At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted ASX share after its short interest rose slightly again to 11.9%. Short sellers appear convinced the market is expecting too much from the travel agent giant.
• Appen Ltd (ASX: APX) has jumped into the top ten with short interest of 9.8%. A recent abject trading update shocked the market and sent the artificial intelligence data services company’s shares crashing deep into the red. Short sellers don’t appear to believe the pain is over.
• Zip Co Ltd (ASX: ZIP) has short interest of 9.8%, which is down week on week. This appears to be due to concerns about its profitability goals and regulatory challenges.
• Core Lithium Ltd (ASX: CXO) has short interest of 8.8%, which is flat week on week. Valuation concerns seem to be behind this high level of shorting.
• Lake Resources N.L. (ASX: LKE) has 8.7% of its shares in the hands of short sellers, which is up strongly since last week. Short sellers aren’t giving up on this lithium developer despite a strong rebound by its shares.
• Pointsbet Holdings Ltd (ASX: PBH) has 8.6% of its shares held short, which is up slightly week on week. The sports betting company’s decision to sell its US business hasn’t gone down too well with investors.
• Jervois Global Ltd (ASX: JRV) has 8.5% of its shares held short, which is down slightly week on week again. This cobalt developer recently suspended the final construction of the Idaho Cobalt Operation due to weak prices of the battery material.
• Sayona Mining Ltd (ASX: SYA) has seen its short interest fall to 8%. Sayona Mining is another lithium share that short sellers are going after amid falling battery material prices.
• Select Harvests Ltd (ASX: SHV) has entered the top ten with 8% of its shares held short. Analysts are forecasting a very large loss from the almond producer in FY 2023.
• Temple & Webster Group Ltd (ASX: TPW) has seen its short interest rise to 7.7%. Short sellers will have been disappointed to see this online retailer’s shares rocket higher last week following a positive trading update.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Could another lithium price boom be around the corner? Experts weigh in
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why AUB, Austal, Core Lithium, and Xero shares are pushing higher
• Flight Centre shares rise despite co-founder sales

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 Appen, PointsBet, Temple & Webster Group, and Zip Co. The Motley Fool Australia has recommended Flight Centre Travel Group, PointsBet, and Temple & Webster 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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The S&P/ASX 200 Materials Index (XMJ) has gained 6% in a year, but this ASX rare earths share has rocketed far higher.

Shares in the aptly named Meteoric Resources NL (ASX: MEI) have surged 1364% from 1.4 cents at market close on 13 May 2022 to 20.5 cents at the time of writing.

So why has this ASX rare earths share had such a top run in the last year?

Why has this ASX rare earths share risen so high?

Meteoric shares have been storming ahead since mid-December when the company emerged from a trading halt to announce news of a major acquisition.

On 16 December, Meteoric advised it had entered a binding agreement to acquire the tier-one Clay Rare Earth Element (REE) project in Brazil. The project has 30 licenses.

The company advised drilling at six licences had shown “ultra-high-grade” Total Rare Earth Oxide (TREO) intersections from surface. Meteoric shares soared 50% on the day.

Overall, between market close on 7 December and 1 February, Meteoric shares exploded 700%.

On 20 December, Meteoric announced metallurgical tests confirm the Caldeira project is an “iconic adsorption clay REE deposit”.

Commenting on the news, executive chairman Dr Andrew Tunks said:

The initial testwork of the metallurgy at the Caldeira Project is very encouraging. The average recovery of the low temperature magnet REE, Pr + Nd, was 58% and the average recovery of the more valuable high temperature magnet REE, Tb +Dy, was 43%.

In late January, Meteoric presented a quarterly activities report. The company advised it had cash and liquid assets of about $3.05 million.

Meteoric is also exploring the Palm Springs Gold Project in Western Australia. In an announcement to the ASX on 23 February, the company provided assay results for priority targets at the project. Two holes intersected with a “significant amount of carbonaceous shale hosting multiple quartz veins and sulphides at the new Mt Bradley target”, the company said.

Meanwhile, on 1 May, Meteoric provided a maiden mineral resource for the Caldeira project, consisting of:

• 409 million tonnes at 2,626 parts per million (ppm) TREO with magnet REO grades of 631ppm including 24% TREO

Commenting on this news, Dr Tunks said:

What a beautiful set of numbers, this is indeed a world class, tier 1 project

Finally, on 8 May, Meteoric provided a drilling update on the Caldeira project. The company said eight of 11 new diamond holes revealed a “significant depth extension of the target clay zone beneath the historic auger holes”.

