Category: Stock Market

Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Carsales.Com Ltd (ASX: CAR)

According to a note out of UBS, its analysts have retained their buy rating and lifted their price target on this auto listings company’s shares to $27.00. UBS remains positive on Carsales’ outlook and believes it is well-placed for growth over the coming years. Especially if it can leverage its expertise to grow the recently acquired Trader Interactive business in the United States. The Carsales share price ended the week at $25.31.

Liontown Resources Limited (ASX: LTR)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this lithium developer’s shares to $2.20. Macquarie made the move on the belief that the outlook for lithium remains very positive. So much so, it expects prices to be at record levels for the next four years. This means they should still be very strong when Liontown’s production commences in FY 2025. The Liontown share price was fetching $1.54 at Friday’s close.

Rio Tinto Limited (ASX: RIO)

Analysts at Citi have retained their buy rating and $115.00 price target on this mining giant’s shares. According to the note, Citi is positive on the company’s plan to acquire the Rincon Lithium project in Argentina for US$825 million. The broker believes this confirms Rio Tinto’s ambition to be a serious player in lithium/battery materials. The Rincon Lithium project has the potential to be a low cost, low carbon footprint brine project of 50ktpa LCE. The Rio Tinto share price was trading at $99.10 at the end of the week.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: AMP shoots higher, travel shares rise
• Rio Tinto share price gains despite reports $3.3b lithium project to be halted
• 5 investment themes to watch on the ASX share market in 2022
• Brokers name 3 ASX shares to buy today
• ASX 200 (ASX:XJO) midday update: Medibank and NIB rise, Bega sinks

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 carsales.com 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 S&P/ASX 200 Index (ASX: XJO) has returned a respectable 11% since this year kicked off. However, the solid gain has come with its fair share of potholes and surprises along the way.

For some ASX 200 constituents, the year involved debacles that derailed their share price. On the other hand, other companies relished in positive updates. With this in mind, we delved into this year’s archives to find out which stories involving ASX 200 companies attracted the most interest among our readers.

Here are the stories involving some of the biggest companies on the ASX that gained attention this year.

Why the AGL Energy share price continues to sink lower

It looks like investors were searching for answers to why one of Australia’s largest energy retailers was suffering continued selling pressure in February. At the time, AGL Energy Limited (ASX: AGL) was trading at $10.93 per share — setting a new 10-year low.

Our coverage highlighted AGL’s lacking profitability and negative outlook due to its coal-fired power plant operations. Unfortunately for shareholders, the AGL share price has gone on to fall a further 44% since then. At present, shares in the company are trading at $6.16 apiece.

Paying attention to this ASX 200 share after it slides lower

Another ASX 200 share attracting attention this year was A2 Milk Company Ltd (ASX: A2M). The infant formula and liquid milk producer continued its downward trajectory in 2021 after already falling a significant amount in the previous year. This poor performance stemmed from the restrictions on international travel, which impacted the company’s daigou sales channel.

In January, our coverage of why investors might still consider A2 Milk a buy garnered plenty of attention. However, much like AGL, the A2 Milk share price went on to fall further through the year. Shares in the company are now trading at $5.53 apiece.

Rollercoaster Zip share price

Buy now, pay later (BNPL) providers were the flavour of the month in February 2021. One of those companies was ASX 200 constituent Zip Co Ltd (ASX: Z1P). From the first trading session of the year to 16 February, the Zip share price skyrocketed 149%.

As a result, readers turned to our coverage when the BNPL company soared 13% to a record high of $12.39. This strong upwards move came amid rumours of a potential second list on the US market. Two days later, Zip tumbled 19% as sentiment for the BNPL sector waned. The Zip share price closed on Friday at $4.39.

Woolies takes a haircut

Flashing back to June this year and we witnessed the Woolworths Group Ltd (ASX: WOW) share price plummet 15% in a single day. Understandably, market participants were searching for answers to this drastic move in one of the biggest companies in the ASX 200.

Fortunately, readers of our coverage came to realise that the fall in price was nothing concerning. Instead, it was a reflection of the de-merger of Endeavour Group Limited (ASX: EDV). The Woolworths share price is currently $37.71.

ASX 200 bank announces $6bn buyback

The last story on our list involves the biggest company included in the ASX 200 — Commonwealth Bank of Australia (ASX: CBA). Following the bank’s announcement of a $6 billion share buyback in its full-year results, investors wanted to know more.

