Category: Stock Market

Key Points

• The Baby Bunting share price has fallen in recent weeks, but analysts still like the company
• Brokers such as Citi and Morgan Stanley rate it as a buy, with double digit potential upside of the share price this year
• Baby Bunting is seeing a recovery of sales, a growing profit margin, an expanding store network and more private label and exclusive products being sold

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The Baby Bunting Group Ltd (ASX: BBN) share price is well-liked by a number of analysts right now.

Australia’s biggest baby and toddler product retailer is seeing ongoing growth and brokers think that it could be an opportunity.

Two of the brokers that like Baby Bunting right now includes Citi and Morgan Stanley. Both of them have price targets that could see the business achieve double digit share price growth this year.

What do the brokers like about the Baby Bunting share price?

The latest look that analysts had at the business performance was the annual general meeting (AGM) a few months ago. There were a number of things that Citi and/or Morgan Stanley noted as positives.

Baby Bunting revealed that its gross profit margin continued to increase, with a rise of 120 basis points to 38.7% in the year to date (to 3 October 2021). A higher gross profit helps increase the profitability of other profit lines of the company.

The increase in the gross profit margin has been largely down to growth of private label and exclusive products, the product mix and supply chain efficiencies.

After a slow start to FY22, Baby Bunting’s sales continued to strengthen, with comparable store sales only down by 1.3% in the year to date. Excluding NSW and ACT stores, comparable store sales were up 4.7%. Total sales for the year to date showed growth of 1.5%.

Online sales continue to perform strongly, with growth (including click and collect) of 37.7% for the year to date, despite cycling growth of 126% in the prior corresponding period.

Its store network continues to grow in size. In FY22 it’s expecting to open between six to eight new stores in Australia, as well as two new stores in New Zealand in the second half of FY22.

Price targets on the Baby Bunting share price

Looking at how much brokers think that Baby Bunting shares could rise in 2022, one of the most positive is Morgan Stanley’s price target of $6.90. That’s a potential rise of more than 30% over this year.

Citi on the other hand has a price target of $6.11. It’s not as high, but still implies a potential mid-teen return in share price terms.

Despite the lower price target, it’s Citi that actually has the more optimistic earnings projection for FY23. On Citi’s numbers, the Baby Bunting share price is valued at 19x FY23’s estimated earnings. Citi’s forecast means Baby Bunting shares are valued at 24x FY22’s estimated earnings.

Areas of focus

Baby Bunting shares have fallen more than 10% since the start of November 2021. However, the business is investing in its new website, leveraging its new e-commerce architecture, improving its loyalty program, investing in the customer experience and increasing online fulfilment efficiency. The ASX share is hoping to have 90% of metro sales orders fulfilled in the same day.

The post Here’s why the Baby Bunting (ASX:BBN) share price is rated as a compelling buy appeared first on The Motley Fool Australia.

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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 recommended Baby Bunting. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Bitcoin (CRYPTO: BTC) has hit some turbulence in recent months, falling more than 34% since its November high.

Now investors are watching to see whether this dip will turn into a mass sell-off.

According to the chief of cryptocurrency exchange Dacxi, Ian Lowe, the dreaded “death cross” could be a possibility.

“Speculation now falls as to whether Bitcoin will hit the ‘death cross’ of the 50-day moving-average moving below the long-term 200 day moving average,” he said. 

“We rather hope that it does!”

Why a death cross could be beneficial

Rather than sending investors into mourning, Lowe feels a death cross could provide a tempting entry point for, especially, younger punters.

He cited Dacxi research that 56% of investors in Australia are seeking to put money into crypto for the long term.

“The mood is shifting away from fly-by-night investors looking to get rich quick.”

Other research points to similar sentiment.

A recent DeVere Group poll showed that crypto investors were not panicked at all by the current correction and still believed they would outperform shares in 2022.

Even DeVere chief Nigel Green was “taken aback” by that result.

