Category: Stock Market

The Whitehaven Coal Ltd (ASX: WHC) share price has been on fire this year.

Thanks to sky high coal prices, this mining giant’s shares have risen a whopping 235% since the start of the year.

Unsurprisingly, this makes the Whitehaven Coal share price the best performer on the ASX 200 index this year.

Can the Whitehaven Coal share price keep climbing?

The good news for investors is that one leading broker doesn’t believe it is too late to snap up this high-flying coal miner’s shares.

According to a note out of Bell Potter, its analysts have upgraded the company’s shares to a buy rating and lifted their price target to $11.00.

Based on the current Whitehaven Coal share price of $9.26, this implies potential upside of approximately 19% for investors over the next 12 months.

And with the company generating significant free cash flow from its coal, Bell Potter is expecting a big dividend yield over the period. Its analysts have pencilled in a 96 cents per share fully franked dividend in FY 2023, which equates to a 10.4% yield for investors.

All in all, this brings the total potential return on offer to a little beyond 29%. Not bad for a share that has already risen 225% this year!

Coal price forecasts upgraded

Driving the broker’s bullish view has been an upgrade to its coal price estimates for the coming years. It explained:

We have materially upgraded our coal price outlook: Thermal coal (FOB Newcastle) now averaging US$275/t in 2023 (+26%), US$200/t in 2024 (+62%) and US$125/t in 2025 (+56%); hard coking coal (FOB Queensland) now averaging US$250/t in 2023 (+5%), US$225/t in 2024 (+20%) and US$200/t in 2025 (+25%). Our long term estimates are unchanged: Thermal coal US$80/t (real) and hard coking coal US$160/t (real) from 2026 (previously from 2025).

The broker added:

Upside risk to pricing across the energy complex in the northern hemisphere winter, exacerbated by sanctions on Russian supply, are the key drivers of our strong coal price, near-term WHC earnings and dividend outlook and recommendation upgrade.

The post Broker says this ASX 200 coal share could offer a market-beating 29% return in 2023 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Morgans tips these ASX 200 shares to jump 20%
• Up 240% in 2022, is it time to cash in the chips on Whitehaven shares?
• Here are the top 10 ASX 200 shares today
• The Whitehaven chair just cashed out $1.8 million in shares. Here’s the latest

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) energy shares have been strong performers over the past 12 months.

Aussie oil and gas stocks, including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS), handily outpaced the returns from the benchmark index over the full year. And they’ve paid out some juicy dividends to boot.

But November saw that trend reverse, with the ASX 200 energy shares underperforming the benchmark, and they were hit with headwinds from fast-falling crude oil prices.

Brent crude dropped more than 12% from the start of November through to Tuesday, when it was trading for US$83.19. That’s the lowest levels seen since early January, before Russia’s invasion of Ukraine.

But the Organization of Petroleum Exporting Countries (OPEC) may be about to reverse that trend.

Is OPEC about to give ASX 200 energy shares a boost?

ASX 200 energy shares owe some thanks to OPEC for helping prop up crude oil prices.

Last month the cartel announced significant output cuts as a slowing global economy dampens demand for oil. That demand has slipped further as China continues to pursue its growth inhibiting COVID zero policies.

Now, as Bloomberg reports, some OPEC delegates have flagged the potential for a fresh round of output cuts when the group meets on 4 December. A move that could usher in fresh tailwinds for ASX 200 energy shares.

Commenting on the upcoming meeting, Charu Chanana, market strategist at Saxo Capital Markets Pte, said:

There is near-term risk to the demand outlook. OPEC+ is likely to remain more concerned about the technical picture in the oil market turning negative, and that is likely to force the cartel to respond.

Potentially related to OPEC’s meeting, Brent crude prices gained 2.6% yesterday, trading for US$85.38 per barrel.

Investors in ASX 200 energy shares will also want to keep an eye on Europe. The European nations are hammering out an agreement on just what price level Russian oil exports should be capped at.

Sanctions on Russian oil come into effect on 5 December. Russia’s response to those caps, and how well they’re enforced, could have a major impact on global oil prices.

The post Is OPEC about to give ASX 200 energy shares a boost? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• Did Fortescue just lose out on this multi-billion dollar green hydrogen project?
• Woodside share price tumbles 5% on FY23 guidance
• 2 of the best ASX dividend shares to buy: Morgans

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 ASX share market has been through plenty of volatility in 2022. But I’ve been using the lower prices as an opportunity to invest for my portfolio.

