Category: Stock Market

What a week this week is turning out to be for the S&P/ASX 200 Index (ASX: XJO). After rocketing a solid 1.26% yesterday, the ASX 200  is keeping the post-Easter party going today with another session of strong gains.

At the time of writing, the Index is up by a happy 0.43%, putting the ASX 200 back over 7,340 points. The chocolate rush certainly shows no signs of abating.

But time now to take a look at the shares that are currently at the peak of the ASX 200’s share trading volume charts so far this session, according to investing.com. 

The 3 most traded ASX 200 shares by volume this Wednesday

Nickel Industries Ltd (ASX: NIC)

ASX 200 nickel producer Nickel Industries is first up for examination. This Wednesday has seen a notable 16.337 million Nickel Industries shares bought and sold thus far. After announcing a new issuance of notes yesterday morning, we haven’t heard anything out of Nickel Industries today.

However, that hasn’t stopped this ASX share from making a big move. At present, Nickel Industries shares have gained an impressive 3.59% this session to 93.75 cents a share. It seems this big move upwards is to thank for this company’s presence here today

Sayona Mining Ltd (ASX: SYA)

Next up this Wednesday is ASX 200 lithium share Sayona Mining. So far this session, a sizeable 17.97 million Sayona shares have slid across the share market. There hasn’t been any fresh news out of Sayona so far today. So this volume is probably a result of the volatility we have seen with this company on the markets today.

Sayona has spent time in both positive and negative territory. The lithium miner is currently up by 1.03% at 19.7 cents per share but dropped to 19.2 cents earlier this morning (down 1.5%). It’s this bouncing around that probably explains why so many shares are trading.

Pilbara Minerals Ltd (ASX: PLS)

Third and finally, let’s check out another ASX 200 lithium stock in Pilbara Minerals. A hefty 22.62 million PIblara shares have changed hands on the markets today as it currently stands. There’s been no news out of Pilbara today either.

But, regardless, the Pilbara share price has tanked by a nasty 3.39% at present to $3.565 a share. My Fool colleague James posited that this could be a result of concerns that lithium prices could have further to fall. But it’s this large sell-off that we can probably thank for the high volumes on display here.

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Why Future Generation, Pilbara Minerals, Platinum, and Whitehaven Coal shares are dropping
• Pilbara Minerals is one of the cheapest shares in the ASX 200. Am I buying?
• I’m looking for once-in-a-decade opportunities in the stock market recovery
• ‘Attractive value’: 2 ASX 200 mining shares ‘worth adding’ right now
• 5 things to watch on the ASX 200 on Wednesday

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.

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What if I told you investing in ASX dividend shares today could see you with a passive income stream large enough to retire on in just seven years? It might sound too good to be true, but it’s not.

By building a portfolio of ASX dividend shares, one might find themselves sitting back and enjoying their second life by the end of the decade. All without forfeiting a regular income.

So, how much would you have to sink into the stock market now to build a retirement-worthy passive income by 2030? Let’s take a look.

How much dividend income do I need to retire?

The size of the cash stream needed to enjoy retirement will differ from person to person, but let’s assume a $50,000 annual income will get you by.

If you can build a portfolio of ASX shares capable of paying an above-average, but not unheard of 6.5% dividend yield, you’ll need around $780,000 worth of stocks to receive such an income.

That may sound like a huge sum. Fortunately, however, there are still close to seven years left in the decade to reach our figurative goal.

Investing now to retire by 2030

The S&P/ASX 200 Index (ASX: XJO) has historically provided investors with an average annual return above that offered by savings accounts – even considering recent interest rate hikes.

The index has provided an average total annual return of 8.18% over the last decade.

If that return holds steady for the years to come, one will need to invest just $450,000 now to have a portfolio capable of providing $50,000 of annual dividend income by 2030.

Let’s take a look at how that nest egg would grow over the years:

Years invested	Portfolio value
0	$450,000
1	$486,810
2	$526,631
3	$569,709
4	$616,312
5	$666,726
6	$721,264
7	$780,264

The power of compounding, folks! And just imagine how much further that would have grown if one were to have regularly and consistently added to it over the years.

It’s worth noting, however, that no investment is guaranteed to provide returns or downside protection, and past performance isn’t indicative of future performance.

The post Here’s how much you need to invest now to retire on dividend income by 2030 appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• Which ASX 200 mining share is rocketing 9% today?
• How reliable are the dividends from CBA shares?
• Is the Qantas share price vulnerable to these ‘serious risks on the horizon’?
• Why 29Metals, NextDC, Sims, and South32 shares are racing higher

Motley Fool contributor Brooke Cooper 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.

