Category: Stock Market

One thing the Australian share market is not short of is blue chip shares. But with so many to choose from it can be hard to decide which ones to buy over others.

To help narrow things down, I have picked out two top blue chip shares that are rated as buys. They are as follows:

CSL Limited (ASX: CSL)

The first blue chip ASX share to consider is CSL. It is one of the world’s leading biotechnology companies, comprising the CSL Behring business and the Seqirus business. The CSL Behring business is the global leader in a plasma therapies industry worth a massive US$30 billion per year. Whereas Seqirus is the number two player in the US$6 billion global influenza vaccines industry.

While COVID-related plasma collection headwinds have been weighing on CSL’s performance, this is only expected to be a temporary headwind. In light of this, investors may want to focus more on the long term, which remains very positive for CSL. This is due to its strong portfolio of life-saving therapies and vaccines and its lucrative research and development pipeline.

Morgans is positive on CSL and currently has an add rating and $324.40 price target on its shares.

Goodman Group (ASX: GMG)

Another blue chip ASX share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of in-demand properties. Many of these properties have exposure to key growth markets such as ecommerce and logistics, which has been a key driver of Goodman’s stellar performance in recent years.

Pleasingly, this strong demand remains today, which led to Goodman upgrading its FY 2022 earnings guidance this week. Instead of 10% growth, the company now expects to deliver operating earnings per share growth of at least 15%.

This went down well with the team at Citi. In fact, the broker still feels this guidance in conservative and that Goodman will outperform it. As a result, Citi has retained its buy rating and lifted its price target to $27.50.

The post 2 buy-rated blue chip ASX shares to boost your portfolio appeared first on The Motley Fool Australia.

More reading

• What happened to the CSL (ASX:CSL) share price in October?
• Top brokers name 3 ASX shares to buy today
• Why is the Goodman Group (ASX:GMG) share price up 9% so far this week?
• Here are the top 10 ASX shares today
• Own biotech shares? These were the best performers during October

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 shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are some ASX shares that might be able to make both growth and dividends for investors.

Some businesses may have a reputation for growth, whilst other could be known for the dividends they pay.

However, there are a certain group of ASX shares that may be able to provide an attractive combination of both dividends and growth, like these two:

Propel Funeral Partners Ltd (ASX:PFP)

Propel is the second largest funeral operator in Australia and New Zealand. It operates under numerous brands after making a number of acquisitions since it started several years ago.

Death volumes grew by 0.9% per annum between 1990 and 2019. The death volumes are expected to rise by 2.7% per annum between 2019 and 2030, and then rise around 2% from 2030 to 2050. Propel says that the number of deaths is the most significant driver of revenue in the death sector.

In FY21, Propel’s funeral volumes increased by 4.6% to 13,916. The average revenue per funeral rose by 4.3% to $5,917, or 2.8% on the pre-COVID period. Whilst revenue rose by 8.7% to $120.4 million in the financial year, operating net profit grew by 7.6% to $15.3 million.

The Propel dividend was increased by 17.5% to 11.75 cents per share.

The ASX share continues to see organic growth. The FY22 first quarter saw revenue growth of 13%, with the business performing a record number of funerals in a quarter, with total funeral volume growth above 10% year on year.

In mid-September, the business announced more acquisitions totalling $17.6 million, which allowed the business to expand into Auckland and enter Adelaide.

At the current Propel share price, it’s valued at 29x FY23’s estimated earnings with a projected grossed-up dividend yield of 3.7% for FY23.

Ansell Limited (ASX: ANN)

Ansell is one of the world’s leading safety glove makers. It also makes other protective gear like protective body suits.

The ASX share saw enormous demand for its healthcare gloves during FY21. Whilst total sales increased 25.6% to $2 billion, the healthcare division experienced organic growth of 34.8% with volume growth for surgical and life sciences, whilst also benefited from a favourable pricing and mix benefit from exam and single use products.