“Investors are predicting that the markets in 2022 will perform in a similar way to 2021. That’s to say that cryptocurrencies, even despite the slump in December, had a remarkable year,” he said.

“Bitcoin ended the year up almost 65%, meanwhile, the S&P 500 Index (SP: .INX) — the benchmark index of the world’s largest economy – managed around 28%, and gold was down around 7%.”

According to Lowe, Bitcoin “is a bit like Lazarus”.

“Bitcoin has come back from a Death Cross as recently as March 2020 and has rallied significantly since then,” he said.

“Many will remember this and be willing to jump in and see if there’s another rally ahead this time too.”

Reasons to be bullish on crypto

Lowe also cited Australia’s long-running obsession with property as another reason why crypto will remain tempting to millennials.

“Eye-watering real-estate prices mean crypto’s slow start this year makes it the only game in town for Australian investors looking for assets with both a low barrier to entry and potential for growth.”

Also, the mainstream investment community is starting to become convinced that cryptocurrencies actually have some intrinsic value, both economically and socially.

“The future of crypto is no longer closely tied to institutional adoption of any particular coin, as the blockchain continues to prove its utility and the reality and possibilities of Web3 become more obvious.”

The current dip is “healthy”, Lowe added, and would remind investors to diversify in crypto as much as shares.

“There is a lot of value in diversifying your cryptocurrency holdings by purchasing bundles of different cryptocurrencies, not just a single asset.”

Green felt like investors are cooling on shares after a buoyant 2020 and 2021.

“Stocks, which have always traditionally made up the bulk of successful investors; portfolios, are falling out of favour, it seems, as a way to create and build wealth, with digital assets taking over.”

The post Bitcoin could hit ‘death cross’ soon! Expert explains why this is great appeared first on The Motley Fool Australia.

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• Bitcoin and Ethereum are crashing: Is now the time to invest?

Motley Fool contributor Tony Yoo owns Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re on the lookout for some dividend options in January, then you may want to look at the ASX shares listed below.

Here’s why analysts rate them as buys:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share to look at is baby products retailer Baby Bunting.

It has been tipped as a share to buy due to its leadership position in a less discretionary retail category which benefits from ~300,000 births a year in Australia.

Citi is a fan of the company and believes it has strong growth potential over the medium term thanks partly to its store rollout. It also sees opportunities to boost its earnings from private label growth and supply chain efficiencies.

The broker explained: “We reiterate our Buy rating and see the company having a range of multi-year growth strategies including rollout (target of 110+ stores, with 68 expected by end of FY22e), exclusive/private label growth and supply chain efficiencies.”

As for dividends, Citi expects fully franked dividends per share of 16 cents in FY 2022 and 20 cents in FY 2023. Based on the current Baby Bunting share price of $5.25, this will mean yields of 3% and 3.8%, respectively.

Charter Hall Social Infrastructure REIT (ASX: CQE)

Another ASX dividend share that is highly rated is the Charter Hall Social Infrastructure REIT.

It is a property company with a focus on social infrastructure properties. This includes government facilities, healthcare buildings, and childcare centres. In respect to the latter, Charter Hall Social Infrastructure REIT is Australia’s largest owner of early learning centres. It actively partners with 37 high quality childcare operators to provide an integrated service offering.

These properties are in high demand, which underpinned a 100% occupancy rate and a weighted average lease expiry (WALE) in excess of 15 years in FY 2021. And with approximately three-quarters of its tenancies on fixed rent reviews, the company’s future growth looks very positive.

Goldman Sachs is a fan of the Charter Hall Social Infrastructure REIT. It currently has a conviction buy rating and $4.13 price target on its shares.

Following a recent acquisition, the broker said: “The acquisitions solidify our view that the REIT is positioned for a solid growth outlook given its strong balance sheet with headroom and liquidity to pursue investment opportunities on the back of recent solid asset valuations.”

In respect to dividends, Goldman is forecasting dividends per share of 17.1 cents in FY 2022 and 17.5 cents in FY 2023. This implies yields of 4.3% and 4.4%, respectively.

