Much to the relief of its shareholders, the Core Lithium Ltd (ASX: CXO) share price has started the week positively.

In morning trade, the lithium developer’s shares are up 3% to $1.09.

Though, this is little consolation for shareholders that snapped up shares just over a month ago.

Since then, the Core Lithium share price had lost a whopping 43% of its value prior to today’s gain.

Why is the Core Lithium share price rising today?

The catalyst for its strong gain today has been the release of a broker note out Macquarie this morning.

In response to the aforementioned share price weakness, the broker has upgraded its shares to an outperform rating from neutral with a steady price target of $1.30.

Based on the current Core Lithium share price, this implies potential upside of almost 20% for investors over the next 12 months.

As well as the share price weakness, the broker believes recent exploration activity has the potential to deliver a big boost to the company’s resource base. This follows promising results announced last week from the drilling of the Hang Gong and Bilatos prospects close to the existing Finniss operations.

Macquarie commented:

We believe the regional exploration potential of the Finniss project is strong and will become more recognized once spodumene production commences in 2023.

Raining cash

Looking ahead, the broker also highlights that Core Lithium is expected to start producing lithium before the end of FY 2023. Based on this, it is expecting the Finniss project to be printing cash in the near future.

So much so, it estimates that the Core Lithium share price currently trades on free cash flow yields of 14% and 37% for FY 2024 and FY 2025, respectively. This could support dividend payments in both years according to Macquarie.

The post Why is the Core Lithium share price having such a stellar start to the week? appeared first on The Motley Fool Australia.

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More reading

• Can Core Lithium shares really live up to the hype surrounding them?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why is the Core Lithium share price gaining on Friday?
• Why did the Sayona Mining share price dive 7% on Thursday?
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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 have Rio Tinto Limited (ASX: RIO) shares in your portfolio, you may be curious about what lies ahead in 2023.

Rather helpfully, the mining giant has just released a summary of its key dates for the year ahead.

The dates to watch for in 2023

Arguably, the most important date to circle in your diary is 22 February. On this day, Rio Tinto will be releasing its full year results for FY 2022.

According to consensus estimates, on that day, the market is expecting Rio Tinto to report underlying EBITDA of US$26,874 million and underlying earnings of US$14,104 million. This is expected to lead to a final dividend of US$2.57 per share, which takes its full year dividend to US$5.24 per share.

This brings us nicely onto the next key date to put in your diary. On 9 March, the Rio Tinto shares will trade ex-dividend for its final dividend of FY 2022.

After which, if you’re eligible to receive this dividend, you will be paid it on 20 April.

What else could impact Rio Tinto shares next year?

Moving on, another couple of dates to add to your diary are the company’s annual general meetings, which are scheduled to be held on 6 April for UK shareholders and 4 May for Australian shareholders.

In between those events, Rio Tinto will be releasing its first quarter operational update for FY 2023 on 21 April.

After which, it won’t be long until the mining giant is scheduled to release its next set of results. On 26 July, Rio Tinto’s half year results will be announced.

No consensus data is available for the half year period, but the market is expecting a 14% decline in underlying EBITDA to US$23,289 million for the 12 months. So, a result tracking in line with this estimate at the halfway point will largely be expected.

Rio Tinto shares will then trade ex-dividend for its interim dividend of FY 2023 on 10 August. Payment will follow almost six weeks later on 21 September.

The post Own Rio Tinto shares? Here are the key dates to watch in 2023 appeared first on The Motley Fool Australia.

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• Why did the iron ore price just hit a 6-month high?
• Why Aurizon, Norwest, Rio Tinto, and Strike Energy shares are rising today
• Why is the Rio Tinto share price wallowing on Wednesday?
• Why is the Fortescue share price tanking on Tuesday?
• 5 things to watch on the ASX 200 on Tuesday

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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Move over Zip Co Ltd (ASX: ZIP), another ASX buy now, pay later (BNPL) share has beat the former market darling to the profit pie.

All Ordinaries Index (ASX: XAO) constituent Sezzle Inc (ASX: SZL) has officially posted what could be the sector’s first monthly profit.

