The ResMed Inc (ASX: RMD) share price could be in the buy zone.

That’s the view of analysts at Goldman Sachs following the release of the sleep treatment company’s fourth quarter update.

What did the broker say about the ResMed share price?

Despite a decent rally in recent months, the broker still sees plenty of value in the ResMed share price.

According to the note, Goldman has retained its buy rating with an improved price target of $36.80.

Based on the current ResMed share price of $33.40, this implies potential upside of over 10% for investors over the next 12 months.

Goldman commented:

We continue to see a long-duration runway of HSD organic growth for RMD, and we believe that growth-adjusted valuation of 3.1x (sector 2.9x) is not demanding in the context of various near/long-dated tailwinds.

Why is Goldman bullish?

The broker has previously spoken about how it believes ResMed could be well-placed to benefit from a backlog of patients waiting to be diagnosed following the pandemic.

And while it sees some risk from these potential patients moving to alternative therapies, it feels the majority will wait and stick with the company’s products.

It explained:

There is a 12-18 month backlog of new patients waiting to be diagnosed. While there is a risk these prospective patients may switch to alternative therapies (e.g. dental sleep, neurostimulation), the degree of movement towards these substitutes has been relatively minor against the size of the CPAP market. Instead, we believe the backlog of new patients may add upside risk to our estimates if there is a material realisation of incremental devices/masks sales to new patients in FY23/24 (supply chain pressures permitting).

All in all, this could make the ResMed share price good value for investors that are looking for quality long term options.

The post Why this broker sees plenty of upside for the ResMed share price appeared first on The Motley Fool Australia.

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• The ASX 200 company selling everything it makes due to its major competitor being out of the market: fundie
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Monday, the Westpac Banking Corp (ASX: WBC) share price opened the week with a day in the red.

The banking giant’s shares ended the session 1% lower at $22.43.

This followed the release of a third quarter update on its asset quality, capital position, and funding.

Are Westpac shares in the buy following the update?

While the market may not have responded too positively to the update, one leading broker was pleased with it.

According to a note out of Goldman Sachs, its analysts have responded by reiterating their conviction buy rating and lifting their price target slightly to $26.55.

Based on the current Westpac share price of $22.43, this suggests potential upside of 18% for investors over the next 12 months.

And if you include Goldman’s forecast for a fully franked dividend of $1.23 per share in FY 2022, this will mean a yield of 5.5% and a total potential return of over 23%.

What did the broker say?

Goldman Sachs has been connecting the dots from Westpac’s update and feels that it points to the bank’s earnings tracking ahead of expectations.

It commented:

While no earnings update was provided, the CET1 ratio, RWA and capital deduction disclosures did imply that the quarterly cash earnings performance may have been run-rating slightly better than what was implied by our previous 2H22E forecasts.

In light of this, the broker continues to see Westpac shares as the top option in the banking sector right now.

The broker concluded:

We continue to see WBC as our preferred exposure to the A&NZ Financials reflecting: i) its strong leverage to rising rates, ii) while we think its A$8 bn FY24 cost target will now be unachievable, we still forecast a 7% reduction in underlying expenses, iii) its recent market update highlighted that the business is still investing effectively in its franchise, and iv) our 12-mo TP implies a 23% TSR, and we note the stock is trading at a 20% discount to peers, versus the historic average discount of 2%.

The post Is the Westpac share price a buy following the bank’s latest update? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Westpac share price slips following release of Q3 update
• Westpac share price on watch following Q3 update
• 5 things to watch on the ASX 200 on Monday
• Up 12% in 30 days, is the Westpac share price still a buy?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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During reporting season in the midst of a year when there have been so many external distractions (like inflation, interest rate hikes and wars), it’s easy to get caught up in the here-and-now.

But regular The Motley Fool readers know it’s all about buying ASX shares to hold for the long run.

So with this in mind, here are two ASX shares that Ord Minnett senior investment advisor Tony Paterno named as buys this week:

‘Maintained a steady gross margin of about 20% since listing’

Insurance repairer Johns Lyng Group Ltd (ASX: JLG) is one company that will benefit from the effects of climate change.

“This building services company specialises in emergency construction,” Paterno told The Bull.

“In our view, increasing catastrophes in 2022 will assist earnings moving forward.”

Johns Lyng Group is also intruding into new functional and geographic areas, such as strata management and the US.

“The company is looking to expand into new markets, providing a runway for strong longer-term growth and underpinning double-digit earnings per share growth,” said Paterno.

“Johns Lyng Group has maintained a steady gross margin of about 20% since listing in 2017.”