Ansell’s earnings before interest and tax (EBIT) increased 56% year on year, with the EBIT margin increasing 330 basis points to 16.7%. The EBIT was pushed up by higher production volumes, the pricing and mix benefit, as well as operating leverage. However, the profitability benefits were partly offset by elevated labour and freight costs combined with an increase in inventory provisions.

However, Ansell has said that in the shorter-term for FY22, it is expected that there will be lower demand for areas that most benefited during the onset of COVID-19 like the chemical body production and undifferentiated exam and single use gloves.

Ansell warned that its supply may be disrupted because a number of suppliers and factories had to reduce or close their operations. This could impact sales and lead to consistent freight costs and shipping delays.

The ASX share also recently announced an $80 million greenfield investment over the next three years to build a new manufacturing facility in India. It will have the capability to produce a wide range of products, with an initial focus on surgical and life science gloves for the Indian domestic market and for export.

The Indian move will create “important” diversification in Ansell’s manufacturing footprint and create additional production capacity.

At the current Ansell share price, it’s valued at 13x FY22’s estimated earnings with a yield of 3.25%.

The post 2 ASX shares that could be buys for both growth and dividends appeared first on The Motley Fool Australia.

More reading

• Ansell (ASX:ANN) share price climbs 2% amid takeover rumours
• Propel Funeral (ASX:PFP) share price edges higher on Share Purchase Plan opening
• Ansell (ASX:ANN) share price hits a new 52-week low today
• Why BHP, Propel, Silver Lake, and Tabcorp shares are falling
• Which ASX 300 shares are the biggest winners and losers on Tuesday?

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 Ansell Ltd. and Propel Funeral Partners 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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The Link Administration Holdings Ltd (ASX: LNK) share price will be one to watch on Friday.

Why could the Link share price rocket higher?

The Link share price could rocket higher today after it received a takeover approach.

According to the release, the company has received a conditional, non-binding indicative proposal from private equity firm, Carlyle Group, to acquire Link via a scheme of arrangement.

Carlyle Group has tabled an offer of $3.00 per share plus a pro rata distribution of Link’s shareholding in PEXA Group Limited (ASX: PXA). The latter is valued at $2.38 per share on a look-through basis, bringing the total consideration to $5.38 per share.

This offer represents a 24.2% premium to the Link share price at yesterday’s close, which bodes well for its performance on Friday.

What’s next?

The release notes that the proposal remains subject to a number of conditions. This includes due diligence, the negotiation and execution of transaction documentation, securing debt financing, final investment committee approval from Carlyle, and certain regulatory and other approvals.

The Link Board intends to consider the proposal. This includes obtaining advice from its financial, legal, and tax advisers.

In the meantime, the company has suspended its on-market share buyback. As of yesterday’s close, the company had bought back 23,238,691 shares for a value of ~$101.7 million. This represents just over two-thirds of the $150 million buyback.

As there is no certainty that a deal will be done, Link has advised shareholders that they do not need to take any action in relation to the proposal.

It intends to keep shareholders informed, as required under its continuous disclosure obligations, if there are any material developments in the future.

The post Why the Link (ASX:LNK) share price could rocket higher today appeared first on The Motley Fool Australia.

More reading

• REA Group (ASX:REA) share price on watch after delivering strong Q1 growth
• Own Sydney Airport (ASX:SYD) shares? Here’s how the share price performed in October
• Get ready for a 10% share market correction: expert
• Why did the Macquarie (ASX:MQG) share price have such a great month in October?
• 3 outstanding ASX growth shares to buy now

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 shares of and has recommended Link Administration Holdings Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The REA Group Limited (ASX: REA) share price will be one to watch closely on Friday.

This follows the release of the property listings company’s first quarter update this morning.

REA Group share price on watch after strong start to FY 2022

• Revenue up 35% to $264 million (22% excluding acquisitions)
• Operating expenses up 49% to $107 million (13% excluding acquisitions)
• EBITDA jumped 25% to $158 million (24% excluding acquisitions)
• Free cash flow up 20% to $49 million (29% excluding acquisitions)
• National listings up 11% (Sydney down 7%, Melbourne up 79%)

What happened during the quarter?

