Category: Stock Market

Coles Group Ltd (ASX: COL) shares are a popular investment on the ASX. That’s understandable. After all, Coles is one of the most prominent businesses in the country, given that it runs the nation’s second-largest network of supermarket grocery stores.

Coles is, in my view, a relatively defensive company. It has a durable earnings base and a solid and reliable dividend track record. Despite this, the Coles share price has displayed significant volatility since it was listed on the ASX in its own right back in late 2018.

To illustrate, Coles shares have traded between $12.50 and $19 over the past five years. Today, the company is priced smack bang in the middle of this range. At the close of trading on Wednesday, it was asking $16.11 a share.

Take a look at all this for yourself here:

As we’ve covered before here at the Fool, I find Coles appealing for a number of reasons. This stock’s dividend track record, as well as its defensive nature, are two things I tend to look for in an ASX share.

But finding a quality company is only half the investment process. As the late great Charlie Munger once said, “No matter how wonderful a business is, it’s not worth an infinite price.”

So, what price would I be happy to buy Coles shares at today?

What price would make me buy Coles shares?

Well, when it comes to a dividend payer like Coles, I like to gauge an investing case by using the dividend yield. As any good investor knows, a company’s dividend yield has an inverse relationship with its share price.

Because of this relationship, in Coles’ case, we can use the dividend yield to determine what has historically been a good investment price.

Right now, Coles has a dividend yield of 4.1%, which includes full franking credits. That’s not bad, given that the company was trading at a yield of just 3.53% last June when it was at its last 52-week high of $18.70.

However, it’s not quite at a level where I’d be happy to buy. Coles’ current 52-week low is $14.82, which was hit back in October last year. At this price, Coles’ dividend yield would have been as high as 4.45%.

Now, I’m not waiting for Coles to get back to those levels. But I would become very interested if the company reached around $15 a share. At that price, investors could expect a dividend yield of around 4.4%.

Now, $15 might seem a long way from the current Coles stock price. But given this company’s volatile past, I wouldn’t be surprised to see it get back there at some point in the next year or two. And if it does, I might just have to buy some shares and hopefully secure a 4.4% dividend yield for my portfolio.

The post Here’s the Coles share price I would buy at appeared first on The Motley Fool Australia.

More reading

• Broker says these ASX dividend shares are top buys
• 4 ASX income stocks to buy for 4% to 8% dividend yields
• Top ASX dividend shares to buy in May 2024
• 2 of the best ASX 200 blue-chip shares to buy in May
• Why Goldman Sachs just upgraded Coles shares

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

The good news for income investors is that there are a large number of ASX dividend shares to choose from on the Australian share market.

The hardest part can be deciding which ones to buy over others.

But don’t worry, analysts have done all the hard work for you and picked out three shares that they think could be in the buy zone now. They are follows:

Deterra Royalties Ltd (ASX: DRR)

Deterra Royalties could be a good option for income investors that are not averse to investing in the mining sector.

Although the company doesn’t do any mining itself, it reaps the rewards of others doing so. This is because it receives royalties from a range of operations. This includes the key asset in its portfolio – the Mining Area C iron ore operation in the Pilbara region of Western Australia.

Morgan Stanley believes that plenty of cash will be flowing into its bank accounts in the near term. So much so, it is forecasting bumper fully franked dividends per share of 32.7 cents in FY 2024 and 39 cents in FY 2025. Based on the current Deterra Royalties share price of $4.83, this will mean dividend yields of 6.75% and 8.1%, respectively.

Morgan Stanley has an overweight rating and $5.60 price target on its shares.

IPH Ltd (ASX: IPH)

Another ASX dividend share that has been given the thumbs up by analysts is intellectual property solutions company, IPH.

Goldman Sachs is the broker recommending the company. It is positive due to its belief that IPH is “well-placed to deliver consistent and defensive earnings with modest overall organic growth.”

The broker is expecting this to underpin fully franked dividends per share of 34 cents in FY 2024 and 37 cents in FY 2025. Based on the current IPH share price of $6.19, this represents yields of 5.5% and 6%, respectively.

Goldman currently has a buy rating and $8.70 price target on IPH’s shares.

NIB Holdings Limited (ASX: NHF)

Another ASX dividend share that gets the seal of approval from analysts at Goldman Sachs is private health insurance giant NIB.