No one can know what share prices are going to do next month or next year. But I can see when valuations have dropped from where they were.

It’s common, and expected, for share prices to go through declines every so often. However, it’s rare for the entire market to drop at the same time.

The last time inflation and interest rates went up this quickly was a number of decades ago. It is a rare opportunity to be able to invest in businesses after such a large, rapid fall across the market.

While this is a different economic climate to the COVID-19 crash and the GFC, some businesses have — or had — experienced a similar level of decline.

Why I’ve been buying ASX shares

One of the benefits of a lower share price is that it boosts the prospective dividend yield of ASX dividend shares.

For example, if a business had a 6% dividend yield but the share price drops by 10%, that dividend yield turns into 6.6%.

All of the shares in my portfolio pay dividends. I like the real cash flow that dividends can add to my annual financial picture.

In the current market, I’ve seen plenty of opportunities to add to existing positions as well as invest in new ASX shares. Earlier in the year, I saw an opportunity to buy some more Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares and Rural Funds Group (ASX: RFF) shares.

I also invested in new positions like Brickworks Limited (ASX: BKW) and Bailador Technology Investments Ltd (ASX: BTI).

But, this article isn’t about trying to advocate for those particular ASX shares.

Share prices don’t typically drop by themselves. There has to be a significant worry for something to drop more than 10% in a relatively short amount of time.

When there’s even a sniff that things might be getting better, or even not getting worse, the share market often likes to push valuations higher.

Which ones could be good value?

I think the names that could be opportunities are the ones that have fallen significantly but still have sound long-term plans.

Names in the tech space and retail space could be good value in my opinion, such as Xero Limited (ASX: XRO), Adairs Ltd (ASX: ADH), Accent Group Ltd (ASX: AX1), Airtasker Ltd (ASX: ART), Wesfarmers Ltd (ASX: WES), Temple & Webster Group Ltd (ASX: TPW), Universal Store Holdings Limited (ASX: UNI), and Volpara Health Technologies Ltd (ASX: VHT).

The strong growth businesses can hopefully recover investor sentiment, while the outlook for retail conditions won’t always be this uncertain.

I think that buying businesses at a lower price can help the long-term compounding of the returns, resulting in stronger long-term wealth building. This could help me retire earlier, generate more dividend income, and perhaps see me finish with a bigger nest egg.

The post Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early appeared first on The Motley Fool Australia.

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More reading

• 2 explosive ASX growth shares to buy according to experts
• ‘Back a winner’: Expert names his 3 best ASX shares for 2023
• 2 absolute bargain ASX shares to buy right now: analyst
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• 5 ASX 200 dividend shares to build your portfolio around

Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments Limited, Brickworks, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO, Bailador Technology Investments Limited, Brickworks, Temple & Webster Group Ltd, VOLPARA FPO NZ, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has positions in and has recommended ADAIRS FPO, Brickworks, RURALFUNDS STAPLED, VOLPARA FPO NZ, Washington H. Soul Pattinson and Company Limited, Wesfarmers Limited, and Xero. The Motley Fool Australia has recommended Accent Group, Bailador Technology Investments Limited, and Temple & Webster Group Ltd. 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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Are you looking to add some growth shares to your portfolio?

If you are, two explosive ASX growth shares that could be worth considering are listed below. Here’s what you need to know about them:

Allkem Ltd (ASX: AKE)

The first ASX growth share to consider is Allkem. It is one of the world’s largest lithium miners with projects in Argentina, Australia, and North America.

From these projects, Allkem is aiming to command a 10% share of global lithium supply over the long term. This bodes well for its profits in the coming years, particularly given the strong prices that the battery making ingredient is fetching right now.

Bell Potter’s analysts are bullish on Allkem and have a buy rating and $19.45 price target on its shares. The broker commented:

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that has been tipped for strong growth is online furniture and homewares retailer Temple & Webster.

Goldman Sachs is very positive and believes the company is well-placed for long term growth due to its leadership position in a retail category that is in the early stages of shifting online. Its analysts have a buy rating and $7.55 price target on the company’s shares. It commented:

Our Buy thesis is predicated on the following key drivers: (1) we believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment; (2) in our view TPW is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry vs. other retail categories; and (3) greater focus on costs is a sensible strategy to balance near-term profitability with growth.

