federal Reserve chair Jerome Powell.

With the resilient US economy likely to keep the heat on inflation, investors are now eyeing September as the earliest date that US and ASX 200 investors may see some rate relief from the Fed.

What are the experts saying on the interest rate outlook?

Commenting on the latest economic data out of the US, Sandy Villere, portfolio manager at Villere & Co said (courtesy of The Australian Financial Review):

This tells you there’s certainly not going to a cut in the short term, and with the bond yields going back up it’s putting a lot of pressure on the risk-on trade, which is probably small caps.

It’s just a function of interest rates and maybe a little higher for longer, and people have to recalibrate for that type of environment.

Ryan Detrick, chief market strategist at the Carson Group is now looking ahead for a potential Fed interest rate cut in September.

“No one expects the Fed to cut [rates next week], but will they open the door for a cut as soon as September is the big question on everyone’s mind,” he said.

Analysts are now keeping a sharp eye on the Fed’s dot plot projections.

“We expect the [Fed] will raise the dot plot from an anticipated three cuts to just one to two cuts for this year with a modest upside tweak to the end 2024 inflation forecasts,” Tom Kenny, a senior economist at ANZ Group Holdings Ltd (ASX: ANZ) said (quoted by the AFR).

“We should see the ‘dots’ show a central tendency for two 25-basis points-rate cuts, from three, this year, but there is a small chance they move to one cut – an outcome that would rock markets,” Chris Weston, head of research at Pepperstone Group added.

And the RBA?

As for the Reserve Bank of Australia, ASX 200 investors will have to wait until next Tuesday, 18 June for that interest rate decision.

According to the ASX rate tracker, only 5% of traders expect the Aussie central bank to cut rates from the current 4.35% this month. More than half of investors expect the RBA to hold tight into early 2025.

“We assume the RBA will lag easing, but now with global central banks starting to cut rates, the RBA is unlikely to remain alone forever,” George Tharenou, chief economist for Australia at UBS said.

Tharenou is forecasting ASX 200 investors will see the first RBA interest rate cuts in 2025.

The post Will the US Fed finally cut interest rates this week? appeared first on The Motley Fool Australia.

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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.

Upon retiring, Australians typically take one of five actions with their superannuation nest eggs, according to new research from Australian life insurer, TAL.

According to TAL’s Retirement White Paper, the most popular choice among retired Australians is converting their superannuation into a regular income stream via a pension account (34%).

The second most popular choice is leaving their money in their existing superannuation account (27%), followed by taking all of it or some of it out in a lump sum (15%).

About 11% of retirees moved some of their superannuation monies into a lifetime income stream, such as an annuity, and some of it into a regular income stream or pension account.

About 7% of retirees moved all of their superannuation into a lifetime income stream.

Were retirees happy with the decisions they made?

With the benefit of hindsight, it seems many Australian retirees would have made different decisions.

The TAL research showed only 56% of retirees who withdrew all or most of their superannuation said they were ‘happy’ or ‘very happy’ that they made that decision.

By contrast, 87% of retirees who moved their money into a lifetime income stream or a pension account were ‘happy’ or ‘very happy’ with that choice.

Ashton Jones, General Manager of Growth, Retirement & Wealth Partnerships at TAL, said there was a misconception that all decisions made in relation to superannuation were set in stone.

He said:

One of the misconceptions around taking up retirement products is that the decision is irreversible – and while this may be the case for some traditional annuities, lifetime income solutions can be designed flexibly to offer a range of exit pathways, from spouse or death benefits to the simple option of withdrawing from the product at any time.

There was a surge in superannuation benefits paid out last year amid more baby boomers retiring.

Average superannuation balance at retirement

The retirement age is generally defined as the time of life when you become eligible for the age pension.

The retirement age in Australia is 67 years.

According to the Australian Taxation Office (ATO), the average superannuation balance for an Australian aged 65 to 69 years is $428,738. The median is $207,540.

How much superannuation do you need at retirement?

The AFSA Retirement Standard says Australian couples need $690,000 in superannuation, plus a part-pension and debt-free home ownership, to afford a ‘comfortable retirement’. Singles need $595,000.

Alternatively, just $100,000 in superannuation for couples and singles, plus a part-pension and full home ownership, is enough for a ‘modest retirement’.

A comfortable lifestyle for retirees aged 65 to 84 years old costs $72,663 per year for couples and $51,630 for singles, according to AFSA.

The comfortable retirement standard allows for daily essentials costs, such as groceries, transport and home repairs, private health insurance, lots of exercise, leisure, social activities, occasional restaurant meals, an annual domestic holiday and a trip overseas every seven years.

A modest lifestyle costs $47,387 for couples and $32,915 for singles. It allows for the daily essentials plus basic health insurance, occasional exercise, leisure, and social activities.

AFSA’s estimates assume retirees draw down all their superannuation capital and invest it with a return of 6% per annum.

The post Retiring soon? Top 5 choices Aussies make with their superannuation money appeared first on The Motley Fool Australia.

More reading

• Analysts say these 5 ASX 200 growth shares are top buys
• Here are the top 10 ASX 200 shares today
• Will Apple stock be worth more than Nvidia by 2025?
• Why are ASX gold shares being trashed on Tuesday?
• 3 ASX All Ords shares raised to ‘strong buy’ status in May

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.

If you have a penchant for ASX 200 growth shares like I do, then it could be worth checking out the five listed below.

They have been named as buys and tipped to grow strongly in the future. Here’s what you need to know about them:

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre could be an ASX 200 growth share to buy according to analysts at Morgans. It is one of the world’s leading travel agents.

The broker believes Flight Centre is positioned for growth after a difficult time during the pandemic. It notes that its transformed business model mean it is “well placed over coming years.”

Morgans currently has an add rating and $27.27 price target on its shares.

Megaport Ltd (ASX: MP1)

Another ASX 200 growth share that has been given the thumbs up is Megaport. It is a global provider of elastic interconnection services in data centres across the world.

Macquarie believes the company’s strong earnings growth can continue over the coming years thanks to operating leverage and increased penetration of its Megaport Cloud Router (MCR) and Megaport Virtual Edge (MVE) products.

Macquarie has an outperform rating and $18.00 price target on its shares.

TechnologyOne Ltd (ASX: TNE)

Bell Potter thinks growth investors should be buying the shares of enterprise software provider TechnologyOne.

This is partly because it believes TechnologyOne “can double revenue every five years or so via organic growth alone.”

Bell Potter has a buy rating and $18.50 price target on Technology One’s shares.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX 200 growth share that Morgans is bullish on is Treasury Wine.

It is feeling confident about its outlook thanks partly to its recent acquisition of DAOU Vineyards (DAOU) for US$900 million (A$1.4 billion). The broker highlights that “if TWE delivers on its investment case, there is material upside to our valuation.”

Morgans has an add rating and $14.03 price target on its shares.

Xero Ltd (ASX: XRO)

A final ASX 200 growth share that could be a buy according to analysts is Xero. It is one of the world’s leading cloud accounting platform providers.

Goldman Sachs is very positive on the company. It highlights that Xero is “very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM.”

The broker currently has a buy rating and $164.00 price target on its shares.

The post Analysts say these 5 ASX 200 growth shares are top buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Technology One, Treasury Wine Estates, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Macquarie Group, Megaport, Technology One, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group and Xero. The Motley Fool Australia has recommended Flight Centre Travel Group, Megaport, Technology One, 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.