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a number of broker notes this week.

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

Arafura Rare Earths Ltd (ASX: ARU)

According to a note out of Bell Potter, its analysts have retained their speculative buy rating and 72 cents price target on this rare earths developer’s shares. This follows news that the company has signed a major offtake agreement with Siemens Gamesa Renewable Energy. The broker believes this is a milestone and supports its impending final investment decision on the Nolans project. The Arafura share price is trading at 49.7 cents on Wednesday.

Rio Tinto Ltd (ASX: RIO)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating on this mining giant’s shares with a slightly trimmed price target of $138.30. The broker has been running the rule over the mining sector and continues to see Rio Tinto as one of the best options. This is due to its attractive valuation, strong free cash flow generation, and an expected operational turnaround in the Pilbara and copper. The Rio Tinto share price is fetching $121.41 this afternoon.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Morgan Stanley have retained their overweight rating and $15.40 price target on this wine company’s shares. The broker highlights that trade relations between Australia and China are improving. And while wine is not currently on the agenda, it sees scope for this to change in the future. This would be a major boost to the company’s operations after being effectively shut out of China two and a half years ago. The Treasury Wine share price is trading at $14.01 today.

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

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More reading

• Buy Rio Tinto shares ahead of BHP: Goldman Sachs
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Why Arafura, Core Lithium, Mayne Pharma, and Newcrest shares are storming higher
• Here’s why the Arafura share price is racing 11% higher

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

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ASX 200 mining share Champion Iron Ltd (ASX: CIA) is enjoying a day in the sun (unlike the rest of us on this gloomy Wednesday).

The Champion Iron share price is currently $7.37, up 7.6% on yesterday’s closing price of $6.85.

Earlier in the session, the ASX 200 mining share ascended to an intraday peak of $7.46, representing a 9% bump.

It is currently the second-best performing share of the entire S&P/ASX 200 Index (ASX: XJO) today.

Why is this ASX 200 mining share soaring today?

Champion Iron is an ASX mid-cap iron ore share with several mining projects in Canada.

It owns and operates the Bloom Lake open-pit mine, which produces high-grade, low-contaminant iron ore that the company exports globally. Champion also owns the Powderhorne zinc and copper project.

There is no news out of Champion Iron today. It’s keeping good company in the green though, with several other ASX 200 mining shares also rising.

The S&P/ASX 200 Materials Index (ASX: XMJ) is the top-performing market sector today, up 1.9%.

The benchmark S&P/ASX 200 Index (ASX: XJO) is up 0.54%.

The sector’s strength is one factor pushing up Champion Iron and the big ASX 200 mining shares today, as per below:

• The BHP Group Ltd (ASX: BHP) share price is $47.18, up 2.6%
• The Rio Tinto Ltd (ASX: RIO) share price is $122.03, up 2.95%
• The Fortescue Metals Group Ltd (ASX: FMG) share price is $22.68, up 2.2%.

The Mineral Resources Ltd (ASX: MIN) share price is an outlier, down 2.3% at $77.06 per share.

What’s happening with commodities?

The materials sector is rising after a positive session across commodity markets.

In overnight trading, the iron ore price rose by 1.25% to US$121.50 per tonne.

The copper price rose by 0.11% to US$4.04 per pound.

Coal gained 0.2% and is up 6.2% over the month at US$194.15 per tonne.

The silver price is currently trading up 1% to US$25.33 per ounce.

Champion Iron share price snapshot

The Champion Iron share price is only just in the green for 2023 so far, up 0.2%.

It is down 3.2% over the past 12 months.

Top broker Macquarie has a 12-month price target of $8 on the ASX 200 mining share. This implies a potential upside of 8.5%.

The post Which ASX 200 mining share is rocketing 9% today? appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 mining shares just upgraded by Macquarie, one with 20% upside
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bronwyn Allen has positions in BHP Group, Fortescue Metals Group, and Macquarie 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 positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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When it comes to ASX dividend shares, it’s likely Commonwealth Bank of Australia (ASX: CBA) is one of the companies that come to mind. All of the ASX 200 bank shares, including CBA, have been dividend heavyweights on the ASX 200 for decades now.

Over its long history on the share market, Commonwealth Bank has built a solid reputation as a steady and generous provider of fully franked dividend income.