Here’s how the smaller ASX BNPL share has performed compared to Zip as of late. As the chart below shows, Sezzle stock has dumped a whopping 82% over the last 12 months.

While that might appear disastrous, it’s a better performance than that posted by Zip shares. They’ve plunged 85% in that time.

For comparison, the All Ordinaries Index has slipped 4% since this time last year.

Let’s take a look at today’s news from the smaller ASX BNPL company.

Another ASX BNPL share beats Zip to profitability

It’s been a big year for ASX BNPL shares. Former favourite Afterpay was taken off the market, all but one member of Humm Group Ltd (ASX: HUM)’s board stormed out, and Zip proposed then cancelled a plan to acquire Sezzle.  

And with just eight trading days left on the year, the former takeover target has dropped another bombshell – its maiden monthly profit.

Sezzle posted US$200,000 of net income and US$1.5 million of adjusted earnings before tax, depreciation, and amortisation (EBTDA) for the month of November. That’s up from respective average monthly losses of US$8.6 million and US$8.2 million in the fourth quarter of 2021.

“To say we are excited is an understatement,” said Sezzle chair and CEO Charlie Youakim, continuing:

[T]his puts us in a strong position entering 2023.

We believe we are the first in our segment to reach profitability, but one month does not make a trend. Our goal for 2023 is to achieve positive net income and Adjusted EBTDA.

The smaller BNPL provider’s total income came to $19.9 million in November – leaving its total income as a percentage of underlying merchant sales at a record 8.1%.

The Zip share price lifted 1.6% in late October on the back of the larger BNPL company’s latest earnings. Its revenue reached $163.2 million over the three months ended 30 September – up 19% quarter-on-quarter.

Zip CEO Larry Diamond also recently told investors the company is expecting to operate in the EBTDA cash flow green by the first half of financial year 2024.

The post Guess which ASX BNPL company just achieved profitability for the first time (hint: not Zip) appeared first on The Motley Fool Australia.

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• Here are the 10 most shorted ASX shares
• Why Bendigo Bank, Endeavour, TPG, and Zip shares are dropping today
• Why Chalice Mining, Fortescue, Mincor, and Zip shares are dropping today
• Why is the Zip share price sinking 8% today?
• Why this one top fund manager is optimistic about 2023, and one little-known IPO that has hit it out of the park

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Zip Co. The Motley Fool Australia has recommended Humm 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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One of the worst-hit S&P/ASX 200 Index (ASX: XJO) names in 2023 has been the Pinnacle Investment Management Group Ltd (ASX: PNI) share price, which is down 45% in the year to date.

There has been a lot of pain for some sectors on the ASX, while others have been spared. For example, ASX bank shares have done quite well this year, as they’re seen to benefit from higher interest rates. But fund managers have taken a hit.

A lot of fund management companies’ earnings come from the amount of funds under management (FUM). If the FUM falls, the levels of revenue and earnings are likely to drop. Remember, investors often like to judge a business by its profitability.

What are Pinnacle shares known for?

The business is invested in a growing number of leading fund managers such as Coolabah, Firetrail, Hyperion, Spheria, Plato, and several more.

It takes a stake in the fund managers’ businesses and can also help them in a number of areas. These include seed FUM and working capital, distribution and client services, middle office and fund administration, compliance, finance, legal and so on.

While it started by looking at ASX share-focused fund managers, it’s now looking at expansion opportunities. It’s planning to take advantage of the “significant offshore opportunity to evolve into a global multi-affiliate” by exporting its business model.

Why it could be an opportunity

Any ASX 200 share that has been growing for a long time and then goes through a rough patch is worth looking at. The Pinnacle share price’s performance was strong after the COVID crash up to the end of 2021.

With some share market valuations down heavily, the underlying FUM growth of Pinnacle has also stuttered. At 30 September 2022, it had $80.5 billion of FUM, down 4% from June 2022.

I think that when share markets stop declining, long-term asset price growth will be a natural boost for Pinnacle’s underlying earnings. The end of declines could also lead to better fund flows for the respective fund managers in Pinnacle’s portfolio as well.