Goldman notes that NIB “offers defensive exposure to the private health insurance sector which is experiencing favourable operating trends.”

It expects this to put the company in a position to pay fully franked dividends per share of 31 cents in FY 2024 and 30 cents in FY 2025. Based on the current NIB share price of $7.05, this would mean 4.4% and 4.25% yields, respectively.

Goldman currently has a buy rating and $8.10 price target on the company’s shares.

The post Brokers say these ASX dividend shares are top buys now appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Buy these ASX dividend stocks for a passive income boost
• 3 ASX 200 dividend stocks for investors to buy
• Buy Rio Tinto and these ASX 200 dividend shares
• 3 bargain Australian shares with over 5% dividend yields

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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended NIB Holdings. The Motley Fool Australia has recommended IPH. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and ended the day a fraction lower. The benchmark index fell 3.5 points to 7,848.1 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set for a tough session on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.7% lower this morning. In the United States, the Dow Jones was down 0.5%, the S&P 500 fell 0.3%, and the Nasdaq dropped 0.2%.

BHP makes third offer for Anglo American

BHP Group Ltd (ASX: BHP) shares will be in focus on Thursday after the mining giant confirmed that it has made a third offer for Anglo American plc (LSE: AAL). However, despite bumping its offer nicely for the copper miner, BHP has once again had its proposal rejected. Anglo American said: “The Board considered BHP’s Latest Proposal carefully, concluded it does not meet expectations of value delivered to Anglo American’s shareholders, and has unanimously rejected it.” In response to the news, BHP shares ended the day 4.5% lower on Wall Street.

Oil prices drop

It looks set to be a disappointing session for ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$77.32 a barrel and the Brent crude oil price is down 1.5% to US$81.67 a barrel. Oil prices are on track for a third consecutive decline.

Xero FY 2024 results

The Xero Ltd (ASX: XRO) share price will be one to watch today when the cloud accounting platform provider releases its FY 2024 results. Goldman Sachs has pencilled in a 22% increase in revenue to NZ$1,709 million. This is a touch ahead of the consensus estimate of NZ$1,696 million. Goldman also expects Xero’s earnings to grow quicker than the market is expecting. It is forecasting EBITDA of NZ$480 million for FY 2024. This represents a 59% increase on the prior corresponding period and is ahead of the consensus estimate of NZ$469 million.

Gold price tumbles

It looks set to be a tough session for ASX 200 gold miners Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1.85% to US$2,381 an ounce. This was reportedly driven by profit taking from traders after some strong gains recently.

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

More reading

• Why this ASX 200 gold stock is ‘the BHP of gold mining’
• BHP shares on watch after new $74b Anglo American takeover offer rejected
• Here are the top 10 ASX 200 shares today
• These 2 ASX shares could win big time in the long term
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Over the last 12 months, the Australian share market has been a relatively strong performer.

During this time, the benchmark index has risen by 8%.

While this is positive, there are plenty of exchange-traded funds (ETFs) that have delivered stronger returns.

For example, three ASX ETFs that have achieved this are listed below. Here’s what you need to know about them and why they could continue to outperform:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF has been on form over the last 12 months. During this time, the fund has smashed the market with a 33% return. Investors have been buying this ETF for exposure to the rapidly growing cybersecurity sector.

The good news is that the sector has been tipped to continue its meteoric growth long into the future. This is being underpinned by the shift to the cloud, artificial intelligence, and the increasing prevalence of cybercrime.

This bodes well for the companies that are held by the BetaShares Global Cybersecurity ETF. This includes leaders such as Accenture, Cisco, Crowdstrike, and Palo Alto Networks.

Betashares Global Uranium ETF (ASX: URNM)

Another ASX ETF that has smashed the market over the last 12 months has been the Betashares Global Uranium ETF. This fund has risen by an astonishing 95% since this time last year thanks to sky high uranium prices and optimism over nuclear power adoption as a clean energy.

And while this fund is unlikely to deliver such incredible returns again over the next 12 months, it appears well-placed to continue being a market-beater. This is because uranium demand is increasing at a time when supply is tightening. This has many believing that uranium prices are only going higher from here over the coming years.

Included in the fund are locally listed uranium developers Boss Energy Ltd (ASX: BOE) and Paladin Energy Ltd (ASX: PDN).

