If you’re wanting to supercharge your portfolio returns, then it could be worth checking out the ASX growth shares listed below.

That’s because analysts at Goldman Sachs have recently put buy ratings on them with price targets offering major upside.

Here’s what they are saying about these ASX growth shares:

IDP Education Ltd (ASX: IEL)

Goldman Sachs believes that this language testing and student placement company’s shares are significantly undervalued following a recent selloff.

Its analysts have a buy rating and $27.60 price target on its shares. This implies potential upside of 43% for investors over the next 12 months.

While Goldman acknowledges that there has been a series of negative events that could impact IDP Education, it remains very positive and believes that structural tailwinds will underpin very strong medium term growth. It said:

IEL trades at 28x our 12mf EPS estimate vs 45x historically and against a +17% FY23-26E EPS CAGR. Reiterate Buy into a strong 1H result where we sit +10% ahead of VA Consensus EBIT based on a strong start to FY24E as seen in the available visa data. News flow may continue to be choppy, however IEL’s fundamental quality and structural growth drivers remain intact while the company possesses levers to continue to grow earnings (e.g. costs).

Readytech Holdings Ltd (ASX: RDY)

Goldman Sachs also sees major upside potential for this enterprise software provider’s shares.

It currently has a buy rating and a $4.50 price target on the ASX growth share. This implies a 12-month potential return of over 30% for investors.

Goldman likes Readytech due to its positive growth outlook and attractive valuation. It said:

We believe RDY remains undervalued compared to SaaS peers on an absolute and growth adjusted basis, trading on 11.5x FY24E EV/EBITDA vs a 19% FY23-26E EBITDA CAGR or a growth-adjusted multiple of 0.6x vs peers typically at ~1.5x.

The post These top ASX growth shares can rise 30% to 40% appeared first on The Motley Fool Australia.

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• 50% down: 2 ‘world leader’ ASX 200 shares ready to bounce back
• Buy these ASX growth shares for 20% to 40% returns
• These are the 10 most shorted ASX shares
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• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Idp Education, and ReadyTech. The Motley Fool Australia has recommended Idp Education and ReadyTech. 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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Brickworks Limited (ASX: BKW) shares are a popular option for investors.

And luckily for them, the building products company’s shares have been on a roll of late.

For example, in afternoon trade, the company’s shares are up almost 1% to $28.78.

This leaves them trading within a fraction of their record high of $29.32. In addition, it means they are now up by a sizeable 18% since this time last year.

The question now, though, is whether its shares have peaked or can keep rising from here. Let’s find out what analysts are saying.

Can Brickworks shares keep rising?

The general consensus at present is that the company’s shares are fully valued right now.

For instance, two brokers that have the equivalent of buy ratings on its shares have price targets that are either in line with its current price or lower that it.

Bell Potter has a $27.80 price target and UBS has a $29.00 price target.

Elsewhere, analysts at Macquarie, Morgans, and Ord Minnett all have the equivalent of hold ratings on Brickworks’ shares with price targets suggesting downside of 6% to 14%.

It’s not all doom and gloom

There is one broker that has broken from the pack and still sees major upside potential for investors.

A note out of Citi last month reveals that its analysts have retained their buy rating and lifted their price target to $35.00. This implies potential upside of almost 22% for investors over the next 12 months.

Citi thinks that investors should look past near-term concerns about Brickworks’ property earnings and is tipping higher capital value realisations from this side of the business in future. The broker said:

With peaking rates in sight, we believe further valuation declines may be limited and the tight demand supply dynamics in the industrial market could create further rental upside.

The post Brickworks shares: Buy, Hold, or Sell? appeared first on The Motley Fool Australia.

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More reading

• 3 reasons why I think the Brickworks share price is a buy
• 2 excellent ASX dividend shares I’d buy with $3,000
• Are Brickworks or Soul Patts shares a better ASX buy? Here’s my take
• Own Brickworks shares? Here’s how much you’ve been paid in dividends since COVID-19!
• Where I’d invest $3,000 into ASX dividend shares in January

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Brickworks and Macquarie Group. The Motley Fool Australia has positions in and has recommended Brickworks and 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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Dicker Data Ltd (ASX: DDR) shares are ending the week on a positive note.