For the three months ended 30 September, REA delivered a 35% increase in revenue to $264 million and a 25% lift in EBITDA including associates to $158 million. This was driven by growth across all Australian segments, underpinned by an increase in national listings.

The company notes that the Australian residential property market showed resilience during the quarter. After modest declines in July, national listings increased 11% for the quarter, with Sydney down 7% and Melbourne up 79% due to lockdown impacts in the prior period.

Also boosting REA’s financial performance was a rise in Australian Residential revenue from increased depth and Premiere penetration, price increases from 1 July, and continued growth in add-on products.

The release also highlights that its Financial Services segment performed well. Management notes that the Smartline and Mortgage Choice businesses experienced strong growth in operating revenues. This was driven by continued growth in settlements and brokers. It also advised that the Mortgage Choice integration is progressing well.

Another positive is that the Indian market has rebounded following the negative COVID impacts experienced in the second half of FY 2021. REA India achieved strong year on year revenue growth, driven by Housing.com’s core business and growth in adjacency products.

Finally, taking some of the shine off the result was an increase in REA’s costs. This reflects a combination of continued investment to deliver strategic initiatives, which has seen higher headcount and salaries in a tight labour market, and reduced operating costs in the prior period as it navigated through COVID uncertainty.

Nevertheless, the company continues to target positive operating jaws (revenue growth greater than costs growth) in FY 2022, excluding the impact of acquisitions.

Management commentary

REA Group’s Chief Executive Officer, Owen Wilson, commented: “REA has delivered an impressive result given the prolonged lockdowns in Sydney and Melbourne. Our performance reflects the continued value our premium listing products are delivering to our customers, and realestate.com.au’s clear position as the number one place to search, find and finance property.”

“Our teams have made excellent progress across a number of key initiatives including the integration of our Mortgage Choice and Smartline businesses, the roll out of new products such as our Connect offering and our integrated rental applications platform, all of which provide the foundations for continued growth,” he added.

Trading update

Potentially giving the REA Group share price a boost today will be management’s comments on current trading.

It explained: “Residential property market conditions are positive, with high levels of buyer enquiry underpinned by continued low interest rates and healthy bank liquidity. October National residential listings were up 16% YoY, with an increase in Melbourne of 20% and 29% in Sydney.”

Though, the company has warned that growth rates are likely to slow as it cycles very strong prior period listing volumes. It also notes that regulatory measures to slow house price inflation could impact listing volumes.

Nevertheless, the company’s CEO remains positive on REA’s outlook.

“As vaccination milestones are met and restrictions continue to be lifted, we expect property markets across Australia to revert to normal operating settings. Buyers remain out in force and this strong demand is likely to fuel ongoing positive momentum,” concluded Mr Wilson.

The post REA Group (ASX:REA) share price on watch after delivering strong Q1 growth appeared first on The Motley Fool Australia.

More reading

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• 2 compelling ASX shares that could be buys in November 2021
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• Which ASX 300 shares are the major movers today?
• 3 buy-rated blue chip ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Investors may want to know how the Sydney Airport (ASX: SYD) share price performed in October 2021.

The business continues to be impacted by COVID-19 effects. But that’s probably not the main thing that is influencing the Sydney Airport share price.

Sydney Airport share price performance

Over October 2021, the Sydney Airport share price dropped around 0.6%.

Sydney Airport is currently dealing with a consortium of investors that want to buy the Sydney Airport business outright. This consortium, called the Sydney Aviation Alliance, wants to buy the whole business for an indicative price of $8.75 cash per share.

The airport business did grant the consortium the opportunity to conduct due diligence over a four-week period. That concluded in the middle of October 2021. A couple of weeks ago, Sydney Airport said that its boards continue to negotiate the relevant transaction documents with the parties seeking their respective internal approvals over the coming weeks.

If those documents are agreed, the Sydney Airport boards intend to unanimously recommend that investors vote in favour of the proposal if a better offer doesn’t appear and an independent expert concluding that the transaction is in the best interest of securityholders.