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A third ASX ETF that has beaten the market over the past 12 months is the VanEck Vectors Video Gaming and eSports ETF. Over this time, the popular fund has generated a return of 25%.

Investors appear attracted to the growing video games and eSports markets. In respect to the former, there are estimated to be almost 3 billion active gamers globally.

And with these markets tipped to continue to grow over the next decade, this bodes well for the companies included in the fund. These are gaming industry titans such as Electronic Arts, Nintendo, Roblox, and Take-Two.

The post These market-beating ASX ETFs could be fantastic options in 2024 appeared first on The Motley Fool Australia.

More reading

• Buy these 4 ASX ETFs for income, growth, or mining exposure
• 3 excellent ASX ETFs I think are a buy right now
• How much money should I put in one ASX ETF?
• 5 excellent ASX ETFs to buy next week
• How to invest in uranium on the ASX

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 positions in and has recommended Accenture Plc, BetaShares Global Cybersecurity ETF, Cisco Systems, CrowdStrike, Palo Alto Networks, Roblox, and Take-Two Interactive Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Electronic Arts and Nintendo and has recommended the following options: long January 2025 $290 calls on Accenture Plc and short January 2025 $310 calls on Accenture Plc. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Betashares Global Uranium Etf and CrowdStrike. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) gold stock Newmont Corp (ASX: NEM) only began trading on the ASX on 27 October.

The United States-based gold mining giant was previously only listed on the New York Stock Exchange (NYSE).

But following Newmont’s successful acquisition of former ASX-listed gold miner Newcrest Mining, the company opted to dual list in the United States and Australia.

And having swallowed up Newcrest’s assets, Newmont’s market cap now stands at a whopping $76 billion.

That dwarfs the second biggest ASX 200 gold stock, Northern Star Resources Ltd (ASX: NST), which has a market cap of $16.8 billion.

Indeed, Newmont’s wide range of high-quality gold mines has Blake Henricks, portfolio manager at the Firetail Australian High Conviction Fund, labelling the company the “the BHP Group Ltd (ASX: BHP) of gold mining”.

Here’s why Henricks is bullish on Newmont shares.

A massively overlooked ASX 200 gold stock

The Firetail Australian High Conviction Fund recently increased its holdings of Newmont shares.

That’s despite, or perhaps because, the ASX 200 gold stock tumbled a painful 25% over the first two months of 2024.

“It was one of our biggest detractors over the last six months – and it’s fair to say the market has put Newmont in the sin bin,” Henricks said (quoted by The Australian Financial Review).

Commenting on Newmont’s performance on the NYSE, Henricks added, “Gold prices are up more than 20% in the past two years, and yet Newmont is down close to 30%. That’s a very large dislocation.”

Indeed, the gold price has had a strong run over the past two years, with the yellow metal really taking off at the end of February.

On 28 February, gold was trading for US$2,035 per ounce. At market close yesterday, that same ounce was trading for US$2,414. That sees bullion up almost 19% in just 10 weeks.

As you’d expect, this has been a boon for most ASX 200 gold stocks, with Newmont shares surging 43.72% since market close on 28 February.

And citing the comparison to BHP’s market dominance, Henricks believes there’s more outperformance to come from Newmont.

According to Henricks (courtesy of the AFR):

[Newmont] is the BHP of gold mining. They own more than half of the world’s tier one assets… this is the kind of business you want to buy. We believe the market’s massively overlooked [this stock].

In April, the ASX 200 gold stock reiterated its FY 2024 guidance.

Newmont expects to produce 6.9 million ounces of gold over the full year at an all-in sustaining cost (AISC) of US$1,400 per ounce.

The post Why this ASX 200 gold stock is ‘the BHP of gold mining’ appeared first on The Motley Fool Australia.

More reading

• ASX 200 gold stocks in focus as gold price smashes record highs
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Thursday
• Why more ASX mining shares could soon turn to takeover bids

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

Superannuation is the key asset for driving future prosperity for most Australians, according to research by Findex. Reaching $1 million in retirement may sound like a monumental task, but it is possible for many Australians.

Findex research showed that three in five (59%) Aussies believe they will need at least $750,000 in superannuation, including more than two in five (42%) who believe they will need at least $1 million.