In afternoon trade, the computer hardware and software distributor’s shares are up 2% to $11.50.

Why are Dicker Data shares pushing higher?

Investors have been buying the company’s shares today after it announced its latest quarterly dividend.

According to the release, the company has declared a 15 cents per share fully franked dividend for the three months ended December 31. Management notes that this “is in line with the Company’s policy of paying out 100% of net profit after tax (NPAT).”

Dicker Data’s final dividend is up significantly on last year’s final quarterly dividend of 2.5 cents per share and will mean an increase year on year.

The company has already paid out 10 cents per share fully franked dividends for each of the first three quarters of FY 2023. This means Dicker Data will have distributed a total of 45 cents per share to its shareholders come pay day, which represents an 8.4% increase on the 41.5 cents per share that was paid out in FY 2022.

Based on where Dicker Data shares currently trade, this represents an annual fully franked dividend yield of 3.9%.

When is pay day?

The record date for this final 15 cents per share dividend will be 15 February, with the payment expected to be made the following month on 1 March.

In between those two dates, shareholders can look forward to hearing from management when it releases its full year results. The company is scheduled to release its number on Tuesday 27 February.

The post Dicker Data shares charge higher on dividend boost appeared first on The Motley Fool Australia.

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More reading

• Why Boral, Dicker Data, Droneshield, and Novonix shares are charging higher

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 Dicker Data. The Motley Fool Australia has positions in and has recommended Dicker Data. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.1% to 7,644.8 points.

Four ASX share that have failed to follow the market’s lead are listed below. Here’s why they are falling:

AGL Energy Limited (ASX: AGL)

The AGL Energy share price is down over 2% to $8.60. This may have been driven by profit taking after a strong gain on Thursday following its half year results release. In addition, this morning, Macquarie responded by retaining its neutral rating on AGL’s shares with a price target of $9.60.

Alliance Aviation Services Ltd (ASX: AQZ)

The Alliance Aviation share price is down a further 5% to $3.01. Investors have been selling this aviation services company’s shares after its half year results revealed an increase in its net debt to $244.6 million. This comes at a time when the company is planning to spend big on capital expenditures.

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is down 12% to $5.25. Investors have been selling ASX uranium shares today following the release of an update from one of the world’s largest uranium miners, Cameco Corp (NYSE: CCJ). It revealed plans to increase its uranium production materially to take advantage of strong demand and weak supply. This may have sparked fears that uranium prices could pull back.

Silver Lake Resources Ltd (ASX: SLR)

The Silver Lake share price is down almost 3% to $1.09. This gold miner’s shares have come under pressure this week after announcing plans to merge with Red 5 Ltd (ASX: RED). It seems that some investors are not overly keen on the plan and aren’t sticking around to see how it turns out.

The post Why AGL, Alliance Aviation, Boss Energy, and Silver Lake shares are falling appeared first on The Motley Fool Australia.

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More reading

• After tripling its dividends, is AGL a passive income share not to be missed?
• Why are ASX uranium shares getting thumped on Friday?
• Here are the top 10 ASX 200 shares today
• Why AGL, Cochlear, Mirvac, and News Corp shares are storming higher
• Why Alliance Aviation, Platinum, REA, and Santos shares are dropping today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Cameco. The Motley Fool Australia has recommended Alliance Aviation Services. 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) is fighting hard to end the week on a high. In afternoon trade, the benchmark index is up 0.1% to 7,648.5 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are charging higher:

Boral Ltd (ASX: BLD)

The Boral share price is up almost 10% to $5.93. Investors have been buying this building materials company’s shares after it released its half year results. Boral reported a 9% increase in revenue to $1,839.9 million and a 143% jump in underlying net profit after tax to $138.6 million. This stronger than expected half allowed management to increase its FY 2024 EBIT guidance.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price is up 2% to $11.43. This follows the announcement of the computer hardware and software distributor’s latest dividend. Dicker Data will pay a fully franked final quarterly dividend for FY 2023 of 15 cents per share. The record date will be 15 February and the payment date will be 1 March.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 17% to 69 cents. This is despite there being no news out of the counter drone technology company. However, it is worth noting that the Australian Government announced a major investment in combat drones today. This demonstrates the growing importance of Droneshield’s technology.

