Category: Stock Market

The National Australia Bank Ltd (ASX: NAB) share price could be in for a boost in the near term, according to one top broker.

In addition to that, the broker is tipping the ‘big four’ bank to grow its full-year dividends a whopping 34% by financial year 2024.

The NAB share price last traded at $30.24.

Let’s take a closer look at what top broker Goldman Sachs is forecasting for the S&P/ASX 200 Index (ASX: XJO) banking favourite.

Top broker tips 15% upside for NAB stock

Goldman Sachs is a fan of NAB shares due to the company’s overweight exposure to commercial lending, my Fool colleague James reports.

The broker believes momentum will favour commercial volumes more than housing volumes over the next 12 months. It tips NAB as the best buy for investors to garner exposure to such a thematic.

On the back of its bullish predictions, Goldman Sachs has slapped NAB shares with a $34.63 price target and a buy rating. That represents a potential 14.52% upside.

And that’s not all. The broker also expects NAB shares to offer $1.50 per share of dividends in financial year 2023. That number is tipped to rise to $1.70 per share in financial year 2024.

For comparison, the bank offered investors $1.27 per share in dividends over the course of financial year 2021.

As it adheres to a fiscal year ending 30 September, that’s the last full year the company has so far reported on.

Goldman Sachs’ dividend prediction means the broker is expecting NAB to grow its dividends by a whopping 33.86% over the coming years – certainly nothing to scoff at.

NAB share price snapshot

The NAB share price has outperformed through 2022 so far.

It has gained 3% since the start of the year. It’s also 5.5% higher than it was this time last year.

For comparison, the ASX 200 has dumped 10% year to date and 9% over the last 12 months.

The post NAB shares offer 15% upside and growing dividends: broker appeared first on The Motley Fool Australia.

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More reading

• Experts say these 2 ASX dividend shares are buys
• Why ASX bank shares are more likely to slowly grind lower than crash, despite famed Wall Street bear saying it’s time to short them
• Are NAB shares worth buying in September?
• Is this why the Macquarie share price was ‘steaming ahead’ on Friday?
• Why is the ASX 200 diving 2% on Tuesday?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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 Woodside Energy Group Ltd (ASX: WDS) share price has continued to nudge higher in recent times.

Favourable market conditions, such as increases in energy prices, led the company to report a robust H1 2022 result.

Subsequently, the board declared its biggest dividend to investors since 2014.

At US 109 cents (AU$1.60) per share, this represents a 263% increase on the prior corresponding period.

Furthermore, the last two dividends have totalled US 214 cents, which is extremely significant given the share trades around the $35 mark.

This means that the current trailing dividend yield for Woodside shares stands at an attractive 9%.

Let’s look at the details you need to know about the upcoming dividend.

Time is running out to secure the Woodside dividend

The Woodside share price could receive a short-term boost today as investors look to scoop up the company’s interim dividend.

The ex-dividend date is tomorrow, Thursday 8 September.

This means you have until the end of today to buy the energy producer’s shares to be eligible for the dividend – provided you keep them until Thursday morning.

Remember to note that when the ex-dividend approaches, the share price will likely fall in proportion to the dividend paid out. However, this can also fluctuate depending on how the market is performing for the day, investor sentiment, and, in Woodside’s case, the price of oil.

If you manage to buy Woodside shares in time, you’ll receive the dividend payment on 6 October.

Furthermore, there is a dividend reinvestment plan (DRP) should you wish to add more Woodside shares to your holdings. Although the exact price for each DRP share hasn’t been released yet.

Eligible shareholders have until 12 September to elect to the DRP.

Woodside share price snapshot

Soaring energy prices have fuelled the Woodside share price to travel 60% higher in 2022, and 80% over the last 12 months.

At yesterday’s market close, the energy giant’s shares finished at $35.08 apiece – a gain of 13% this week.

In comparison, the S&P/ASX 200 Energy Index (ASX: XJR) is up 42% this year, but flat since this time last week.

Woodside commands a market capitalisation of approximately $66.61 billion.

The post Hoping to pocket the monster Woodside dividend? Read this appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• What happened to Woodside shares on Tuesday?
• ‘We would like to see faster progress’: ASX 200 energy shares on notice
• The Woodside share price has gained under 5% in 10 years. Does the latest monster dividend make up for this?
• How are ASX 200 energy stocks performing on Tuesday?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In the wake of ASX reporting season, we’ve seen droves of companies in the S&P/ASX All Ordinaries Index (ASX: XAO) turn ex-dividend in recent weeks.

