Category: Stock Market

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had another poor session and dropped into the red. The benchmark index fell 0.5% to 7,628.2 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 poised to rebound

The Australian share market looks set to end the week on a positive note despite a poor session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 50 points or 0.65% higher this morning. On Wall Street, the Dow Jones was down 0.85%, the S&P 500 fell 0.6%, and the NASDAQ was 1.1% lower.

Oil prices fall

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a tough finish to the week after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$77.87 a barrel and the Brent crude oil price is down 2% to US$81.97 a barrel. Traders were selling oil in response to weak gasoline demand.

Buy Xero shares

The Xero Ltd (ASX: XRO) share price could be good value according to analysts at Goldman Sachs. In response to price increases in the UK, the broker has reiterated its conviction buy rating and $164.00 price target on the cloud accounting platform provider’s shares. It said: “Although we believe this pricing update was somewhat expected following the Australian plan announcement, we view it as another incremental positive for Xero and very supportive of our FY25/26 revenue forecasts.”

Gold price softens

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued finish to the week after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.1% to US$2,362.8 an ounce. The precious metal appears to be in a holding pattern ahead of the release of US inflation data.

Pro Medicus shares rated hold

Analysts at Bell Potter have been impressed with the contract wins announced by Pro Medicus Limited (ASX: PME) this week. As a result, the broker has upgraded the health imaging technology company’s shares to a hold rating with an improved price target of $115.00 (from sell and $75.00). It said: “The announcement of recent contract wins provides a heightened degree of certainty for FY25 revenues and earnings, accordingly there is minimal risk of downgrades to consensus for FY25 following the FY24 earnings announcement.”

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

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• If you were born in the 1970s or later, your superannuation is delivering the best returns
• Here are the top 10 ASX 200 shares today
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• Why Catapult, Clarity, Pro Medicus, and Qantas shares are rising today
• Why did the ASX 200 just hit a 4-week low?

Motley Fool contributor James Mickleboro has positions in Pro Medicus and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Pro Medicus, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Pro Medicus. 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 to choose from on the Australian share market.

To narrow things down, I have picked out three ASX dividend stocks that analysts rate as buys and are forecasting 6%+ dividend yields. Here’s what you need to know about them:

APA Group (ASX: APA)

The first ASX dividend stock for income investors to consider buying is APA Group.

It is an energy infrastructure business that owns and operates a $27 billion portfolio of gas, electricity, solar and wind assets. This includes 15,000 kilometres of natural gas pipelines that connect sources of supply and markets across mainland Australia.

Analysts at Macquarie are feeling positive about the company’s outlook and expect its long run of dividend increases to continue. The broker is forecasting dividends of 56 cents per share in FY 2024 and then 57.5 cents per share in FY 2025. Based on the current APA Group share price of $8.29, this equates to 6.75% and 6.9% dividend yields, respectively.

Macquarie has an outperform rating and $9.40 price target on its shares.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Over at Morgans, its analysts think that Dalrymple Bay Infrastructure could be an ASX dividend stock to buy. It is the long-term operator of the Dalrymple Bay Coal Terminal, which has been Queensland’s premier coal export facility since 1983.

The broker currently has an add rating and $3.05 price target on its shares.

As for income, the broker is forecasting dividends per share of 22 cents in FY 2024 and then 23 cents in FY 2025. Based on the latest Dalrymple Bay Infrastructure share price of $2.76, this will mean yields of 8% and 8.3%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Morgans is also expecting some big dividend yields from HomeCo Daily Needs shares. It is a property company focused on neighbourhood retail and large format retail assets.

The broker likes the company due to the resilience of its cashflows and its exposure to accelerating click and collect trends. Combined with its development pipeline, Morgans feels the company is well-positioned for growth.

It expects this to underpin dividends per share of 8 cents in FY 2024 and then 9 cents in FY 2025. Based on the current HomeCo Daily Needs share price of $1.21, this will mean yields of 6.6% and 7.4%, respectively.

Morgans currently has an add rating and $1.37 price target on the ASX dividend stock.