Novonix Ltd (ASX: NVX)

The Novonix share price is up almost 15% to 70.5 cents. This morning, this battery materials technology company announced a binding off-take agreement with leading electric vehicle (EV) batteries manufacturer, Panasonic Energy. The agreement is for high performance synthetic graphite anode material to be supplied to Panasonic Energy’s North American operations from Novonix’s Riverside facility in Tennessee.

The post Why Boral, Dicker Data, Droneshield, and Novonix shares are charging higher appeared first on The Motley Fool Australia.

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• Boral share price jumps 13% on massive profit growth and guidance upgrade
• Novonix shares jump 20% on Panosonic deal
• Forget Fortescue shares: This ASX stock could be poised for a bull run in 2024
• Up 80% in 6 months, is a monumental earnings boom just around the corner for this tiny ASX stock?
• Why is the Novonix share price on a rollercoaster today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data and DroneShield. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended DroneShield. 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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Defensive S&P/ASX 200 Index (ASX: XJO) share Transurban Group (ASX: TCL) could be a candidate to do very well once interest rates start falling.

For readers that don’t know, Transurban is the business behind a number of toll roads in Sydney, Melbourne and Brisbane. It also has a presence in North America as well.

The business recently reported its FY24 first-half result to investors for the six months to 31 December 2023.

Growth continues

It revealed that average daily traffic (ADT) increased 2.1% year over year to 2.5 million trips, supported by growth in all regions and the opening of new assets.

Proportional toll revenue rose by 6.3%, which led to proportional earnings before interest, tax, depreciation and amortisation (EBITDA) rising to $1.33 billion.

The statutory net profit after tax (NPAT) increased by 318% to $230 million.

Transurban also reported free cash (including capital releases) of $1.4 billion (up $63.5%) and a 13.2% increase of the distribution per security to 30 cents.

The defensive ASX 200 share reaffirmed its FY24 distribution guidance of 62 cents per security, which is expected to include approximately 4 cents per security of WestConnex cash, previously held during construction.

What to make of Transurban shares?

The Australian Financial Review reported that broker Citi has put a buy rating on the toll road operator.

Transurban is expecting to increase its FY24 distribution per security by 6.9%, and Citi thinks the defensive ASX 200 share could beat this guidance.

The broker suggests that Transurban could be a significant beneficiary of lower interest rates, partly because of the amount of debt on its balance sheet. It’s also possible that the defensive ASX 200 share has the potential to make more acquisitions.

Transurban share price snapshot

If the business does pay an annual distribution per security of 62 cents, it would translate into a forward distribution yield of 4.8%.

Since the start of 2024, the Transurban share price is down 6%.

I’d agree with Citi’s assessment – if interest rates do start coming down, Transurban could materially benefit. But, interest rates are, in my opinion, going to stay higher for longer than some people are expecting. I’m not expecting huge gains for Transurban in the next year, but I think it could regain some of the lost ground in the medium term.

The post Could this defensive ASX 200 share be set to soar when interest rates fall? appeared first on The Motley Fool Australia.

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• Transurban share price in the green amid 13% dividend boost
• These ASX dividend stocks offer 20%+ total returns
• Falling yields? I’d buy these ASX dividend beasts for a beefed-up income in 2024
• Brokers say these ASX 200 dividend shares are buys
• 3 world-class ASX retirement shares to buy now

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Transurban 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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Commonwealth Bank of Australia (ASX: CBA) shares will be in focus next week when the banking giant releases its half-year results.

As a reminder, this time last year, Australia’s largest bank released its results and reported record operating income of $13,593 million and record cash net profits of $5,153 million.