Unlike some of the other market-shaking news on this list, CBA’s announcement was more of a pleasant surprise to shareholders. Our coverage described how the Commonwealth Bank’s buyback would be off-market via a tender offer. Likewise, the article covered what this process would entail for shareholders looking to participate in the program.

Shares in CBA are up 20% since the beginning of the year and are currently swapping hands for $100.63 apiece.

The post The stories that rocked the ASX 200 in 2021 revisited appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Bell Potter names 3 of the best ASX 200 shares to buy in 2022
• Own Zip (ASX:Z1P) shares? Here are some key dates to watch in 2022
• Own CBA (ASX:CBA) shares? Here are the key dates for your investor diary in 2022
• 5 investment themes to watch on the ASX share market in 2022

Motley Fool contributor Mitchell Lawler owns Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. The Motley Fool Australia has recommended A2 Milk. 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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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Magellan Financial Group Ltd (ASX: MFG)

According to a note out of UBS, its analysts have retained their sell rating and slashed their price target on this fund manager’s shares to $17.00. This follows news that Magellan has lost its biggest client, St James Place. UBS suspects there could be more mandate terminations in the future, as well as further net fund outflows. The broker feels this will put pressure on fund fees. The Magellan share price was trading at $21.21 at Friday’s close.

Virtus Health Ltd (ASX: VRT)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $6.50 price target on this fertility treatment company’s shares. While the broker notes that trading conditions have been better than it was expecting this year, it isn’t enough for a change of rating. Morgan Stanley continues to see its shares as fully valued at the current level. The Virtus Health share price was fetching $6.84 at the end of the week.

Woolworths Group Ltd (ASX: WOW)

Analysts at Credit Suisse have retained their underperform rating but lifted their price target on this retail conglomerate’s shares to $31.92. This follows the release of a trading update this month which fell short of the broker’s expectations. Its underperformance and cost disruptions has led to Credit Suisse downgrading its earnings forecasts. The Woolworths share price was trading at $37.71 at the end of the week.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• The Magellan (ASX:MFG) share price is now up 11% in 3 days. What’s going on?
• Here are the top 10 ASX shares today
• Aussie investors now hold more Tesla than Woolworths (ASX:WOW)
• Douglass speaks out: ‘We’ve never sold a single share in Magellan’

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 Virtus Health 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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Small cap ASX shares have the potential to deliver good growth over the long-term.

They are starting from a much smaller position, giving them more of a runway for growth over time.

Just because a business is small doesn’t automatically make it a good idea, but these two businesses are compelling options:

Doctor Care Anywhere Group PLC (ASX: DOC)

Doctor Care Anywhere is a UK-based telehealth company that is “committed to the best possible patient experience and clinical care through digitally enabled, joined up, evidence based pathways on its proprietary platform.”

It recently announced the launch of a new operating model. It’s an evolution from the provision of a single option of 20-minute virtual GP consultations to the provision of multiple options based on a patient’s clinical requirement.

There were three options that the small cap ASX share noted.

The first was a virtual GP consultation.

The second was a consultation with an advanced nurse practitioner.

Third, a “QuickConsult”, where a patient completes a questionnaire to be reviewed by a prescribing clinician, resulting in written advice or a prescription with the need for a real time video or phone consultation.

This is expected to improve access for a larger number of patients and significantly improve the margins and profitability of the company.

Doctor Care Anywhere continues to grow. In the latest quarter, for the three months to September 2021, it saw quarter on quarter revenue growth of 21.6% to £5.8 million. Consultations grew by 30.6% quarter on quarter to a total of 116,800 consultations.

Healthia Ltd (ASX: HLA)

Healthia is another small cap ASX share in the healthcare space. It offers a number of different ‘allied’ health services including podiatry, physiotherapy, hand and upper arm therapy, pilates, orthopaedic, optometry and so on.

The company is benefiting from both acquisitions and organic growth.

Indeed, just today it announced acquisitions. It’s buying LensPro Optometrists which has eight stores in south east Queensland. Healthia is also buying a physiotherapy business in Queensland as well as one in Victoria.

Those acquisitions are expected to add to annualised underlying revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) by $9.5 million and $1.9 million respectively.

The total acquisitions for the six months to 31 December 2021 are projected to contribute annualised underlying revenue and EBITDA by $82.9 million and $15.9 million respectively. Total capital allocated to these acquisitions is $104.2 million.

Healthia expects to deploy a minimum of $20 million of capital per annum on new acquisitions.