The post These buy-rated ASX dividend stocks offer 6%+ yields (and plenty of upside) 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group and Macquarie Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When an Australian investor buys an ASX bank stock, they are probably doing so with the expectation of receiving steady, fat and fully franked dividend payments. This reputation naturally applies to Westpac Banking Corp (ASX: WBC) shares.

Westpac is Australia’s oldest bank and a prominent member of the big four ASX banks. As you would expect, this company has been delighting its investors with hefty dividend payments for decades.

But do Westpac’s dividends still come with full franking credits attached? This might seem like a silly question. However, we’ve already seen one member of the big four banks club recently drop its commitment to paying fully franked dividends.

As we discussed last month, the culprit is ANZ Group Holdings Ltd (ASX: ANZ). ANZ shares have transitioned away from paying out fully franked dividends.

This bank’s first partially franked dividend in decades was announced back in late 2019. Over subsequent years, ANZ’s dividends returned to being fully franked alongside those from Westpac shares and the other banks.. until late 2023. At that time, ANZ revealed that its final dividend for 2023 would only come partially franked at 56%. That payment was doled out on 22 December.

Its next dividend, the final 83 cents per share payout that shareholders will receive on 1 July, is also set to come partially franked. This time at 65%. So it seems a new norm has been established for ANZ.

But what about Westpac shares?

Do the dividends from Westpac shares still come with full franking credits?

Fortunately for Westpac shareholders, it’s a different story. All of the dividends this bank stock has paid out over the 21st century so far have come with full franking credits attached. Additionally, the bank has made no indication that it is planning on disrupting this status quo.

Earlier this month, Westpac revealed that its interim dividend for 2024 would come in at a fully franked 75 cents per share. That’s a happy 7.14% increase over 2023’s interim dividend of 70 cents (also fully franked).

Additionally, Westpac investors are also set to be treated to a supplemental special dividend. That’s to be worth an additional 15 cents per share. This too will come with those full franking credits attached.

This makes sense because in order for a company like Westpac to pay out fully franked dividends, the profits that the dividends are funded from must be taxed in Australia.

ANZ, unlike Westpac and the other big four banks, has significant operations outside Australia. As such, these operations make it difficult for ANZ to pay out fully franked dividends.

But Westpac’s business model is far more domesticated than ANZ’s. As such, this bank probably won’t struggle to keep its dividends fully franked going forward.

There’s never any certainty in the investing (or dividend) world. But judging by Westpac’s past dividend payouts, as well as its Australia-centric business model, the likelihood of Westpac’s dividends remaining fully franked is arguably high.

At the current Westpac share price, this ASX 200 bank has a trailing dividend yield of 5.67% on the table. This grosses up to 8.1% with the value of those full franking credits included.

The post Do the dividends from Westpac shares still come fully franked? appeared first on The Motley Fool Australia.

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• ASX 200 bank shares: How dividends offset poor capital growth over 10 years
• Why Goldman Sachs just downgraded Westpac shares to a sell rating

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.

When an investor searches for ASX dividend shares to add to their portfolio, the gold standard is arguably finding those rare stocks that have the potential to fund a lifetime of passive income.

After all, what could be better than buying a dividend share and never worrying about whether it will be able to scrape together enough cash for its next dividend?

Buying these lifelong sources of passive income can be thought of as investing in a coiled dividend spring.

But of course, finding these coiled springs is easier said than done. So today, let’s discuss two ASX dividend shares that I think have the potential to fund a lifetime of passive income.

2 ASX dividend shares to fund a lifetime of passive income

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

First up is Washington H. Soul Pattinson, or Soul Patts for short. I’ve long touted this stock as one of the best dividend shares on the ASX. This company owns a portfolio of underlying assets, which it manages on behalf of its shareholders, much as a listed investment company (LIC) does.

In Soul Patts’ case, these assets include major stakes in other ASX stocks, including New Hope Corporation Ltd (ASX: NHC) and TPG Telecom Ltd (ASX: TPG). They also include a huge blue-chip ASX share portfolio and other investments like private credit, venture capital, and unlisted companies.

