Category: Stock Market

When it comes to analysing ASX shares, one big tick for me is a founder-led business.

Founders are passionate, driven, hold a wealth of unrivalled knowledge, and often treat the business as their legacy or baby. 

Add to that what’s usually a sizeable amount of skin in the game and it’s often a recipe for success, with numerous studies showing that founder-led businesses tend to outperform the rest.

Earlier this week, I profiled three ASX 200 shares with enormous insider ownership. Only one of those companies is technically founder-led.

So, today, let’s take a look at five ASX 200 shares with founders sitting at the helm.

WiseTech Global Ltd (ASX: WTC)

Kicking things off, logistics software provider WiseTech continues to be led by its founder Richard White.

A former musician, White used to repair guitars for the likes of AC/DC and The Angels.

Then, in the 1990s, he ran a computer consulting business, and after doing some work for logistics companies, he realised how disjointed their systems were.

So, in 1994, with the help of WiseTech’s current chief technology officer, Brett Shearer, he created the first generation of the company’s flagship CargoWise One solution.

Today, CargoWise is a leading all-in-one logistics platform used by 10 of the top 25 global freight forwarders, including Toll and DHL.

White continues to head up the company as CEO and holds nearly 122 million WiseTech shares. This represents roughly 37% of the business, worth a whopping $6.7 billion at current prices.

White’s fellow co-founder, Maree Isaacs, is also still involved with the business. She’s currently the head of licensing and is an executive director on the board.

Pro Medicus Limited (ASX: PME)

Pro Medicus holds one of the greatest acquisition tales I’ve heard of. In the depths of the global financial crisis, it acquired US radiology imaging company Visage for around $5 million.

Three years later, Pro Medicus offloaded some unwanted pieces of the Visage business for $15 million. But that’s just the beginning.

What remained formed the backbone of Pro Medicus’ success, propelling the ASX 200 share to a market capitalisation that currently stands at $6 billion.

Driving this success have been co-founders Dr Sam Hupert and Anthony Hall. Hupert has long held the reins as CEO, while Hall heads up the company’s technology efforts and sits as an executive director on the board.

The pair hold roughly 27 million Pro Medicus shares each, representing a combined 52% of the business.

Block Inc CDI (ASX: SQ2)

Next up, we have a dual-listed payments giant led by none other than Jack Dorsey, the highest-profile founder so far.

Dorsey started the payments company in 2009, armed with an ambition to find an easy way for small businesses to accept card payments.

In what was then known as Square, the company created a square-shaped card reader that plugged straight into a smartphone’s headphone jack.

Today, Square forms one formidable half of the booming payments business, which also operates the uber-popular peer-to-peer payments platform Cash App.

Remarkably, Dorsey also co-founded Twitter in 2006 and led the social media platform until 2021. He remains the CEO of Block and owns around 8% of the ASX 200 tech share.

Flight Centre Travel Group Ltd (ASX: FLT)

The man behind Australia’s largest travel agency group is Graham ‘Skroo’ Turner, whose nickname comes from the Turner brand of screwdrivers. 

His entrepreneurial streak began in the 1970s when he and a friend bought a double-decker bus to start the tour group company now known as Topdeck Travel. 

In 1982, he opened the first Flight Centre retail store in Sydney, quickly expanding to nine stores by the end of that year. The brand spread its wings to London first before venturing into South Africa, Canada, and the US in the 1990s. 

Today, Flight Centre is one of the world’s largest travel agency groups, with many different brands under its banner. 

Turner continues to lead Flight Centre to this day, and it seems his entrepreneurial spirit rubbed off on his son, Matt. 

Matt followed his father into business by co-founding 99 Bikes, Australia’s largest bicycle retailer, which is 50%-owned by Flight Centre.

In terms of skin in the game, Turner holds around 8% of Flight Centre. This stake is currently worth $263 million, which is equivalent to roughly 390x his annual salary.