The post Analysts name 2 ASX dividend shares to buy in January appeared first on The Motley Fool Australia.

More reading

• 2 ASX growth shares to buy this month: experts
• 2 ASX dividend shares named as buys
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• 2 ASX shares rated as strong buys by brokers

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Temple & Webster Group Ltd (ASX: TPW) share price has gone up by around 250% over the past two years, making it among the stronger performers on the ASX during that time.

This business is one of the largest e-commerce players in the homewares and furniture space. It is currently benefiting from a number of tailwinds.

Those tailwinds include: the ongoing adoption of online shopping due to structural and demographic shifts, an acceleration of trends due to COVID-19, an increase in discretionary income due to travel restrictions and strong housing market growth.

High growth of revenue

It has been two years of very strong revenue growth for Temple & Webster. In the six months to 30 June 2020 it experienced revenue growth of 96%, with FY20 fourth quarter revenue growth of 130%.

FY21 saw further high levels of growth, with revenue increasing 85% to $326.3 million.

Finally, the company saw continuing elevated levels of growth in FY22 to 15 October 2021, which showed revenue growth of 56% after long lockdowns for both Sydney and Melbourne.

After all that revenue growth and the large rise of the Temple & Webster share price, is too late to invest in shares?

Temple & Webster share price drops

Since the start of the 2022 calendar year, the Temple & Webster share price has dropped around 8%. From the end of August 2021 to now, it has seen a drop of around 33%.

Indeed, right now the shares are at the lowest point in the past six months.

A few different brokers currently think that the online retailer is a buy.

Credit Suisse and Morgan Stanley currently rate it as a buy, with a price target of $15.89 and $16 respectively, suggesting a potential upside this year of around 60%.

UBS rates the e-commerce stock as a buy as well, though the Temple & Webster share price target here is $12.20, which offers a possible capital return of approximately 20% over this year.

The brokers are attracted to the continuing fast revenue growth that Temple & Webster is demonstrating, with long-term market share gains expected.

As the business gets bigger, it is expected to be able to benefit from greater scale as well as more private label sales.

Analysts are noticing that customers are returning and spending more when they do. In FY21, Temple & Webster said that revenue per active customer increased 12% year on year. At 30 June 2021, it had 778,000 active customers – an increase of 62%.

Temple & Webster is demonstrating both rapid growth and high customer satisfaction. It has over 5,000 reviews between its iOS and Android apps with an average rating, at the time of the FY21 result announcement, of 4.8 out of 5.

It’s also investing in a number of areas of operational capability and technology to increase its performance and service for customers. For example, it increased its investment in the artificial intelligence interior design service start-up based in Israel, after a successful pilot of the service. In the longer-term, it’s also thinking about geographic expansion.

One of the things that may be factored into the Temple & Webster share price is its long-term strategy of re-investment.

The company said:

We will continue our reinvestment strategy, investing into growth areas of the business to grow our online market leadership position with the ultimate goal of becoming the largest retailer (online and offline) for furniture and homewares in our home market.

The post Is it too late to invest in Temple & Webster (ASX:TPW) shares? appeared first on The Motley Fool Australia.

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• Forget Christmas! Could these ASX retail shares be set for a Boxing Day bonanza?

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. owns 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 Bruce Jackson.

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher again. The benchmark index rose 0.5% to 7,474.4 points.

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

ASX 200 expected to fall

The Australian share market looks set to end the week in a disappointing fashion. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.25% lower this morning. This follows a poor night of trade on Wall Street, which late on sees the Dow Jones trading flat, the S&P 500 down 0.8%, and the Nasdaq down 1.6%.

Qantas update

The Qantas Airways Limited (ASX: QAN) share price will be on watch after it released an update after the market close on Thursday. According to the release, the airline operator is cutting its capacity during the third quarter in response to rising Omicron cases. Qantas will slash its domestic capacity to 70% of pre-COVID levels and international capacity to 20% of pre-COVID levels.