COVID restrictions have impacted Healthia’s ability to trade in FY22 in some locations, but FY21 saw organic revenue growth of 9.1%. FY21 also saw underlying EBITDA growth of 62.3% year on year and underlying earnings per share (EPS) growth of 51.6%.

The post 2 small cap ASX shares for 2022 with big potential appeared first on The Motley Fool Australia.

More reading

• Why Doctor Care Anywhere (ASX:DOC) is soaring 12% today
• Why is the Doctor Care Anywhere (ASX:DOC) share price getting attention today?
• 2 fast growth ASX shares that could be buys in December 2021

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 Doctor Care Anywhere Group PLC and HEALTHIA FPO. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC and HEALTHIA FPO. 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 team at Bell Potter has been running the rule over a number of ASX shares and has named its top picks for 2022.

Among its picks are the three ASX 200 shares below. Here’s why it thinks these are three of the best buys for 2022:

A2 Milk Company Ltd (ASX: A2M)

A bit of a controversial pick given its abject performance over the last 12 months, but Bell Potter believes it could be well worth sticking with this infant formula company. It currently has a buy rating and $7.70 price target on its shares.

Bell Potter explained: “We see the scope for EPS to double by FY26e, if A2M can execute on the China offline expansion strategy, while recovering 50% of the lost sales (from FY20-21) in English label IMF. The catalyst to regaining lost English label sales is likely to be boarder reopening and the return of international students. Exiting the loss making US assets or navigating a turnaround at the MVM asset would likely accelerate this turnaround. We do not see the current share price as reflecting this potential.”

Life360 Inc (ASX: 360)

In the tech sector, Bell Potter rates Life360 very highly and has a buy rating and $16.25 price target on its shares. The broker likes Life360’s freemium model and ability to convert its huge user base into paying subscribers.

Bell Potter commented: “The company has also recently announced two acquisitions – Jiobit and Tile – so that now it not only connects and protects people but also pets and things. Yes Life360 is currently not profitable but the unique positioning of the company means it is well placed to disrupt the safety and security market and so achieve strong top line growth for years to come.”

Regis Resources Limited (ASX: RRL)

In the resources sector, the broker is bullish on ASX 200 gold miner Regis Resources. It believes its shares could double over the next 12 months. Bell Potter has a buy rating and $3.81 price target on them.

Its analysts said: “RRL’s share price has continued to drift on a forecast slow start to FY22 and a lack of conviction on the gold price. However, RRL continues to be competitive with peers on operating and cost metrics and is relatively cheap on a number of valuation metrics. [..] RRL offers exposure to a long-life, low-cost asset base and the opportunity of organic growth at McPhillamys lifting group production to ~700kozpa. On a risk-reward basis, at these levels, we view RRL is a standout in the sector.”

The post Bell Potter names 3 of the best ASX 200 shares to buy in 2022 appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week
• 3 fantastic ASX shares to buy for Christmas
• Here are the top 10 ASX shares today
• The ASX share market coverage that captivated readers in 2021

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia has recommended A2 Milk. 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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It was a good five days for the S&P/ASX 200 Index (ASX: XJO) last week. The benchmark index rose 1.4% over the period to end at 7,420.3 points.

Unfortunately, not all shares climbed higher with the market. Here’s why these were the worst performing ASX 200 shares last week:

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price was the worst performer on the ASX 200 last week with a 27.8% decline. Investors were selling off the fund manager’s shares after it announced the termination of the St James’s Place mandate. The release notes that the mandate represents approximately 12% of the company’s current annual revenues. As a result, the termination of the mandate at this point in the financial year is anticipated to impact its FY 2022 revenues by 6%. Investors appear concerned more mandates could be lost, particularly given the abject performance of its flagship fund.

CIMIC Group Ltd (ASX: CIM)

The CIMIC share price was some way behind as the next worst performer with a 9% decline. This was despite the mining, construction and engineering services company announcing a $1.8 billion New South Wales government contract win for its subsidiary CPB Contractors. It is unclear what sparked the selling.

Bega Cheese Ltd (ASX: BGA)

The Bega share price was out of form and dropped 8.1% over the five days. Investors were selling the diversified food company’s shares after the release of underwhelming FY 2022 guidance. Bega provided guidance for normalised EBITDA in the range of $195 million to $215 million. While this will be an increase of 37% to 51% year on year, it was short of the market’s expectations. The Bloomberg consensus estimate was $222 million.