Mineral Resources Limited (ASX: MIN)

Finally, Mineral Resources came to life in 2006 through the acquisitions of three different mining businesses. 

Two of these businesses provided contracting services to the resources industry. Meanwhile, the other was a minerals processor and marketer of industrial minerals.

The man behind all three of these businesses was Chris Ellison, who took over the managing director reins in 2012 and has been leading Mineral Resources ever since. 

Today, Mineral Resources provides mining services to some of the world’s largest mining companies. 

But it’s no longer just a mining services company. It’s also growing its own portfolio of iron ore and lithium operations.

Mineral Resources is the fifth-largest iron ore producer in Australia. And it jointly owns two of the world’s largest hard rock lithium mines, Mt Marion and Wodgina.

Leading from the front, Ellison retains a 12% stake in Mineral Resources. This shareholding is currently valued at a monstrous $1.9 billion.

The post 5 ASX 200 shares with founders steering the ship appeared first on The Motley Fool Australia.

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More reading

• Three comforting lessons for investors whose portfolio has been smashed versus the surprisingly good return of the ASX 200
• What $10,000 in ASX lithium shares a year ago would be worth today
• Sell the big four banks and buy this ASX lithium share: broker
• 3 ASX 200 shares hitting new 52-week highs on Wednesday
• Macquarie is cooling off on its outlook for BHP shares. Should you?

Motley Fool contributor Cathryn Goh has positions in Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., Pro Medicus Ltd., and WiseTech Global. The Motley Fool Australia has positions in and has recommended Block, Inc., Pro Medicus Ltd., and WiseTech Global. The Motley Fool Australia has recommended Flight Centre Travel 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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The CSL Limited (ASX: CSL) share price has been a strong performer in recent weeks.

Since this time last month, the biotherapeutics company’s shares have risen over 8% to $299.00.

Can the CSL share price keep climbing?

The good news for investors is that it may not be too late to snap up CSL shares.

According to a note out of Citi, its analysts have retained their buy rating and $340.00 price target on its shares.

Based on the current CSL share price, this implies potential upside of almost 14% for investors over the next 12 months.

What did the broker say?

Citi was pleased, but not surprised, to learn that the US Food and Drugs Administration (FDA) has approved CSL’s HEMGENIX (EtranaDez) gene therapy for haemophilia B.

The broker expects this to have a neutral impact on a short term basis due to the company already being the market leader for haemophilia treatments. However, it does cement CSL’s position in the market, which is good news for the long term. Citi commented:

As expected, CSL received FDA approval for its gene therapy for haemophilia B, HEMGENIX (EtranaDez), the first and only one-time gene therapy approved for haemophilia B.

Whilst an exciting new treatment option for patients, we expect HEMGENIX to be neutral on an NPV basis for CSL given 1) the cannibalization of Idelvion sales (~$650m/~6% of CSL total sales): CSL Idelvion is the current standard of care in haemophilia B with ~47% market share across key markets, and 2) in a defensive move, the therapy was licensed from uniQure in 2021 at a cost of ~US$750m (acquisition+pre-launch costs) + royalties and milestones.

CSL plans to launch HEMGENIX in the US & EU in Q1’23, but it will be a slow and gradual process as the payment models are yet to be finalized (likely to be upfront, with variations in payment models in the EU). Maintain Buy, $340 TP.

Elsewhere, Macquarie responded to the news by retaining its outperform rating and lifting its price target by 4.1% to $343.00. The broker expects the therapy to have a positive impact on its earnings over the long term and has boosted its valuation to reflect this.

The post Here’s what Citi is saying about the CSL share price appeared first on The Motley Fool Australia.