When a company’s shares turn ex-dividend, they no longer trade with the recent dividend payment attached to it.

The highest-profile ASX All Ords share turning ex-dividend tomorrow is Woodside Energy Group Ltd (ASX: WDS). You’ll find everything you need to know about the latest Woodside dividend in our recent coverage here.

But there are some other ASX All Ords shares with notable dividend yields that are also going ex-dividend tomorrow. Let’s check them out.

Perpetual Limited (ASX: PPT)

ASX financials share Perpetual recently announced a fully franked final dividend of 97 cents, which will be paid on 30 September. A dividend reinvestment plan (DRP) is also available.

Perpetual delivered 20% revenue growth in FY22, benefitting from both organic and acquisitive growth. Underlying net profit after tax (NPAT) grew by a similar amount, helping Perpetual to lift its full-year dividends by 16% over the prior year.

This puts Perpetual shares on a sizeable trailing dividend yield of 7.9%, which grosses up to 11.3%, including franking credits.

In other news, after months of negotiations, the company looks set to acquire rival fund manager Pendal Group Ltd (ASX: PDL). Pendal’s board is unanimously supporting Perpetual’s $2.5 billion takeover bid.

Smartgroup Corporation Ltd (ASX: SIQ)

Today will be the final day for investors to bag Smartgroup’s fully franked interim dividend of 17 cents. The company has pencilled in the payment date for 23 September.

This interim dividend is 3% lower than the interim dividend declared in 2021.

In the first half of FY22, Smartgroup’s revenue climbed by 4%, while adjusted NPAT swung the other way, dropping by 4%.

Smartgroup shares are currently flashing a trailing 12-month dividend yield of 11.1%. However, the company’s final dividend earlier in the year included a special dividend of 30 cents.

But even excluding this special dividend, Smartgroup shares are still sporting a notable trailing dividend yield of 6.1%. With the benefit of franking credits, this grosses up to 8.7%.

Peter Warren Automotive Holdings Ltd (ASX: PWR)

Peter Warren shares will be trading tomorrow without a fully franked final dividend of 13 cents, which will be paid on 7 October.

The ASX car dealership group delivered 6% revenue growth and 37% underlying NPAT growth in FY22. This growth was primarily driven by the acquisition of Penfold Motor Group, which was completed in December 2021.

After listing last year, Peter Warren declared maiden dividends in FY22, with the total coming in at 22 cents. This represents a dividend payout ratio of 67% of NPAT.

Peter Warren shares are currently trading on a trailing dividend yield of 8.1% or 11.6% grossed up. 

Resimac Group Ltd (ASX: RMC)

Shares in mortgage business Resimac will be trading tomorrow without a fully franked final dividend of 4 cents. The company has set the payment date for 23 September.

The mortgage lending business posted double-digit growth in home loan assets under management in FY22. But NPAT growth couldn’t follow suit, dropping 5% on the prior year.

Nonetheless, the ASX All Ords share lifted its full-year dividends by 25% after bumping up its dividend payout ratio from 24% of NPAT in FY21 to 32% in FY22. 

Resimac shares are printing a trailing dividend yield of 6.7%. Throwing in franking credits, this yield cranks up to 9.6%. 

Monash IVF Group Ltd (ASX: MVF)

Finally, Monash IVF is another ASX All Ords share turning ex-dividend tomorrow. Shares will be trading without a fully franked final dividend of 2.2 cents, which will be paid on 7 October.

Monash IVF delivered 5% revenue growth in FY22, driven by price increases in the domestic assisted reproductive services (ARS) segment. 

Despite underlying NPAT slightly retreating in FY22, the company still raised its total dividends by 5% to 4.4 cents.

This puts Monash IVF shares on a trailing dividend yield of 4.4%, which grosses up to 6.3%.

The post 5 ASX All Ords shares trading ex-dividend on Thursday appeared first on The Motley Fool Australia.

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More reading

• Why these 3 ASX shares could be in for a massive boost this month
• Why Bell Potter is tipping 46% upside for this beaten-up ASX 200 share
• 6 ASX shares Morgans would buy right now
• 3 ASX All Ords shares that saw major price action on FY22 results
• Why City Chic, Macquarie Telecom, Polynovo, and Smartgroup shares are sinking

Motley Fool contributor Cathryn Goh 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 SMARTGROUP DEF SET. 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 you first start investing, you might look for high risk, high reward growth shares. You can do this because if things don’t go to plan, you have plenty of time to recover from your losses.