Becoming a millionaire is an appealing target, so let’s consider how it can be done.

Superannuation contributions

Australia’s superannuation set-up is viewed as one of the best retirement systems in the world. One of the elements that makes it so strong is the mandatory contributions employees receive.

Generally, all workers should receive superannuation payments, regardless of whether someone earns $2,000 a year working part-time or $200,000 a year full-time from a high-paid salary.

In the current financial year (FY24), from 1 July 2023 to 30 June 2024, workers should receive superannuation payments equivalent to 11% of their earnings, according to the ATO. In FY25, for the year to 30 June 2025, the superannuation payment will increase to 11.50% of earnings. The superannuation payment will then rise to 12% of earnings in FY26.

Everyone earns different amounts, so I’ll use the average Australian’s earnings to illustrate the size of their superannuation contributions.

According to the Australian Bureau of Statistics (ABS), in November 2023, the average weekly total earnings for all employees was $1,431.10, or $74,417.20 annually, if we multiply that figure by 52 weeks. Full-time workers earned an average of $1,886.50 per week, but I will use the lower figure in my calculations.

Considering superannuation contributions will soon be 12% of earnings going forward, I’ll use that for my calculation.

Contributions equating to 12% of $74,417.20 result in an annual net amount of $7,591 after the 15% tax on contribution amounts.

Let’s look at how much those contributions can grow over the long term.  

Compounding

Albert Einstein once reportedly said that compounding is the “most powerful force in the universe. Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t pays it.”

Starting with an investment balance of $0, if someone’s net superannuation contributions were $7,591 a year to their retirement fund, and the fund generated returns of 9% per annum, it would become worth $1.03 million after 30 years. A 35-year-old could reach 65 with a very commendable nest egg.

Of course, there are many variables. For starters, I assumed a $0 starting balance – I expect most people reading this article have more than $0 in their superannuation fund.

The superannuation fund could produce more substantial returns than 9% per annum over time, particularly if the money is allocated to investments that could deliver stronger long-term returns, such as (international) shares rather than cash or bonds. Tax on superannuation earnings will have a negative effect, though it’s hard to calculate at this stage.

I haven’t accounted for any wage growth over that period, and plenty of full-time workers earn more than $74,400 annually.

However, I’ll also acknowledge that not everyone works full-time every year between the ages of 35 and 65, but the above example shows what can happen.

Foolish takeaway

I believe a full-time worker can reach $1 million in retirement, especially if they earn more than average or make additional superannuation contributions beyond the minimum required.

In my opinion, growth shares are the best asset for compounding wealth to a satisfying amount over the long term.

The post Can your superannuation deliver you a $1 million retirement? appeared first on The Motley Fool Australia.

More reading

• BHP shares on watch after new $74b Anglo American takeover offer rejected
• Here are the top 10 ASX 200 shares today
• 2 of the best ASX growth shares to buy right now
• Bird flu worries send this ASX 200 stock diving 17%
• Forget Nvidia: This ASX growth stock is poised for its own bull run

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 Scott Phillips.

All eyes will be on BHP Group Ltd (ASX: BHP) shares on Thursday after the mining behemoth confirmed that it has made a third offer for Anglo American plc (LSE: AAL).

At the time of writing, the miner’s shares on Wall Street are down almost 4% on the news. This doesn’t bode well for things locally today.

Third offer

BHP advised that on 20 May it submitted an increased and final offer ratio to the Board of Directors of Anglo American.

It notes that the structure of the revised proposal remains the same as previous proposals and comprises an all-share offer for Anglo American. It will once again be subject to the pro-rata distribution by Anglo American of its entire shareholdings in Anglo American Platinum and Kumba Iron Ore to shareholders immediately before completion of the scheme of arrangement.

Under the terms of the revised proposal, BHP has offered:

• 0.8860 BHP shares for each ordinary Anglo American share, and
• Ordinary shares in Anglo Platinum and Kumba Iron Ore (which would be distributed by Anglo American to its shareholders in direct proportion to each shareholder’s effective interest in Anglo Platinum and Kumba)

This final offer ratio represents a total value of GBP31.11 (A$59.64) per Anglo American share or a total consideration of approximately A$74 billion.

It also represents an improvement on the original offer of 0.7097 BHP shares per Anglo American share, as well as its most recent offer of 0.8132 BHP shares per share.

