Category: Stock Market

2021 has been nothing if not eventful. And now, some may say gleefully, it is finally drawing to a close. To celebrate the approaching new year, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to buy in 2022. Here’s what the team came up with…

James Mickleboro: Life360 Inc (ASX: 360)

Life360 operates in the digital consumer-subscription services market with a focus on products and services for digitally native families. Its core offering is the Life360 app, which was developed for families and includes features such as messaging, driving safety, and location sharing.

At the last count, the company had over 33 million users of its app. This is generating significant recurring revenue, but management isn’t resting on its laurels. Life360 recently acquired wearables company Jiobit and items-tracking company Tile. These acquisitions provide it with material cross and up-selling opportunities in 2022.

Bell Potter is very bullish on Life360. It recently named the company as one of its top tech picks of 2022. The broker’s analysts have a buy rating and $16.25 price target on Life360 shares. On Friday, the Life360 share price closed at $9.50.

Motley Fool contributor James Mickleboro owns shares of Life360 Inc.

Aaron Teboneras: Coles Group Ltd (ASX: COL)

Coles is a leading Australian retailer with over 2,500 retail outlets nationally, servicing more than 20 million customers each week.

The supermarket giant’s share price has struggled to gain traction in 2021, falling roughly 2% for the period. This comes despite Coles executing its strategy to respond to the changes in consumer demand and behaviour since the onset of COVID-19.

Initiatives have included further investment in Coles Online, such as adding around 250 delivery stores and upgrading more than 100 click-and-collect locations. The company achieved a strong first quarter for FY22, with e-commerce revenue growth of 48% for its supermarkets division.

Coles remains optimistic on the outlook for 2022 as vaccination rates continue to rise across the country. Last month, analysts at Citi raised their rating on Coles shares to ‘buy’ from ‘neutral’. In addition, the broker also lifted its 12-month target for the Coles share price by 4% to $19.60. Based on Friday’s closing price of $17.68, this implies an upside of around 11%.

Motley Fool contributor Aaron Teboneras does not own shares of Coles Group Ltd.

Sebastian Bowen: South32 Ltd (ASX: S32)

Diversified miner South32 could be worth a look in 2022. This mining company gives investors exposure to a wide range of commodities, including silver, aluminium, lead, and nickel.

Broker Goldman Sachs has currently rated South32 shares as a ‘conviction buy’, with a 12-month share price target of $4.40. That implies a potential upside of roughly 10% not including dividends.

Speaking of dividends, Goldman also reckons South32 will be able to fund payouts in FY22 and FY23 that would equate to yields of between 11% and 12%. If this proves to be the case, South32 shares could prove to be an underappreciated income stalwart in 2022 and beyond.

Motley Fool contributor Sebastian Bowen does not own shares of South32 Ltd.

Mitchell Lawler: Alcidion Group Ltd (ASX: ALC)

Alcidion provides a range of technology solutions to the healthcare industry. These include Miya Precision, Smartpage, Patientrack, and ExtraMed. These offerings are currently distributed in the United Kingdom, Australia, and New Zealand, servicing more than 300 hospitals and 60 healthcare organisations.

The company is currently in the process of raising $55 million to fund the acquisition of UK-based Silverlink – which is one of the world’s most widely-used patient administration systems in the National Health Service (NHS). Post-acquisition, Alcidion will boast a 26% share of the NHS provider market in the United Kingdom.

Analysts at Bell Potter currently hold a ‘buy’ rating on the stock with a price target of 45 cents per share. Based on the Alcidion share price at Friday’s close, this represents an upside of around 70%.

Motley Fool contributor Mitchell Lawler does not own shares of Alcidion Group Ltd.

Tristan Harrison: Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is a leading e-commerce beauty business.

It is currently ‘buy’-rated by Morgan Stanley with a price target of $6. That compares to the current Adore Beauty share price of $4.10.

According to Adore, the beauty and personal care market in Australia is worth $11.2 billion, with compound annual growth expectations of 26% per annum to 2024.

The company is investing to grow its brand awareness, win new customers and increase customer retention. In the first quarter of FY22, revenue grew 25% to $63.8 million and returning customers grew 63% to 418,000. Higher margins are expected as Adore scales in the upcoming years.

Motley Fool contributor Tristan Harrison does not own shares of Adore Beauty Group Ltd.