Pinnacle says it’s working with affiliates to “actively pursue growth initiatives, recognising that these will moderate profits in the short-term but provide extremely lucrative growth opportunities over the medium term”.

The ASX 200 share is also looking for incubations, which are a “highly attractive investment proposition”. It’s looking to incubate more outside of Australia and leverage the operational infrastructure that it has developed in the UK, Europe, and Canada. Australia has a large capital market, but the rest of the world is a much bigger opportunity.

Pinnacle share price valuation

According to Commsec, the business is valued at 18 times FY24’s estimated earnings with a potential FY24 grossed-up dividend yield of 6.1%. Whilst the share price could go even cheaper, I think it’s now priced at very attractive value for the long term.

The post Is the Pinnacle share price the ASX 200’s biggest bargain right now? appeared first on The Motley Fool Australia.

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• Why this blue-chip stock is a no-brainer buy for dividend growth investors
• 2 reasons I think the Fortescue share price can keep rising (and 2 why it can’t)
• 5 things to watch on the ASX 200 on Monday
• Shopping spree: What happened to the Woolworths share price today?
• Here are the 3 most heavily traded ASX 200 shares on Friday

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 Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management 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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There are plenty of ASX shares that pay dividends to investors. The great thing about investing in businesses is that we can start building wealth with a small amount of money.

Think about how much money is needed to invest in a property. The deposit alone can be tens of thousands of dollars, or even over a hundred thousand dollars. It can take a long time to save up that amount of money.

We still need to do a bit of saving to invest in ASX shares. Most brokers require a minimum of $500 to invest. Saving $5 a day, which is hopefully achievable for nearly everyone, would take 100 days to reach that minimum number. However, it may be better to wait to invest until the amount is closer to $1,000.

These days, we can earn a decent return on savings in the banks, so we’re not missing out too much by building towards a goal.

Building a second income with ASX dividend shares

The key wealth-building tool for most people is their job, or business if they run a business.

But, it’s also possible to build another source of income from ASX shares with dividends.

Dividends are simply the portion of the profits companies pay out each year to the owners of the business (shareholders).

By saving $5 a day, someone can save $1,825 a year. I think that number, or even $1,000, would be a great starting point for a beginner investor.

A $1,825 investment with a 6% dividend yield would turn into around $110 of income. So, a few years of investing could turn into a sizeable amount of annual dividend income – hundreds of dollars a year, or even thousands.

Which ASX shares pay sizeable dividends?

Australia’s largest telco Telstra Group Ltd (ASX: TLS), is starting to grow its dividend again. It’s expected to pay a grossed-up yield of 6% in FY23, according to Commsec.

Another business, Coles Group Ltd (ASX: COL), is expected to pay a grossed-up dividend yield of 5.4% in FY23, according to Commsec.

Westpac Banking Corp (ASX: WBC) is projected to pay a grossed-up dividend yield of 8.5% in FY23, according to Commsec.

JB Hi-Fi Limited (ASX: JBH) shares are forecast to pay a grossed-up dividend yield of 8.75% in FY23, according to Commsec.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra Group. The Motley Fool Australia has recommended Jb Hi-Fi and 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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Wesfarmers Ltd (ASX: WES) shares may be one of the top S&P/ASX 20 Index (ASX: XTL) ASX dividend shares for income. It’s a leading ASX blue-chip stock with a market capitalisation of $54 billion according to the ASX.

The business is the owner of some of the country’s leading retail brands including Bunnings, Officeworks, Kmart, Target, Priceline, and Catch.

It also used to be the owner of Coles Group Ltd (ASX: COL), but it divested the supermarket business a few years ago. Owners of Wesfarmers shares received Coles shares when the split happened, so long-term shareholders are now getting dividends from both Wesfarmers and Coles.

Wesfarmers is committed to dividends

The blue-chip stock says that the primary objective of Wesfarmers is to provide a “satisfactory return to its shareholders through financial discipline and exceptional management of a diversified portfolio of businesses.”

Wesfarmers says that “as well as share price appreciation, Wesfarmers seeks to grow dividends over time commensurate with performance in earnings and cash flow“.

