Over the last 12 months, Pilbara Minerals Ltd (ASX: PLS) shares have been a rare shining light in a very bleak lithium industry.

During this time, the lithium miner’s shares have defied the odds to deliver a 13% gain for shareholders.

As a comparison, over the same period, Core Lithium Ltd (ASX: CXO) and Sayona Mining Ltd (ASX: SYA) shares are both down approximately 80%.

To put that into context, $10,000 invested in Pilbara Minerals shares would now be worth $11,300, whereas $10,000 invested in its two rivals would be worth just $2,000 now.

Can this outperformance continue? Let’s see what analysts at Bell Potter are saying following yesterday’s downstream announcement out of the miner.

What was the announcement?

As a reminder, Pilbara Minerals announced that it has executed a binding term sheet with Ganfeng Lithium to complete a joint feasibility study for a potential 32,000 tonnes per annum (tpa) downstream conversion facility to produce lithium chemicals.

The study is expected to be completed in the March quarter of 2025 with an option to progress to a final investment decision.

If it goes ahead, Pilbara Minerals will supply offtake of 300,000 tpa of spodumene concentrate to the joint venture to be converted into lithium chemicals.

Analysts at Bell Potter see positives from the plans. They commented:

The no-obligation approach provides PLS with a low-risk play to integrate further into the global battery chemicals value chain. Ganfeng are one of the world’s largest lithium companies, holding operations diversified by geography and product. The proposed JV would provide PLS leverage to Ganfeng’s extensive lithium conversion experience, flowsheet, intellectual property and integrative supply chain relationships developed over the past 20+ years. Ganfeng currently has interests in seven lithium chemical plants, and has converted Pilgangoora SC for over five years.

Are Pilbara Minerals shares good value?

While the broker is positive on the plans and is a big fan of Pilbara Minerals, it doesn’t see enough value in its shares to call it a buy.

It has responded by retaining its hold rating and $3.55 price target. This implies potential downside of 9% from current levels. The broker commented:

PLS is a large, liquid and clean exposure to global lithium fundamentals and sentiment. PLS is a low-cost producer, it operates in a tier one jurisdiction in Western Australia, and has a strong balance sheet ($1.7b net cash at 31 December 2023) which can withstand weaker lithium prices and support expansion programs. We are confident that EV-led demand will see strong long-term lithium market fundamentals. We see the potential for PLS to participate in industry consolidation. We retain our hold recommendation on valuation grounds.

The post Are Pilbara Minerals shares in the buy zone or overvalued? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Pilbara Minerals shares fall despite downstream deal with Ganfeng Lithium
• These are the 10 most shorted ASX shares
• What is the current lithium price?
• Analysts say these beaten down ASX lithium shares are strong buys

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.

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Having a few quality ASX 200 blue chip shares in your portfolio is usually a good idea.

But which ones could offer strong returns for investors right now?

Three that analysts are tipping to rise meaningfully from current levels are listed below. Here’s what they are saying about them:

Brambles Limited (ASX: BXB)

The team at UBS thinks that Brambles could be an ASX 200 blue chip share to buy. It is a supply chain solutions company that specialises in reusable pallets, crates, and containers for shared use.

The broker was pleased with the company’s performance during the first half, noting that its result was ahead of expectations. It expects the strong form to continue and for its shares to re-rate to higher multiples.

UBS has a buy rating and $17.10 price target on Brambles’ shares. This implies potential upside of approximately 11.5%.

Qantas Airways Limited (ASX: QAN)

Another ASX 200 blue chip share that could have plenty of upside is Qantas.

Goldman Sachs believes that the market is undervaluing the airline operator’s shares. It highlights that Qantas has materially increased its earnings capacity compared to pre-COVID times yet its shares trade on lower multiples.

Goldman has a conviction buy rating and $8.25 price target on its shares. This suggests potential upside of 50% for investors.