The share price has incredibly lifted more than 50% since 22 June.

Only a couple of weeks ago, Wilson Asset Management senior equity analyst Sam Koch agreed with Paterno that Johns Lyng is a buy.

“The resiliency of Johns Lyng Group’s earnings growth is an attractive quality for shareholders in the current volatile macro-economic environment.”

‘Demand for high quality telecommunication assets’

The old retail investor staple Telstra Corporation Ltd (ASX: TLS) is Paterno’s other pick.

“The telecommunications giant has lifted its final dividend to 8.5 cents a share for fiscal year 2022.”

There is a big catalyst on the horizon, according to Paterno.

“Telstra may soon monetise its InfraCo fixed business once the legal separation is complete in October 2022,” he said.

“Recent transactions highlight that demand for high quality telecommunication assets, with long-term contracts and predictable cash flows, remain strong.”

The other bonus is that Paterno has noticed this infrastructure in this particular sector is very resilient in troubled economic times.

“Despite central banks raising interest rates globally, transaction multiples for telecommunication assets haven’t declined.”

Just last week, the team at Morgans also expressed their bullish views on Telstra shares.

“[The] telco has the strongest tailwinds in a decade with an increasingly rational market, pricing rises and the criticality of telco increasingly recognised,” read the analyst note.

“This combines with an incoming CEO who currently seems unlikely to drastically change the business and the potential for value uplift (potential bids) following the legal restructure.”

The post ‘Strong growth’: Expert names 2 ASX shares to buy for the long run appeared first on The Motley Fool Australia.

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More reading

• Own Telstra shares? How the telco is tackling inflation pressures
• ‘Strongest tailwinds in a decade’: Morgans tips Telstra shares as a buy
• Brokers name 3 ASX shares to buy today
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Is the Telstra share price a buy after the telco’s FY22 results?

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group Limited. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Johns Lyng Group Limited. 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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Australians are locking away their wallets as they face steeply rising interest rates and higher costs of living from inflation.

In this sort of environment, there are sectors that will obviously suffer.

One is real estate. Higher loan costs mean lower demand, and lower property prices.

Another is discretionary retail. If consumers have to devote more of their pay packet to their loan repayments, they will start cutting out non-essential spending first. 

But in the share market, like in life, there are always exceptions to the rule.

Here’s a pair of ASX shares Marcus Today portfolio manager Thomas Wegner reckons are prime buys right now:

‘Optimistic and resilient outlook’

Although JB Hi-Fi Limited (ASX: JBH) released its annual report on Monday, its numbers were already known from a preliminary report in July.

Wegner told The Bull the market liked what it saw, with the JB Hi-Fi share price shooting up 5% that morning.

“Top and bottom lines came in ahead of most estimates.”

At the time, forward guidance wasn’t offered, but Wegner saw enough in the rear-view to have confidence about the electronics retailer. 

“The results still painted an optimistic and resilient outlook by the consumer,” he said. 

“Sales momentum was strong throughout the year, with total sales up 3.5% to $9.2 billion.”

The wider professional community is still somewhat unsure about a consumer discretionary stock like JB Hi-Fi. Out of 15 analysts surveyed on CMC Markets, six rate it as a buy, three as a hold, and six recommend selling.

The JB Hi-Fi share price has fallen about 6.6% since the start of the year. The stock does pay out a 5.9% dividend yield.

Real estate market might dip, but there are plenty of offsets

Australia’s property prices caught fire for a couple of years after an initial pause in activity when the COVID-19 pandemic first arrived.

But with interest rates rising this year, even hot real estate markets like Sydney and Melbourne have cooled.

This still doesn’t stop Wegner from recommending online classifieds site REA Group Limited (ASX: REA) as a buy though.

“This digital advertising business specialising in property posted revenue of $1.170 billion in fiscal year 2022, up 26% on the prior corresponding period,” he said.

“Net profit of $408 million was up 25%.”

The company did admit the Australian residential property market would slow down as rate hikes start to bite, but there are enough tailwinds to offset that impact.

“It believes demand will be supported by robust household balance sheets, low unemployment and increasing migration.”

Wegner isn’t the only analyst going against the fortunes of the real estate sector to back REA’s credentials.

The team at Morgans last week also recommended buying the stock after its financials were revealed.

“REA remains one of the highest quality franchises in our coverage,” said associate analyst Steven Sassine on the Morgans blog.

“And whilst FY23 may exhibit some volatility (e.g. macro impacts on listings volumes), we believe management has levers to potentially pull (e.g. yield) in such an environment.”

