Category: Stock Market

If you’re an income investor looking for dividend shares to buy, then you might want to read on.

That’s because listed below are two top ASX dividend shares that brokers are recommending as buys with great forecast yields.

Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

Bell Potter has responded to this footwear retailer’s half-year results by retaining its buy rating with a $2.50 price target on its shares. The broker commented:

We remain constructive on AX1 given the scale & exposure in terms of channels, brands & size as the overall industry navigates a challenging retail spend environment in addition to growing a vertical brand strategy (~8% on owned sales) and growth adjacencies within TAF & via exclusive partnerships with globally winning brands as Hoka.

As for income, Bell Potter is forecasting fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the current Accent share price of $1.94, this represents sizeable dividend yields of 6.7% and 7.5%, respectively, for investors.

Endeavour Group Ltd (ASX: EDV)

Goldman Sachs remains positive on this drinks giant following its half-year results release on Monday. The broker has put a buy rating and $6.00 price target on the Dan Murphy’s owner’s shares this morning. Its analysts said:

We believe EDV is trading at a relatively attractive valuation, with potential downside from EGM tax changes already fully priced in. We are Buy rated on EDV.

In respect to dividends, the broker is forecasting fully franked dividends per share of 22 cents in both FY 2024 and FY 2025. Based on the current Endeavour share price of $5.08, this represents attractive dividend yields of 4.3% for investors.

The post Brokers say these ASX dividend shares are buys appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy today
• Endeavour share price drops on half-year profit weakness
• 5 things to watch on the ASX 200 on Monday
• Why Accent, Austal, Newmont, and Sandfire shares are plunging today

Motley Fool contributor James Mickleboro has positions in Endeavour 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 recommended Accent 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small gain. The benchmark index rose 0.1% to 7,652.8 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market is expected to fall on Tuesday following a subdued start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 8 points or 0.1% lower. In late trade in the United States, the Dow Jones is down slightly, the S&P 500 is down 0.2%, and the NASDAQ is 0.1% higher.

Coles results

Coles Group Ltd (ASX: COL) shares will be on watch today when the supermarket giant releases its half-year results. Commenting on its expectations, Morgans said: “Consumer trends. COL said at its 1Q24 sales trading update that its research showed that customers are increasingly eating in and entertaining at home, seeking out loyalty points and bonus offers, and looking for more affordable alternatives in response to cost of living pressures. Given this backdrop, focus will be on sales and customer behaviour during the key Christmas trading period.”

Oil prices rebound

ASX 200 energy shares including Woodside Energy Group Ltd (ASX: WDS) and Karoon Energy Ltd (ASX: KAR) could have a decent session after oil prices rebounded overnight amid Middle East tensions. According to Bloomberg, the WTI crude oil price is up 1.4% to US$77.57 a barrel and the Brent crude oil price is up 1.1% to US$82.51 a barrel. Woodside is also releasing its results this morning.

Buy Endeavour shares

The Endeavour Group Ltd (ASX: EDV) share price is great value according to analysts at Goldman Sachs. In response to its half-year results, the broker has retained its buy rating with a $6.20 price target. It said: “The 1st 7 week run-rate is largely in-line with GSe. Additionally, we see that the 1H24 results evident of early signs of a strategy turnaround.”

Gold price falls

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a soft session today after the gold price fell overnight. According to CNBC, the spot gold price is down 0.5% to US$2,038.9 an ounce. Traders were selling gold ahead of the release of inflation data in the United States.

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

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More reading

• Endeavour share price drops on half-year profit weakness
• 5 things to watch on the ASX 200 on Monday
• 3 things ASX investors should watch this week
• 3 of the safest ASX 200 dividend shares in Australia right now
• How to generate $50,000 of passive income from ASX shares each year

Motley Fool contributor James Mickleboro has positions in Endeavour Group and 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. 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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A buoyant stock market in recent weeks has seen some ASX growth shares go from strength to strength.