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More reading

• Why did the CSL share price just crack $300 for only the third time in 2022?
• 3 dividend-paying ASX growth shares I would buy to retire rich
• 4 ASX 200 shares to buy in an unmissable sector: expert
• Will ASX 200 shares bottom before the year is out? Here’s Macquarie’s ‘best guess’
• To $300 and beyond! Why this top broker says CSL shares are a buy right now

Motley Fool contributor James Mickleboro has positions in CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. 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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Wesfarmers Ltd (ASX: WES) shares are a leading contender for dividend income, in my opinion. It has a long record of paying dividends to shareholders, and long-term investors are getting quite a lot more in dividends than they were a decade ago.

In FY22, the business paid an annual dividend per share of $1.80. In FY09, it paid a full-year annual dividend per share of $1.10. But, that growth misses the returns of capital over that time, such as $2 per share during FY22. It has also paid special dividends.

Wesfarmers also distributed one Coles Group Ltd (ASX: COL) share for each Wesfarmers share that a Wesfarmers shareholder owned when the company de-merged the supermarket business.

Including the 63 cents annual dividend per share paid by Coles in FY22, that amounts to a total dividend of $2.43 (63 cents from Coles plus $1.80 from Wesfarmers) of dividends for long-term Wesfarmers shareholders in FY22 – a compound annual growth rate (CAGR) of 6.3% between FY09 and FY22.

Growth can continue

Not only is the distant future unknowable, it’s particularly difficult to estimate what a company’s future will look like.

But, I think the way that Wesfarmers is set up is promising for long-term success.

It has a diversified portfolio across a number of sectors. I think Bunnings and Kmart are two of the best retailers in Australia and I think they can lead the respective segments for a long time to come.

Wesfarmers is also in other areas such as chemicals, energy and fertilisers (WesCEF), which is seeing good earnings growth. Within this division, the company is involved with a developing lithium project called Mt Holland. The current lithium price is promising for long-term earnings for Mt Holland.

The company has also invested in a new healthcare division after its purchase of the Priceline and Clear Skincare Clinics businesses.

Wesfarmers sees healthcare as an “important, large sector with long-term growth tailwinds”, with “increasing demand for health, beauty and wellbeing products and services”.

The company says that with “strong fundamentals” and “the ability to leverage group capabilities”, management expects the healthcare division can “deliver superior returns over the long-term”.

I believe this segment could be an important driver of long-term value.

It’s useful that Wesfarmers can change its portfolio as it wants, so that it’s always future-focused.

The potential for Wesfarmers to pay big dividends in the future

Commsec numbers suggest Wesfarmers could pay a grossed-up dividend yield of 5.7% in FY24. Someone would need to have just over $175,000 of Wesfarmers shares to generate $10,000 using that 5.7% yield.

Depending on the size of a retirement portfolio, that may be too much invested in a single company. Having a portfolio of at least ten positions (for diversification purposes), but each position being capped at 10% of the portfolio, means the portfolio would need to be at least $1.75 million in size.

Of course, it’d be quite possible to invest a smaller amount into Wesfarmers shares and benefit from compound growth over time. Without a working crystal ball, it’s hard to say how well Wesfarmers shares will perform for the next 20, 30 or 40 years.

I certainly think it would be possible for a $20,000 investment to grow into $175,000 (and then pay attractive dividends), but an investor would likely need to give Wesfarmers at least a couple of decades to achieve attractive long-term growth.

But, if I were to put my hopes on an ASX share to deliver that growth over two or so decades, I think Wesfarmers could be one of the most likely S&P/ASX 200 Index (ASX: XJO) shares to do it due to its long-term focus.

The post Could buying Wesfarmers shares give you $10,000 in annual dividend income by retirement? appeared first on The Motley Fool Australia.

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More reading

• Markets are nervous. Why waiting to buy these ASX 200 shares could prove expensive
• Almost ready to retire? Here’s why I’d be buying up ASX dividend shares right now
• I’d invest $100 a week in cheap ASX dividend shares for passive income in retirement
• Brokers says these top ASX 200 dividend shares are buys this week
• If you’d bought $10,000 worth of Wesfarmers shares in January, this is how much you’d have earned in dividends

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET and Wesfarmers 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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Regular readers of The Motley Fool would be well aware of how badly technology shares have fared this year.