The post 2 surprisingly ‘robust’ ASX shares to buy in current climate: expert appeared first on The Motley Fool Australia.

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• JB Hi-Fi share price dips as full-year dividend jumps 43%
• Top brokers name 3 ASX shares to buy next week
• Could this ASX 200 share be heading for a short squeeze?
• 2 ASX shares that Morgans would buy after excellent results
• Down 20% since March, is this ASX 200 share a misunderstood investment opportunity?

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. 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 good news for income investors is there are a large number of dividend shares for them to choose from on the Australian share market.

Two such shares that Goldman Sachs rates as buys are listed below. Here’s what the broker is saying about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share that Goldman Sachs is bullish on is this real estate investment trust.

The Charter Hall Social Infrastructure REIT invests in social infrastructure properties such as bus depots, police and justice services facilities, and childcare centres.

And while its recent results were a touch short of expectations, the broker saw enough to retain its conviction buy rating and bump its price target up to $4.35.

Goldman commented:

Although CQE’s result came in slightly below our expectations, we continue to believe the REIT is relatively well positioned given the sector’s positive fundamentals and CQE’s strong balance sheet, with headroom and liquidity to pursue investment opportunities, although rising interest costs will be a near term headwind in FY23. Furthermore, we remain attracted to its relatively resilient cash flows, underpinned by triple net leases to strong tenant covenants. CQE trades at an ~8% discount to NTA (versus a ~14% premium historically) and offers a potential 12m total return of ~20% at our revised TP of A$4.35, and we maintain our Buy rating (on CL).

As for dividends, the broker is forecasting dividends per share of 17.3 cents in FY 2023 and 18 cents in FY 2024. Based on the current Charter Hall Social Infrastructure REIT unit price of $3.76, this will mean yields of 4.6% and 4.8%, respectively.

GQG Partners Inc (ASX: GQG)

Another ASX dividend share that Goldman Sachs is bullish on is fund manager GQG.

The broker rates the company highly for a number of reasons. This includes its strong investment performance, low fees, and attractive valuation.

The broker explained:

Overall we reiterate Buy on GQG given: i) strong operating momentum in the business as evidenced by its investment performance, ii) GQG’s lowest quartile fee offering among global peers, and strong distribution coupled with a scalable business model, iii) GQG’s co-founders have the majority of their net wealth invested in GQG and its investment strategies, and iv) our revised 12m TP of A$1.92 offers c.27% [now 19%] TSR.

In respect to dividends, the broker is forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current GQG share price of $1.68, this will mean yields of 4.8% and 5.4%, respectively.

The post Goldman Sachs names 2 ASX dividend shares to buy appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to buy next week
• Equity markets threaten to ‘melt up’ as Nasdaq enters bull market territory
• ‘We’ve become the piggy bank’: GQG share price jumps on half-year results
• 2 ASX All Ords shares I’d buy before they report in August
• 2 quality ASX dividend shares rated as buys by brokers

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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Ask a fund manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In part one of this edition, we’re joined by Grant Nichols, fund manager of the $2.4 billion Centuria Office REIT (ASX: COF), Australia’s largest listed pure-play office REIT. Today, Nichols explains how COF has kept its office space almost fully occupied during and after the COVID pandemic, and what’s keeping REIT investors awake at night.

The Motley Fool: COF reported some strong financials for FY22. Those included a statutory net profit of $115 million, up 50% year-on-year; occupancy levels increasing to 94.7%; and 98.2% average rent collection. How did the office REIT achieve that?

Grant Nichols: Leasing across the portfolio underpinned our results for FY22. We had a really good year of leasing; 41,000 square metres of net lettable area, which is about 13% of the portfolio NLA.

And that’s continued on what has been a very good leasing story across the portfolio for quite some time. Since the outbreak of COVID, we’ve leased in excess of 120,000 square metres of space. Which is about 40% of our portfolio’s net lettable area.

This is in contrast to some of the media stories we’re hearing about the concerns for ongoing tenant demand for office space. What we’re seeing across our portfolio is we’ve completed a lot of leasing; we’ve been able to track and retain a lot of our tenants and increase occupancy. So, it’s been a very good story.

The reason we’re able to do that is primarily due to the portfolio we’re providing.

We’re certainly seeing the flight to quality from tenants. Tenants are looking to get into better quality office space. And we have one of the youngest portfolios you can invest into, with the average age of our assets being around 16 years.

We feel we’re providing an accommodation solution that’s meeting the needs of the tenants, at the moment.