The post 2 explosive ASX growth shares to buy according to experts appeared first on The Motley Fool Australia.

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More reading

• 2 absolute bargain ASX shares to buy right now: analyst
• Is China responsible for decimating your ASX 200 lithium shares?
• Why are ASX lithium shares getting slammed again on Monday?
• Why is the Allkem share price diving 8% today?
• What could be sending the Pilbara Minerals share price 7% lower today?

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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Energy and mining stocks have absolutely carried the S&P/ASX 200 Index (ASX: XJO) this year while other sectors struggled.

But it’s a familiar story in share markets that a hot sector in one year could deflate the next.

So if you’re buying ASX resources shares right now, discerning selections are the name of the game to avoid a disastrous 2023.

Fortunately, a pair of experts had some ideas this week:

‘Healthy’ boost to production

Morgans investment advisor Jabin Hallihan currently reckons ASX 200 share Karoon Energy Ltd (ASX: KAR) is a prudent purchase.

That’s despite a nice 51% surge upwards since a 7 July trough in the share price.

“The oil and gas producer and explorer operates in Australia and Brazil,” Hallihan told The Bull.

“We retain an add rating, with a $3.75 valuation.”

The advisor is bullish on Karoon from “the steady progress KAR is making on its growth program”.

“Karoon has provided encouraging drilling results at the second Patola well in Brazil,” said Hallihan.

“Given the results, Karoon now expects initial production from Patola to exceed 10,000 barrels of oil a day. This is a healthy short-term boost to group oil production.”

Hallihan’s peers generally agree with him.

According to CMC Markets, seven out of nine analysts that cover Karoon recommend the ASX 200 stock as a buy. Six of them even rate it as a strong buy.

A peaking US dollar could mean a rising gold price

Seneca investment advisor Arthur Garipoli is banking on a rebound in the gold price in his backing for Evolution Mining Ltd (ASX: EVN).

“Potentially slowing interest rate increases and a peaking US dollar should support the gold price, so we believe there’s good value in the gold sector.”

He reckons Evolution is poised to under-promise then over-deliver in 2023.

“Metrics at Evolution projects, including the challenging Red Lake, are improving. We believe guidance is conservative.”

The Evolution share price has enjoyed a tidy 29% rise this month.

“The share price has risen from $2.01 on November 4 to trade at $2.73 on November 24,” said Garipoli.

“We like the company’s outlook and see potential upside from here.”

The professional community is more split on Evolution than Karoon. Currently, nine analysts rate the ASX 200 gold miner as a buy on CMC Markets, while five recommend holding.

Concerningly, three analysts are urging their clients to strongly sell.

The post 2 ASX 200 energy and mining shares hot to buy right now: experts appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 5 things to watch on the ASX 200 on Tuesday
• Up 30% in a month, why the Evolution Mining share price can keep climbing: expert
• Here are the top 10 ASX 200 shares today

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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It’s often seen in share markets that a group of shares that are completely out of favour in one year will outperform the next.

After all, simple mean reversion would tell you that a beaten up stock will have more upside as opposed to another that has already been well celebrated by investors.

That’s the attitude Switzer Financial Group director Paul Rickard is taking into the new year with growth shares.

“What we’ve seen in the last six to nine months is that the market’s punished growth stocks with interest rates going up,” he said on a Switzer TV Investing video.

“To get away from the defensive end of the market, you have to have the view that inflation has peaked and therefore the next big movement in interest rates is down.”

Rickard said the November consumer price index figures for the US, which will be revealed mid-December, could act as confirmation of that thesis. Although even if it doesn’t happen next month, the signal will eventually occur down the track.

Considering this, all three of Rickard’s top stock tips for 2023 are in the growth style:

Share price ‘breakthrough’ coming 

Biotechnology company CSL Limited (ASX: CSL) is an oldie but a goodie for Rickard.

It’s been something of a sleeping giant in recent years as the share price has merely moved sideways, never getting close to the pre-COVID peak of around $336. 

But Rickard noted that it has tried to burst through the $300 barrier about four times this year.

“I think we’re going to see that breakthrough at some stage,” he said.

“It’s actually up year to date, which might surprise a number of people.”

Rickard thought the takeover of Swiss company Vifor was positive, as it operates in a valuable part of the health industry fighting kidney disease.