So it might surprise you to find that there is one tech stock that’s going so well that one expert is urging investors to wait until there’s a dip to buy in.

Yet that’s exactly what Morgans senior analyst Nick Harris is saying about Brisbane’s TechnologyOne Ltd (ASX: TNE):

Recurring revenue target about to hit 12 months early

Harris wrote on the Morgans blog that TechnologyOne’s full-year report this week was “another high quality result”.

“Assuming trends remain, [the result] positions TechnologyOne to hit $500 million annual recurring revenue 12 months ahead of their stated FY26 target.”

The market agreed with Harris, sending the TechOne share price 5% up in just a few minutes on Tuesday morning.

Pleasingly, customer churn also halved, representing a 99% retention rate. Revenue grew 18% on a year-on-year basis.

“In our view, revenue growth (including contractual CPI escalators) combined with lower churn and higher net revenue retention shows the strength of TechnologyOne’s value proposition,” said Harris.

“It offers great value which makes for happy and sticky customers. This in turn builds a strong competitive position and over time large barriers to entry for TechnologyOne.”

‘One of the highest quality stocks on the ASX’

So the business is excellent quality and is rocketing in the right direction.

The only trouble for potential buyers is the share price.

In a year in which most tech stocks have struggled, TechOne is now in the green, trading at 0.6% higher than where it started 2022.

In fact, the stock has risen 24% since the end of September.

Harris, therefore, recommends keeping an eye on it and pouncing when there’s a dip.

“TechnologyOne is one of the highest quality stocks on the ASX and we continue to rate the outlook,” he said.

“We would see any weakness as a buying opportunity.”

Harris’ peers also seem to be taking a wait-and-watch approach. According to CMC Markets, seven out of nine analysts are currently rating TechOne as a hold, while the other two are saying strong buy.

The post The ASX 200 tech share to pounce on as soon as it has a dip: expert 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 top 10 ASX 200 shares today
• Why Galan Lithium, New Hope, TechnologyOne, and Virgin Money UK shares are rising
• Here’s how I’d invest $20,000 in ASX shares today to double my money
• TechnologyOne share price races 5% higher on strong FY22 growth

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 recommended TechnologyOne 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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The BHP Group Ltd (ASX: BHP) share price has been in sensational form this month.

Since the start of November, the mining giant’s shares have smashed the market by storming 19% higher to $44.55.

Can the BHP share price keep rising?

Unfortunately, one leading broker is calling time on the BHP share price rally.

According to a note out of Goldman Sachs, its analysts have just downgraded the Big Australian’s shares to a neutral rating with an improved price target of $42.90.

Based on the current BHP share price, this implies potential downside of just under 4% for investors.

What triggered the downgrade?

Firstly, Goldman notes that BHP is looking to acquire OZ Minerals Limited (ASX: OZL) and feels it “could improve returns from Olympic Dam.” However, as this takeover is a long way from completion, it isn’t included in its estimates.

In light of this, for the time being, the broker believes BHP’s shares are now trading ahead of fair value and has thus downgraded them on valuation grounds. Its analysts explained:

Despite a lift in our BHP group NAV [net asset value] to A$41.8/sh after incorporating the 2-stage smelter at Olympic Dam in our base case and some nominal value for Oak Dam, we downgrade BHP to Neutral (from Buy) based on: (1) Valuation vs. global peers and no upside to revised PT of A$42.9/sh (from A$42.3; ~4% downside vs. our global Mining coverage at ~15% upside), (2) Lower production growth vs. peers, even with +US$20bn copper pipeline optionality, (3) Lower FCF vs. peers.

Goldman currently prefers rival mining giant Rio Tinto Ltd (ASX: RIO) and is recommending it as a buy with an improved price target of $114.70.

The post BHP share price has ‘no upside’: Goldman Sachs appeared first on The Motley Fool Australia.