In the company’s FY22 result, despite the tricky trading conditions, Wesfarmers grew its total dividend per share by 1.1% to $1.80 per share.

For cash flow generation, the ASX 200 dividend share wants to employ “excellent management teams who are empowered to drive long-term earnings growth. This is achieved through deploying best practice principles in operational execution and maintaining a long-term focus in regards to strategy and results.”

Wesfarmers says it is constantly looking to improve the working capital efficiency of all its businesses while ensuring “strong discipline” for its capital expenditure.

Being prudent with its money and trying to achieve good results has played out well for the business and the Wesfarmers share price over the long term.

Approach to investments

One of the most compelling things about Wesfarmers’ dividend prospects is that its portfolio regularly evolves to be more future-focused.

For example, it recently acquired the business Australian Pharmaceutical Industries (API). This enables the business to start a new division called Wesfarmers Health which is exposed to long-term tailwinds, including Australia’s ageing demographic.

Within its chemicals, energy, and fertilisers business, it’s investing in a lithium mining operation called Mt Holland. This could produce good cash flow for the business in the future years.

The company says that it seeks to “invest in group businesses where capital investment opportunities exceed return requirements”.

It also looks to “acquire or divest businesses where doing so is estimated to increase long-term shareholder wealth”.

When reviewing the acquisition, it looks at a number of filters: megatrend exposure, industry structure, industry scale, competitive position, how it fits into Wesfarmers, the long-term investment horizon, discipline in financial projections, and risk-adjusted hurdle rates.

By combining a strong performance from its existing businesses, organic growth, and the occasional acquisition, Wesfarmers can hopefully grow its profit and dividend over the long term.

Expected future Wesfarmers dividends

Dividends and growth are not guaranteed from the blue-chip stock. But, Commsec numbers suggest that’s exactly what the business may achieve in the next two financial years.

According to Commsec, the business is going to pay an annual dividend per share of $1.825 in 2023 and $1.895 in 2024. This translates into forward grossed-up dividend yields of 5.5% and 5.75% respectively.

The post Why this blue-chip stock is a no-brainer buy for dividend growth investors appeared first on The Motley Fool Australia.

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• 2 reasons I think the Fortescue share price can keep rising (and 2 why it can’t)
• 5 things to watch on the ASX 200 on Monday
• Shopping spree: What happened to the Woolworths share price today?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Bought $1,000 of Wesfarmers shares 10 years ago? Here’s how much dividend income you’ve received

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers. 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 Commonwealth Bank of Australia (ASX: CBA) share price has been a relatively solid performer in 2023.

Since the start of the year, Australia’s largest bank’s shares have risen almost 3.5%.

As a comparison, the S&P/ASX 200 Index (ASX: XJO) has lost 5.8% of its value during the same period.

And then let’s not forget the dividends that CBA has paid. If we add in its fully franked dividends of $3.85 per share, this increases its total return by a further 3.6% to approximately 7%.

Can the CBA share price keep rising?

Unfortunately, analysts across Australia are united in their belief that the CBA share price has peaked.

Among the most bearish brokers is Goldman Sachs, which has a sell rating and $90.98 price target on its shares.

Based on the current CBA share price of $105.98, this will mean potential downside of 14% for investors over the next 12 months.

Its analysts have concerns about CBA’s exposure to home lending in the current environment and don’t believe it deserves to trade on a larger than normal premium to the rest of the big four.

Goldman explained:

While the 1Q23 update highlighted the strength of the CBA franchise (particularly deposits), reflected in its very strong NIM performance, we reiterate our Sell given: i) it does remain more exposed to the intense competition we are currently observing in mortgages (albeit CBA appears to be favouring NIM over volumes), ii) we expect that potential further macro downside is likely to more adversely impact the household this cycle, which CBA is more exposed to, and iii) domestic volume trends have tracked towards system levels. We therefore do not believe its fundamentals justify the 51% 12-mo fwd PER premium it is currently trading on versus peers, compared to the 20% historic average.