“Not a huge contribution to profit this year, about US$300 million,” he said.

“But CSL had the same [situation] when it acquired Sequiris, which was the influenza vaccines business. That took a few years to work really well for CSL.”

‘Back a winner’

Investment bank Macquarie Group Ltd (ASX: MQG) has seen its share price take a 16% hit year to date, which Rickard attributes to its exposure to the wider corporate world.

“As interest rates go up, we see the business cycle slow down a bit and investors get nervous. We’ve seen the slowdown in private equity and fewer IPOs,” he said.

“It becomes harder to sell assets because there’s just not as much interest.”

But for Rickard, anyone looking with a long-term horizon would have to back the Holey Dollar.

“You back a winner. It’s in the top two or three Australian companies. 60% of its revenues are now [from] offshore,” he said.

“It has a mix of what it calls market-facing and non-market-facing businesses.”

The other reason Rickard is bullish on Macquarie is it has a similar trait to CSL.

“It has a history of positive surprises. It under-promises — gets cautious, gets conservative in its outlook statements — then likes to over-deliver.”

‘Big opportunities’ in the US and the UK

The third pick for Rickard is the cloud accounting software maker Xero Limited (ASX: XRO).

The Xero share price has unfortunately more than halved in 2022.

“Its next leg of growth is in the US and the UK, and that’s struggled a little bit,” said Rickard.

“Not that it’s not growing, but it’s not growing at the rate the market wants it to grow.”

Rickard believes that Xero can turn the situation around and conquer those expansion markets for two reasons

“We know their software is pretty good, it’s very sticky, people love it,” he said.

“Surprisingly, the market, in terms of provision of small business software, in the UK and the US is actually behind Australia. Despite some global giants in that marketplace, there’s big opportunities.”

Despite a new chief executive due to take the reins in 2023, Rickard pointed to the technology company’s growth history.

“I think it’s going to get there,” he said.

“You back something that, again, has been pretty successful and it’s demonstrated some great metrics.” 

The post ‘Back a winner’: Expert names his 3 best ASX shares for 2023 appeared first on The Motley Fool Australia.

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More reading

• 2 high quality blue chip ASX 200 shares named as buys by analysts
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• CSL share price ‘ticks all the defensive boxes’: fundie
• ‘Over 100% gain next year’: Expert picks 3 best ASX shares for 2023
• 3 ASX shares to combat the next market dip: experts

Motley Fool contributor Tony Yoo has positions in CSL Ltd., Macquarie Group Limited, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Macquarie Group Limited. 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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Are you looking for ASX 200 dividend shares to buy in December? If you are, then you may want to check out the two listed below that have recently been named as buys.

Here’s why brokers rate them highly right now:

National Australia Bank Ltd (ASX: NAB)

Analysts at Goldman Sachs believe that NAB could be an ASX 200 dividend share to buy.

This is due partly to its strong position in commercial banking, which the broker believes is the better part of the market to be right now given the challenging housing market.

Goldman has a buy rating and $35.41 price target on the banking giant’s shares. It commented:

We are Buy rated on NAB given i) we see volume momentum over the next 12 months as favouring commercial volumes over housing volumes and NAB provides the best exposure to this thematic, ii) NAB has delivered the highest levels of productivity over the last three years, which we think leaves it well positioned for an environment of elevated inflationary pressure, iii) NAB’s cost management initiatives, which seem further progressed vs. peers, have freed up investment spend to be more directed towards customer experience as opposed to infrastructure (it is the only major bank to be growing above system in both domestic lending and deposits over the last 12 months). The stock is trading at a discount to peers, versus the historic average discount of 11%.

As for dividends, Goldman is forecasting fully franked dividend yields of 5.5% in FY 2023 and 5.6% in FY 2024.

Suncorp Group Ltd (ASX: SUN)

The team at Morgans appears to see Suncorp as another ASX 200 dividend share to buy.

Suncorp is of course one of Australia’s leading insurance and banking companies and the owner of brands including AAMI, Apia, Bingle, GIO, Shannons, Suncorp, and Vero.

Morgans currently has an add rating and $13.98 price target on its shares. The broker believes its shares are trading at an attractive level and sees a lot of positives from its efficiency program. It commented:

While weather remains volatile, we think SUN’s underlying business trends continue to broadly track in the right direction. SUN will also reap the full benefits of its efficiency program in FY23 and we see SUN’s current valuation as undemanding, e.g. FY23 PE multiple of 13x and a 6% dividend yield.