Charter Hall Group (ASX: CHC)

The Charter Hall share price wasn’t far behind with a 7% decline. This follows news that the property company is acquiring a 50% interest in Paradice Investment Management (PIM). Charter Hall advised that it will pay $207 million for the stake. This comprises 70% in shares and 30% in cash. PIM is a fund manager with around $18.2 billion in funds under management. It appears as though some investors are keen on the move.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• The Magellan (ASX:MFG) share price is now up 11% in 3 days. What’s going on?
• The ASX share market coverage that captivated readers in 2021
• ASX 200 (ASX:XJO) midday update: AMP shoots higher, travel shares rise

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 Bruce Jackson.

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Are you looking to make some additions to your portfolio in 2022? If you are, the three ASX shares listed below could be great options.

They have been tipped as shares that could generate strong returns for investors in the future. Here’s why they could be five-star stocks:

CSL Limited (ASX: CSL)

The first five-star stock for investors in 2022 is CSL. It is one of the world’s leading biotherapeutics companies with a portfolio of life-saving, world class therapies and vaccines. Its products are used around the world to treat immunodeficiencies, bleeding disorders, hereditary angioedema, Alpha 1 antitrypsin deficiency, and neurological disorders. The company is also in the process of adding treatments for iron deficiency, nephrology and cardio-renal to its arsenal through the acquisition of Vifor Pharma for $17 billion. Together with its ~US$1 billion annual spend on R&D, CSL looks well-placed for growth over the long term.

Citi currently has a buy rating and $340.00 price target on the company’s shares.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another five-star stock to look at is Domino’s. This pizza chain operator could be a quality option for investors due to its bold growth plans and the ongoing popularity of its offering. In respect to its growth plans, management is aiming to more than double its footprint to 6,650 stores in existing markets by 2033. It also has the balance sheet strength to make acquisitions that increase its addressable market even further. Combined with its long track record of delivering solid same store sales growth, this bodes well for its growth over the 2020s.

Goldman Sachs is a fan of the company and has a buy rating and $147.00 price target on its shares.

REA Group Limited (ASX: REA)

A final five-star stock to consider buying in 2022 is REA Group. It is the digital advertising company that operates Australia’s leading property website, realestate.com.au. In addition, REA operates a number of complementary businesses in the Australian market and internationally. This includes its growing presence in the mortgage broker market following the acquisition of Mortgage Choice. All in all, together with new revenue streams, its good cost control, and a booming housing market, REA Group appears well-placed for growth.

Macquarie is very positive on the company’s outlook and has an outperform rating and $192.00 price target on its shares.

The post 3 five-star ASX shares to buy in 2022 appeared first on The Motley Fool Australia.

More reading

• Where are CSL (ASX:CSL) shares headed in 2022?
• Do these two unloved ASX shares offer tasty returns?
• 2 high quality ASX 200 shares with huge upside potential
• Here are the top 10 ASX shares today
• Interested in the $750m CSL (ASX:CSL) share purchase plan? Here are the details

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 CSL Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and 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 S&P/ASX 200 Index (ASX: XJO) was on form last week and stormed higher over the five days. The benchmark index rose 1.4% over the period to end at 7,420.3 points.

While a good number of shares climbed higher with the market, some rose more than most. Here’s why these were the best performing ASX 200 shares last week:

Link Administration Holdings Ltd (ASX: LNK)

The Link share price was the best performer on the ASX 200 last week with a 12.9% gain. Investors were buying the administration services company’s shares after it received a takeover approach from Dye & Durham. If the deal goes ahead, Link shareholders will receive $5.50 per share in cash and a 3 cents per share interim dividend.

Mineral Resources Limited (ASX: MIN)

The Mineral Resources share price wasn’t far behind with a gain of 11.1% over the five days. This appears to have been driven by a broker note out of Macquarie. Last week the broker held firm with its outperform rating and lifted its price target by 10% to a lofty $79.00. Macquarie believes that Mineral Resources is well-positioned to benefit from record lithium prices for the next four years.

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price was on form again and charged 10.7% over the period. Investors have been buying the medical device company’s shares since the release of a strong second quarter update last week. That update revealed that sales for October and November in the United States are up 133% over the prior corresponding period to $4.66 million.