While relevant transaction documents remain under negotiation, the Sydney Airport boards note that there is no guarantee that an agreement will be reached.

Over the last five months, the Sydney Airport share price has gone up by around 35%.

Airport passengers

Before the takeover approach, one of the main influencers on the Sydney Airport share price was its regular passenger update.

Total passenger traffic in September 2021 was 42,000 passengers, down 98.8% compared to the same month in 2019. Domestic passengers totalled 23,000 in September 2021, which was down 99% on 2019. There were only 19,000 international passengers that passed through Sydney Airport in September 2021, down 98.6% on 2019.

Sydney Airport noted international and domestic passenger traffic in September continued to be impacted by NSW stay at home orders and ongoing border restrictions.

Looking at the top six nationalities that had travelled through Sydney Airport in 2021 to date, they were these countries in order: Australia, China (including Hong Kong), India, the USA, the UK and New Zealand,

Is the Sydney Airport share price a buy?

The broker Ord Minnett thinks that Sydney Airport shares are a hold, with the price target of $8.75 being the takeover offer price. That means there is a potential upside of around 5%, if the deal goes ahead.

The post Own Sydney Airport (ASX:SYD) shares? Here’s how the share price performed in October 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 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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Investors should prepare for a 10% share market correction over the next month, one financial expert has warned.

Global supply chain pressures, rising energy costs and reopening economies have all conspired to keep inflation around for longer than the central banks had hoped.

This has already forced some countries to raise interest rates.

Perhaps the last of the “holdouts” — the Reserve Bank of Australia — this week announced the early abandonment of bond yield curve control.

“Today’s decision is a sure sign interest rates are going to start to rise,” Monash University economics lecturer Isaac Gross said on Tuesday.

“Not today, or even for the rest of this year, but sooner [than] was previously expected.”

And from next month the US Federal Reserve will start doing the same, reducing its balance sheet.

Inflation is running both “hot” and “stickier”

All this uncertainty over interest rates is trouble, according to DeVere Group chief executive Nigel Green.

“Inflation is running hotter and is becoming a bigger issue than most analysts previously expected,” he said.

“The real story for the markets is how the Fed, the world’s de facto central bank, will talk about inflation.”

Green believes that the US Federal Reserve will now abandon the term “transitory” to describe current inflation, and this will rock share markets like the S&P 500 Index (SP: .INX) and S&P/ASX 200 Index (ASX: XJO).

“Inflation appears to be stickier than they had expected. This means that they are likely to have to raise interest rates sooner and/or more aggressively,” he said.

“Therefore, markets are actively pricing in 2 or 3 hikes next year and this could lead to a 5% to 10% market adjustment over the next month.”

Corrections are opportunities for wise folk

Central banks were forced to resort to near-zero interest rates and keep bond yields down when the COVID-19 pandemic first hit last year.

But with economies now running hot, they feel the stimulus has done its job and a gradual transition to more “standard” monetary conditions must begin soon.

In Australia, Gross believes this week was the end of an era.

“We don’t yet know how quickly variable interest rates will start to rise, but given the Reserve Bank has walked away from a battle to defend yield curve control, we do know it’ll be a long time before it even considers doing it again.”

According to Green, his predicted shock to share markets should not trigger panic in long-term investors.

“A market correction will be seen by savvy investors as the first major step towards the likely return to normal monetary policy and they will be seeking out the inherent opportunities that will be presented.”

The post Get ready for a 10% share market correction: expert appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
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• Here are the top 10 ASX shares today
• These were the 5 best performing ASX retail shares in October
• Why the Amcor (ASX:AMC) share price is outperforming today

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

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The Macquarie Group Ltd (ASX: MQG) share price rose by around 9% during October 2021.

Macquarie is one of the largest financial businesses on the ASX, with four different segments.

The global investment bank recently reported its FY22 first half result, which included a large profit increase year on year.