Xero Limited (ASX: XRO)

Goldman Sachs also believes this cloud accounting platform provider could be an ASX 200 blue chip share to buy.

This is due largely to its significant growth opportunity from a market estimated to be over 100 million small to medium sized businesses globally.

Goldman has a buy rating and $152.00 price target on its shares. This suggests potential upside of 11% from current levels.

The post Buy these ASX 200 blue chip shares for big returns appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in 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.

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Core Lithium Ltd (ASX: CXO) shares have been sold off over the last 12 months.

During this period, the lithium miner’s shares have lost a very disappointing 80% of their value.

There have been a number of reasons why investors have been hitting the sell button. But the key drivers have been falling lithium prices and the suspension of production.

And while you might be hoping that Core Lithium’s shares have now bottomed following such a sharp decline, this may not be the case.

For example, Goldman Sachs recently named three reasons why its thinks investors should be selling the lithium stock rather than buying it.

3 reasons to sell Core Lithium shares

The first reason is its valuation, which remains higher than peers despite its fall from grace. Goldman explains:

CXO appears relatively expensive trading at a premium on ~1.5x NAV (peer average ~1.15x) and an implied LT spodumene price of ~US$1,330/t (peer average ~US$1,315/t), with the lowest average operating FCF/t LCE on a more moderated/deferred production restart/ramp up.

Another reason is the potential for the mining suspension to continue longer than expected. It adds:

We continue to see production risk (in a steady state operation) as the Finniss project moves through ramp up on project complexity (moving between different open pits and underground configurations), though in the current pricing environment see risk that restarting mining at the Grants pit / processing operations is less likely near-term with the mining contract terminated and notice given on the processing contract, increasing the risk of a longer gap in production.

The third and final reason is its belief that exploration activities aren’t going to deliver any short term upside. The broker concludes:

Though further exploration is underway (including revisiting the gold, uranium and base metal exploration projects), and while potential resource expansion could be promising, with resource extension likely at depth/from new areas, we see limited near-term upside, where further exploration is now also likely longer dated on falling lithium prices, particularly with a near-term restart of the operation now unlikely in the near-term.

Potential downside

Goldman Sachs has a sell rating and 13 cents price target on the company’s shares.

This implies potential downside of 16% for investors over the next 12 months.

The post 3 reasons to sell Core Lithium shares appeared first on The Motley Fool Australia.

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• Are Core Lithium shares a bargain buy or overvalued?

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 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.

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The S&P/ASX 200 Index (ASX: XJO) has now risen more than 15% since the start of November.

This means it’s getting harder to find bargains among the overpriced traps.

To assist in your hunt, here’s a couple of suggestions from Catapult Wealth general manager Dylan Evans:

‘Appealing valuation’ for this ASX 200 stock

The Seek Ltd (ASX: SEK) stock price is still almost 28% down from its peak before the inflation sell-off of growth shares over 2022.

Evans feels like the international online jobs classifieds operator is ready to break out in the coming period.

“Seek has invested in technology improvements during the past few years, so the benefits should flow through in the next two to three years,” Evans told The Bull.

This is despite the first-half results failing to impress the market last month.

Australia and New Zealand paid job listings were down 20% and consequently adjusted net profits after tax (NPAT) from continuing operations plunged 24%.

Seek chief executive Ian Narev, however, also pointed out that its tech upgrade spend was now behind it.

“The highlight of this period was the delivery, ahead of time, of the unified product and technology platform that will provide the foundation of our future growth,” he said.

“We can now turn our focus from… project management to realisation of the significant benefits that the platform can deliver: faster innovation and economies of scale.”

Seek now has nine out of 15 analysts surveyed on CMC Invest rating it as a buy.

The stock looks cheap to Evans.

“We’re attracted by potentially strong growth and an appealing valuation compared to peers.”

Recycling and acquisitions

As a waste management company, Cleanaway Waste Management Ltd (ASX: CWY) is in an industry that will never want for demand.