AMP Ltd (ASX: AMP)

The AMP share price was a strong performer and climbed 10.5% last week. A good portion of this gain was made on Friday after it announced a divestment from its private markets business, PrivateMarketsCo. AMP has agreed to sell its infrastructure debt platform to Ares Holdings for a total cash consideration of $428 million. The agreement follows PrivateMarketsCo’s strategic decision to focus on managing equity investments in real estate and infrastructure.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• The ASX share market coverage that captivated readers in 2021
• Why AMP, Hipages, Pilbara Minerals, and Webjet shares are storming higher
• ASX 200 (ASX:XJO) midday update: AMP shoots higher, travel shares rise
• Here’s why the AMP (ASX:AMP) share price is racing 6% higher today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Link Administration Holdings Ltd and POLYNOVO FPO. 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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Listed below are two ASX dividend shares that have been tipped to provide attractive yields for investors in the coming years.

Here’s why analysts think these dividend shares are in the buy zone:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent. It is the retailer behind a growing network of footwear focused brands.

Thanks to the popularity of these brands and its exclusive licensing agreements, Accent has been growing its earnings and dividends at a consistently solid rate for many years. Pleasingly, the company looks well-placed to continue this positive trend over the 2020s. Particularly given its expansion opportunities.

Bell Potter is a big fan of Accent. It currently has a buy rating and $3.05 price target on its shares.

The broker is also forecasting fully franked dividends per share of 9.1 cents in FY 2022 and then 13.5 cents in FY 2023. Based on the latest Accent share price of $2.38, this represents yields of 3.8% and 5.6%, respectively.

South32 Ltd (ASX: S32)

Another ASX dividend share to look at is this mining giant. It could be a top option for income investors due to its attractive valuation and strong free cash flow generation.

The latter is being underpinned by its exposure to a number of in-demand commodities such as aluminium. Furthermore, South32 has recently announced the addition of copper to its portfolio via a key earnings accretive acquisition in Chile.

All in all, the team at Goldman Sachs believe this will allow South32’s shares to provide investors with big fully franked dividend yields in the coming years. In fact, based on the latest South32 share price of $4.01, Goldman expects yields greater than 10% per annum for the next five years.

Goldman has a conviction buy rating and $4.40 price target on its shares.

The post 2 quality ASX dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 dividend shares to buy for 2022 and beyond
• What are experts saying to expect for the South32 (ASX:S32) share price in 2022?
• 2 cheap ASX dividend shares with big yields
• Analysts say buy these ASX dividend shares
• These 3 ASX 200 shares are topping the volume charts on Monday

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 Accent Group. 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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There are a large number of ASX shares to choose from on the Australian share market.

Three that come highly rated are listed below. Here’s why these ASX shares are being tipped as buys:

Healius Ltd (ASX: HLS)

The first ASX share to look at is Healius. It is one of Australia’s largest pathology and diagnostic imaging providers. This makes it extremely well-placed to benefit greatly from increasingly strong demand for COVID-19 testing. This certainly was the case in the first quarter when Healius reported a 43.7% increase in quarterly revenue over the prior corresponding period to $689.9 million. More of the same is expected over the remainder of FY 2022.

Earlier this week, Morgans upgraded the company’s shares to an add rating with a $5.79 price target.

Life360 Inc (ASX: 360)

Another share to look at is Life360. Through its eponymous Life360 app, the company operates in the digital consumer subscription services market. It has a focus on products and services for digitally native families, where all members of the household are connected by smartphones. At the last count, the company had a massive 33.8 million monthly active users are using its app. This is supporting stellar recurring revenue growth and provides it with countless opportunities to monetise its user base further in the future.

Bell Potter is bullish on Life360. It currently has a buy rating and $16.25 price target on its shares.

SEEK Limited (ASX: SEK)

A final ASX share to consider is this job listings company. While SEEK was hit hard by the pandemic, it bounced back very strongly in FY 2021. It reported a 1% increase in revenue to $1,591 million and a 58% jump in net profit after tax (excluding significant items) to $141 million. The good news is that more of the same is expected in the coming years as the Australian economy recovers from COVID-19.

Credit Suisse is a fan of SEEK and has an outperform rating and $39.50 price target on its shares.

The post 3 fantastic ASX shares to buy for Christmas appeared first on The Motley Fool Australia.

More reading

• 2 exciting ASX 200 tech shares to buy
• Healius (ASX:HLS) share price higher despite analysts questioning acquisition value
• 2 value ASX shares ready for a big 2022: fund manager
• 2 ASX shares to buy and hold for 10 years+
• 2 fantastic blue chip ASX 200 shares to buy next week

Motley Fool contributor James Mickleboro owns Life360, Inc. and SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. 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 Bruce Jackson.

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