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More reading

• ‘Rare opportunity’: Expert explains why he just added this ASX 200 share
• 5 things to watch on the ASX 200 on Friday
• Is Macquarie still recommending Pilbara Minerals shares as a buy?
• If I’d invested $20,000 in BHP shares at the start of 2022, here’s how much I’d have now
• How I’d aim for $1,000 in monthly income by buying ASX 200 dividend 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 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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When a professional investor shies away from a particular sector yet admits to buying a particular stock as an exception to that rule, it’s worth paying attention.

Because that means that the tailwinds behind that particular business are so compelling that the expert had to ignore his or her own dislike for that industry.

A memo from the Wilsons team this week revealed exactly such a situation:

This is my new purchase, says expert

Wilsons equity strategist Rob Crookston told clients that his focus portfolio is underweight resources.

That was especially so after OZ Minerals Limited (ASX: OZL) was removed from the portfolio last week as news hit that it accepted BHP Group Ltd (ASX: BHP)’s takeover bid.

But guess how Crookston’s team used the cash from the sale?

“We have used the proceeds from Oz Minerals to add Lynas Rare Earths Ltd (ASX: LYC) to the portfolio at 2%.”

While the Wilsons team took profits from the Oz Minerals sale, the Lynas share price is down 21.3% year to date, presenting a low entry point.

Why is Lynas so attractive?

Lynas produces rare earths, which are used to make NdFeB permanent magnets.

And these magnets are seeing rising demand from clean energy producers.

“NdFeB magnets are currently used in the drive mechanism for electric vehicles (EVs) and wind turbines, and this is expected to drive a two to three times increase in demand by 2030,” said Crookston in his memo to clients.

“It is estimated that a standard model EV will require around five times the rare earth magnets that a traditional petrol vehicle requires.”

Even though the Wilson portfolio is underweight in mining, the electric vehicle narrative remains the exception.

“We are overweight EV minerals with our weighting at 8% versus the market at 4%,” said Crookston.

“The positive growth outlook of rare earths and other EV minerals is in contrast to the outlook for the traditional ASX miners, such as iron ore, where we expect earnings to fall over the next two to three years.”

Buying opportunity for long-term investors

Of course, like any mining stock, Lynas is vulnerable to commodity prices dropping.

Rare earths are no exception to this cyclicality, as they’re also used for more traditional products like home appliances, air conditioning, elevators, and electronics.

But for Crookston’s team, this merely presents an attractive entry point for a long-term investor.

“We think rare earth minerals have an inherent degree of cyclicality to broader macroeconomic conditions in the short-term (much like copper and nickel),” said Crookston.

“However, we believe the shift to renewables and EVs will be a key driver of NdPR demand over the medium-term and this period of soft demand presents an opportunity to buy into weakness.”

Another ace up Lynas’ sleeve is that China currently dominates 60% of the global supply of rare earths and 90% of the refining capacity.

Due to this geopolitical risk, US, European, and Australian governments are supporting domestic rare earths production.

“There is upside risk for rare earth miners that governments help fund growth projects, which would support miners’ cash flows,” Crookston said.

“We have already seen this for Lynas… Lynas received US$150 million for two funding grants from the US government to develop a light and heavy rare earths separation plant in the US.”

The post ‘Rare opportunity’: Expert explains why he just added this ASX 200 share appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Is Macquarie still recommending Pilbara Minerals shares as a buy?
• If I’d invested $20,000 in BHP shares at the start of 2022, here’s how much I’d have now
• Move over Lynas! This new Chris Ellison-backed rare earths company is set to hit the ASX
• How I’d aim for $1,000 in monthly income by buying ASX 200 dividend shares

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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Las Vegas might invoke the classic image of hedonism but the sobering reality is that Australia is the real home of gambling.

According to the Washington Post, Australia has less than 0.5% of the world’s population but somehow hosts 20% of its poker machines.