Evans admits it’s unlikely to display any explosive growth, but in return offers stability in a diversified portfolio.

“Cleanaway is a leader in the waste and recycling industry, which offers defensive cash flows and reasonable growth.”

The big opportunity in the future is recycling.

“It should generate growth as it expands into resource recovery, supported by a national goal to increase recycling rates from 60% to 80% by 2030.”

As a dominant player in the sector, there is also potential for mergers and acquisitions.

“We see an opportunity for Cleanaway to improve profitability on the back of industry consolidation.”

Seven of 13 analysts rate Cleanaway shares as a buy, according to CMC Invest.

The post 2 ASX 200 shares to buy for ‘strong growth’ at decent prices right now appeared first on The Motley Fool Australia.

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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 recommended Seek. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The interest rates on offer with term deposits have improved materially over the last 18 months.

However, they still fall short of the dividend yields that can be found on the Australian share market.

In addition, with inflation showing signs of easing, interest rates are now tipped to fall over the next 12 months. This could mean we have already seen the peak for term deposits.

In light of this, it’s possible that income investors will get better outcomes with the buy-rated ASX dividend shares named below. Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

Accent Group could be an ASX dividend share to buy according to analysts at Bell Potter. It is the footwear retailer behind brands such as HYPEDC, The Athlete’s Foot, Stylerunner, and Sneaker Lab.

The broker currently has a buy rating and $2.50 price target on its shares.

As for dividends, Bell Potter is expecting some big yields from Accent’s shares. It is forecasting fully franked dividends per share of 12 cents in FY 2024 and then 14.1 cents in FY 2025. Based on the Accent share price of $1.97, this represents dividend yields of 6.1% and 7.1%, respectively.

Westpac Banking Corp (ASX: WBC)

The team at Ord Minnett still sees plenty of value in this banking giant’s shares despite their strong run. Its analysts recently put an accumulate rating and $28.00 price target on the banking giant’s shares.

In addition, the broker is forecasting some very attractive fully franked dividend yields in the near term. It has pencilled in fully franked dividends of $1.45 per share in FY 2024 and then $1.50 per share in FY 2025. Based on the current Westpac share price of $26.44, this will mean yields of 5.5% and 5.7%, respectively.

The post Forget term deposits and buy these ASX dividend shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in 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 Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a solid gain. The benchmark index rose 0.5% to 7,811.9 points.

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

ASX 200 expected to fall

The Australian share market is expected to fall on Tuesday following a relatively poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 17 points or 0.2% lower. In late trade in the United States, the Dow Jones is down 0.4%, the S&P 500 is down 0.2%, and the NASDAQ is 0.1% lower.

Pilbara Minerals rated as a hold

Pilbara Minerals Ltd (ASX: PLS) shares could be fully valued according to analysts at Bell Potter. This morning, the broker has responded to its downstream announcement by retaining its hold rating and $3.55 price target. This is 9% lower than where the lithium miner’s shares currently trade. It said: “We retain our hold recommendation on valuation grounds.”

Oil prices rebound

ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) could have a better session on Tuesday after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 1.8% to US$82.05 a barrel and the Brent crude oil price is up 1.6% to US$86.80 a barrel. Oil prices rose amid reports that Russian refineries have been hit by attacks.

Premier Investments results

The Premier Investments Limited (ASX: PMV) share price will be on watch today when the retail conglomerate releases its half-year results. Management is guiding to Premier Retail EBIT for the 26-week period ending 27 January to be approximately $200 million. Goldman Sachs has suggested that there could be some gross margin surprise thanks partly to easing global freight costs.

Gold price rises

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good session after the gold price pushed higher on Monday. According to CNBC, the spot gold price is up 0.6% to US$2,173 an ounce. Rate cut bets gave the precious metal a boost.

The post 5 things to watch on the ASX 200 on Tuesday 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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Against the grain of a bullish market, there are some quality companies that have dropped out of favour recently.