At present, the broker is forecasting fully franked dividends per share of 77.5 cents in FY 2023 and 80 cents in FY 2024. Based on the current Suncorp share price of $12.00, this will mean yields of 6.45% and 6.65%, respectively.

The post Brokers name 2 ASX 200 dividend shares to buy in December appeared first on The Motley Fool Australia.

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More reading

• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• Which ASX 200 bank share stands to benefit the most from ‘good borrowers’?
• Could NAB shares pay bigger dividends in the future?
• If I’d bought $5,000 of NAB shares at the start of this year, guess how much I’d have now
• Will ASX 200 shares bottom before the year is out? Here’s Macquarie’s ‘best guess’

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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Bell Direct market analyst Grady Wulff names two cheap ASX shares to buy and one to hold.

Cut or keep?

The Motley Fool: Let’s examine three ASX shares that have been devastated this year and see if you think each of these fallen stars is now a bargain to pick up or if you’d stay away.

The first one is the baby formula mob Bubs Australia Ltd (ASX: BUB), which has halved since mid-August. What do you reckon?

Grady Wulff: Bubs Australia, it is a buy from Bell Potter and Bell Direct and myself. 

It’s a really well positioned stock, it’s a needed stock. They produce what we need in the world. There’s always going to be demand for baby formula. Obviously, they’ve been sold off this year. 

We’ve seen a bit of headwinds in the fact that China and Hong Kong shipments are down as their competitor A2 Milk Company Ltd (ASX: A2M) is really specifically focusing on the Chinese market through a2 Milk’s partners Synlait Milk Ltd (ASX: SM1), but this really opens up the domestic market for Bubs to target in Australia. 

Also, given the fact that they were the first one in Australia to get the FDA approval to help out with the US baby formula shortage — and a2 Milk only just got approved, and they’ve only been approved until January. So Bubs is definitely looking to have that strength and that competitive advantage and that’s not going away anytime soon. We know US consumers are loving the Bubs formula, so it’s looking good. 

Revenue’s expected to double by 2025, impacts set to hit profit next year, and the company has a cash balance of $23.3 million. So they’re looking really good. 

They are sold off at the moment, as you said, but it’s just a tough time in the market. So we are definitely bullish on this one.

MF: Next one is Temple & Webster Group Ltd (ASX: TPW), which has fallen 56% year to date. What are your thoughts?

GW: Temple & Webster is a keep at the moment. It’s not a buy or sell, it’s a keep or a hold with us with a price target of $6. 

They’re profitable, the strategy is near term but at the moment, we’ve seen online furniture, and just furniture shopping in general, has not been a priority for a lot of consumers in Australia. We’ve seen consumer demand going down, especially with rising interest rates. We also noticed that there was a tailwind during COVID because everyone was staying at home — everyone thought “Let’s change my house around, let’s buy new furniture”. So that has definitely come down in FY22 and FY23.

The good thing about this is that they’re a leader in the online space. So we have seen that shift over the pandemic, post-pandemic, into online shopping, which is not going away anytime soon. So they’re really well capitalised to benefit from this. 

But yeah, the higher margins from pre-COVID level or during COVID levels aren’t going to be seen for a long time to come, because everyone’s done their shopping. Everyone’s more value-focused as opposed to luxury-focused. So at the moment, we’ve got anticipated weakened demand by consumers. 

MF: And the last one, I think, is an American mob but listed here in Australia. Avita Medical Inc (ASX: AVH), which has dropped 41.5% year to date.

GW: A UK company. They are well capitalised while expecting to release major clinical trial results in the near future. At the moment, it’s a speculative buy rating with the price target of $3 from Bell Potter. 

The company is making waves and they’ve got really strong revenues up 29% year on year to US$9.1 million for the commercial product sales, but they are burning a lot of cash. That’s one thing to keep in mind. They’ve burnt $16.2 million in cash from the nine months to September 30, but the company is well funded with $88.2 million in the bank. So they’re okay on the monetary front.

The revenues were 7% above what Bell Potter expected for the September quarter. And the company, at the moment, is waiting for the catalyst of its PMA supplements being lodged and reporting on secondary endpoints for vitiligo, the skin condition. They have specific products for that. They expect to lodge the supplements for PMA soon and it’s looking to get approval mid-2023. So around that approval coming through that the company really takes off. 