The post Is the CBA share price heading higher or lower from here? appeared first on The Motley Fool Australia.

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

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There are a handful of very promising S&P/ASX 200 Index (ASX: XJO) shares to look at, according to the fund manager L1 Capital.

In its recent monthly update for the listed investment company (LIC) L1 Long Short Fund Ltd (ASX: LSF), the fund manager said it’s optimistic about the prospect of China reopening in 2023 and the portfolio is positioned to benefit from any progress on that front.

However, it’s also cautious about the outlook for the share market because of the “lagged impact of significant interest rate increases, deteriorating leading economic indicators, increasing pressure on corporate earnings into 2023 and tail risk from geopolitical tensions”.

With that in mind, L1 is currently maintaining a conservative portfolio. Here are three of the names that L1 likes:

Sandfire Resources Ltd (ASX: SFR)

The Sandfire share price performed strongly in November, rising by 45% thanks to the copper price going up by 11% along with expectations there is going to be a Chinese reopening.

L1 noted that China accounts for more than 50% of global copper demand, so its economic recovery is “critical to support copper prices”.

The fund manager noted that Sandfire did a capital raising for $200 million to strengthen its balance sheet as it completes the capital-intensive task of developing the Motheo copper mine in Botswana. Explaining its optimistic view, the fund manager stated:

We continue to see compelling valuation upside in Sandfire with the commencement of Motheo production in FY24 set to deliver a step-change in profits and cash flow for the company.

Boral Limited (ASX: BLD)

L1 describes Boral as one of the largest building and construction materials companies in Australia.

The fund manager notes that the ASX 200 share’s net profit after tax (NPAT) has been impacted by rising input costs and significant wet weather delays. However, the fund manager spies a turnaround for the company. L1 said:

Under new leadership, and in a normalised trading environment, we believe Boral has the potential to more than double earnings over the medium-term from current levels.

Qantas Airways Limited (ASX: QAN)

The Qantas share price rose by 7% in November with the airline upgrading its earnings expectations again. It increased the guidance by $150 million to a range of $1.35 billion to $1.45 billion, with a reduction of net debt by $900 million to between $2.3 billion to $2.5 billion by 31 December 2021.

The airline also noted that it is considering more shareholder returns with its low level of net debt.

L1 explained its optimistic case for the ASX 200 share:

We continue to view Qantas as having emerged from the pandemic even stronger than before, given its $1b cost-out program, improved market position and the massive pent-up demand for leisure travel, which we expect will persist despite macroeconomic headwinds. If Qantas management can achieve its FY24 targets, there is potential to deliver close to $1 of earnings per share, with Qantas currently trading on only around 6x price/earnings (P/E) ratio on that basis. We believe there is significant share price upside through earnings growth and a P/E re-rating as the company’s earnings mix shifts towards more predictable domestic earnings and loyalty business.

The post 3 ASX 200 shares that have ‘significant share price upside’: fund manager appeared first on The Motley Fool Australia.

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• Is Qantas stock a cheap ASX 200 buy right now?
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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund. 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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Those who have held Woolworths Group Ltd (ASX: WOW) shares over the past decade have likely been pretty chuffed with their investment.

The Woolworths share price has gained 37% over the last 10 years. If an investor bought $1,000 of Woolies stock in December 2012, they likely would have walked away with 40 shares, paying $24.97 apiece.

Today, 40 Woolworths shares would be worth $1,372.40. Stock in the supermarket operator is currently trading at $34.31 per share.

However, the S&P/ASX 200 Index (ASX: XJO) has lifted around 56% over the same period, leaving the Woolworths share price’s performance in its dust.

But have the supermarket giant’s dividends levelled the playing field? Let’s take a look.

How much have Woolworths shares paid in dividends in 10 years?