They might be fighting through a one-off difficulty or adverse external conditions that are out of their control.

Regardless, I think these three cheap ASX shares deserve a fair go because their long-term business prospects remain solid:

Reporting season blues

Johns Lyng Group Ltd (ASX: JLG) shares plunged 20% in a single morning late last month after its half-year results were revealed.

That was despite an upgrade guidance for the current financial year.

Sales revenue and net profit after tax (NPAT) for the first half were both down year-on-year, which may have triggered the disappointment.

Five investment houses did cut their share price expectations over the next year, but CMC Invest shows 9 out of 11 analysts still rating Johns Lyng as a buy.

I think it’s an excellent opportunity to pick up a quality company for cheap.

Nothing doing here

Regenerative medicine producer Avita Medical Inc (ASX: AVH) has seen its share price drop more than 12.3% since market close on 1 March.

No significant news has come out of the company, so one can only assume the valuation is changing from general market movement for biotechs.

If anything, Avita shares should be seeing increased demand because of its addition to the All Ordinaries Index (ASX: XAO) on 18 March.

The professional community is sticking firm on these cheap ASX shares. 

Nine out of 10 analysts covering the stock rate it as a buy, according to CMC Invest, with eight of those considering Avita a strong buy.

These cheap ASX shares are still a value buy

Like Johns Lyng, Camplify Holdings Ltd (ASX: CHL) shares were also burnt during reporting season.

“The stock closed down ~17% on result day, which we largely attribute to some seasonality in Camplify’s key headline metrics (future bookings, gross margins, etc),” said the analysts at Morgans.

With the seasonal nature of the numbers, there has not been much movement in the opinions of fund managers in it for the long haul.

“Our price target remains unchanged and we maintain an add recommendation on the stock,” said the Morgans team.

Indeed all three analysts covering Camplify still rate it as a strong buy, as shown on CMC Invest.

The post 3 struggling ASX shares to buy at a discount appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has positions in Avita Medical, Camplify, and Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Avita Medical and Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Camplify. The Motley Fool Australia has recommended Avita Medical, Camplify, and Johns Lyng Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It was not even on the agenda three years ago, but now there is much talk about nuclear power.

Russia’s invasion of Ukraine in 2022, the ongoing conflict in the Middle East, plus the imperative to reduce carbon emissions are all combining to force nations to reconsider their energy security.

Even in Australia, where by law nuclear power plants are banned, one side of politics is pushing hard for the solution.

Former chief scientist Alan Finkel last week explained some of the advantages of nuclear power.

“The volume of fuel is small, with only one tonne of uranium needed to produce the same amount of electricity as 100,000 tonnes of black coal,” Finkel said in the The Sydney Morning Herald.

“The land footprint is only about three square kilometres for a one-gigawatt nuclear plant versus about 60 square kilometres for a three-gigawatt solar plant that would generate the same annual output.”

Shaw and Partners senior investment advisor Jed Richards is bullish on the ASX uranium sector for this precise reason.

“Australia is closer to accepting nuclear power than ever before. China’s demand for uranium is enough to drive profitability,” Richards told The Bull.

And there is one uranium stock that he would buy right now.

The uranium shares that are ‘our preferred exposure’

Richards calls Paladin Energy Ltd (ASX: PDN) the “premium and most liquid stock in the uranium sector”. 

“It remains our preferred exposure to an improving uranium market.” 

The stock has risen a spectacular 149% over the past 12 months, which is an even steeper climb than the global uranium price.

“The shares have performed strongly in the past year, and we expect this favourable momentum to continue.”

The analysts at Blackwattle are also bullish on Paladin, as they said in a memo to clients earlier this year.

“The market for uranium remains in a significant deficit and is expected to remain that way for the rest of the decade.

“This places restart projects like Paladin in a great position to capitalise on the high prices that are needed to incentivise additional supply to enter the market.”