MF: On the topic of COVID, have you noticed a big bounce back in office space demand from the pandemic shutdown periods?

GN: We didn’t have any material deterioration in tenant demand through COVID.

There’s a lot of talk in the market about office occupancy. And that’s because there is now a more versatile work opportunity. People are working from home more than they were doing before COVID.

But tenant demand across our portfolio hasn’t materially changed.

What you need to think about is that if people are working from the office on Tuesday, Wednesday and Thursday, that doesn’t mean that office space, or your tenant footprint, contracts by 30% to 40%.

Because, ultimately, the whole point of having a centralised workplace is allowing all the staff to be in the same place at the same time, cooperating and communicating. And if you’re not providing that opportunity, it reduces the benefit of having that centralised workplace.

So, what we’re seeing across our portfolio is that tenant footprints aren’t materially changing. In fact, in some cases they’re increasing as tenants want to provide more breakout space for that kind of cooperation.

It’s just that the tenant occupancy within that accommodation may not be as used as it was pre-COVID. So instead of having 80% occupancy five days per week, it might be 80% occupancy for three days per week.

That’s where we’re seeing a change.

MF: Circling back to the strong FY22 results your ASX REIT posted. Despite those numbers, investors pushed down the COF share price by some 8% on the day of the results release. What do you think caused that?

GN: The biggest issue investors have at the moment is what the impact of rising interest rates will have on not only office but commercial property generally.

There are two items to that.

There’s the velocity of the interest rate change. I don’t know if we’ve ever been in a situation that’s seen interest rates increase at the rapid rate that we’re seeing at the moment.

Also, there’s still conjecture about where the neutral rate will moderate going forward.

I think most people are in agreement that the neutral interest rate will be lower than what it has been in the past. But there’s still conjecture in regards to what level that will be.

That’s where the concerns for investors lie across the [real estate investment trust] REIT market, that caution around interest rates.

Once there’s a greater consensus around where interest rates are going to moderate, I think that’s where you’ll see more confidence from investors looking at commercial property and commercial property REITs.

***

Tune in tomorrow for part two of our interview, where Centuria’s Grant Nichols looks at two tailwinds the office market could receive from rising inflation.

(You can find out more about the Centuria Office REIT (ASX: COF) here.)

The post This is the biggest issue for investors in ASX office REITs in 2022: fund manager appeared first on The Motley Fool Australia.

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

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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decent gain. The benchmark index rose 0.45% to 7,064.3 points.

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

ASX 200 expected to rise again

The Australian share market is expected to open the day higher on Tuesday following a positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 23 points or 0.3% higher. On Wall Street the Dow Jones rose 0.45%, the S&P 500 climbed 0.4%, and the NASDAQ was up 0.6%.

BHP results

The BHP Group Ltd (ASX: BHP) share price will be in focus on Tuesday when the mining giant releases its full year results. According to a note out of Morgans, its analysts are forecasting BHP to report EBITDA of US$40,776 million and a net profit of US$23,844 million. This is expected to underpin a fully franked US$2.84 per share dividend. Elsewhere, Goldman is forecasting EBITDA of US$44,000 million and a US$2.90 per share dividend.

Oil prices tumble

It could be a very red day for energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices tumbled on Monday night. According to Bloomberg, the WTI crude oil price is down 3.45% to US$88.91 a barrel and the Brent crude oil price has dropped 3.65% to US$94.58 a barrel. Surprisingly weak economic data out of China put pressure on prices.

Goldman’s bank ratings update

In response to their respective updates on Monday, the team at Goldman Sachs has downgraded Bendigo and Adelaide Bank Ltd (ASX: BEN) shares to a neutral rating with a $10.60 price target and retained their conviction buy rating on Westpac Banking Corp (ASX: WBC) shares with an improved price target of $26.55. Goldman notes that Westpac’s “asset quality was run-rating better” than its previous second half forecasts.

Gold price falls

It could be a difficult day for gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price dropped overnight. According to CNBC, the spot gold price is down 1.15% to US$1,794.60 an ounce. A strong rebound by the US dollar and rate hike concerns weighed on the precious metal.

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

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• Why did the Woodside share price lag the ASX 200 on Monday?
• Here are the top 10 ASX 200 shares today
• Why is the AMP share price having such a lousy start to the week?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• What’s impacting the Santos share price today?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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Are you interested in adding some ASX growth shares to your portfolio this month? If you are, you may want to look at the three listed below that have recently been named as buys.