My confidence in Soul Patts as a lifetime passive income payer comes from its almost flawless track record of delivering meaningful returns over many decades. For one, the company has a near-25-year streak of providing annual dividend pay rises – a streak unmatched on the ASX. It also hasn’t cut its dividend in more than 120 years.

Additionally, these fully-franked dividends have not come at the expense of growth. In an ASX release earlier this month, Soul Patts confirmed that its investors have enjoyed an average 12% per annum return over the 20 years to 30 April. That smashes the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

All of these factors add up to an ASX dividend share that I think has more than enough potential to be a lifelong passive income payer.

Coles Group Ltd (ASX: COL)

When I look for long-term ASX dividend shares, I like to turn to the consumer staples sector. If a company sells us things that we need — rather than want — to buy, I think it inherently makes its business model stronger and more robust than your average ASX share.

That is arguably true of Coles Group. As the second-largest grocer and supermarket operator in Australia, Coles will always be one of the top places customers head to for food, drinks and household essentials if it offers these products at competitive prices.

I believe Coles will continue to be able to do this, thanks to its significant investments in its supply chains and automation-driven distribution centres.

Coles’ rival Woolworths Group Ltd (ASX: WOW) is a larger business with more market share than Coles. However, Coles shares trade with a higher dividend yield right now and have a better history of maintaining consistent, fully-franked payouts.

For these reasons, I think Coles is another ASX dividend share that has the potential to be a spring of passive income that won’t run dry over a lifetime.

The post 2 ASX dividend shares that are coiled springs for a lifetime of passive income appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Coles Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investing in ASX shares to build a deposit, rentvesting, and co-owning with parents or partners are among the inventive ways that young Australians are gaining a foothold on the property ladder.

Research from Westpac shows that 56% of first-time home buyers are planning to buy with a partner, compared to 40% three years ago.

Three in four young buyers say they are willing to compromise on location, up 9% from three years ago.

One in two first-time home buyers is considering rentvesting instead of owner-occupation, whereby they buy an affordable property to lease out and rent a home for themselves wherever they want to live.

Westpac managing director of mortgages Damien MacRae said first home buyers “are becoming more ruthless with their goals”.

McRae said:

They understand it’s a big task, but they are determined to break into the market and are willing to compromise to get there.

Creative pathways to home ownership

It’s little wonder young people are compromising or getting creative to help them buy a home sooner.

For some, it feels like an impossible dream, particularly when it now takes 11.1 years to save a deposit for a typical house and 8.5 years for an apartment, according to an ANZ/CoreLogic affordability report.

It also takes 52.7% of a person’s income to service an average home loan for houses and 40.5% for apartments, which is well above the mortgage stress threshold of 30%.

Co-ownership with partners or parents

In addition to buying with partners, many first home buyers are accepting various kinds of help from the Bank of Mum and Dad, including co-ownership.

Australian parents are acutely aware of the challenges of housing affordability for their children today.

In fact, a recent survey showed three in four Australians are planning to leave some of their superannuation behind as an inheritance for their loved ones.

One of the reasons is to help their kids into home ownership, as one respondent explained:

The cost of buying a house is beyond reach for younger people now. A little help from me when I die might help pay off their mortgage and allow them to retire at an appropriate age.

A separate investor survey shows helping their children or other family members financially is a key motivation for 33% of Gen Xers and 25% of baby boomers.

Investing in ASX shares to save the deposit

Saving a home deposit is a significant motivation for investing in ASX shares.

The 2023 ASX Australian Investor Study, which surveyed more than 5,500 Australians, found that buying a home to live in was the main goal of 16% of investors and 31% of intending investors.

An Australian Housing and Urban Research Institute (AHURI) study confirms the trend:

Anecdotally, some people have been turning to other strategies to accumulate wealth to achieve home ownership, including share investing and property investing.

The study found ASX shares were the most popular type of stock among young investors, with ASX exchange-traded funds (ETFs) coming in second.