Share price snapshot

Meteoric Resources shares have leapt nearly 300% year to date and more than 71% in the last month.

This ASX rare earths share has a market capitalisation of about $361 million based on the last closing price.

The post Guess which ASX rare earths share has exploded 1300% in a year? appeared first on The Motley Fool Australia.

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More reading

• Why Macquarie, Meteoric Resources, Pointsbet, and Syrah shares are falling
• Explosive growth! 2 ASX mining shares rocketing around 1,000% in a year

Motley Fool contributor Monica O’Shea 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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Fortunately for income investors, there are plenty of ASX dividend shares to choose from on the Australian share market.

Two that could offer a combination of attractive yields and outsized capital gains are listed below. Here’s why brokers say they are buys:

Macquarie Group Ltd (ASX: MQG)

The first ASX dividend share that could be in the buy zone is investment bank Macquarie.

The team at Morgans is very positive on the bank and recently reiterated its buy recommendation. This is due to its current valuation and exposure to structural growth markets. It commented:

MQG is a quality franchise, exposed to structural growth areas, and the company performed exceptionally well in a more difficult FY23 environment. With >10% share price upside to our price target, we continue to maintain our ADD recommendation.

Morgans has an add rating and $201.80 price target on the company’s shares.

In respect to dividends, the broker is expecting partially franked dividends of $6.33 per share in FY 2023 and $6.75 per share in FY 2024. Based on the current Macquarie share price of $176.51, this will mean yields of 3.6% and 3.8%, respectively.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share that could be a buy is Super Retail. It is the retail group behind popular brands such as Macpac, Rebel, and Super Cheap Auto.

Over at Goldman Sachs, its analysts are particularly positive on the retailer. They believe its shares are great value at the current level, especially given its resilient businesses and impressive loyalty program. Goldman believes the latter is a big competitive advantage for the company. It explains:

We believe that the company’s positive trading update continues to display resilience that is built upon its competitive advantage of high loyalty (~10m active members accounting for >70% of sales) and this will be further bolstered in 2H23 as the company launches the Rebel loyalty program and continues to build personalisation capabilities.

Goldman is expecting this to support fully franked dividends per share of 74.1 cents in FY 2023 and then 62.6 cents in FY 2024. Based on the current Super Retail share price of $12.70, this will mean yields of 5.8% and 4.9%, respectively.

The broker has a buy rating and $14.90 price target on its shares.

The post Buy these ASX dividend shares for good yields and outsized returns: analysts appeared first on The Motley Fool Australia.

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More reading

• With interest rates rising, why have ASX 200 bank shares been pummelled in 2023?
• Macquarie shares are going for cheap. Buy the dip?
• Warren Buffett is dumping bank stocks. Should you?
• 4 ASX 200 directors buying and selling their company shares in the past week
• Did you buy the October dip in Macquarie shares? Here’s the dividend yield you’re now earning

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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Super Retail 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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The news never stops for investors with ASX shares.

Here are the three biggest events that could impact your portfolio this week, according to eToro market analyst Josh Gilbert:

1. Australian retail sales figures

Last week Australia’s unemployment rate rose to 3.7%. This is bad news, especially for those losing their jobs, but could be a blessing in disguise for the country.

“That could well mean the central bank leaves rates on pause next month,” said Gilbert.

“Another focal point in the data puzzle impacting the Reserve Bank of Australia’s next move is handed down this week with monthly retail sales.”

After hiking interest rates 11 times in the space of a year, the RBA and investors will be watching carefully at the retail numbers coming out Friday.

“Consumers are becoming more cautious over their spending habits, something the RBA wants,” said Gilbert.

“As a result, this period will see more consumers ‘down trade’, which should benefit consumer staple names such as Coles Group Ltd (ASX: COL), with retail sales being driven by food sales.”

Possibly armed with a COVID-19 savings buffer, retail sales have remained “fairly resilient over the last 12 months”.

“But confidence is near record lows, and households are now really starting to feel the pinch.”

2. Webjet full-year results

Online travel agent Webjet Limited (ASX: WEB) is scheduled to release its latest numbers on Wednesday.