Medallion Financial Group director Philippe Bui this week named a couple of stocks with precisely that type of momentum which he considers as buys right now:

‘A strong pipeline of work’

Not only has the Johns Lyng Group Ltd (ASX: JLG) share price climbed more than 23% since the start of December, it’s a 37.5% rise since the last reporting season back in August.

Bui likes how the company has shown an ability to execute on its vision.

“The group delivers building and restoration services in Australia and the US,” Bui told The Bull.

“The business has generated strong growth in revenue and net profit after tax during the past three years.”

The Johns Lyng management has taken a multi-pronged approach to achieving growth in the business and the stock.

“Organic growth has been supported by its acquisition strategy,” Bui said.

“So far, expanding to the US has been positive. Recent natural disasters are providing a strong pipeline of work.”

Bui is well-supported among his peers on his bullishness.

Broking platform CMC Invest shows five out of seven analysts rate Johns Lyng as a strong buy.

ASX shares boasting ‘robust growth, recurring revenues’

Human resources software maker Readytech Holdings Ltd (ASX: RDY) has enjoyed a 15% surge in its share price since the last reporting season six months ago.

“Readytech provides software-as-a-service technology to businesses and educators,” said Bui.

“It offers robust growth, recurring revenues and a reasonable valuation.”

The current valuation can be compared to a failed deal about 15 months back.

“On February 22, the share price was still trading below a shelved takeover bid for ReadyTech at $4.50 a share in late 2022, despite a growing business.”

This all points to a strong outlook for the software firm.

“Organic growth in the mid-teens has been previously forecast by the company. 

“At recent price levels, we believe ReadyTech offers value.”

The tech stock is another favourite among professional investors, with all five analysts surveyed on CMC Invest currently rating it as a buy.

The post 2 ASX shares showing ‘strong growth’ that offer value right now appeared first on The Motley Fool Australia.

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More reading

• Where I’d invest $10,000 right now in ASX 200 shares
• I’d aim to turn a $20,000 savings account into $25,400 of passive income
• A once-in-a-decade chance to get rich from ASX 200 shares?
• 1 attractive ASX growth stock for 2024 and beyond
• $20k of savings? Here’s how I’d aim to turn that into a second income of $6,705 a month!

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group and ReadyTech. The Motley Fool Australia has recommended Johns Lyng Group and ReadyTech. 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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Thinking about buying Washington H. Soul Pattinson and Co Ltd (ASX: SOL)? I wouldn’t blame you. I’ve made no bones in the past about my love of Soul Patts shares.

This ASX 200 investing house remains one of my favourite ASX investments of all time, and one of the largest positions in my Australian shares portfolio to this day.

However, this isn’t your typical ASX stock. As such, if you’re buying Soul Patts shares, it’s very important that you understand exactly what kind of assets you’re really buying.

Washington Soul Pattinson is a company that’s really closer in structure to a managed fund rather than something like Woolworths Group Ltd (ASX: WOW) or JB Hi-Fi Ltd (ASX: JBH).

That’s because instead of producing or manufacturing goods or services to sell to customers as a traditional business does. Soul Patts runs a huge portfolio of other assets on behalf of its investors. Thus, buying a Soul Patts share is really just buying a stake in this underlying portfolio.

But what assets are we talking about here?

Soul Patts divides its investment portfolio into six underlying components, which sit outside the company’s ‘Net Working Capital’ fund for acquisitions and the like. Let’s break them all down using the data contained in Soul Patts’ annual report from 2023.

What you’re really buying when you purchase Soul Patts shares

The first (and largest) is its ‘strategic’ portfolio. Making up 48% of Soul Patts’ overall house, this is where the company keeps track of its significant positions in a handful of other ASX shares.

Some notable examples are a 12.8% stake in TPG Telecom Ltd (ASX: TPG), a 39.2% share of New Hope Corporation Ltd (ASX: NHC), a 43.1% share of Brickworks Ltd (ASX: BKW) and a 36.6% position in Pengana Capital Group Ltd (ASX: PCG).