Oil prices fall

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could end the week in the red after oil prices dropped. According to Bloomberg, the WTI crude oil price is down 0.5% to US$82.14 a barrel and the Brent crude oil price is down 0.3% to US$84.40 a barrel. A mixed demand outlook weighed on prices.

Tech shares on watch

The Australian tech sector looks set to end the week deep in the red, which could be bad news for shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX). This follows a poor night of trade on Wall Street, which saw the tech rebound run out of steam and the Nasdaq index fall 1.6%. The Block share price is down almost 5% in late trade.

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price dropped. According to CNBC, the spot gold price is down 0.4% to US$1,820.60 an ounce. The gold price fell after yields edged higher and traders started to price in a US Fed rate hike in the near future.

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

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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. owns and has recommended Afterpay Limited and Appen Ltd. The Motley Fool Australia owns and has recommended Afterpay Limited and Appen Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re wanting to bolster your portfolio with some blue chip shares then you may want to consider the two listed below.

Both are high quality companies and have been rated as buys recently. Here’s what you need to know about them:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property group. It has been growing at a solid rate over the last decade thanks to its successful strategy of focusing on investing in and developing high quality industrial properties in strategic locations. These are close to large urban populations and in and around major gateway cities globally.

Citi is a fan of Goodman. It currently has a buy rating and $27.50 price target on its shares. And while it acknowledges that its shares trade on high multiples, it notes that they are still lower than peers.

The broker explained: “We continue to see upside to FY22 guidance and now forecast FY22 EPS of 76.9c (+17% growth), 2% ahead of guidance. Importantly, our 3 year EPS CAGR lifts 200bps to ~16%, reflecting higher asset values, and development activity. We retain our Buy call with GMG now trading at ~30x FY22E PE, -3% to -25% below global peers, despite higher growth.”

REA Group Limited (ASX: REA)

Another blue chip ASX 200 share to consider buying is REA Group. It is the digital advertising company that operates Australia’s leading property website, realestate.com.au.

In addition, REA operates a range of complementary businesses in the Australian market and also internationally. All in all, together with new revenue streams, its good cost control, and a booming housing market, REA Group appears well-placed for growth.

Goldman Sachs is positive on the company’s outlook. It has a buy rating and $193.00 price target on its shares.

Following its first quarter update the broker commented: “Overall we revise higher our FY22 listing assumptions (+2% vs. -3% prior) but continue to expect declines in 2H22 (+7%/-3% in 1H/2H22 given the Fed election & tough comparable in 4Q21). Combined with higher yield growth & domestic opex assumptions, our FY22-24 core Australia EBITDA is +1% to +5%. When including the higher associate contributions our REA FY22-24 EPS +1% to +4% and our 12m SOTP-based TP increases +2% to A$193.”

This will ultimately mean EBITDA of $648 million in FY 2022, $730 million in FY 2023, and $815 million in FY 2024. Whereas for earnings per share, Goldman expects 294 cents, 337 cents, and then 387 cents.

The post 2 outstanding ASX 200 blue chip shares to buy appeared first on The Motley Fool Australia.

More reading

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• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Novatti Group Ltd (ASX: NOV) share price is blasting ahead this week.

The buy now, pay later (BNPL) company’s shares closed today trading at 34 cents apiece, a 20% gain since the start of the week.

Let’s take a look at what might be happening at the buy now, pay later company.

Director confidence

The Novatti share price is surging ahead this week despite no news from the company. However, a recent show of confidence in the company by CEO and co-founder Peter Cook is worth noting.

Cook has bought $316,667 worth of shares, acquiring 1,666,667 shares at 19 cents each, a market announcement on 4 January revealed.

His purchase involved exercising options that were not due to expire until 30 November. Following this gain, he now owns 13,174,571 shares in the company.