Gilbert noted that travel shares have been some of the best performers in the S&P/ASX 200 Index (ASX: XJO) this year.

“Investors believe the surge in travel demand won’t taper anytime soon,” he said.

“Earnings from travel compatriots globally in the last month have been stellar, with Expedia Group Inc (NASDAQ: EXPE), Booking Holdings Inc (NASDAQ: BKNG), Singapore Airlines Ltd (SGX: C6L) and Emirates all reporting better-than-expected results.”

So the pressure’s on Webjet to show some spectacular performance this week in line with its peers.

“In its half-yearly results, Webjet reported a massive 217% increase in revenue and a 557% jump in EBITDA, but importantly said that profitability should climb above pre-pandemic levels,” said Gilbert.

“Given that travel has come back in a big way, Webjet’s full-year results could spell more good news for shareholders this year, but its guidance may be in focus with headwinds such as labour costs, weakening consumers and recession risks.”

Webjet shares are up 20.2% year to date.

3. Nvidia quarterly results

Across the Pacific, many Australian investors will be interested in the latest figures coming out of NVIDIA Corporation (NASDAQ: NVDA).

The hype around artificial intelligence has put a rocket under Nvidia stocks in 2023, according to Gilbert.

“The investor excitement for this developing technology has sent Nvidia’s shares soaring by more than 100% this year, and so far, the tech giant wears the crown for the S&P 500 Index (SP: .INX)’s best-performing stock of 2023.”

Its first quarter results will be revealed Thursday morning Australian time.

“Investors will be hoping for more good news, but question marks now lie over its valuation with its rally this year,” Gilbert said.

“Nvidia is by far the market leader in developing graphics chips, and this is exactly what is needed to handle the complex calculations required to power AI applications, meaning investors believe Nvidia will reap the rewards from growing demand.”

AI might be boosting its fortunes, but it remains to be seen how much that can offset weak sales in the personal computer market.

“Nvidia said in Q4 it expects US$6.5 billion in revenue, which will be an important number to watch.”

The post 3 things ASX investors should watch this week appeared first on The Motley Fool Australia.

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More reading

• Own Webjet shares? Here’s what to look for in next week’s full-year results

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 positions in and has recommended Booking Holdings and Nvidia. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Booking Holdings and Nvidia. 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 Friday, the S&P/ASX 200 Index (ASX: XJO) finished a solid week in style. The benchmark index rose 0.6% to 7,279.5 points.

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

ASX 200 expected to edge lower

The Australian share market is expected to edge lower this morning following a poor finish to last week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points lower on Monday. In the United States, the Dow Jones was down 0.3%, the S&P 500 dropped 0.15%, and NASDAQ fell 0.25%.

Oil prices fall

It looks set to be a subdued start to the week for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices fell on Friday. According to Bloomberg, the WTI crude oil price was down 0.4% to US$71.55 a barrel and the Brent crude oil price dropped 0.4% to US$75.58 a barrel. Concerns about the US debt ceiling weighed on prices.

ASX 200 lithium shares on watch

There will be plenty of eyes on ASX 200 lithium shares such as Core Lithium Ltd (ASX: CXO) and Pilbara Minerals Ltd (ASX: PLS) on Monday. That’s because lithium giant Sociedad Quimica y Minera de Chile (NYSE: SQM) released its first-quarter update on Friday and revealed softer profits. This was due to high stockpiles across the battery supply chain hitting demand.

Gold price charges higher

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a strong start to the week after the gold price charged higher on Friday night. According to CNBC, the spot gold price rose 1% to $1,979.9 per ounce. Renewed banking sector concerns boosted demand for the safe haven asset.

Silver Lake makes new offer

Fellow gold shares St Barbara Ltd (ASX: SBM) and Silver Lake Resources Ltd (ASX: SLR) will also be on watch after the latter improved its takeover offer for the former’s Leonora assets. Silver Lake has increased its offer to $722 million. This comprises 327.1 million shares (valued at $352 million) and a cash component of $370 million cash (previously $326 million). The suitor notes that this proposal represents a significant premium to the revised Genesis transaction.