Commenting on the offer, BHP CEO Mike Henry said:

BHP has put forward a final offer ratio of 0.8860 BHP shares for each Anglo American share. This is a significant increase from our first proposal and would provide Anglo American shareholders with 17.8% of a combined BHP and Anglo American. The revised proposal is underpinned by BHP’s disciplined approach to mergers and acquisition and our focus on delivering long term fundamental value.

BHP’s revised proposal will offer immediate value for Anglo American shareholders and allow them to benefit from the long-term value generation of the combined group. BHP looks forward to engaging with the Board of Anglo American to explore this unique and compelling opportunity to bring together two highly complementary, world class businesses.

Thanks but no thanks

Unfortunately for Mike Henry and his team, this latest offer has been rejected immediately by the copper miner.

Anglo American’s chair, Stuart Chambers, revealed that its board believes the company is better off going it alone. He commented:

The Board is confident in Anglo American’s standalone future prospects and believes that Anglo American has set out a clear pathway and timeframe to deliver the acceleration of its strategy to unlock significant and undiluted value for Anglo American’s shareholders.

In addition, Chambers advised that the offer was not expected to deliver sufficient value to shareholders. He adds:

The Board considered BHP’s Latest Proposal carefully, concluded it does not meet expectations of value delivered to Anglo American’s shareholders, and has unanimously rejected it. In particular, it does not address the Board’s concerns about the structure, which results in significant complexity, execution risks, an extended timeline to completion and consequently has the potential for material value leakage to be disproportionately suffered by Anglo American’s shareholders. Multiple engagements with the BHP team have not yet been able to resolve the concerns on these issues.

However, Anglo American has left the door open to further talks. Chambers concludes:

However, the Board is willing to continue to engage with BHP and its advisers on this topic and has therefore requested a one week extension to the PUSU deadline which has been consented to by the Panel.

But whether BHP will be willing to increase its “final” offer remains to be seen.

The post BHP shares on watch after new $74b Anglo American takeover offer rejected appeared first on The Motley Fool Australia.

More reading

• ASX 200 mining stocks flying higher on ‘most relaxed’ Chinese stimulus ever
• BHP shares charging higher as the clock ticks down on the Anglo American takeover
• ASX 200 mining shares charging higher amid China’s $210 billion cash injection
• What this unprecedented short squeeze signals for ASX copper stocks
• What’s the outlook for ASX iron ore shares after the federal budget?

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

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why Droneshield, TechnologyOne, Telix, and Webjet shares are rising today
• Guess which 7 ASX 200 shares are smashing new 52-week highs today
• Webjet share price rockets 14% on record earnings and demerger announcement
• These 2 ASX shares could win big time in the long term
• Is this ASX 200 tech stock in the buy zone following its results?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder, Technology One, Telix Pharmaceuticals, and Transurban Group. The Motley Fool Australia has recommended Light & Wonder, Technology One, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The good news for Australian growth investors is that there are plenty of quality options to choose from on the local share market.

But which ASX growth shares could be best buys this month?

Let’s take a look at two growth shares that brokers rate very highly:

IPD Group Ltd (ASX: IPG)

The team at Bell Potter is feeling very bullish on this distributor of electrical equipment and industrial digital technologies and sees it as an ASX growth share to buy.

Its analysts expect the company to benefit greatly from the electrification megatrend. The broker explains:

We view IPG as a high quality play on the electrification growth trend which is emerging as a dominant market narrative. Our favourable investment thesis is based on three key points: (1) product volumes being driven by refurbishment/ upgrade of existing infrastructure and by virtue of relatively low demand risk; (2) IPD’s large turnaround opportunity with a globally leading manufacturer in ABB (market share in Australia of 5-10% compares to Europe of 20-30%); and (3) IPD’s electric vehicle charging opportunity reaching a tipping point in FY24e. Australia is set for a $650m public fast charging investment cycle by 2027 and IPD is engaged with a number of players who we expect to lead this transition (e.g. service station chains and network operators).

Bell Potter has IPG on its preferred list with a buy rating and $5.90 price target.

Objective Corporation Ltd (ASX: OCL)

Analysts at Morgans think that Objective Corp could be an ASX growth share to buy. It is a content, collaboration and process management solutions provider for the public sector in the Asia Pacific and Europe.