The Novatti share price gained 20% on January 12 alone. This major movement came on the same day as fellow BNPL company Afterpay Ltd (ASX: APT) announced Bank of Spain has approved its takeover by Block Inc (NYSE: SQ). The Afterpay share price gained nearly 5% yesterday. As my Foolish colleague James reported, Afterpay may not be trading on the Australian share market much longer.

In April 2021, Novatti shares surged 32% on the back of an agreement with Afterpay. Afterpay chose Novatti to provide its services in New Zealand.

In October, Novatti announced it would acquire ATX, a payments fintech based in Malaysia.

Novatti proved to be one of the best performing ASX BNPL shares of 2021, gaining 15% over the year.

Novatti share price snapshot

The Novatti share price has soared around 39% in the past 12 months and 13% in the past month.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has returned more than 12% to investors in the past year.

The company commands a market capitalisation of roughly $117.75 million based on the current share price.

The post The Novatti (ASX:NOV) share price is up 20% so far this week. What’s going on? appeared first on The Motley Fool Australia.

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• These were the 5 top performing ASX BNPL shares of 2021

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 Bruce Jackson.

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The Insurance Australia Group Ltd (ASX: IAG) share price has been up and down like a yo-yo this year but is in the green so far in 2022.

The company’s shares closed today at $4.41, up 3.52% since the start of the year. Today they held steady, gaining 0.23%.

Let’s take a look at what might be impacting investor sentiment.

What’s happening at IAG?

The IAG share price gained 4.69% between market close on 31 December and 4 January. However, it then fell 2.24% between market close on 4 January and 6 January.

On January 7, it recovered this loss, gaining 2.29% before sliding a further 1% to the current share price of $4.41.

News out of the company on its catastrophe reinsurance program on January 6 didn’t seem to get investors too excited.

The insurance company maintained its cap on gross reinsurance protection cover at $10 billion. Meanwhile, the cost of the catastrophe insurance program increased by “single digits”.

Commenting on the announcement, chief financial officer Michelle McPherson said:

Our catastrophe reinsurance program remains an intrinsic part of IAG’s capital management strategy.

The structure of the new program is similar to that of prior years, and we received strong support from our reinsurance partners with whom we have long-term relationships.

The IAG share price ended that day down 0.68% but recovered to post a 2.29% gain the following day.

A broker note out of Morgan Stanley may have also played on the minds of investors. My Foolish colleague James on Wednesday reported the broker thinks IAG needs to increase its insurance pricing to protect its margins from higher natural catastrophe costs including claims inflation.

Analysts at the company have a $3.75 target on the share, a 15% drop on the current price.

However, other brokers, including Morgans, Macquarie, and Credit Suisse, appeared bullish on the IAG share price last week.

IAG share price snap shot

The IAG share price has plummeted 12.5% in the past 52 weeks but is up 0.45% in the past month.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has returned nearly 12% to investors over the longer time frame.

The company commands a market capitalisation of roughly 10.9 billion on the current share price.

The post Why is the IAG (ASX:IAG) share price having a rollercoaster start to the year? appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• What happened to the Insurance Australia (ASX:IAG) share price in 2021?
• What’s happening with the IAG (ASX:IAG) share price today?
• Leading brokers name 3 ASX shares to sell today
• Could the IAG (ASX:IAG) share price be on the road to recovery in 2022?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Insurance Australia Group Limited. 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 Bruce Jackson.

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The Immuron Ltd (ASX: IMC) share price soared again today, trading up 16.67% at 14 cents near the market close.

This follows a massive trading day as the company cemented its place as one of the best performers on the ASX yesterday with its share price seeing a whopping 31% increase.

So what happened with this Melbourne-based biotech company to make it reach such impressive prices?

Let’s take a look…

Diarrhoea drug to hit Europe

At its core, Immuron focuses on creating and commercialising oral immunotherapies that both prevent and treat gut-related ailments.

It has two main products — Travelan, an over-the-counter oral medicine used to treat traveller’s diarrhoea — and Protectyn, an immune supplement (sold by practitioners) supporting both digestive and liver function.