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

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More reading

• Top brokers name 3 ASX shares to buy next week
• Could another lithium price boom be around the corner? Experts weigh in
• If I invest $10,000 in Pilbara Minerals shares, how much passive income will I receive?
• Here’s what the latest jobs data could mean for interest rates and the Aussie stock market
• Here are the 3 most heavily traded ASX 200 shares on Friday

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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If you’re wanting to build an income portfolio but aren’t sure which ASX shares to buy, you could look at the exchange traded funds (ETFs) listed below instead.

These ETFs have been set up with the aim of providing investors with an above-average dividend yield each year. Here’s what income investors need to know about them:

BetaShares S&P 500 Yield Maximiser (ASX: UMAX)

The first ETF that could be a buy for income investors is the BetaShares S&P 500 Yield Maximiser.

This clever ETF has been designed to generate attractive quarterly income and reduce the volatility of portfolio returns. In order to deliver on this objective, BetaShares has implemented an equity income investment strategy over a portfolio of shares comprising Wall Street’s famous S&P 500 Index.

This means that the ETF is able to squeeze out more income than you would receive by investing in the companies included in the fund individually. These companies include the likes of Apple, Exxon Mobil, Johnson & Johnson, Microsoft, and United Health.

At the last count, the BetaShares S&P 500 Yield Maximiser was providing investors with a trailing 6.9% distribution yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another ASX ETF for income investors to consider buying is the Vanguard Australian Shares High Yield ETF.

This is a much simpler ETF and has been designed to provide investors with easy access to a diverse group of ASX shares that brokers are forecasting to provide larger than average dividend yields.

In order to prevent you having a portfolio filled with just miners or banks, Vanguard restricts the proportion invested in any one industry to 40% and 10% for any one company. This means you’ll always be holding a diverse collection of dividend shares with the Vanguard Australian Shares High Yield ETF.

Among the companies included in the fund are giants BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), as well as the rest of the big four banks.

The Vanguard Australian Shares High Yield ETF currently trades with an estimated forward dividend yield of 5.3%.

The post Here are 2 ETFs for ASX income investors to buy for big dividends appeared first on The Motley Fool Australia.

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• 2 high-quality ASX ETFs for income and buy and hold investors
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• Buy these ASX ETFs for big dividend income
• Buy these ASX ETFs for their big dividends this month
• These ASX dividend shares have big 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended BetaShares S&P500 Yield Maximiser. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield Etf. 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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Thankfully for income investors, there are plenty of dividend stocks to choose from on the ASX 200 index.

But two that could be standout picks for investors right now are listed below. Here’s why analysts rate these big-name dividend stocks as buys:

Telstra Group Ltd (ASX: TLS)

Analysts at Morgans believe that Telstra is an ASX 200 dividend stock to buy right now. The broker has an add rating and $4.70 price target on the telco giant’s shares.

Morgans believes that the company’s outlook is the best it has been in years. It highlights that “[t]elco has the strongest tailwinds in a decade with an increasingly rational market, price rises across the majors and the criticality of telco increasingly recognised.” In addition, it notes that there is “the potential for InfraCo value release following the legal restructure.”

All in all, the broker is expecting this to allow Telstra to pay 17 cents per share fully franked dividends in both FY 2023 and FY 2024. Based on the current Telstra share price of $4.37, this will mean yields of 3.9% for income investors.

Westpac Banking Corp (ASX: WBC)

Over at Goldman Sachs, its analysts say that Westpac is an ASX 200 dividend stock to buy right now. Its analysts currently have the banking giant on their conviction list with a buy rating and $24.67 price target.

Although the broker was disappointed to see Westpac walk away from its cost cutting targets recently, its analysts still expect Australia’s oldest bank to deliver broadly flat costs in the coming years. Which will still be a good outcome in the current environment.

It is for this reason that Goldman expects to “see WBC outperform peers in this relatively difficult inflationary environment.”

Overall, the broker expects this to lead to fully franked dividends of 140 cents per share in both FY 2023 and FY 2024. Based on the current Westpac share price of $21.23, this equates to yields of 6.6% in both years.

The post Buy Westpac and this ASX 200 dividend stock for income: analysts appeared first on The Motley Fool Australia.