Macquarie’s major HY22 profit result

Macquarie reported that in the first six months of its 2022 financial year, net profit more than doubled, rising by 107%, to $2.04 billion. This was essentially in line with the profit that was generated in the second half of FY21.

The business continues to grow globally, with international income making up 72% of total income in the first half of FY22.

Assets under management (AUM) had reached A$737 billion at 30 September 2021, which was up 31% from 31 March 2021.

Macquarie said that its financial position comfortably exceeded regulatory minimum requirements, with surplus capital of $8.4 billion. The bank CET1 capital ratio was 11.7%.

The board decided to declare an interim dividend of $2.72 per share, which represented a payout ratio of 50%. At the current Macquarie share price, the last two declared dividends amounts to a partially franked dividend yield of 3%.

Individual segment performance

Macquarie Asset Management (MAM) contributed $1.3 billion of net profit, an increase of 23% year on year. This was driven by the divestment of Macquarie Infrastructure Corporation assets, partially offset by a gain on the sale of Macquarie European Rail in the first half of FY21 and lower performance fees.

The banking and financial services division saw net profit grow 52% year on year to $482 million. This reflected growth in home loan, business lending, platforms and deposits, as well as lower credit impairment charges, partially offset by a higher headcount and investment in technology to support growth.

Commodities and global markets (CGM) saw profit increase 60% year on year to $1.73 billion. There was higher revenue from ‘commodities’, with strong risk management income from gas and power, resources and agriculture.

Finally, Macquarie Capital delivered a net profit of $468 million, which was up “significantly” from a loss of $189 million in the first half of FY21. This came about due to higher fee and commission income thanks to mergers and acquisitions, and debt, income.

Investing for growth and increasing green exposure

From 1 April 2022, the Green Investment Group (GIG) will operate as part of MAM, to bring together Macquarie’s specialist capabilities to provide clients with greater access to green investment opportunities.

Macquarie noted that the need for investment has grown substantially in GIG’s area of focus, and this move will enable long-term investment across the asset lifecycle, from development to operations. GIG will retain its brand and continue its mission to accelerate the green transition, providing greater scale of decarbonisation solutions for clients, portfolio companies, communities and the environment.

The global investment bank recently completed its $1.5 billion institutional placement to invest further in the business and find new opportunities.

Is the Macquarie share price a buy?

Opinions are mixed on the business. Credit Suisse rates it as ‘neutral’ with a price target of $195. But Citi calls it a buy with a price target of $226 after continuing high levels of profitability from the business.

On Citi’s numbers, Macquarie shares are valued at 18x FY22’s estimated earnings.

The post Why did the Macquarie (ASX:MQG) share price have such a great month in October? appeared first on The Motley Fool Australia.

More reading

• Here’s why JP Morgan sees more growth in Macquarie (ASX:MQG) shares
• Which ASX bank shares were the best performers during October?
• Leading brokers name 3 ASX shares to buy today
• ASX 200 (ASX:XJO) midday update: Westpac sinks, Macquarie raises $1.5bn
• Can the Macquarie (ASX:MQG) share price break new highs over $200?

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 owns shares of and 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form again and charged higher. The benchmark index rose 0.5% to 7,428 points.

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

ASX 200 expected to rise again

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% higher. This follows a decent night of trade on Wall Street, which late on sees the Dow Jones down 0.35%, but the S&P 500 up 0.3% and the Nasdaq up 0.85%.

REA Group quarterly update

The REA Group Limited (ASX: REA) share price will be one to watch today when it releases its first quarter update. Lockdowns in Melbourne and Sydney are expected to have weighed on the property listings company’s performance, offsetting some of the benefits of the booming housing market. The team at Goldman Sachs is forecasting full year EBITDA growth of 8.6% in FY 2022.

Oil prices fall again

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could end the week in the red after oil prices dropped again. According to Bloomberg, the WTI crude oil price is down 2.5% to US$78.84 a barrel and the Brent crude oil price is down 1.9% to US$80.45 a barrel. Traders were selling oil after OPEC agreed to stick to its production growth plans.