Here are all the dividends Woolworths has offered over the decade just been:

Westpac dividends’ pay date	Type	Dividend amount
September 2022	Final	53 cents
April 2022	Interim	39 cents
October 2021	Final	55 cents
April 2021	Interim	53 cents
October 2020	Final	48 cents
April 2020	Interim	46 cents
September 2019	Final	57 cents
April 2019	Interim	45 cents
October 2018	Final	50 cents
October 2018	Special	10 cents
April 2018	Interim	43 cents
October 2017	Final	50 cents
April 2017	Interim	34 cents
October 2016	Final	33 cents
April 2016	Interim	44 cents
October 2015	Final	72 cents
April 2015	Interim	67 cents
October 2014	Final	72 cents
April 2014	Interim	65 cents
October 2013	Final	71 cents
April 2013	Interim	62 cents
Total:		$10.69

As the above chart shows, Woolworths shares have paid out $10.69 per share in dividends over the last 10 years.

That means someone holding 40 stocks in the ASX 200 supermarket operator likely would have received $427.60 of dividends in that time.

Thus, our figurative $1,000 investment a decade ago has yielded $372.40 in capital gains and $427.60 in passive income – a total of $800. That leaves Woolworths shares boasting an 80% return in that time.

And that’s before considering franking credits. All Woolies dividends in that time have been fully franked, potentially bringing additional benefits at tax time.

Finally, a savvy investor who reinvested their dividends, potentially through the company’s dividend investment plan (DRP), likely would have realised an even larger gain through the magic of compounding.

Woolworths shares are currently trading with a 2.68% trailing dividend yield.

The post Bought $1,000 of Woolworths shares 10 years ago? Here’s how much dividend income you’ve received appeared first on The Motley Fool Australia.

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More reading

• Brokers name 2 ASX dividend shares to buy next week
• Shopping spree: What happened to the Woolworths share price today?
• Brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Friday
• 3 ASX shares to buy for a possible recession next year

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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With Christmas less than a week away, the team at Morgans has been busy looking at which ASX shares it would like Santa to leave under the tree this year.

On this occasion, the broker is focusing on the retail sector and has picked out three shares that it wants to unwrap on Christmas morning. It said:

Perhaps you’re super organised this year and have bought all your presents already. If so, reward yourself by writing a note to Santa with a wish list of stocks you’d like to see in your stocking on Christmas morning. We have, and this year we’d love to receive share certificates in BLX, SUL and UNI.

An ASX share that is too cheap

The first ASX share that Morgans wants to find under the tree is speciality retailer Beacon Lighting Group Ltd (ASX: BLX). The broker currently has an add rating and $2.60 price target on its shares. It said:

We think retail demand for BLX’s lighting products will remain resilient through 1H23 and into 2H23, but even when consumer demand inevitably softens, we believe its strategy to develop its Trade (and International) business will offset and outweigh the cyclical downturn. At an FY24F PE of just 13.0x, we think BLX is too cheap for the growth it offers over the longer term.

A Super pick for 2023

The next ASX share for investors to buy is Super Retail Group Ltd (ASX: SUL). It is the retail conglomerate behind brands such as Super Cheap Auto and Rebel Sport. Morgans has an add rating and $13.00 price target on its shares. It said:

Though not a growth story as such, we see SUL as a well-run retailer that is well placed to surprise positively on earnings. Consumer demand is holding up well across most of its brands, while its investment in inventory is likely to allow it to hold gross margins. SUL has more than $250m in franking credits and we wouldn’t be surprised to see a special dividend at some point.

A retailer with a strong customer base

A final ASX share that Morgans wants for Christmas is youth fashion retailer Universal Store Holdings Ltd (ASX: UNI). Its analysts have an add rating and $6.50 price target on its shares. The broker commented:

UNI is benefiting from robust demand from its youthful (and fully employed) core customer. It has displayed excellent discipline around pricing and it has attractive growth opportunities across three channels: retail, online and now wholesale too.

The post Morgans has put these ASX shares on its Christmas wishlist appeared first on The Motley Fool Australia.

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More reading

• If I was 40 and had never invested, here’s how I’d aim to build a $500,000 ASX share portfolio
• Top ASX dividend shares to buy in December 2022
• I’d aim for $1 million, buying just 10 cheap ASX shares
• Rebound: I’m finding cheap ASX shares to buy before it’s too late!
• Growth is back: 3 ASX shares to buy now for a 2023 re-rate

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 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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