But just because a company has amassed a reputation as an income share in the past doesn’t automatically mean that it will continue to make it rain for investors indefinitely. So today, let’s assess just how reliable the CBA dividend is in 2023.

When analysing the sustainability or reliability of a company’s dividend, a great metric to start with is the dividend payout ratio. This determines how much of a company’s earnings are being paid out in dividends every year.

If a company has a payout ratio of 50%, it is going to intrinsically have a more sustainable and reliable dividend than a company forking out 95% of its earnings to shareholders every year.

Just how reliable are CBA shares’ dividends in 2023?

Back in February, CBA released its latest financial earnings report, covering the first half of FY2023. In these earnings, CBA revealed that its statutory net profit after tax (NPAT) rose 10% over the prior year to $5.22 billion. That translated into an earnings per share (EPS) metric of $3.04, up 31 cents over the prior year.

Out of that $3.04 in EPS, CBA announced that it would pay out a $2.10 per share interim dividend. $2.10 is just over 69% of $3.04. So we can conclude that CBA’s dividend payout ratio for the first half of FY2023 was 69.08%.

Let’s get a bigger picture though by analysing CBA’s full-year results for FY2022 that were released last August.

Back then, the bank revealed that its EPS for FY2022 came in at $5.57 a share. That was a rise of 69 cents over FY2021. Of that $5.57, the bank doled out $3.85 in dividends per share. That gave CBA a payout ratio of 69.12%.

So CBA’s payout ratio has been consistently at around 69% over the past year or two. I would class that as a healthy payout ratio for an ASX bank. This indicates that CBA’s dividend is indeed relatively reliable and sustainable at its current levels.

Of course, banks are highly cyclical businesses. Thus, if CBA’s earnings take a hit in the next year or so, we shouldn’t be surprised to see a commensurate drop in its dividends. We saw this happen during COVID-ravaged 2020 and, before that, during the global financial crisis in 2008.

Nevertheless, CBA is, and I suspect will remain, one of the ASX 200’s most generous dividend-paying shares. At present, the CBA share price gives this ASX bank a fully franked dividend yield of 4.24%.

The post How reliable are the dividends from CBA shares? appeared first on The Motley Fool Australia.

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More reading

• It’s official, the ASX 200 big four banks are the world’s most capitalised. Should you buy?
• Is the CBA share price heading back over $100?
• Could right now be a great time to buy ASX 200 bank stocks for passive income?
• Investing in ASX 200 dividend shares? Here’s how I’d aim for $200 per month in passive income
• Is right now a once-in-a-decade opportunity to buy CBA 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.

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The Qantas Airways Ltd (ASX: QAN) share price is slipping today, down 1.3% in early afternoon trade.

But the S&P/ASX 200 Index (ASX: XJO) airline stock remains a strong outperformer over the past year.

Amid resurgent domestic and international travel demand, the Qantas share price has marched steadily higher over the past nine months, up an impressive 55% since the closing bell on 12 July.

At the current $6.56 per share, the airline is trading right about where it was before the stock (and most every share on the ASX) crashed in February 2020 when the global pandemic brought the world to a virtual halt.

But is the Qantas share price now vulnerable to a large retrace?

Headwinds ahead?

According to a report by Bloomberg, short interest in United States’ listed airlines has reached its highest level since March 2020, during the height of the pandemic fears.

Short interest in the US Global Jets ETF (NYSEARCA: JETS) has reached more than 10% of the ETF’s float.

“Airlines trade at a low multiple but are extremely highly leveraged and there are serious risks on the horizon,” Michael O’Rourke, chief market strategist at JonesTrading said.

Those risks include the potential of a recession in the US and indeed across much of the globe. Even if Australia manages to dodge that recession, a global economic downturn could certainly impact the Qantas share price as well.

Investors are also concerned about high jet fuel costs, especially after the recent, unexpected crude oil production cuts from OPEC+. And then there’s the rocketing cost of airline tickets that could erode the resurgent travel demand we’ve been seeing. Particularly as consumers struggle with high inflation and interest rates.

“That, in combination with rising recession risk has some investors willing to bet against the group believing there are multiple situational outcomes where airlines can lose,” O’Rourke added.

Despite the past nine months of big gains for the Qantas share price, short interest in the ASX 200 airline remains well below that of the US Global Jets ETF.

According to ASIC’s short position data for today, 1% of the airline’s stock is currently held short.

And with Qantas continuing to report increased travel figures, the flying kangaroo may yet escape any turbulence hitting its US counterparts.