By the way, online brokerage platform Selfwealth Ltd (ASX: SWF) reports the most popular ASX shares traded in April were BHP Group Ltd (ASX: BHP) and Woodside Energy Group Ltd (ASX: WDS).

The top ASX ETFs traded were Vanguard Australian Shares Index ETF (ASX: VAS) and Vanguard MSCI Index International Shares ETF (ASX: VGS).

Rentvesting

Rentvestors typically purchase their first property in an affordable suburb on the city outskirts and then lease it out, using the rental income to help them pay the holding costs and mortgage.

Meanwhile, they rent a home for themselves in a trendy inner-city location that provides the lifestyle they want.

They hope their investment property will deliver enough capital growth to fund the deposit on a home in a location they want to live in later down the track when they ‘settle down’.

Rentvesting is a forced choice for some first-time buyers as it’s the only way they can get finance.

It can be easier to get an investment loan than an owner-occupier loan because the rental income forms part of the banks’ serviceability and income assessments.

The Australian Bureau of Statistics (ABS) began tracking rentvesting in 2019. Last year, 7,412 first-time buyers took our investment loans, according to ABS lending finance data.

Buying a first home with government help

Thousands of first home buyers are also taking up government help to buy their first residence.

Since May 2022, more than 110,000 Australians have taken advantage of the First Home Guarantee Scheme, which allows them to buy with a 5% deposit and avoid lenders’ mortgage insurance.

The Federal Government is currently trying to get its new Help to Buy equity scheme through Parliament.

It says Help to Buy would allow 40,000 buyers to purchase a first home via a shared equity arrangement.

The government would provide up to 40% of the purchase price of new homes and 30% of the price of established homes.

The states and territories also offer help for first home buyers, including stamp duty exemptions and concessions and grants.

In November 2023, Queensland doubled its First Home Owner Grant to $30,000 for people buying or building a new home under $750,000 until 30 June 2025.

The post Buying ASX shares, rentvesting and co-ownership: How young Australians are achieving home ownership appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Anz Group, BHP Group, Vanguard Australian Shares Index ETF, and Woodside Energy Group. 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 recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Core Lithium Ltd (ASX: CXO) shares have had a very disappointing 12 months.

During this time, the lithium miner’s shares have lost approximately 87% of their value.

Unfortunately, despite this material decline, one leading broker believes there’s potential for the lithium stock to fall further.

Who is bearish on Core Lithium shares?

Goldman Sachs remains very bearish on Core Lithium.

According to a recent note, its analysts have a sell rating and 11 cents price target on the company’s shares.

Based on the latest Core Lithium share price of 13.5 cents, this implies potential downside of approximately 18.5% for investors over the next 12 months.

What did the broker say?

Goldman has laid out several reasons why it believes that investors should be avoiding Core Lithium’s shares even after their sharp decline.

The first reason that Goldman has given to justify its sell rating is the company’s valuation. It notes that it still looks expensive at current levels. The broker said:

CXO appears relatively expensive trading at a premium on ~1.1x NAV and an implied LT spodumene price of ~US$1,200/t (peer average ~1.05x & ~US$1,250/t (lithium pure-plays ~US$1,140/t)), with the lowest average operating FCF/t LCE on a more moderated/deferred production restart/ramp up.

Another reason for its bearish view is its belief that that are a lot of risks in respect to the restart of mining operations. It adds:

In the current pricing environment, a mine restart looks highly unlikely ahead of the next wet season, in our view and, given the Grants open pit has ~12 months of life, likely tied to a development decision on BP33 (with its own funding risks) to support a new processing contract, increasing the risk of a longer gap in production. Following a restart, production risk in a steady state operation remains as the Finniss project moves through ramp ups on project complexity moving between different open pits and underground configurations.

A third and final reason is its belief that Core Lithium’s resource growth may take longer than expected now. It concludes:

Though further exploration is underway, and while potential resource expansion could be promising (including revisiting the gold, uranium and base metal exploration projects), with resource extension likely at depth/from new areas, we see limited near-term upside, where further meaningful exploration is now also likely longer dated on falling lithium prices, particularly with a near-term restart of the operation now unlikely in the near-term.