The broker believes that Objective Corp is well-placed to benefit from increased software spending in the global public sector. It explains:

Global Public Sector software spend is anticipated to grow at a low double-digit rates over the near term as governments look to streamline workflow, improve security, and modernise legacy IT infrastructure. We see Objective as being a beneficiary of this trend. Objective has seen a strategic reset in its earnings in FY23 as it looks to prioritise subscription licencing revenue growth, streamline deployment of its solutions, and invest in product and sales support functions. Whilst this has recently weighed on the company’s share price, we believe Objective should be well positioned to see long-term revenue growth rates and margins return in FY24 and beyond. The company is also strongly capitalised and well positioned to take advantage of M&A opportunities as private market technology valuations have contracted, which in our view could add incremental scale and scope for long-term growth.

Morgans has Objective Corp on its best ideas list with an add rating and $14.00 price target on its shares.

The post 2 of the best ASX growth shares to buy right now appeared first on The Motley Fool Australia.

More reading

• Morgans names more of the best ASX shares to buy

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 positions in and has recommended Ipd Group and Objective. The Motley Fool Australia has positions in and has recommended Ipd Group. The Motley Fool Australia has recommended Objective. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Inghams Group Ltd (ASX: ING) share price is currently down 6.5% amid concerns that the S&P/ASX 200 Index (ASX: XJO) stock could be somehow exposed. At one point it had fallen 17% between the day’s high and low. The company has reassured investors it is not affected.

As the largest poultry producer in Australia, investors are paying close attention to what this could mean for the company.

Bird flu detected near Ballarat

According to reporting by the ABC, Agriculture Victoria has confirmed that avian influenza has been detected on a farm in Victoria’s west, at an egg farm near Meredith, south of Ballarat.

The property has been put into quarantine and samples have been sent to the Australian Centre for Disease Preparedness. Tests will be carried out to determine what the strain of the disease is.

This is reportedly the first time the virus has appeared in Australia in four years.

The ABC reported that consumers “should not be concerned about eggs and poultry products from the supermarkets — they do not pose a risk and are safe to consume.”

Inghams response

This afternoon, Inghams commented in an ASX announcement noting it has no commercial broiler farms located in the affected region and “there is currently no impact to Ingham’s operations or its supply chain, and the company continues to supply the market as usual”.

Inghams pointed out that the Victorian Department of Agriculture has quarantined the infected farm and implemented an exclusion zone around it. The Department of Agriculture is also undertaking a disease investigation, which includes “detailed tracing of all movements related to the infected farm”.

In response to these developments, the ASX 200 poultry stock has implemented “enhanced biosecurity measures”, in addition to its “already strict standard protocols” throughout its Victorian operations. Those measures include restricting access to all Victorian operations, for both the livestock and processing.

What next for the Inghams share price?

The ASX 200 stock has risen around 11% since the low of $3.22, so investors seem more confident about the situation. Time will tell if this has been limited to just one location in Victoria.

Assuming no worsening of the situation, investors may shift their focus to Inghams’ financial performance in the upcoming FY24 result.

In the FY24 first-half result, the business said its group core poultry volume was up 2.2% to 240.8kt and revenue increased 8.7% to $1.64 billion. An improvement in costs and margins helped underlying net profit after tax (NPAT) grow by 134.2% to $62.3 million.

However, the ASX 200 stock said market conditions for consumers in the second half of FY24 were expected to remain “challenging” underpinning the shift being seen toward in-home dining and away from the out-of-home channels of fast food restaurants and food service.

The business said in February that based on current market pricing, it’s expecting some benefit from lower key feed costs in FY25.

Despite today’s decline, the Inghams share price is up around 20% in the last year, as the chart below shows.

The post Bird flu worries send this ASX 200 stock diving 17% appeared first on The Motley Fool Australia.

More reading

• Why Eagers Automotive, Inghams, Patriot Battery Metals, and Wildcat shares are sinking
• 3 ASX 200 dividend stocks for investors to buy
• With its 8% yield, I think this undervalued ASX 200 stock is an opportunity not to miss
• Guess which ASX dividends stocks analysts think are top buys
• 3 ASX shares that look way too cheap to ignore right now

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 Scott Phillips.