Qantas share price snapshot

As you can see on the chart below, the Qantas share price has gained 29% over the past 12 months. For some context, the ASX 200 is down 1% over that same period.

The post Is the Qantas share price vulnerable to these ‘serious risks on the horizon’? appeared first on The Motley Fool Australia.

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More reading

• Big Wednesday: 12 ASX 200 stocks cracking new 52-week highs
• Snapped up $8,000 of Qantas shares in 2018? Here’s how much passive income you’ve received
• Why did the Qantas share price soar higher than the ASX 200 in March?
• Qantas shares in the green amid sweet $2m investment
• Why I think the Qantas share price can keep soaring higher

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.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another solid gain. At the time of writing, the benchmark index is up 0.45% to 7,341.9 points.

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

29Metals Ltd (ASX: 29M)

The 29Metals share price is up 9% to $1.25. Investors have been buying this copper miner’s shares after it released an update on exploration activities at Capricorn Copper. The results of the program highlight the continuing potential of Capricorn Copper with demonstrated extensions of known mineralisation at Esperanza South and the Mammoth deposits. In addition, the miner has identified a new mineralised trend east of Mammoth.

Nextdc Ltd (ASX: NXT)

The Nextdc share price is up 9% to $12.09. This has been driven by the release of a trading update from the data centre operator. NextDC revealed that a series of recent customer wins means that its contracted utilisation has increased by 43%, or 35.9 megawatts (MW), to 120MW since 31 December. The new S3 data centre in Sydney has been a key driver of this growth.

Sims Ltd (ASX: SGM)

The Sims share price is up 3% to $16.44. This appears to have been driven by the release of a broker note out of Goldman Sachs. According to the note, its analysts have upgraded this scrap metal company’s shares to a buy rating with an $18.00 price target. Goldman made the move on higher ferrous scrap prices and notes that its EBIT forecasts now sit above consensus estimates.

South32 Ltd (ASX: S32)

The South32 share price is up 3% to $4.39. This is likely to have been driven by the same broker note out of Goldman Sachs. Its analysts have also upgraded this diversified miner’s shares to a buy rating with a $4.90 price target. Goldman highlights its attractive valuation and huge forecast 13.5% dividend yield in FY 2024.

The post Why 29Metals, NextDC, Sims, and South32 shares are racing higher appeared first on The Motley Fool Australia.

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More reading

• South32 share price jumps on Goldman Sachs upgrade: broker tips monster yield
• ASX 200 tech share NextDC just rocketed 9%. Here’s why
• ‘Attractive value’: 2 ASX 200 mining shares ‘worth adding’ right now
• 5 things to watch on the ASX 200 on Wednesday
• Analysts name 2 high yield ASX dividend shares to buy today

Motley Fool contributor James Mickleboro has positions in Nextdc. 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.

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The S&P/ASX 200 Index (ASX: XJO) is on form again on Wednesday. In afternoon trade, the benchmark index is up 0.55% to 7,350.8 points.

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

Future Generation Investment Company Ltd (ASX: FGX)

The Future Generation share price is down 3.5% to $1.14. This has been driven largely by the investment company’s shares trading ex-dividend this morning for its latest payout. Eligible shareholders can now look forward to receiving this 3.3 cents per share fully franked dividend later this month on 24 April.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 3.5% to $3.56. This follows broad weakness in the lithium industry on Wednesday. This may be due to concerns that the price of the battery making ingredient could continue to fall and put pressure on valuations.

Platinum Asset Management Ltd (ASX: PTM)

The Platinum share price is down 3% to $1.71. Investors have been hitting the sell button after this fund manager released its latest funds under management (FUM) update. Platinum revealed that it experienced net outflows of approximately $223 million during March. In addition, the company warned that an institutional investor intends to pull out approximately US$141 million from the Platinum World Portfolio – Asia Fund this month.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is down 3% to $6.75. This morning, this coal miner was forced to downgrade its guidance for FY 2023 due to inclement weather and operational issues. Whitehaven Coal was previously guiding to managed run-of-mine (ROM) coal production of 19Mt to 20.4 Mt across its three key assets. However, it now expects full-year ROM production of 18Mt to 19.2Mt.

The post Why Future Generation, Pilbara Minerals, Platinum, and Whitehaven Coal shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Whitehaven share price tanks 7% on downgraded FY23 guidance
• Pilbara Minerals is one of the cheapest shares in the ASX 200. Am I buying?
• ‘Attractive value’: 2 ASX 200 mining shares ‘worth adding’ right now
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why are ASX lithium shares leaping ahead 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 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.