But when you’re in retirement or approaching it, investors may be better focusing on income and capital preservation.

With that in mind, listed below are two ASX shares that could be good options for retirees. Here’s what you need to know about them:

Telstra Corporation Ltd (ASX: TLS)

The first option for investors to consider for a retirement portfolio is Telstra. After a difficult decade of falling earnings and dividend cuts, the tide is finally turning for the telco giant. In fact, last month the company’s results for FY 2022 revealed a return to growth and a surprise dividend increase.

Looking ahead, with its T25 strategy now in place, management is aiming for high-teens underlying earnings per share compound annual growth rates from FY 2021 to FY 2025. This could be supportive of further dividend increases in the coming years, potentially providing retirees with a growing income stream.

The team at Morgans are positive on the telco giant. Its analysts currently have an add rating and $4.60 price target on the company’s shares. Morgans is also forecasting another 16.5 cents per share dividend in FY 2023, which equates to a 4.2% dividend yield.

Woolworths Limited (ASX: WOW)

Another option to consider for your retirement portfolio is retail conglomerate Woolworths.

It could be worth considering due to its strong brands, entrenched customer base, and defensive qualities. The latter could come in particularly handy if the Australian economy falls into a recession in the next 12 months.

Another positive is its digital and omni-channel advantage. This bodes well for the future and is a big reason why Goldman Sachs is so bullish on the company. The broker expects it to drive further market share and margin gains.

Goldman currently has a conviction buy rating and $44.10 price target on the company’s shares. It is also forecasting fully franked dividend yields of 3%+ in the coming years.

The post Brokers name 2 ASX 200 shares to buy for a retirement portfolio appeared first on The Motley Fool Australia.

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More reading

• Should all ASX investors be buying defensive shares right now?
• Woolworths share price edges higher as shareholders green light MyDeal takeover
• Should you buy Telstra shares after the telco ‘comfortably turned the corner’?
• 5 things to watch on the ASX 200 on Tuesday
• Are Woolworths shares good value in September?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation 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 having a tough time over the last six months.

During this period, the mining giant’s shares have lost 26% of their value and are now fetching $37.27.

While some of this decline relates to the demerger of its petroleum assets, the majority has come from regular plain old selling by investors.

Is the BHP share price good value now?

To see if the BHP share price is good value, let’s take a look at what Australia’s leading brokers are saying about the mining giant. Here’s a summary of the latest broker recommendations:

Citi has a buy rating and $44.50 price target. This implies potential upside of 19%. It said:

We’ve reduced our TP to A$44.5 but stay Buy rated. Dividend yield in FY24E is ~8% fully franked at iron ore price of US$94/t. China stimulus is expected to be a positive for iron ore markets in CY23.

Goldman Sachs has a buy rating and $40.50 price target on the company’s shares, which suggests potential upside of approximately 9%. The broker said:

We believe this premium vs. peers can be maintained due to ongoing superior margins and operating performance (particularly in Pilbara iron ore), high returning copper growth, and lower iron ore replacement & decarbonisation capex.

Macquarie is positive and has an outperform rating and $40.00 price target, implying potential upside of 7%. Macquarie was impressed with BHP’s performance in FY 2022 and highlights its “materially better” than expected cash flow and dividend.

Over at Morgans, its analysts have an add rating and $48.40 price target on its shares. This implies potential upside of 30% for investors. It said:

Strong result with a final dividend beat. BHP continues to show it is better positioned than most (all?) of its peers. One of our key reporting season picks, we view the dividend/FCF surprise and resulting re-rating as justified.

Finally, UBS is the least positive broker I’m aware of with its neutral rating and $35.50 price target. It has concerns over potential commodity price declines in the coming years.

Overall, the picture appears very positive for the BHP share price and also its dividend. In respect to the latter, collectively, the market is forecasting a fully franked dividend yield of greater than 8% in FY 2023.

The post What are brokers saying about the BHP share price? appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for the BHP share price in September?
• August’s RBA rate hike saw investors favour Macquarie and BHP shares. Here’s what to expect in September: expert
• Why are BHP shares off and racing on Monday?
• How I’d invest $50,000 in ASX dividend shares for retirement, if I had to start from scratch
• Why did the BHP share price smash the ASX 200 in August?

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, SG Hiscock portfolio manager Hamish Tadgell gives his thoughts on a trio of stocks that have fallen off a cliff this year.

Cut or keep?

The Motley Fool: Now let’s take a look at what you might do with three ASX shares that have plunged in recent times. 