Marcus Today founder Marcus Padley says Australia is a nation of punters “whose courage and risk taking is legendary”.

“After all, Australia is a nation built by people who took a risk, simply by coming to its shores,” Padley wrote on his blog.

“The legacy is that half of adult Australians gamble on a regular basis.”

So what has this to do with the stock market?

Short-term traders are taking over, just like the pokies

The point is that much of the finance world is also built around encouraging clients to take risks.

“In the casino, they distract you with flash and feathers and disable you with drink. Meanwhile, somebody has their hand in your back pocket,” said Padley.

“In the share market, they dazzle you with colourful software, trading platforms, average returns, IPOs, dividend yields, franking, charts and the media iced by jargon, urgency and ever-thinning sophistication, whilst someone has their hand in your SMSF.”

Thus, we have many Australians punting on ASX shares, trading them on a short-term basis, all to make a quick buck.

Unfortunately, most of them will lose, especially in a year like 2022.

So with such traders driving stock prices up and down on momentum and fear, what is a sensible investor meant to do?

This is how to cash in as a long-term investor

The only thing to do in this crazy world is to go long, according to Padley.  

“While stock market price integrity has become more fluid, volatile and vacuous, the underlying fundamental value of the companies on whose share prices the gamblers now rely, are still there. In the long term,” he said.

“And no manner of hype and herd will take that away.”

Rather than despise the short-term gamblers, take advantage of the volatility they create. Buy ASX shares when fundamentally sound companies are going for cheap.

“For traditional investors, this is your take home. Do not dismiss the gamblers, welcome them. They are a gift, delivered to you daily.”

The reality, according to Padley, is that short-term trading based on momentum “creates volatility and price extremes”. 

“For the investor, that creates regular, exploitable opportunity. That’s great,” he said.

“You should welcome the stupid into the market. The more uninformed people in the market, the more people there are to exploit.”

The post The share market is full of stupidity: here’s how you take advantage appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Why has the Lake Resources share price tumbled 11% in 10 days?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• The CEO just sold 900,000 of his Whitehaven shares. What’s going on?

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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose 0.15% to 7,241.8 points.

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

ASX 200 expected to rise

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open 14 points or 0.2% higher this morning. Wall Street was closed for Thanksgiving but European markets ended higher thanks to the prospect of the US Federal Reserve slowing its rate hikes.

Oil prices mixed

Energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued finish to the week after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up slightly to US$77.96 a barrel and the Brent crude oil price is down 0.35% to US$85.12 a barrel. Concerns over soaring COVID cases in China appear to be weighing on oil prices.

BHP shares downgraded

The BHP Group Ltd (ASX: BHP) share price may be fully valued now according to analysts at Goldman Sachs. This morning, the broker has downgraded the mining giant’s shares to a neutral rating with an improved price target of $42.90. Goldman made the move due to its “valuation vs. global peers and no upside to revised PT of A$42.9/sh.”

Gold price rises

Gold miners including Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price rose overnight. According to CNBC, the spot gold price is up 0.5% to US$1,754.9 an ounce. The gold price advanced after the US Fed hinted at slower rate hikes.

Rio Tinto named as a buy

Goldman Sachs may not be overly bullish on BHP right now, but it continues to rate Rio Tinto Limited (ASX: RIO) shares as a buy. This morning the broker has reiterated its buy rating with an improved price target of $114.70. It said: “We think the development of Rhodes Ridge has the potential to be significant for RIO’s Pilbara business as it could lift system capacity, utilise spare rail and port infrastructure and help close the FCF/t gap with BHP.”

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

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More reading

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• Why has the Lake Resources share price tumbled 11% in 10 days?
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Fortunately for income investors, the ASX is home to a good number of shares offering attractive dividend yields.

But which ones should you buy over others? To help narrow down your options, listed below are two ASX dividend shares that Goldman Sachs rates as buys. Here’s why the broker rates them highly right now:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that has been tipped as a buy is footwear and apparel retailer Accent.