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More reading

• 3 reasons to buy Westpac shares now: broker
• With interest rates rising, why have ASX 200 bank shares been pummelled in 2023?
• Better buy: Telstra shares or TPG?
• No savings at 40? Here’s my 3-step plan for $1,500 of passive income a month
• 2 ASX 200 blue chip shares that brokers love

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Telstra Group. The Motley Fool Australia has recommended Westpac Banking. 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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Investing in ASX shares is a great pathway we can all take to building wealth. Shares have shown a consistent ability to generate returns that beat almost all other asset classes over long periods of time. But for a new ASX investor, investing in shares can be more than a little daunting.

There are many mistakes an investor can make, and too often, we have to make those mistakes in order to learn from them. As a one-time beginner investor myself, I have made plenty of those. So today, let’s discuss five things I wish I had learnt before I bought my first stock, in the hope that any new ASX investors out there can avoid following in my footsteps.

5 things I wish I’d known as a new ASX investor

1. You don’t have to start with individual shares

If you tell an older investor that you’re just starting out, you might be subject to some recommendations on which types of shares to buy. Perhaps blue chips like BHP Group (ASX: BHP) or Commonwealth Bank of Australia (ASX: CBA) might come up. Or else Telstra Group Ltd (ASX: TLS) or Woolworths Group Ltd (ASX: WOW).

Choosing which investment to start out with can be intimidating. So I wish I had known that you could avoid all of this hassle by just choosing an index fund to start out with. Index funds work by holding the top 200 or 300 shares of the entire ASX.

Thus, you can get a slice of everything without having to choose anything. Some of the ASX’s most popular index funds include the Vanguard Australian Shares Index ETF (ASX: VAS) and the iShares Core S&P/ASX 200 ETF (ASX: IOZ).

I didn’t start out as a new ASX investor with a fund like this, but I wish I had.

2. Too much of a good thing

Chances are it won’t take long for a new ASX investor to hear about the benefits of diversification or ‘not putting all of your eggs in one basket’. Yes, diversification is a good thing. It can help reduce your portfolio’s risk levels by ensuring that you don’t have all of your cash tied up in just one or two corners of the economy.

But I made the mistake of going too diversified when I first started investing. I needed to have shares from every sector and from every country. This could be described as ‘diworsification’.

If you do this, it will probably lead to mediocre returns and a lot of hassle. So diversify your portfolio by all means, but don’t try and cover every base out there.

3. ASX investors: Never spend your dividends

Compound interest is a marvellous thing to behold – Einstein even allegedly called it the eighth wonder of the world. But the first rule of compound interest is never to interrupt it unnecessarily. Here on the ASX, a good portion of the returns from shares come from dividend payments. Too often, I have seen investors take their dividends and ‘treat themselves’ rather than reinvest them into buying more shares.

You should never think of dividend cash as spending money. It is there to work for you in perpetuity if you let it.

4. Don’t chase fads

This is one of the worst mistakes I see new investors make, and I was guilty of it, too, once upon a time. One of the first things we should all learn about the share market is that there is always a fad – one sector or subsector of the market that everything thinks will be the next hot thing. It could be AI shares, cannabis shares, lithium or copper shares.

You’ll see stories of people making fortunes in these kinds of companies, and you will see share prices going to the moon. But like all bubbles, these fads eventually pop, and the money moves to the next hot thing. Don’t get caught up in one of these fads. It could (and most likely will) be a painful experience. Money is made on the share market over the long term, not overnight.

5. Keep it simple

Often the best companies are those hiding in plain sight. I always ask myself a few simple questions when looking at a company. Is this company loved by its customers? Is it almost certainly going to be bigger, better and more profitable in 10 years’ time? Often it’s these kinds of questions that determine what kind of investment it might be, rather than a company’s price-to-book (P/B) ratio or MACD chart.

Fundamental analysis has its place, but do also ask yourselves which company’s goods or services you use on a daily or weekly basis. That’s as good a place to start on your investing journey as you can get.

The post New ASX investor? 5 things I wish I’d known before I bought my first stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Vanguard Australian Shares Index ETF. 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 Telstra 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 another busy week for Australia’s top brokers. This led to the release of a large number of broker notes.

Three ASX broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Beach Energy Ltd (ASX: BPT)

According to a note out of Bell Potter, its analysts have retained their buy rating on this energy producer’s shares with a trimmed price target of $2.05. Although the broker was disappointed with delays to Waitsia Stage 2, which it sees as a key component to the company’s near-term production growth, it remains positive. This is due to Beach Energy’s positive outlook thanks to its fully funded production growth plans and its rolling-off peak capex. The broker also has a positive view on the Australian east coast gas and LNG markets. The Beach Energy share price ended the week at $1.37.