First is Seek Limited (ASX: SEK), which has lost almost 40% year to date.

Hamish Tadgell: I’d say this is a keeper.

We think it’s a quality business with some very strong longer-term growth prospects and optionality on Asian markets in particular. 

I think, though, that the market’s clearly been debating how much this company could be priced or impacted for a recession. And when we look at it, the market’s actually pricing a recession in or about a 25% drop in volumes in this business. Seek did very well coming out of COVID, really tight labour markets. Everyone’s looking to put people on and jobs.

There’s this concern that [if] we get a recession, then people will stop employing and job advertising will fall in a hole. We certainly think that consumer spending will slow over the next sort of 12, 18 months with higher rates, as household cash flow starts to come under a little bit more pressure. But we don’t see the same drop off at this point in labour market activity. 

This week, [there was] a two-day conference up in Canberra, which is all about trying to create more jobs in a very tight labour market, which has been COVID impacted, but I think there’s other structural issues going on, changing it at the moment. And we think that Seek should continue to benefit from a reasonably resilient labour market over the next sort of 12, 18 months. 

Therefore, I see it as being mispriced at the moment.

MF: At least in Australia, it’s got quite a dominant market position. It’s seen off many challengers over the years, hasn’t it?

HT: Yeah, it does. Look, I mean LinkedIn and Facebook and others over the years have become competitors, but it’s certainly still the preeminent site, the leading site. 

What we look for in these online businesses is you want to be the market leader because it’s the virtuous circle that you look for in these businesses where the market leader creates more opportunities, that then feeds into more eyeballs. More eyeballs feed into that being the preeminent site where people want to advertise and you get that virtuous circle and we still think that Seek certainly has that.

MF: How do you feel about Aristocrat Leisure Limited (ASX: ALL), which has lost about a quarter of its stock price this year?

HT: Yeah, this stock was clearly impacted during COVID. It had a very strong recovery due to the [post-]COVID recovery, but also due to the announcement that it made that it was looking to get into iGaming and buy one of the leading competitors overseas and that transaction fell over, and with it, the stock has come back quite a bit. 

But we still see this as a quality business generating $1 billion in free cash flow per annum with little debt. It is the leading global player in electronic gaming machines and it’s really got a strong opportunity to continue to grow in the gaming and digital online space. 

I’d say, in particular, it’s very well positioned to still develop and grow in that iGaming, or real money gambling as they call it, market in the US. So, this is an opportunity, which Aristocrat looked to buy and enter the market through buying a competitor. That didn’t play out, but it’s now going the organic route of developing the business itself. But we certainly think that they’ve got the people and the opportunity and the capital to be able to do that.

The iGaming market in the US is estimated to be about $20 billion. It’s emerging as a result [of] the deregulation by the US states at the moment… So we see it again as a keeper and one that we think there’s certainly value opened up as a result of the pullback in price.

MF: Great, so two buys there. 

What are your thoughts on the third one, GPT Group (ASX: GPT), which has dropped about 24% so far this year?

HT: It’s an REIT that has derated a lot over the last 12 months. General Property Trust is the biggest diversified REIT probably in the market — office, industrial, retail, and some funds management. 

This is one we probably cut. We just think that we’re increasingly cautious around the office and the industrial market. And in particular, office really, we think is probably the asset, the property asset class that is most at risk post-COVID from changing behaviour.

MF: There’s been a cultural change in where people work, hasn’t there?

HT: Well, I think it is. There’s been a lot [of debate], over the last 12 months… but it remains pretty uncertain how it’s going to play out. 

We’re seeing it in our business and our observation talking to a lot of companies is that staff are seeking more flexibility. People are spending less time in the office. And I think companies are getting to that realisation and up until now probably have been debating about how much space they need, what they need.

But I think over the next year or so, in a couple of years, you’re going to start to see more decisions made. And I think that is going to have a big impact upon rents and cap rates in the office space. We’re seeing already at the moment — the incentives in the office have gone up dramatically. 

Industrial assets have been very big — had done incredibly well — through the deflationary cycle and lower rates, but also globalisation. And my comments at the outset about higher rates, de-globalisation, I think, puts some pressure around those cap rates.

The area we probably prefer the most is probably retail at the moment, in terms of property, but also social infrastructure assets like I spoke about before in terms of, Qube Holdings Ltd (ASX: QUB).

So for those reasons, I think it’s one that we would probably cut.