All in all, Goldman thinks investors should be staying clear of the company for now. It prefers IGO Ltd (ASX: IGO) for lithium exposure and has a buy rating and $8.10 price target on its shares.

The post 3 key reasons to sell Core Lithium shares appeared first on The Motley Fool Australia.

More reading

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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. 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 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 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 Domino’s Pizza Enterprises, Netwealth Group, PolyNovo, Pro Medicus, and Reliance Worldwide. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Collins Foods, Domino’s Pizza Enterprises, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are on the hunt for some ASX 200 blue chip stocks to buy, then you may want to look at the two in this article.

They may come from very different sides of the market, but they share one thing in common. That is that brokers rate them highly and are tipping them to rise strongly from current levels.

Here’s what they are saying about these stocks:

Coles Group Ltd (ASX: COL)

Analysts at Morgans think that Coles could be a quality ASX 200 blue chip stock to buy now. Particularly if you’re looking for a combination of market-beating gains and an attractive dividend yield. Morgans commented:

In our view, the ongoing scrutiny on the supermarkets has affected short term sentiment in the sector, which we believe creates a good buying opportunity in COL. While Liquor sales remain soft, we expect the core Supermarkets division (~92% of earnings) to continue to be supported by further improvement in product availability, reduction in total loss, greater in-home consumption due to cost-of-living pressures, and population growth.

The broker has an add rating and $18.95 price target on its shares. This implies potential upside of 17% for investors over the next 12 months.

Making things even sweeter, the broker is forecasting fully franked dividend yields of 4.1% in FY 2024 and 4.3% in FY 2025. This boosts the total 12-month return from this blue chip to beyond 20%.

Mineral Resources Ltd (ASX: MIN)

If you’re not averse to investing in the mining sector, then Bell Potter thinks that Mineral Resources could be an ASX 200 blue chip stock to buy.

It is a mining and mining services company with operations and development projects across energy, iron ore, and lithium.

Bell Potter rates the company highly due to its earnings diversification and growth potential. It explains:

In contrast to its peers, MIN completes everything from engineering, to construction, to all aspects of operations in-house. Our Buy view is underpinned by MIN’s earnings diversification, strong insider ownership, clearly articulated strategies, expertise in contracting and internal growth options at Onslow as well as potential lithium expansions including into downstream. All up, MIN offers diversified exposure to steady income streams from the contracting business and market-driven commodity exposure coupled with earnings derived from both lithium and iron ore.

The broker has a buy rating and $85.00 price target on its shares. This implies potential upside of 19% for investors from current levels. And with Bell Potter expecting a ~1% dividend yield in FY 2025, the total potential return stretches to 20%.

The post Buy these ASX 200 blue chip stocks for 20% returns appeared first on The Motley Fool Australia.

More reading

• Here’s the Coles dividend forecast through to 2026
• How Warren Buffett’s advice is guiding the ASX shares I’m buying in 2024
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• ASX investors may choose supermarkets over Wesfarmers shares after ACCC inquiry: broker
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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Sonic Healthcare Ltd (ASX: SHL) share price dropped to a new 52-week low today of $23.81. When directors decide to buy shares, it can be a signal for other investors to buy too. There has been yet another director investment after the company’s disappointing earnings update.

Earlier this week, my colleague Kate O’Brien reported that directors had bought Sonic Healthcare shares.

Earnings update recap

Sonic Healthcare disclosed that it’s now expecting to generate earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.6 billion and $8.9 billion of revenue in FY24. That compares to previous EBITDA guidance of between $1.7 billion and $1.8 billion.

Organic revenue continued to be strong, with 6% growth for the four months to 30 April 2024, after a 6% increase in the first half of FY24.

However, profit growth has been lower than expected, partly due to inflationary pressures on the business exacerbated by currency exchange headwinds. Profit margin improvements have been delayed, though this will “contribute to further earnings growth” in FY25. The company expects inflation pressures to ease going forward.