Next up is Soul Patts’ ‘Large Cap’ portfolio. This is primarily made up of the basket of blue chip shares that Soul Patts acquired when it bought up the listed investment company (LIC) Milton Corporation a few years ago. Today, it accounts for 21% of Soul Patts’ investing house.

Then we have the company’s ‘Private Equity’ division. At 11% of Soul Patts’ overall portfolio, this is where the company keeps its unlisted company investments, which are typically small, high-growth opportunities.

These are predominantly selected from areas like agriculture, energy transition materials and technologies, and education. Some examples are Soul Patts’ investment in Aquatic Achievers swim schools and electrical supply company AMPControl.

Yield and property

The next part of the Soul Patts picture is the company’s ‘Structured Yield’ portfolio. Here, the company invests in “actively managed structured credit investments”, which basically involves lending other businesses money. It contributes around 6% to the company’s overall investments.

Following that, we move on to the ‘Emerging’ division. This part of the business is similar to Soul Patts’ ‘Private Equity’ portfolio, except it focuses on companies that are already listed or are in the late stages of preparing for an initial public offering (IPO). It accounts for another 6% of Soul Patts’ investing house.

Finally, Soul Patts’ last portfolio is ‘Property’, making up just 1% of its overall investments. Here’ Soul Patts owns actively managed direct property investments, as well as joint ventures. It’s a small part of the overall picture, but one example is a retirement development that the company is building in Cronulla, Sydney.

So if you’re buying Soul Patts shares today, these investments are what you’re really purchasing a stake in.

Of course, this inherent diversification and active management is what many investors find so appealing with Soul Patts. After all, this company has proven that it has what it takes to deliver outsized returns over long periods of time.

According to the company’s December AGM update, Soul Patts’ underlying portfolio delivered an average return of 12.4% per annum (including dividends) over the ten years to 31 July 2023. That rises to 12.5% per annum over 20 years. Over the 12 months to 31 July, the company hit a return of 32.4%.

The post Buying Soul Patts shares? Here’s what you’re really buying appeared first on The Motley Fool Australia.

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More reading

• Why Nanosonics, NIB, Santos, and TPG shares are falling today
• TPG share price crashes 10% on FY 2023 results
• Where I’d invest $10,000 right now in ASX 200 shares
• 5 things to watch on the ASX 200 on Monday
• 3 ASX shares to buy and hold forever

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 Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Jb Hi-Fi and Tpg Telecom. 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 Motley Fool always recommends investors tread carefully with ASX shares that have a massive dividend yield.

After all, the yield could have become sky-high because the stock price has nosedived. The business could be suffering or its industry is in strife.

That is, there is not much point in harvesting a 20% dividend yield if the stock price halves.

Having said that, if you have an immediate goal of nabbing $1,000 of passive income from just a $10,000 outlay, there are some options.

Check this out:

Huge dividend producer

East coast coal miner Yancoal Australia Ltd (ASX: YAL) has an admirable recent record of handing out huge dividends.

The company released its 2023 full-year result on Friday night, which showed revenue had come down from $10.5 billion to $7.8 billion.

The drop was attributed to a 39% fall in the realised coal price, which cancelled out a 14% surge in attributable saleable coal production during the year.

Chief executive David Moult seemed to be happy with the direction of the business.

“In the second half, attributable saleable coal production jumped 32% and cash operating costs fell 21%,” he said.

“We expect to carry this operational momentum into 2024. Production volumes will vary each quarter, with higher output (and resulting lower unit costs) likely in the second half.”

A grand of passive income

The wash-up of all this was that Yancoal announced a dividend of 32.5 cents per share.

That means that when that’s paid on 30 April, the dividend yield will be around 12.5% based on the current share price.

So buying Yancoal shares now with the $10,000 could deliver you $1,250 within a year.

Of course, the fortunes of an energy stock such as this are highly dependent on how global commodity prices fluctuate.