Zach Bristow: IGO Ltd (ASX: IGO)

Analysts believe resources giant IGO remains well positioned to continue benefitting from the commodities super-cycle that’s been occurring since 2020.

JP Morgan recently noted this, explaining that IGO has commodity exposure to nickel, copper, and cobalt through its 100%-owned Nova asset. The broker highlighted that its stakes in the world-class Greenbushes spodumene mine and Kwinana hydroxide plant makes IGO a one-stop stock for electric vehicle raw materials.

IGO’s strong portfolio positioning has it rated as a ‘buy’ from 9 out of 15 analysts provided by Bloomberg Intelligence.

Barrenjoey, Jefferies and JP Morgan each value the IGO share price at well over $12. With metals markets showing continued strength, the brokers believe IGO is well poised to head towards these upside targets. IGO shares closed Friday’s session at $11.35.

Motley Fool contributor Zach Bristow does not own shares of IGO Ltd.

Brendon Lau: Nearmap Ltd (ASX: NEA)

It’s a controversial call as tech stocks are deeply out of favour, but some analysts believe the Nearmap share price could surprise on the upside in 2022. Morgan Stanley has grown more confident on the mapping technology company since its trading update last month.

The broker believes the group’s first-half annual contract value will be at least US$108 million (around AU$143 million) That is around AU$15 million above the same time last year. And if Nearmap can deliver a similar increment in the FY22 second half, it shouldn’t have too much trouble meeting consensus estimates.

In other words, too much bad news may be priced into the Nearmap share price, considering its crash of more than 30% this year to $1.53 as of Friday’s close. Morgan Stanley maintains an overweight rating on Nearmap shares with a 12-month price target of $3.20.

Motley Fool contributor Brendon Lau owns shares of Nearmap Ltd.

The post Top ASX shares to buy in 2022 appeared first on The Motley Fool Australia.

More reading

• 3 ASX growth shares could be strong buys
• Bell Potter names 3 of the best ASX 200 shares to buy in 2022
• 2 quality ASX dividend shares to buy
• 3 fantastic ASX shares to buy for Christmas
• The ASX share market coverage that captivated readers in 2021

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alcidion Group Ltd, Life360, Inc., and Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET and Nearmap Ltd. The Motley Fool Australia has recommended Adore Beauty Group Limited and Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3sVkf7l

Investors that are interested in boosting their income portfolio with some dividend shares might want to look at the two listed below.

Here’s what you need to know about these highly rated ASX 200 dividend shares:

Commonwealth Bank of Australia (ASX: CBA)

The first ASX 200 dividend share to look at is Australia’s largest bank, Commonwealth Bank. It could be a good option for income investors following a sizeable pullback by its shares over the last couple of months.

This has left the CBA share price trading at an attractive level according to the team at Bell Potter. The broker currently has a buy rating and $111.00 price target on its shares.

Bell Potter likes CBA due to its strong position as the leader in home lending and retail deposits, its strong balance sheet, and significant surplus capital. It feels the latter could bode well for share buybacks in the future.

Bell Potter also expects attractive yields in the near term. The broker is forecasting fully franked dividends per share of $3.94 in FY 2022 and $4.15 in FY 2023. Based on the current CBA share price of $100.63, this will mean yields of 3.9% and 4.1%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 dividend share that could be a top option for income investors is Telstra.

This is due to its much-improved outlook, which is being underpinned by both its T22 and T25 strategies. The T22 strategy was about transforming the telco giant whereas the T25 is focused on driving growth.

Telstra’s CEO, Andrew Penn, revealed that the company is targeting a “high-teens” underlying earnings per share compound annual growth rate from FY 2021 to FY 2025.

This has many analysts believing that a dividend increase could be coming in the near future should it deliver on its targets. For now, though, the team at Morgans expects fully franked dividends per share of 16 cents in FY 2022 and FY 2023.

Based on the current Telstra share price of $4.15, this will mean yields of 3.9% for the next couple of years. Morgans also sees decent upside for Telstra’s shares and has an add rating and $4.55 price target on them.