Goldman Sachs is a fan of the company and has a buy rating and $2.20 price target on its shares. The broker is bullish due to its exposure to younger consumers. It believes this leaves Accent better positioned in the current environment than many retailers. It commented:

AX1’s diversified product exposure includes a number of product categories which we believe are resilient in the current cycle including youth footwear (Platypus, Hype), youth apparel (Glue, Nude Lucy), performance footwear (TAF), and a higher income consumer (Stylerunner).

As for dividends, Goldman is expecting fully franked dividends of 10.2 cents per share in FY 2023 and 11.4 cents per share in FY 2024. Based on the current Accent share price of $1.65, this will mean yields of 6.2% and 6.9%, respectively.

Adairs Ltd (ASX: ADH)

Another ASX dividend share that Goldman Sachs is bullish on is this furniture and homewares retailer.

The broker currently has a buy rating and $2.65 price target on its shares. Its analysts are positive on the company due to the belief that its core business is far more resilient than the market is giving it credit for. In light of this, Goldman believes recent share price weakness has created a buying opportunity. It explained:

We view the re-affirmed guidance [at its AGM] as a key positive for ADH, and we believe the market is pricing in EBIT that is 11-21% below the guidance range, and 12% below GSe. We view the core Adairs business as resilient in the current environment and do not believe the c.40% discount to discretionary retail peers is justified.

In respect to dividends, Goldman is forecasting fully franked dividends per share of 17 cents in FY 2023 and 20 cents in FY 2024. Based on the latest Adairs share price of $2.25, this will mean yields of 7.6% and 8.9%, respectively.

The post Why Goldman Sachs rates these ASX dividend shares as buys appeared first on The Motley Fool Australia.

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More reading

• 3 ultra-high-yield ASX dividend shares you might regret not buying at these prices
• These are the ASX dividend shares to buy now: Goldman Sachs
• Almost ready to retire? Here’s why I’d be buying up ASX dividend shares right now
• Here’s how I’d invest $20,000 in ASX shares today to double my money
• These growing ASX dividend shares are buys: analysts

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 ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. 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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Are you looking to add some growth shares to your portfolio?

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

Allkem Ltd (ASX: AKE)

The first ASX growth share to consider is Allkem. This lithium miner is aiming to grow its production materially in the coming years. In fact, it is planning to do this in a way that allows it to maintain a 10% share of global lithium supply over the long term. This certainly bodes well for its earnings growth given how insatiable demand for lithium is driving sky high prices.

Macquarie’s analysts are bullish on Allkem and have an outperform rating and $21.00 price target on its shares.

Aristocrat Leisure Limited (ASX: ALL)

Another ASX growth share to consider is Aristocrat Leisure. This gaming technology company has a world class portfolio of poker machines and digital games. The company has also just entered the real money gaming market, which has been tipped to grow materially in the future. Combined, this appears to position Aristocrat perfectly for long term growth.

Morgans is a fan of the company and has an add rating and $43.00 price target on its shares.

Treasury Wine Estates Ltd (ASX: TWE)

A final ASX growth share to consider buying is Treasury Wine. This wine giant owns a number of popular brands including Penfolds, 19 Crimes, and Wolf Blass. Thanks to this high quality portfolio of wines and its premiumisation strategy, the team at Morgans believe Treasury Wine is positioned for “strong earnings growth” over the coming years.

Morgans has an add rating and $15.71 price target on its shares.

The post 3 ASX 200 shares analysts are tipping for stellar growth appeared first on The Motley Fool Australia.

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More reading

• What $10,000 in ASX lithium shares a year ago would be worth today
• Buy this ASX 200 share now while the market’s distracted: expert
• 3 dividend-paying ASX growth shares I would buy to retire rich
• 5 ASX lithium shares to buy: brokers
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor James Mickleboro has positions in Allkem Limited. 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 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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