At least for now, both analysts covering Yancoal believe it’s a strong buy, according to CMC Invest.

The Yancoal share price is up 35% over the past five years.

The post I’d target a $1,000 passive income from $10k with this ASX high yielder appeared first on The Motley Fool Australia.

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More reading

• An 18% yield but down 13% since March! Time to buy more of this star ASX dividend share?

Motley Fool contributor Tony Yoo 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 Adore Beauty Group Ltd (ASX: ABY) share price started the week strongly.

The online beauty retailer’s shares hit a 52-week high of $1.46 before ending the day 4% higher at $1.34.

This follows the release of the small cap ASX stock’s half-year results.

Small cap ASX stock hits 52-week high on results release

• Revenue up 7% to $100.7 million
• Active customers up 0.5% to 804,000
• Record returning customers of 507,000
• Reported EBITDA up 6x to $2.8 million
• Cash balance of $32.3 million

What happened during the half?

For the six months ended 31 December, Adore Beauty reported a 7% increase in revenue to $100.7 million. This was supported by a modest increase in active customers and record average order values and annual spend per customer.

Adore Beauty’s reported EBITDA came in 6x higher than last year at $2.4 million with a margin of 2.3% (up from of 0.4%). This is in line with guidance and reflects revenue growth, cost optimisation, and re-investment in margin expansion initiatives.

At the end of the period, the small cap ASX stock had a cash balance $30.1 million and no debt.

Management commentary

Adore Beauty’s new CEO, Tamalin Morton, said:

Adore Beauty continues to navigate the post-lockdown environment and is cycling periods of significant growth. Year-on-year revenue comparisons remain volatile given the vastly different trading conditions in the prior period, when many of our customers were experiencing lockdown.

Encouragingly, we now have a record number of returning customers, who are contributing 78% of all revenue with larger basket sizes and more frequent orders than new customers. And we’re starting to see the early benefits of our strategic initiatives, which are designed to drive improvements in key customer metrics and support sustainable long-term growth.

Outlook

Management notes that trading conditions remain challenging with high levels of inflation and subdued consumer sentiment.

It also notes that January growth comparisons are volatile as the prior corresponding period was impacted by mandated isolation for Omicron, limited travel opportunities, and additional promotional activity.

As a result, trading in the first seven weeks reflects this volatility with revenue down 7.8% on the prior corresponding period.

However, sales through February have shown improvement and are up 3.7% on the same period last year.

Though, it has warned that second half sales are no longer expected to grow in the double digits compared to the second half of FY 2023. Instead, they are expected to be flat as the small cap ASX stock focuses on margins and remaining profitable.

Adore Beauty shares are up 30% over the last 12 months.

The post Guess which small cap ASX stock hit a 52-week high amid stellar half-year growth appeared first on The Motley Fool Australia.

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More reading

• These ASX dividend stocks could be top buys in March
• Nanosonics share price crashes 14% on first-half profit crunch
• Hoping to bag the Fortescue dividend? You better be quick!
• Leading brokers name 3 ASX shares to buy today
• Down 27% in 2024, this leading fund manager forecasts a big turnaround for Domino’s shares

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 recommended Adore Beauty Group. The Motley Fool Australia has recommended Adore Beauty 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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The good news for income investors is that there are plenty of ASX dividend stocks to choose from on the Australian share market.

But which ones could be buys in March?

Let’s take a look at two that have recently been named as buys:

Dexus Convenience Retail REIT (ASX: DXC)

The first ASX dividend stock that could be a buy is Dexus Convenience Retail REIT. It is a real estate investment trust that owns high quality service stations and convenience retail assets.

Bell Potter thinks the company is a good option for income investors. It said:

With the benefit of a further asset disposal today for DXC at book value (+25bp vs. prior BV, but consistent with mkt), we see clear price discovery for DXC where there have been 53 petrol station transactions in CY23, proving up book value. Notwithstanding, DXC trades at a 27% discount to NTA and screens value to us.