The post 2 ASX 200 dividend shares named as buys appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell
• 3 excellent ASX 200 blue chip shares to buy in 2022
• The stories that rocked the ASX 200 in 2021 revisited
• Telstra (ASX:TLS) share price hits yet another 52-week high. What’s going on?
• The ASX share market coverage that captivated readers in 2021

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 owns 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/32GQiNd

The Afterpay Ltd (ASX: APT) share price is having a month to forget in December.

Since the start of the month, the payments company’s shares have lost 20% of their value and are currently fetching $86.65.

This compares very unfavourably to the 52-week high of the Afterpay share price of $160.05.

Why is the Afterpay share price tanking in December?

The weakness in the Afterpay share price this month has been driven by a couple of things.

One is that shareholders have voted overwhelmingly in favour of the Block (previously named Square) takeover. That transaction will see shareholders receive a fixed exchange ratio of 0.375 shares of Block for each Afterpay share they hold on the record date.

This transaction means the Afterpay share price is intrinsically linked to the Block share price, which is the second reason for the December weakness.

The Block share price has been sold off in December and is down 21% month to date, which has negatively impacted the value of the takeover. This appears to have been driven by weakness in tech stocks, concerns over regulatory risks in the US buy now pay later market, and a sharp pullback in cryptocurrency prices. Block has made significant investments in Bitcoin over the last 18 months.

Where next for Afterpay’s shares?

As mentioned above, where the Afterpay share price goes next will depend entirely on where the Block share price goes.

Unfortunately, Block’s poor form has continued during overnight trade, leading to its shares falling 3% to US$163.27. This means its shares are now trading within touching distance of their 52-week low.

Afterpay shareholders will no doubt be hoping 2022 is far more positive for both sets of shares and particularly after the latter absorbs the former early next year when the takeover completes.

The post Why the Afterpay (ASX:APT) share price has tanked 20% in December appeared first on The Motley Fool Australia.

More reading

• Why has the Afterpay (ASX:APT) share price gained 5% this week?
• Why Afterpay, Bega, FAR, and WiseTech shares are falling
• Why is the Afterpay (ASX:APT) share price soaring 5% today?
• Why Afterpay, Lovisa, Liontown, and Pilbara Minerals shares are racing higher
• Why the Bitcoin price was bouncing back 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 Afterpay Limited and Block, Inc. The Motley Fool Australia owns and has recommended Afterpay Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3FD1War

On Friday, the S&P/ASX 200 Index (ASX: XJO) was back on form and recorded a strong gain. The benchmark index rose 0.45% to 7,420.3 points.

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

ASX 200 futures flat

The Australian share market is set to return to trade again this morning in a subdued fashion. According to the latest SPI futures, the ASX 200 is expected to open the day flat this morning. This follows a mixed night of trade on Wall Street, which in late trade sees the Dow Jones up 0.3% but the S&P 500 down 0.1% and the Nasdaq trading 0.6% lower.

Final day to qualify for dividends

A number of popular ASX dividend shares will be trading ex-dividend tomorrow, which means that today is the final day to invest to be able to receive them when they are paid. Going ex-dividend tomorrow are the likes of Charter Hall Group (ASX: CHC), Goodman Group (ASX: GMG), Mirvac Group (ASX: MGR), and Transurban Group (ASX: TCL).

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good start to the week after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.65% to US$76.07 a barrel and the Brent crude oil price has risen 0.6% to US$79.03 a barrel. Oil prices have now risen 3% since the morning of Christmas Eve.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could start the week in a subdued fashion after the gold price edged lower. According to CNBC, the spot gold price is down 0.1% to US$1,806.7 an ounce. The gold price had hit a one-month high before pulling back on US dollar weakness.

Iron ore price falls

Weakness in the iron ore price could weigh on BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares on Wednesday. According to Metal Bulletin, the spot benchmark iron ore price has fallen 3% to US$119.44 a tonne.

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

More reading

• Top brokers name 3 ASX shares to buy next week
• Bell Potter names 3 of the best ASX 200 shares to buy in 2022
• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares 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. 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.

from The Motley Fool Australia https://ift.tt/3evXLBf

If you’re looking for growth shares, then look no further. Listed below are four ASX growth shares which have been tipped for strong growth in the future.