The support is unanimous in the professional community.

Broking platform CMC Invest currently shows all eight analysts covering Paladin stock rating it as a strong buy.

The post Uranium is set to boom, and this is the ‘premium’ ASX stock to buy appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares 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 Scott Phillips.

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If you have room in your income portfolio for some new additions, then it could be worth checking out the ASX 200 dividend stocks listed below.

Here’s why analysts think they are in the buy zone right now:

Bapcor Ltd (ASX: BAP)

The team at Macquarie thinks income investors should consider buying this auto parts retailer’s shares.

The broker currently has an outperform rating and $6.90 price target on its shares. This suggests potential upside of approximately 11% for investors from current levels.

Macquarie was pleased with Bapcor’s performance during the first half, noting that its result was largely in line with its expectations.

Looking ahead, the broker is forecasting the company to pay fully franked dividends of 18.4 cents per share in FY 2024 and then 21.1 cents per share in FY 2025. Based on the current Bapcor share price of $6.23, this implies yields of 3% and 3.4%, respectively.

Rio Tinto Ltd (ASX: RIO)

Another ASX 200 dividend stock that could be a good option for income investors is Rio Tinto.

It is one of the largest miners in the world and the owner of a high-quality portfolio of operations across multiple commodities. In addition, it is working to reduce its carbon footprint, partnering to develop new technologies to decarbonise steel and aluminium production, and creating new products from waste.

The team at Goldman Sachs is feeling very positive on the miner and recently put a buy rating and $138.30 price target on its shares. This implies potential upside of approximately 13.5% for investors.

As for dividends, the broker is expected fully franked dividends per share of US$4.39 (A$6.72) in FY 2024 and then US$4.61 (A$7.06) in FY 2025. Based on the latest Rio Tinto share price of $121.62, this will mean yields of approximately 5.5% and 5.8%, respectively.

The post Brokers say these ASX 200 dividend stocks are buys appeared first on The Motley Fool Australia.

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• $2.1 million! Who are the highest paid ASX 200 directors?

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

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Can lightning hit twice in the same spot?

The old cliche suggests it doesn’t, but scientifically lightning certainly can and does strike twice in the same place.

If you’re on the scientists’ side, it might be time to consider buying Santos Ltd (ASX: STO).

Curious? Read on.

The ASX 200 marriage that never was

Late last year, the oil and gas giant explored whether it would merge with its larger S&P/ASX 200 Index (ASX: XJO) rival Woodside Energy Group Ltd (ASX: WDS).

The Santos share price had been stagnant for the past half-decade, and this deal was meant to be the light at the end of the tunnel for its long-suffering shareholders.

The price-to-earnings (P/E) ratio sits at half of Woodside’s.

Unfortunately, last month the merger talks were terminated. Neither side has publicly revealed the reasons the deal fell over.

The Santos share price immediately sank 8% when that news came.

Then just to rub salt into the wound, the shares plunged again after its 2023 full year result failed to impress investors.

Both underlying net profit after tax (NPAT) and free cash flow from operations headed 42% for the year.

Ouch.

Could the romance be rekindled?

Despite these events, Shaw and Partners senior investment advisor Jed Richards right now thinks Santos is the far stronger buy than Woodside.

“The future growth prospects pipeline is far stronger for Santos than Woodside Energy, in my view,” Richards told The Bull.

And he reckons the Woodside marriage story is not over yet.

“Santos has positioned itself well over the past few years to be an attractive addition for Woodside.

“Although the last round of negotiations hasn’t resulted in a merger, I expect this strategy will be addressed again in the future.”

It seems Richards is not the only professional keen on Santos right now.

According to broking platform CMC Invest, 13 out of 17 analysts currently rate the energy stock as a buy.

The post The ASX 200 stock that could get second time lucky appeared first on The Motley Fool Australia.

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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 Scott Phillips.

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