The broker has a buy rating and $3.00 price target on its shares.

Bell Potter is forecasting dividends per share of 20.9 cents in FY 2024 and 20.7 cents in FY 2025. Based on its current share price of $2.80, this equates to yields of 7.45% and 7.4%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend stock that has been named as a buy is Universal Store. It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

Morgans was impressed with the company’s half-year results this month. It commented:

UNI’s focus on offering high quality, fashionable apparel in a well presented store environment with high levels of service is paying off. Despite the challenges facing the consumer discretionary market, especially among the younger demographic, the 1H24 performance was highly resilient. Costs were well controlled and margins outperformed expectations, resulting in EBIT coming in 6% above forecast. The core youth consumer appears to be picking up. We have increased our FY24 EBIT estimate by 4% and reiterate our Add rating with an increased target price.

Morgans has an add rating and $5.65 price target on its shares.

As for income, the broker expects fully franked dividends per share of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on the current Universal Store share price of $4.48, this will mean yields of 5.8% and 6.5%, respectively.

The post These ASX dividend stocks could be top buys in March appeared first on The Motley Fool Australia.

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More reading

• Are these top ASX shares dirt cheap and must-buys right now?
• Why Bega Cheese, Domino’s, Lovisa, and Universal Store shares are rocketing today
• Here are 3 ASX retail shares moving up to 19% on half-year results today
• 1 ASX dividend stock down 50% to buy in February
• 2 ASX dividend shares to buy to supercharge your income

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Nanosonics Ltd (ASX: NAN) share price is having a tough start to the week.

In late trade, the infection prevention company’s shares are down 14% to a 52-week low of $2.69.

This follows the release of its half-year results this morning.

Nanosonics share price sinks on profit crunch

• Revenue down 2% to $79.6 million
• Operating expenses up 12% to $60.8 million
• Profit after tax down 40% to $6.2 million
• Global installed base increased by 1,100 units to 33,550 units,

What happened during the half?

For the six months ended 31 December, Nanosonics’ total revenue was down 2% over the corresponding period to $79.6 million. This was attributable to lower than anticipated capital unit sales due to delays in hospital capital budget availability.

Capital revenue was down 15% to $21.9 million for the half, which offset a 4% lift in consumable and service revenue to $57.7 million.

Although Nanosonics reported a small increase in gross margin due to currency tailwinds, its operating margin didn’t fare as well.

The company’s operating expenses grew 12% over the prior corresponding period to $60.8 million. Though, this includes investments being made in preparation for the commercialisation of the company’s new endoscope reprocessing platform, CORIS.

A number of productivity initiatives are now underway across the organisation which will see operating expenses for the year reducing from the 17% to 22% growth outlook to between 9% and 11% growth.

In light of its softer revenue and higher expenses, Nanosonics’ profit after tax tumbled 40% to $6.2 million. This includes a $1.3 million income tax benefit, compared to a $1 million expense a year ago.

Management commentary

Nanosonics’ CEO, Michael Kavanagh, acknowledged that the first half was challenging. He said:

The first half of FY24 brought a number of market challenges resulting in lower than expected capital sales despite a growing sales pipeline for both new installed base and upgrades. This was seen to be driven by customers deferring purchases due to hospital capital budget constraints. This particularly impacted our expected growth in trophon upgrade volumes as customers extended the use of their original trophon EPR unit.

Despite the market challenges faced in the first half, we expect both unit and revenue growth in H2 over H1. We remain confident in the ongoing growth opportunity of our trophon ultrasound reprocessing business as well as our broader growth opportunities through the investments being made in both product and geographical expansion.

Outlook

Total revenue for the second half is expected to grow between 6% to 15% over the first half. This will mean full year revenue of between $164 million and $171 million, compared to $166 million in FY 2023.

This is expected to be achieved with a gross profit margin of 76% to 78% and operating expense growth of 9% to 11%.