Here’s why analysts have rated them as buys:

Breville Group Ltd (ASX: BRG)

The first growth share to buy is Breville. It is a leading appliance manufacturer responsible for a number of popular brands. These include Kambrook, Sage and the eponymous Breville brand. The team at Morgans is positive on the company. This is thanks partly to its global expansion, burgeoning product pipeline, and favourable consumer trends. The broker recently put an add rating and $34.00 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Hipages could be a growth share to buy. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies. Goldman Sachs expects its strong growth to continue as it grows its ecosystem into a huge addressable market. The broker currently has a buy rating and $5.15 price target on its shares.

NEXTDC Ltd (ASX: NXT)

Another growth share that could be a buy is NEXTDC. If is a leading data centre operator which appears well-placed to benefit from the structural shift to the cloud. Particularly given its world class network of centres and its expansion into edge centres. The company also has its eyes on the Asia market and has opened up offices in a couple of key markets. Citi is a fan and currently has a buy rating and $15.40 price target on NEXTDC’s shares.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX share to look at is this online furniture and homewares retailer. It appears well-placed for growth over the long term thanks to the ongoing structural shift online, which is only really getting start. For example, management estimates that just 7% to 9% of category sales were made online in 2020. This is significantly lower than the US, which has ~25% of category sales online. This bodes well for Temple & Webster given its leadership position online. The team at UBS recently initiated coverage on the company with a buy rating and $12.20 price target on its shares.

The post 4 fantastic ASX growth shares to buy appeared first on The Motley Fool Australia.

More reading

• Brokers say these 2 top ASX shares are buys in 2022
• Why analysts are bullish on these ASX growth shares
• Why AMP, Hipages, Pilbara Minerals, and Webjet shares are storming higher
• 5 investment themes to watch on the ASX share market in 2022
• These 5 ASX shares grew revenue by more than 70% in the last year

Motley Fool contributor James Mickleboro owns NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Hipages Group Holdings Ltd. and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Hipages Group Holdings Ltd. and 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.

from The Motley Fool Australia https://ift.tt/3FBfOBR

ASX travel shares are going to be in focus when the ASX share market reopens with global travel being affected by COVID-19 once again.

According to reporting by the BBC, over 8,000 flights in total have been grounded according to FlightAware data tracking.

Different countries are seeing varying levels of impact, but countries like China and Hong Kong are experiencing the worst of the cancellations.

What’s causing the flight cancellations?

COVID-19 is the key culprit, however, more specifically it appears to be the rapidly spreading Omicron variant.

A major difficulty is that large numbers of flight crews and people who run the operations are required to self-isolate after coming in contact with people who have been infected. This is crippling the ability of airlines to fulfil all flights.

Other delays relate to severe weather in the northern hemisphere.

Not only are flights being delayed but individuals are also being impacted. In many parts of the world, a negative COVID-19 test is required before allowed to travel.

ASX travel shares that could be impacted

With how rapidly the Omicron variant is spreading around the world – both in Australia and other countries – the ASX travel share sector might be at least somewhat impacted in almost every market.

Some of the ASX travel shares that may be in focus includes Corporate Travel Management Ltd (ASX: CTD), Webjet Limited (ASX: WEB), Flight Centre Travel Group Ltd (ASX: FLT), Qantas Airways Limited (ASX: QAN) and Helloworld Travel Ltd (ASX: HLO).

However, whilst COVID-19 continues to impact the businesses, there is a longer-term recovery.

Both Webjet and Corporate Travel said that they were starting to see profit from some operating divisions in the second half of the 2021 calendar year as more volume returned and vaccinations were opening up travel corridors.

Do analysts still like ASX travel shares?

Every business is in a different situation, but there are plenty of buy ratings on some businesses.

For example, UBS and Citi both rate Corporate Travel as a buy with price targets that are more than 20% higher than where the Corporate Travel share price is now.

Morgans and UBS both rate the Webjet share price as a buy with price targets that are at least 25% higher than where the Webjet share price is now.

UBS and Morgan Stanley both rate Qantas shares as a buy. The UBS has a price target of $6.20 on the airline. Morgan Stanley’s price target is a huge 40% higher than today’s Qantas share price level.

The post ASX travel shares in focus on global flight cancellations appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 3 excellent ASX 200 blue chip shares to buy in 2022
• Why AMP, Hipages, Pilbara Minerals, and Webjet shares are storming higher
• ASX 200 (ASX:XJO) midday update: AMP shoots higher, travel shares rise
• Christmas is a bumper time for travel, so why is the Webjet (ASX:WEB) share price still struggling in December?