This was driven largely by volume growth in core products and a recovery in its net interest margin.

Since the release of this result, interest rates have risen further, potentially giving bank margins a nice boost.

So, could this lead to CBA reporting record profits again next week? Let’s find out.

Will CBA deliver another record result?

The short answer is, probably not.

The market is expecting CBA to post a small decline in profits for the first half of FY 2024, before realising a larger decline on a full-year basis.

For example, the consensus estimate for the first half is a cash profit of $4,972 million.

Goldman Sachs is a little more positive and has pencilled in $5,070 million. Close but no cigar. After which, the broker is forecasting cash earnings of $9,615 million for FY 2024, which represents a 4.5% decline year on year.

This is expected to be driven by a falling net interest margin (NIM), with the broker forecasting a decline to 1.98% (from 2.07%) in FY 2024. It then expects the trend to continue in FY 2025, with a NIM of 1.91% dragging its cash profits to $9,113 million.

Overall, Goldman appears to believe we have seen peak earnings for CBA.

But it is worth remembering that Australia’s largest bank does have a habit of outperforming expectations. So, while a record result next week is unlikely, you can’t rule it out completely.

CBA shares are up 11% over the last six months.

The post CBA could be eyeing record profits if first-half results echo the past appeared first on The Motley Fool Australia.

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• Which Big Four ASX bank share will pay the biggest dividend this year?
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• Brokers say these 3 ASX dividend shares are buys
• Want to buy ASX 200 bank shares? You need to read this
• 7 must-see results this ASX reporting season before buying or selling

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 Macquarie Group. 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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It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three 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:

Life360 Inc (ASX: 360)

According to a note out of Morgan Stanley, its analysts have retained their buy rating and $11.50 price target on this location technology company’s shares. Morgan Stanley is expecting a strong result from the company during earnings season. In fact, it believes that there’s potential for Life360 to outperform consensus estimates and catalyse a re-rating of its shares. The Life360 share price is trading at $7.76 on Friday.

REA Group Ltd (ASX: REA)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating on this property listings company’s shares with a trimmed price target of $201.00. This follows the release of a solid half year result this week. Following the result and management’s commentary, Goldman believes that REA’s revenue outlook remains very positive. In light of this, it feels its shares have one of the best risk/reward profiles in its domestic media coverage. The REA share price is fetching $180.25 today.

Treasury Wine Estates Ltd (ASX: TWE)

Another note out of Goldman Sachs reveals that its analysts have retained their buy rating and $12.40 price target on this wine giant’s shares. Goldman has been looking at Treasury Wine’s asset portfolio and believes it is being undervalued by the market. It also highlights that channel checks suggest market share gains can be expected as smaller traders and brands cycle out of the market. The Treasury Wine share price is trading at $11.08 this afternoon.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

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• The market is undervaluing this ASX 200 stock: Goldman Sachs
• 5 things to watch on the ASX 200 on Friday
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Motley Fool contributor James Mickleboro has positions in Life360 and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, and REA Group. The Motley Fool Australia has recommended REA Group and Treasury Wine Estates. 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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We’re now well into ASX earnings season, and yesterday, we got a look at ASX 200 energy generator and retailer AGL Energy Limited (ASX: AGL)’s books. What they contained was a delight for passive income investors.

This half-year report, covering the six months to 31 December, was an extremely popular one for ASX 200 investors. It resulted in AGL shares taking out the crown of yesterday’s top-performing ASX 200 stock. By market close, AGL was up 10.28% to $8.80 a share.

Today, AGL shares have cooled off slightly, and are currently down 1.76% to $8.64. But no one can deny it was a great day to be an AGL shareholder yesterday.

As my Fool colleague covered at the time, these results saw AGL post a whopping 358.6% rise in underlying profits after tax to $3.99 million. Although revenues fell 20.8% to $6.18 billion, underlying earnings per share (EPS) also rose by a stonking 359.7% to 59.3 cents.

The rises in revenues and profits were attributed to higher electricity prices and more stable energy markets.