The Nanosonics share price is now down 40% over the last 12 months.

The post Nanosonics share price crashes 14% on first-half profit crunch appeared first on The Motley Fool Australia.

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More reading

• Why Nanosonics, NIB, Santos, and TPG shares are falling today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nanosonics. The Motley Fool Australia has positions in and has recommended Nanosonics. 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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It won’t be long until the next Fortescue Ltd (ASX: FMG) dividend is paid to shareholders.

So, if you want to receive it on payday, you’ll have to take action soon if you don’t already own the iron ore miner’s shares.

The Fortescue dividend

Last week, Fortescue released its half-year results and reported a 21% increase in revenue increased to US$9.5 billion and a 41% jump in net profit after tax to US$3.3 billion.

Also growing strongly was its free cash flow, which increased by 68% to US$2.66 billion for the half.

The key driver of this was of course a strong iron ore price. The average realised price received was up 24% on the prior corresponding period to US$108.19 per dry metric tonne.

In light of this strong financial performance, the Fortescue board elected to increase its fully franked interim dividend by 44% to A$1.08 per share.

Based on the latest Fortescue share price of $27.66, this dividend alone equates to a generous 3.9% dividend yield.

When is payday?

Fortescue is planning to reward its shareholders with its interim dividend next month on 27 March.

If you want to receive this payout, you will need to be a Fortescue shareholder before its shares trade ex-dividend on Wednesday 28 February. This effectively means you need to be on the mining giant’s share register at the close of play on Tuesday to qualify.

That’s because the rights to a dividend are settled once a share goes ex-dividend. If you were to buy shares after that point, the dividend rights would go to the seller of the shares on payday even though they don’t have them in their portfolio anymore.

Should you buy Fortescue shares?

Goldman Sachs appears to believe that investors should take their money and run.

Last week, its analysts put a sell rating and $19.60 price target on its shares. This implies potential downside of 26% for investors over the next 12 months.

The post Hoping to bag the Fortescue dividend? You better be quick! appeared first on The Motley Fool Australia.

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More reading

• Why these 4 ASX 200 shares grabbed the Motley Fool’s headlines this week
• Better buy: Fortescue or BHP shares?
• Qantas descends, Treasurer’s RBA dilemma and Twiggy’s payday: Scott Phillips on Nine’s Late News
• 25 ASX 200 shares with ex-dividend dates next week
• Everything you need to know about the supersized Fortescue dividend

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.

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

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

Accent Group Ltd (ASX: AX1)

According to a note out of Morgans, its analysts have retained their add rating and $2.30 price target on this footwear retailer’s shares. Although Accent’s half year results were short of expectations, the broker remains positive. Particularly given that comparable sales will get less demanding as the half goes on. Morgans expects this to lead to positive like for like sales for the second half. The Accent share price is trading at $1.96 today.

Pro Medicus Limited (ASX: PME)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $120.00 price target on this health imaging technology company’s shares. The broker believes that recent share price weakness has created a buying opportunity for investors. Especially now they are trading on multiples that are largely in line with five-year averages. The Pro Medicus share price is fetching $98.39 on Monday.

Xero Ltd (ASX: XRO)

Analysts at Goldman Sachs have reiterated their buy rating and $141.00 price target on this cloud accounting platform provider’s shares. The broker is feeling positive on Xero’s outlook ahead of its investor day event this week. It highlights that it is forecasting revenue to grow to NZ$3 billion by FY 2028. This represents a 16% CAGR (14% subs growth and +2% ARPU). The Xero share price is trading at $122.72 this afternoon.

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

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setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buying Xero shares? Here’s what to expect from this week’s update
• I’d buy these great ASX growth shares in March
• 5 things to watch on the ASX 200 on Monday
• Here’s how the ASX 200 market sectors stacked up this week
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Macquarie Group, Pro Medicus, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group and Xero. The Motley Fool Australia has recommended Accent Group and Pro Medicus. 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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