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 Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3ess7Ey

With the majority of brokers across Australia taking a well-earned break, broker notes are few and far between at present.

In light of this, listed below are a few recent broker recommendations that remain very relevant today. Here’s are three ASX shares rated as buys:

Appen Ltd (ASX: APX)

According to a note out of Citi, its analysts have retained their buy rating and $17.10 price target on this artificial intelligence data services company’s shares. Citi is sticking with Appen despite news that Amazon has launched a new SageMaker Ground Truth Plus service that uses an expert workforce to deliver high-quality training datasets faster. The broker believes that while competition in the Enterprise space may increase, competition with Appen’s major technology customers shouldn’t be impacted. The Appen share price is trading at $10.75 before the break.

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

A note out of Morgans reveals that its analysts have retained their add rating and $31.00 price target on this banking giant’s shares. Morgans remains positive on the banking sector as a whole and believes there is potential for further capital management and generous dividends in the near term. Its analysts also expect rising interest rates to be supportive of earnings growth in the coming years. The ANZ share price last traded at $27.46.

Treasury Wine Estates Ltd (ASX: TWE)

Another note out of Citi reveals that its analysts have retained their buy rating and $13.80 price target on this wine company’s shares. Citi came away from a key industry event in the United States feeling very positive. It notes that the update pointed to a recovery in high-margin on-premise and cellar-door wine sales in the United States. This is consistent with recent feedback from rival Duckhorn. In light of this, the broker is forecasting Treasury Americas’ first half EBITS to increase by 19% despite the divestment of commercial wine brands in March 2021. The Treasury Wine share price was trading at $12.20 at the end of last week.

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

More reading

• These are the 10 most shorted ASX shares
• Is the ANZ (ASX:ANZ) share price a buy with its 8% dividend yield?
• 3 ASX 200 dividend shares to buy for 2022 and beyond
• Broker tips ANZ (ASX:ANZ) share price to keep rising
• Should Appen (ASX:APX) shareholders worry about Amazon in 2022?

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

from The Motley Fool Australia https://ift.tt/3ErHlo0

With many analysts taking a well-earned break over the holiday period, broker notes are few and far between currently.

In light of this, listed below are a few recent broker recommendations that are still very relevant today. Here’s are three ASX shares rated as sells:

AMP Ltd (ASX: AMP)

According to a note out of UBS, its analysts have retained their sell rating and trimmed their price target on this financial services company’s shares to 90 cents. UBS made the move to reflect AMP’s demerger plans. The broker isn’t positive on PrivateMarketsCo’s outlook, nor that of the core AMP business, and doesn’t believe the demerger will unlock near-term value for shareholders. The AMP share price ended the week at $1.00.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Morgans reveals that its analysts have retained their reduce rating and $73.00 price target on this banking giant’s shares following a review of the banking sector. While Morgans is positive on the sector, it continues to believe the CBA share price is overvalued at the current level and sees better value on offer with other banks. Morgans has previously stated its belief that the premium CBA’s shares trade at to the other big banks is unjustifiably large. The CBA share price ended the week at $100.63

Magellan Financial Group Ltd (ASX: MFG)

Another note out of UBS reveals that 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 fetching $21.21 at Friday’s close.

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

More reading

• The stories that rocked the ASX 200 in 2021 revisited
• Top brokers name 3 ASX shares to sell next week
• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares 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. 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.

from The Motley Fool Australia https://ift.tt/3sAlqZp

If you’re wanting to buy some blue chip ASX 200 shares then the two listed below could be worth considering.

These blue chips have been named by Bell Potter as some of its top picks for 2022. Here’s what it is saying about them:

National Australia Bank Ltd (ASX: NAB)

The first blue chip ASX 200 share that is rated as a buy is banking giant NAB. The broker likes the bank due to its positive post-COVID outlook and strong balance sheet.

Bell Potter commented: “NAB’s FY21 performance reflected a better credit impairment outcome more than anything else but there was still ongoing momentum across home lending (+2.5%), SME lending (+5.1%) and New Zealand (a whopping +11.2%). Overall, there is nothing to suggest things haven’t improved and the bank rightly remains “optimistic about the long-term outlook for Australia and New Zealand.”