The post 2 discounted ASX shares I’d buy now and one I wouldn’t touch: expert appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Morgans names 3 of the best ASX shares to buy in September
• These 9 ASX 200 shares are going ex-dividend tomorrow
• Here are 2 ASX 200 shares that experts rate as buys
• $20,000 invested in these ASX shares 10 years ago is worth how much now?

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 SEEK 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 hottest commodity right now is arguably coal. The price of black gold has been rocketing higher this year after Russian exports were taken off the market and Europe faces an energy crisis.

And with Russian coal unlikely to return to the market any time soon, coal miners look well-placed to generate big profits for some time to come.

While many investors will be well aware of giants New Hope Corporation Limited (ASX: NHC) and Whitehaven Coal Ltd (ASX: WHC), one ASX coal share that could be flying under the radar is Bowen Coking Coal Ltd (ASX: BCB).

But that may not be the case for much longer, with analysts at Morgans tipping Bowen Coking Coal to become a metallurgical coal force in the future.

What is Morgans saying about this ASX coal share?

According to a recent note, the broker has initiated coverage on the company’s shares with a speculative buy rating and 54.6 cents price target.

Based on the current Bowen Coking Coal share price of 44 cents, this implies potential upside of 24% for this ASX coal share over the next 12 months.

Morgans has described the company as “an emerging force in met coal” and believes it is well-placed to become a significant producer. The broker explained:

Bowen Coking Coal (BCB) is transforming into a significant coal producer thanks to prescient acquisitions and the ability to leverage current coal price strength. BCB looks comfortably funded to refurbish its flagship asset at Burton, with coal sales now ramping up from Bluff and Broadmeadow (BME). We think BCB justifies a price premium to reflect its: 1) acquisition track record; 2) clear strategic/corporate appeal; and 3) scarcity value in a hot coal market. We initiate coverage with a Speculative Buy noting 38% [now 24%] upside to our 55cps target. Our valuation under a strong bull case price scenario rises to 71ps (80% [now 61%] upside).

Another positive is that the company has the option to add thermal coal into the mix if desired. Morgans highlights:

While predominantly a met coal asset (60% HCC), Burton has interesting optionality to sell a thermal product should a prolonged energy crisis support the current +40% arbitrage in thermal coal prices over HCC [hard coking coal].

The post Broker says this ASX coal share is ‘an emerging force’ appeared first on The Motley Fool Australia.

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More reading

• ‘A very good deal’: Expert names 2 ASX shares to buy for CHEAP now
• Broker tips 22% upside for the AGL share price
• Here’s what a top broker is saying about the Bank of Queensland share price
• 2 healthcare ASX shares ready to go off like a cracker: experts
• Experts say these 2 ASX dividend shares are buys

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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As interest rates head up yet again, there’s no longer a question of whether an economic downturn will come, but it’s now a matter of how severe it will be.

Some of the ASX shares that are most impacted by a slowdown in spending is anything related to advertising.

The logic is that marketing spend is one of the first to be trimmed when businesses try to tighten their belts through tougher times. Promotion of goods and services is less effective anyway when consumers have less money to spend.

Because of this perception, most ad-related ASX shares have plunged in recent weeks.

However, Forager Funds portfolio manager Alex Shevelev and analyst Gaston Amoros reckon there are a couple of stocks that will fare better than the market expects.

The stock that’s cheap as a Russian telco

In their reporting season review, the pair argued that August updates showed advertising hasn’t actually slowed down that much, at least for some.

So some ASX shares are just selling at absurdly cheap levels at the moment.

“Seven West Media Ltd (ASX: SWM) is trading at around 4x consensus earnings, the level you would normally associate with a Russian telecommunications company, not one of the near-duopolistic owners of broadcast TV stations in Australia.”

The Forager experts noted that Seven West is so bullish about advertising activity in the coming period that it backed up the rhetoric with actual cash.

“The company is so confident in its outlook that they have just announced a 10% buyback,” they said. 

“And we tend to agree with them – buying its own stock at these levels seems like a very good deal.”

Seven West shares have lost about a quarter of their value so far this year.

The rest of the professional community is divided on the media conglomerate. Out of the 12 analysts surveyed on CMC Markets, five rate it as a buy, four think it’s a hold, and three recommend selling.

Bouncing back from COVID-19 but as cheap as 2020

Outdoor advertising provider oOh!Media Ltd (ASX: OML) is another example of a stock that’s too cheap to ignore.

“Their business continues to bounce back strongly from the pandemic,” said Shevelev and Amoros.