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S&P/ASX 200 Index (ASX: XJO) shares are enjoying another strong run today, up 0.57% during the lunch hour.

That puts the benchmark index up 2% so far in this shortened trading week.

And tomorrow is shaping up to be another big day for ASX 200 shares.

That’s because while most Aussies are sleeping, the United States Bureau of Labor Statistics will release its March Consumer Price Index (CPI) data.

Depending on just how much, or little, inflation has eased, analysts are expecting some significant moves in US equities overnight. And that in turn will have an impact on ASX 200 shares down under.

The key figure that could move ASX 200 shares tomorrow

Just as in Australia and much of the rest of the world, inflation in the world’s biggest economy has been running hot.

And just like ASX 200 shares, the resulting interest rate hikes to tame inflation have pressured US stocks.

February’s CPI reading in the US was lower month on month but still came in at 6%. That’s well above the Federal Reserve’s 2% target range.

But with the odds of a US (and global) recession rising, investors have been increasingly betting the Fed will pause its rate hikes, and potentially turn to cuts later this year.

Whether or not that pause eventuates will hinge on just how fast inflation is coming under control.

A consensus estimate from economists in a Bloomberg survey forecasts that CPI in March will come in at 5.1%.

Should that prove accurate, Goldman Sachs partner John Flood expects stocks to run higher on the news.

Stock market wants a softer print as a hot reading will add more confusion/uncertainty into the equation of what the Fed does from here.

Another hike in May but then aggressive cuts in Q4? This is what Fed fund futures are pricing in ahead of tomorrow’s print.

Now Flood is talking about the S&P 500 here.

But if US markets rally on a soft inflation print, ASX 200 shares should get some helpful tailwinds tomorrow. If on the other hand, inflation runs hot, the reverse will most likely be true.

According to Flood, the best scenario would have CPI come in below 4.6%, which he expects will see the S&P 500 close up at least 2% overnight.

The worst-case scenario would see CPI increase from last month’s 6% level. That, according to Goldman Sachs, will likely see the S&P 500 fall by at least 2% overnight.

The post <strong>Investing in ASX 200 shares? Here’s the key figure to watch for in tonight’s US inflation report</strong> 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.

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The good news for growth investors is that there are plenty of ASX growth shares to choose from on the Australian share market.

Two that analysts at Morgans are particularly positive on are named below. Here’s why the broker has them on its best ideas list this month:

Corporate Travel Management Ltd (ASX: CTD)

Morgans is feeling very bullish on this ASX growth share right now.

Its analysts highlight that the corporate travel specialist is a key pick in the travel sector and see plenty of upside for its shares. Particularly given recent acquisitions, cost reductions, and its market-leading technology. The broker explains:

Taking a longer term view, CTD remains as a key pick for the travel sector. We see substantial upside in its share price as the company recovers from the COVID affected travel downturn. In fact, CTD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn. The company has also won a lot of new business, implemented structural cost out opportunities and continued to develop its market leading technology offering which means that it will require less staff in the future. CTD is well managed and has a strong balance sheet (no debt).

Morgans has the company’s shares on its best ideas list with an add rating and $21.90 price target.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX growth share that Morgans says investors should buy is this youth fashion retailer.

The broker is very positive on the company due to its store expansion and online penetration opportunities. It also likes Universal Store’s exposure to younger consumers in the current economic environment. It commented:

Universal Store (UNI) is one of the largest and fastest growing fashion retailers in Australia. Through a national network of over 100 stores and a successful online platform, UNI curates a diverse range of men’s and women’s fashion, shoes and accessories from local and international brands as well as its own private labels. UNI’s stores trade under the Universal Store, Perfect Stranger and THRILLS banners. UNI has opportunities to grow steadily through the rollout of bricks and mortar stores, increased digital penetration and expansion of wholesale channels. While we recognise the general risk around a decline in consumer expenditure on discretionary categories like apparel, we highlight that the youth demographic is likely to be more resilient.

Morgans has an add rating and $6.85 price target on the company’s shares.

The post Buy these ASX growth shares while they’re still cheap: Morgans appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 shares that could be top buys for growth
• Buy these ASX dividend shares for a big passive income boost: Goldman Sachs
• How I’d invest $20,000 to earn reliable passive income today
• Boost your passive income with these ASX dividend shares: analysts
• Bargain or value trap? Fundie rates 3 ASX 200 shares going for cheap

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 Jumbo Interactive. The Motley Fool Australia has recommended Corporate Travel Management and Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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