In a move that will delight passive income investors, AGL, as a result, revealed an interim dividend for 2024 of 26 cents per share, unfranked.

That’s a massive 225% increase over last year’s interim dividend, which came to just 8 cents per share. It’s also a rise over the company’s final dividend of 2023, which was worth 23 cents per share.

This is obviously a huge move from this company for income investors. It takes AGL’s trailing dividend yield, which is currently sitting at 3.59%, and turns it into a forward dividend yield of 5.69%. Albeit unfranked.

So should income investors jump back into AGL shares?

Are AGL shares now a buy for passive income investors?

AGL’s move is a welcome one for anyone who loves a good dividend, to be sure. But I’m not tempted by AGL shares today.

Why? Well, this company’s divided performance over recent years has been nothing short of dreadful. Back in 2019, AGL forked out two dividends, as it did in 2023. But back then, investors were treated to an interim dividend of 55 cents per share. That was followed by a final dividend of 64 cents per share. Both payments came partially franked at 80%.

So while yesterday’s divided announcement was a step in the right direction, AGL is still nowhere near its glory days in terms of passive income.

The reason why AGL has been on struggle street since 2019 – in terms of profits, earnings and dividends – is because of uncertainty in the national electricity and gas markets which it operates within.

The electricity market in particular is still in the midst of a huge transition, as renewable energy replaces older fossil-fuelled power plants. AGL may have had a good half-year. But I’m not convinced that the messy regulations of an industry in upheaval won’t continue to be a drag on this company going forward.

Remember, this is a company that has burned shareholders badly in recent years. AGL fell from $23 a share in 2019 to a low of around $5.40 in late 2021.

As such, I’m staying away for now. Warren Buffett likes to say that he chooses six-inch bars to hop over, rather than 6-foot bars. AGL looks a lot higher than six inches from where I’m standing today. As such, I would need to see a consistent return to higher dividends before I’d consider a passive income investment in AGL shares today.

The post After tripling its dividends, is AGL a passive income share not to be missed? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
• Why AGL, Cochlear, Mirvac, and News Corp shares are storming higher
• 3 ASX All Ordinaries shares rocketing over 10% today
• AGL share price rockets 15% after half-year profit surge
• 5 things to watch on the ASX 200 on Thursday

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 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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Ava Risk Group Ltd (ASX: AVA) shares are on course to end the week on a high.

In morning trade, the ASX tech share was up 25% to 20 cents before being paused from trade.

Why is this ASX tech share rocketing?

The catalyst for this strong gain was news that the risk management technologies company has signed a major agreement with Telstra Group Ltd (ASX: TLS).

According to the release, AVA Risk has signed a Telstra Supply Agreement (TSA) that it believes establishes a substantial opportunity within the large and globally addressable telecommunications vertical.

Management notes that TSA is the culmination of 10 months of collaboration, including product trials with Telstra and its customers.

Those trials demonstrated the superior ability of its sensing technology to be deployed to Telstra’s existing fibre network to detect events and provide appropriate classification and reporting. It notes that this provides a rich source of data to Telstra, and effectively turns the existing fibre network into sensors.

The ASX tech share believes it is a clear demonstration of the adaptability of the company’s technology to adjacent applications, such as telecommunications, which opens significant new markets to the company.

Management has described it as a “significant milestone” for the company. Ava Risk CEO, Mal Maginnis, commented:

Signing a preferred supplier agreement with Telstra is a very significant milestone for Ava Risk Group. It underscores the strength of our market-leading solutions and is testament to our commitment to innovation to meet the evolving needs of our global client base. It clearly demonstrates that our sensing technology, which has evolved from security solutions, can be deployed to multiple applications. This collaboration cements our position as a trusted supplier, and we look forward to working extensively with Telstra.

With more than 5 billion kilometres of fibre optic cable deployed globally (as at 2022), the agreement with Telstra Group represents the entry into a large and attractive market vertical for Ava Risk Group’s technology.

Earlier this week, Maginnis vested 333,333 AVA Risk shares.

The post This tiny ASX tech share is leaping 25% after striking a deal with Telstra appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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