Technology One Ltd (ASX: TNE)

Another note out of Bell Potter reveals that its analysts have upgraded this enterprise technology company’s shares to a buy rating with an improved price target of $17.00. Bell Potter believes Technology One is well-placed to deliver a strong half-year result next week and expects more of the same in the coming years. In fact, the broker suspects that the company is growing quicker than expected and may achieve its medium term guidance a year earlier than planned. The Technology One share price was fetching $15.25 on Friday.

Xero Limited (ASX: XRO)

Analysts at Goldman Sachs have retained their buy rating on this cloud accounting platform provider’s shares with an improved price target of $130.00. Goldman Sachs was pleased with Xero’s performance in FY 2023 and believes that there will be more strong growth in FY 2024. In addition, the broker feels that Xero’s expense ratio target of 75% next year is achievable based on its second half performance. The Xero share price was trading at $108.00 on Friday.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now
• Why AUB, Austal, Core Lithium, and Xero shares are pushing higher
• Broker urges investors to buy the dip in the Beach Energy share price for a 50% return
• Xero share price can still rise almost 30% from here: Goldman Sachs

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 Technology One and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Technology One. 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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Lithium prices have floundered since hitting their peaks in November 2022, falling about 70% over the past six months.

And they’ve taken ASX lithium shares with them.

The six-month chart below shows the share price falls of producers Pilbara Minerals Ltd (ASX: PLS), Allkem Ltd (ASX: AKE), Mineral Resources Ltd (ASX: MIN), and Core Lithium Ltd (ASX: CXO).

But a number of experts are tipping a rebound of 40% or more for lithium prices by the end of the year.

Let’s investigate why.

Are we on the cusp of the next lithium boom?

According to the Australian Financial Review (AFR), that’s the opinion of top broker Citigroup.

Chinese sales of electric vehicles (EVs) have moved up every month in 2023, following the end of COVID-19 restrictions in late 2022.

Citi says downstream producers are starting to restock, and policy support in China will further boost its EV sales.

China is the world’s largest EV manufacturer and the second-largest importer of lithium behind South Korea.

The price of lithium carbonate, which is used to manufacture EV batteries, fell from a peak of about US$85,000 in November 2022 to a 19-month low of about US$22,000 per tonne in April.

It has since rebounded to about US$28,000 per tonne this week.

Citi analyst Shreyas Madabushi said:

We believe the battery supply chain destocking cycle in China is in its final phase and active restocking in the second half of 2023 is likely to support prices at higher levels.

Market sentiment for lithium stocks has also improved on the back of the Albemarle bid for Liontown Resources Ltd (ASX: LTR) and the recently announced $15.7 billion merger between Allkem and Livent.

Chile’s decision to nationalise its industry and take a controlling stake in all new producers has also changed global supply chain dynamics.

The country is the world’s second-largest producer of lithium, and government intervention may lead to short-term uncertainty, during which time battery and EV manufacturers may go elsewhere for supply.

How high will the lithium price go in 2023?

Citi reckons the lithium price could go to between US$35,000 per tonne and US$40,000 per tonne by the end of 2023.

Morgan Stanley is also bullish on the short-term lithium price outlook. The broker said last week that the market had reached a “turning point”.

According to The West Australian, Minerals Resources CEO Chris Ellison also reckons there’s “no question that [lithium] prices have bottomed out”.

Ellison is expecting lithium prices to move higher over the next few months.

A few other brokers are predicting a rebound in lithium prices in 2023 and into 2024.

Macquarie thinks the price could go as high as US$57,500, and UBS is tipping US$54,750.

The post Could another lithium price boom be around the corner? Experts weigh in appeared first on The Motley Fool Australia.

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More reading

• 5 ASX 200 shares to buy according to brokers
• If I invest $10,000 in Pilbara Minerals shares, how much passive income will I receive?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why AUB, Austal, Core Lithium, and Xero shares are pushing higher
• Own Liontown shares? Here’s when the company expects to kick start dividends

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in Allkem, Core Lithium, and Macquarie Group. 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 Macquarie 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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