Westpac shares go ex-dividend

The Westpac Banking Corp (ASX: WBC) share price is likely to trade notably lower on Friday. This is because this morning the banking giant’s shares will trade ex-dividend for its fully franked 60 cents per share final dividend. This dividend will then be paid to eligible shareholders next month on 21 December.

Gold price rebounds

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a good finish to the week after the gold price stormed higher. According to CNBC, the spot gold price is up 1.7% to US$1,793.7 an ounce. Traders were buying gold after the US Federal Reserve signalled that it would be patient with rate hikes.

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

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Here are the top 10 ASX shares today
• Why is the Woodside (ASX:WPL) share price slipping and sliding today?
• These were the 5 best performing ASX retail shares in October
• Why the Amcor (ASX:AMC) share price is outperforming today

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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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.

Analysts at Bell Potter are very positive on the bank. They likes CBA due to its strong position as the leader in home lending and retail deposits. The broker also notes that the bank has a very strong balance sheet with significant surplus capital of over $11 billion. This could bode well for potential share buybacks or other capital management initiatives in the future.

Bell Potter currently has a buy rating and $118.00 price target on its shares. It is also forecasting fully franked dividends per share of $4.06 in FY 2022 and $4.27 in FY 2023.

Based on the current CBA share price of $108.50, this will mean yields of 3.7% and 3.9%, respectively.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share to consider is this mining giant. It has a diverse portfolio of world class operations that provide investors with exposure to a range of commodities. This includes alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc.

South32 has also just announced a US$1.55 billion agreement with Sumitomo Corporation to acquire a 45% stake in the Sierra Gorda copper mine in Chile. This deal is expected to be immediately accretive to the company’s earnings.

The acquisition went down well with the team at Goldman Sachs, which was already very bullish on South32. In response to the news, the broker retained its conviction buy rating and lifted its price target to $4.40. This is notably higher than the current South23 share price of $3.53.

But it gets even better! Goldman believes the mining giant is well-placed to generate bumper free cash flow for the foreseeable future. In light of this, it is forecasting fully franked dividend yields greater than 11% from FY 2022 through to at least FY 2026.

The post Brokers name 2 excellent ASX 200 dividend shares to buy 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. 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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Today was a great day on the ASX for the Avita Medical Inc (ASX: AVH) share price.

The medical technology company’s stock was boosted by news that the US authority Centers for Medicare and Medicaid Services has approved Avita’s application for a new device category code.

The new code means the cost of Avita’s RECELL System will be able to be offset when it’s used in hospitals and surgical centres.

Avita’s RECELL System is a skin restorative system that allows healthcare professionals to restore skin cells to burned areas.

As of Thursday’s close, the Avita share price is $15.13, 15.8% higher than it was at Wednesday’s close.

Let’s take a closer look at today’s news from Avita.

The latest news of the RECELL System

The Avita share price surged higher today as the company’s CEO noted the new code could see its RECELL System adopted widely.

According to the company’s release, the code under which the RECELL System will soon lie is designed to help facilities adopt new technology by offsetting the cost. The system will adopt the new code on 1 January 2022.

Avita’s CEO Mike Perry commented on the news that drove the company’s share price, saying:

The new code will enable health care providers to treat burn patients with RECELL in various care settings especially during the pandemic, and over the long run, help foster adoption of RECELL in small burns as well as in future indications.

Perry noted the new code “lays the reimbursement foundation for the soft tissue repair indication”. He also said the space represents a $450 million serviceable market.

Previous studies have found that the RECELL System resulted in 97.5% less donor skin being needed to treat second degree burns. Other findings from the studies have also highlighted that the RECELL System means there is 32% less donor skin required to treat patients with third degree burns.

Avita share price snapshot

Today’s gain has boosted the Avita share price back into the ASX green.

It is now 1.3% higher than it was at the start of 2021. However, it’s still 14.9% lower than it was this time last year.

The post The Avita Medical (ASX:AVH) share price just leapt 16% because of this appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical 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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