After providing this update and seeing the Sonic Healthcare share price reaction, directors decided to buy.

New director investment

Sonic announced today that director Christine Bennett has bought 1,000 more Sonic Healthcare shares on the market at a price of $24.01 on 29 May 2024. This suggests the total investment was worth approximately $24,000.

This brings Bennett’s total ownership of the ASX healthcare share to 5,100 Sonic Healthcare shares. That means her holding increased by around 25%, which is a sizeable increase.

There are many reasons why a director may decide to sell their shares: a tax bill, buying a property, a divorce and so on. But, there’s typically only one reason a leadership figure buys shares on the market: they think it’s good value.

Is the Sonic Healthcare share price a buy?

I think it is – I bought Sonic Healthcare shares recently and it’s even cheaper now.

There are several positives that could support the ASX healthcare share.

First, it has made several acquisitions that can help boost revenue and profit in the future, particularly with acquisitions in Germany and Switzerland.

Second, it has invested in businesses that can help diagnose patients, namely AI and microbiome testing

Third, the business is still seeing positive organic revenue growth. Once cost inflation reduces, Sonic’s operating profit could continue to increase at an adequate rate to reinvigorate the market about the company.

Sonic Healthcare is already a sizeable position in my portfolio, so I’m not planning to buy shares imminently. But if I didn’t own shares, I’d be using this time to invest.

The post Directors keep buying beaten-up Sonic Healthcare shares. Should you? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Tristan Harrison has positions in Sonic Healthcare. 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 recommended Sonic Healthcare. 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) shares are down 0.44% to 7,631.5 points on Thursday amid several broker upgrades within the benchmark index this week.

Let’s take a look at four of them.

4 ASX 200 shares attracting upgrades this week

ASX 200 property share to outperform, says broker

As reported in The Australian, Macquarie has raised its rating on ASX 200 property share HMC Capital Ltd (ASX: HMC) to outperform. It has placed a 12-month price target of $7.97 on HMC Capital shares.

HMC Capital shares enjoyed a run on Monday after the company announced the completion of a $100 million capital raise. The stock rose 4.77% and was one of the top-performing shares of the day.

The HMC Capital share price is $7.17, up 0.14% today and up 17.9% in the year to date.

Broker ‘cautiously optimistic’ on Domino’s Pizza shares

Citi has upgraded ASX 200 consumer discretionary share Domino’s Pizza Enterprises Ltd (ASX: DMP) from neutral to buy. The 12-month price target remains unchanged though at $44.50.

Citi analyst Sam Teeger said (courtesy The Australian):

We have come away from the France part of the Europe investor tour with greater understanding of why Domino’s has struggled and are cautiously optimistic that better days could be ahead in FY25.

The company released its European strategy on Monday.

The Domino’s Pizza share price is $37.77, up 1.68% today and down 36.3% in the year to date.

CLSA has also upgraded Domino’s Pizza shares to a buy with a price target of $46.50.

Price target raised 28% on ASX 200 healthcare share

According to The Australian, Wilsons has upgraded ASX healthcare share Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) to overweight and raised its price target by 28% to $30.

The broker was impressed by the company’s FY24 report released yesterday.

Investors liked it too and rewarded the company with a 3.69% bump to a new 52-week peak of $27.50 per share. This made it the best-performing stock of the day.

The Fisher & Paykel share price is $26.31, down 0.30% today and up 19.3% in the year to date.

Broker says hold amid director buying the dip

Jefferies has upped its rating on Eagers to hold with a 12-month share price target of $10.40.

The Eagers Automotive Ltd (ASX: APE) share price is $10.08, down 0.30% today and down 30.5% in the year to date.

Non-executive director Nicholas Politis has been buying the dip on the ASX 200 share. He purchased 200,000 shares on-market last Wednesday’, paying an average price of $10.47.

The post 4 ASX 200 shares receiving broker upgrades appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in Domino’s Pizza Enterprises and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.