Today, the biotech company announced it had received a European patent for its treatment of traveller’s diarrhoea.

Immuron advised that European Patent 3159357 — the “composition and method for the treatment and prevention of enteric bacterial infections — would give it the exclusive rights in several European countries.

The company already holds an existing patent position in Australia, India, Canada and the United States.

Once the patent is validated, Immuron will be able to sell its drug composition in France, Spain, Sweden, Austria, Germany, Denmark, Finland, Greece and the United Kingdom.

US military focus on Travelan

According to Immuron, traveller’s diarrhoea not only is the most common form of illness for visitors to developing countries but also afflicts US troops that are deployed overseas.

In fact, prevention of the illness is a high priority for the US Military.

“The morbidity and associated discomfort stemming from diarrhea decreases daily performance, affects judgement, decreases morale and declines operational readiness,” Immuron said in today’s announcement.

And its not just only the short term effects Immuron considers worrisome — the medical community is now recognising that the illness can have serious post-infectious after-effects, inducing irritable bowel syndrome and other autoimmune diseases.

As such, the biotech company was awarded a $6.2 million Travelan clinical trial agreement by the United States Department of Defence yesterday — the first of several trials expected to undertaken with the military this year.

After releasing the news, the Immuron share price jumped just over 30% before lunchtime trade.

Immuron share price snapshot

Despite its recent positive moves, the Immuron share price has dropped 36% over the past 12 months. In fact, it saw its 52-week-low on Tuesday, when it hit 9 cents.

Since then, shares in the company have rebounded an impressive 55%.

The biotech company has a market capitalisation of $31 million and more than 277 million shares issued.

The post Why the Immuron (ASX:IMC) share price rocketed another 17% today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Immuron (ASX:IMC) share price is rocketing 31% today

Motley Fool contributor Alice de Bruin 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 Bruce Jackson.

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If you have room for some new portfolio additions, then it could be worth considering the two ASX growth shares listed below.

Both shares have recently been named as buys by equity analysts at Macquarie Group Ltd (ASX: MQG). Here’s what you need to know about these shares:

Allkem Ltd (ASX: AKE)

The first ASX growth share to consider is Allkem. It is the result of the merger of two leading lithium miners – Galaxy Resources and Orocobre.

This merger made the company a top five global lithium miner with a collection of world class operations including Olaroz, Mt Cattlin, and the Sal de Vida brine project.

Unlike many lithium explorers and developers, Allkem is already benefiting from the sky high lithium prices being underpinned by the decarbonisation trend and the rapid adoption of electric vehicles. This bodes well for its growth in the coming years

Macquarie is very bullish on lithium and Allkem. It currently has an outperform rating and $13.60 price target on its shares.

Lovisa Holdings Limited (ASX: LOV)

Another ASX growth share to look at is Lovisa. It is a fast-fashion jewellery retailer with a growing global store network.

Lovisa recently announced the appointment of Victor Herrero as its new CEO. Mr Herrero was previously the Head of Asia Pacific and Managing Director Greater China for Inditex (Zara, Pull & Bear and Massimo Dutti), the CEO of Guess, and the CEO of Clarks.

This appointment went down well with Macquarie. It notes that Mr Herrero has experience in China and India, which will be a key focus for Lovisa. In fact, the broker sees scope for the company to open as many as 1,400 stores in these markets alone.

In light of this, it is very positive on its long term growth prospects. Macquarie has an outperform rating and $25.00 price target on its shares.

The post 2 ASX growth shares Macquarie rates as buys appeared first on The Motley Fool Australia.

More reading

• Why has the Allkem (ASX:AKE) share price surged 27% in a month?
• Brokers name 3 ASX shares to buy today
• Here are the 5 best performing ASX 200 mining and resource shares of 2021
• What is JP Morgan saying about ASX lithium shares?
• LNG hit record highs in 2021 so why did the Santos (ASX:STO) share price struggle?

Motley Fool contributor James Mickleboro owns Orocobre 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 Lovisa Holdings Ltd and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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