“While the core Street, Road and Retail segments have sustained the recovery thus far, Airports and Offices are still to make a comeback, providing more runway for growth into FY23.”

Similar to Seven West, the oOh!Media share price has lost 22.4% year to date.

The Forage experts see this as a golden buying opportunity.

“Its share price… is back to the pre-vaccine days of 2020!”

Other fund managers share Shevelev and Amoros’ enthusiasm for oOh!Media much more than Seven West.

According to CMC Markets, six out of nine analysts currently recommend the stock as a buy, with five of them rating it a strong buy.

The post ‘A very good deal’: Expert names 2 ASX shares to buy for CHEAP now appeared first on The Motley Fool Australia.

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• Seven West share price lifts on new record AFL deal
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After a tough couple of years, the AGL Energy Limited (ASX: AGL) share price has returned to form in 2022.

Since the start of the year, the energy company’s shares have risen almost 12%.

As a comparison, the ASX 200 index is down 10% year to date. That’s a relative outperformance of 22%.

Can the AGL share price keep rising?

The good news is that you’re not too late to the party, according to analysts at Morgans.

A recent note reveals that the broker has retained its add rating with an $8.63 price target.

Based on the current AGL share price of $7.04, this implies potential upside of over 22% for investors over the next 12 months.

In addition, the broker is forecasting a 30 cents per share dividend in FY 2023, which equates to an attractive 4.2% dividend yield.

What did the broker say?

Morgans is feeling positive about AGL’s outlook after a tough period. It explained:

Legacy coal contracts in NSW and the owned Loy Yang mine in VIC provide low cost fuel to limit the increases in the average cost of energy and should therefore boost margins in a very tight electricity market.

Delays in the expected timing of Snowy Hydro, a potentially protracted conflict in Ukraine and general underinvestment in generation across the sector point to higher domestic energy prices on average in the medium term which will in turn support higher earnings for AGL.

The broker also highlights that demerger uncertainty has now been resolved and things are looking brighter for its ESG credentials. Morgans also reminds investors that there has been takeover interest and appears to believe that it could resurface. It said:

Uncertainty about the demerger has been resolved and activist shareholders may actually improve the market’s perception of AGL’s ESG impact if it can chart a credible path to replacing its coal generation assets over the next decade. AGL has also attracted interest as a takeover target.

The post Broker tips 22% upside for the AGL share price appeared first on The Motley Fool Australia.

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More reading

• ‘We would like to see faster progress’: ASX 200 energy shares on notice
• Down 15% in a month – is the AGL share price good value yet?
• Why is the AGL share price on the slide today?
• Natural gas is up 110% this past year. What does this mean for the AGL share price?
• 3 popular ASX 200 shares going ex-dividend tomorrow

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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It hasn’t been a great year for the Bank of Queensland Ltd (ASX: BOQ) share price.

Since the start of 2022, the regional bank has seen its shares fall over 17% to $6.87.

In light of this, investors may be wondering if the Bank of Queensland share price is now trading at an attractive level to start an investment.

Is the Bank of Queensland share price good value?

According to a recent note out of Goldman Sachs, it doesn’t believe investors should be picking up shares just yet.

Though, it is worth noting that the broker does see material upside potential for its shares.

Goldman currently has a neutral rating and $8.16 price target on the bank’s shares, which implies potential upside of 19% for investors over the next 12 months.

Why is it not a buy?

The broker highlights two key points for why it isn’t as positive on the regional bank as it once was. These include its slowing momentum and its lack of exposure to rising rates. It explained:

1. BOQ’s volume momentum has slowed recently and while still tracking above system at 1.4x system average (on a 3 month annualised basis), this is somewhat below BEN at 2.2x.

2. BOQ’s margin is not as exposed to higher cash rates and it therefore captures less upside from higher rates. We also note that its recent deposit pricing has shown greater levels of sensitivity to higher cash rates than either the majors or BEN.

Instead of Bank of Queensland, the broker thinks investors should be buying Westpac Banking Corp (ASX: WBC) shares.

Goldman has Australia’s oldest bank on its conviction buy list with a price target of $26.55. This implies potential upside of 25% for investors from current levels.

The post Here’s what a top broker is saying about the Bank of Queensland share price appeared first on The Motley Fool Australia.

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More reading

• Savings or dividends? What these 3 ASX bank shares are offering for income
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy today
• Is the Bank of Queensland share price undervalued compared to other ASX banks?
• Why did the Bank of Queensland share price lag the other ASX 200 banks today?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. 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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