But while we’re waiting for that, it definitely is one to watch and potentially one to look into for next year.

The post 2 absolute bargain ASX shares to buy right now: analyst appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has positions in Avita Medical Limited, BUBS AUST FPO, and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Avita Medical Limited and Temple & Webster Group Ltd. The Motley Fool Australia has recommended A2 Milk, Avita Medical Limited, BUBS AUST FPO, and Temple & Webster Group Ltd. 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 Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and charged higher. The benchmark index rose 0.3% to 7,253.3 points.

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

ASX 200 expected to edge lower

The Australian share market looks set to edge lower on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower this morning. In late trade on Wall Street, the Dow Jones is down 0.1%, the S&P 500 is down 0.25%, and the Nasdaq has fallen 0.6%.

Oil prices rise

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.8% to US$78.60 a barrel and the Brent crude oil price has risen 0.8% to US$83.84 a barrel. Oil prices rose amid hopes that China could ease COVID restrictions and boost demand.

Whitehaven Coal upgraded

The Whitehaven Coal Ltd (ASX: WHC) share price could be great value according to analysts at Bell Potter. This morning the broker has upgraded the coal miner’s shares to a buy rating with an improved price target of $11.00. It commented: “Upside risk to pricing across the energy complex in the northern hemisphere winter, exacerbated by sanctions on Russian supply, are the key drivers of our strong coal price, near-term WHC earnings and dividend outlook and recommendation upgrade.”

Gold price higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.6% to US$1,7.9 an ounce. The gold price rose thanks to the softening of the US dollar and hopes of slower rate hikes.

Broker says buy the Collins Foods weakness

Analysts at Morgans see value in the Collins Foods Ltd (ASX: CKF) share price following a selloff on Tuesday. This morning, the broker has retained its add rating with a slashed price target of $9.50. The broker commented: “We maintain an ADD rating. We believe the forward multiples are sufficiently low to warrant a consideration of the medium-term recovery in margins.”

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

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Motley Fool contributor James Mickleboro has positions in Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods Limited. 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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If you’re looking for some new portfolio additions, then you may want to check out the two ASX 200 shares listed below that have been tipped to climb over 20% by analysts at Morgans.

Here’s what the broker is saying about them:

Aristocrat Leisure Limited (ASX: ALL)

Morgans is feeling bullish about this gaming technology company. Its analysts recently put an add rating and $43.00 price target on its shares.

Based on the current Aristocrat share price of $35.45, this implies potential upside of 21% for investors over the next 12 months.

Its analysts believe post-results share price weakness has created a buying opportunity for investors. It said:

Whether it was the disappointment of there being no acquisition announcements today, the negative effect of higher finance costs on future estimates, or simply a reaction to FY22 earnings coming in slightly below consensus, the 5% decline in ALL’s share price today creates a buying opportunity. We have taken our NPATA estimates down by 1.1% in FY23 and 0.9% in FY24 (higher finance costs) but, even after those adjustments, forecast 14.7% growth in FY23 and 7.9% in FY24. We reiterate our $43.00 12-month target price and ADD recommendation.

Whitehaven Coal Ltd (ASX: WHC)

Another ASX 200 share that has been tipped as a buy by analysts at Morgans is this coal miner. Earlier today, the broker reiterated its add rating with a trimmed price target of $11.20.

Based on the current Whitehaven Coal share price of $9.26, this suggests potential upside of 21% for investors. In addition, Morgans is expecting a mammoth 11.5% dividend yield, stretching the total potential return to over 32%.

The broker sees an opportunity to load up on Whitehaven Coal shares following a recent bout of profit taking. It commented:

The NEWC price correction, and likely government intervention in the domestic energy market, were easy excuses for traders to take profits, crystallising recent volatility. For investors, we see strong potential for a prolonged energy market dislocation where supply security commands a higher premium for longer. WHC is trading on a +30% free cash flow yield, with clear upside earnings/valuation risk, supporting further outsized shareholder returns over time.

The post Morgans tips these ASX 200 shares to jump 20% appeared first on The Motley Fool Australia.

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More reading

• Up 240% in 2022, is it time to cash in the chips on Whitehaven shares?
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• What’s happening with ASX 200 coal shares this week?
• 5 of the craziest things making news on the ASX this week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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