“The longer term operating environment post COVID-19 remains positive for ANZ and NAB. Both are well-provisioned and well-placed to capitalise on post- pandemic opportunities in retail and SME banking,” it added.

Its analysts have a buy rating and $31.00 price target. This compares to the latest NAB share price of $28.89.

TechnologyOne Ltd (ASX: TNE)

In the tech sector, Bell Potter believes Technology One could be an ASX 200 blue chip to buy. It believes the company is well-placed for double digit earnings growth as customers shift to its software-as-a-service (SaaS) offering.

The broker commented: “Technology One is a provider of ERP (enterprise resource planning) software to large corporates and government agencies in Australia, New Zealand, Asia Pacific and the UK. The key competitive advantage of the company is it has developed a fully integrated SaaS solution of its software and is now switching customers to this solution.”

“The migration is now >50% complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to re-rate to that of a pure SaaS company. Buy, Price Target $15.00,” it concluded.

This price target is meaningfully higher than the current Technology One share price of $12.79.

The post Bell Potter names 2 ASX 200 blue chip shares to buy in 2022 appeared first on The Motley Fool Australia.

More reading

• NAB (ASX:NAB) share price struggles amid second rate hike for December
• Drinking, banking, and EVs: 3 value ASX shares I’d buy right now
• Broker says NAB (ASX:NAB) share price offers 12% upside plus dividends
• 5 things to watch on the ASX 200 on Monday
• 3 highly rated ASX shares to buy next week

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

from The Motley Fool Australia https://ift.tt/3FymxN9

There are a few different reasons why the Redbubble Ltd (ASX: RBL) share price could be a good one to consider for the long-term.

Redbubble is an e-commerce platform business. It sells a wide range of products that have designs on them which have been created by artists. Those artists receive a slice of each sale. Items like wall art, phone cases and clothes are among the categories that people can choose to buy.

Morgan Stanley currently rates the business as a buy, with a current price target of $6.50. That’s more than 90% higher than where it is today.

Here are a few compelling reasons why the Redbubble share price could be one to watch.

Large addressable market

Redbubble says that the e-commerce spending in its current addressable product categories in ‘core geographies’ was $300 billion in 2020 and is expected to rise to $400 billion in 2024. That would be growth of more than 9% per annum.

The total global addressable market in its product categories is expected to be more than $1 trillion by 2024.

The company says it’s benefiting from a number of useful macro trends including structural shifts to e-commerce (which are expected to endure), increasing customer demand for unique and meaningful products, a growing creator economy and customers looking for sustainability and corporate responsibility.

Within the company’s core market, more than a third of customers are supposedly seeking something that is “unique and meaningful”.

Management believe that it has “truly global” opportunities with the potential “expand across all geographies”.

Repeat customer spending is growing

Redbubble is seeing a growing number of sales coming from repeating customers.

In FY21, the ASX tech share saw that repeat purchases made up 42% of marketplace revenue (which is revenue after paying the artists). Last financial year, repeat purchases increased 67% year on year to $232 million of marketplace revenue.

Morgan Stanley thinks that returning customers buying products is an important part of Redbubble’s future and can help it achieve its longer-term goals. This could be a helpful factor for the Redbubble share price.

The company continues to invest in new and improved ways to reach customers, including its apps.

It is doing a number of loyalty experiments, with some showing “early positive retention signals.”

Long-term growth plans

The business has a goal of reaching $1.25 billion of marketplace revenue in the longer-term.

It’s going to invest in four key areas. The first is artist activation and engagement. Second, user acquisition and transaction optimisation. Third is customer understanding, loyalty and brand building. Fourth is product range and the third party fulfilment network.

In the shorter-term it is going to invest heavily and grow its global market leadership in the artist product space.

But over the longer-term, this growth is expected to lead to a rising earnings before interest, tax, depreciation and amortisation (EBITDA) margin as operating leverage builds.

Geographic expansion remains a longer-term aspiration for the business.

The post 3 reasons why the Redbubble (ASX:RBL) share price could be a great buy appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 2 leading ASX growth shares for 2022
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• Why Alcidion, Magellan, Redbubble, and Seven West shares are dropping

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 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.

from The Motley Fool Australia https://ift.tt/3pwCIVp