Here’s what you need to know about these ASX growth shares:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is leading appliance manufacturer Breville. It could be worth considering due to its positive long term growth outlook which is underpinned by a combination of favourable industry tailwinds, its investment in research and development, and ongoing global expansion. The team at Morgans is very positive on the company and expects Breville to “deliver double-digit sales growth consistently over the next few years.” Morgans currently has an add rating and $25.00 price target on its shares.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX growth share that could be in the buy zone is Domino’s. This pizza chain operator could be a top option due to its strong brand, ongoing investment in technology, and expansion plans. The latter sees the company aiming to more than double its store network by FY 2033 in existing markets. In addition, the company has the balance sheet strength to add to its network with acquisitions, extending its market opportunity further. And while Domino’s is having a tough time this year, the headwinds it is facing are only expected to be temporary. As a result, the team at Citi believe recent share price weakness could be a buying opportunity. The broker has a buy rating and $92.95 price target on its shares.

Webjet Limited (ASX: WEB)

A final ASX growth share for investors to look at is this online travel agent. Unsurprisingly, Webjet was hit incredibly hard by the pandemic. The good news is that travel markets are now rebounding and the company expects to become profitable again in the near future. And with its costs reduced materially from pre-pandemic levels, Webjet will be a much more efficient business in the future. It is for this reason that Goldman Sachs is a big fan of Webjet. Its analysts currently have a buy rating and $6.90 price target on its shares.

The post Here are 3 top ASX growth shares that experts are tipping as buys appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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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 recommended Dominos Pizza Enterprises Limited and Webjet Ltd. 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 Seven Group Holdings (ASX: SVW) share price had its ups and downs on Monday but finished the trading day in positive territory. Shares in the ASX agribusiness closed 0.39% higher at $18.03.

It’s been a challenging year for the Seven Group share price, down 25.3% over the past 12 months.

Credit Suisse analysts believe it’s undervalued at current levels, saying that the potential for further bad news has already been priced in for the stock.

With the company submitting its earnings report tomorrow, let’s find out why the Credit Suisse brokers are bullish on this ASX 200 share.

Credit Suisse analyst rating

As reported by The Australian, Credit Suisse analyst Andrew Hodge believes that the company is trading lower than it should.

A note addressed to investors explained the broker’s stance:

We believe SVW remains materially undervalued, but are also cognisant the very near term is unlikely to produce any re-rating catalysts. Although recent share price performance suggests a broad expectation of prospective bad news already exists within the market.

Credit Suisse reduced the consensus price target for Seven Group Holdings, but the forecast still undervalues it. The consensus price is $22.15, giving it a 22.91% upside at the time of writing.

Hodge predicted a higher share price to materialise over the next 12 months as its Coates and WesTrac businesses were expected to perform strongly.

He added that Seven Group Holdings would likely provide investors with a “conservative” FY23 outlook when it reported tomorrow morning. The broker expects that to have a knock-on effect on the company’s share price.

Despite some recent share price weakness, we believe lower than consensus guidance will result in modest share price weakness from current levels.

Other analysts disagree on the fair value of the ASX 200 share. Joe Wright of Airlie Funds Management said last week it was trading at “a price we believe is more than fair”.

Seven Group Holdings share price snapshot

The Seven Group Holdings share price is down 18.93% year to date. It’s trading significantly below the S&P/ASX 200 Index (ASX: XJO), which is 6.92% lower over the same period.

Seven Group Holding’s market capitalisation is $6.52 billion.

The post Why one broker is bullish on this ‘unloved and undervalued’ ASX 200 share appeared first on The Motley Fool Australia.

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More reading

• Down 20% so far this year, why this ASX 200 share is now ‘incredibly compelling’: Airlie

Motley Fool contributor Matthew Farley 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 so many blue chip ASX shares to choose from, it can be hard to decide which ones to buy.

To narrow things down, I have picked out two top blue chip ASX shares that experts rate as buys right now. They are as follows:

Cochlear Limited (ASX: COH)

The first blue chip ASX share to look at is Cochlear. It is one of the world’s leading developers, manufacturers, and distributors of cochlear implantable devices for the hearing impaired.

Cochlear has earned this strong market position thanks to its portfolio of world-class products which has been developed following its high level of investment in research and development (R&D) over the last four decades.

The good news is that management isn’t resting on its laurels. Each year the company spends around 12% of its annual revenue on R&D activities. This ensures that it remains ahead of the pack and creates a significant barrier to entry.

So with populations around the world ageing and demand for cochlear implantable devices expected to increase strongly over the next couple of decades, Cochlear appears well-placed for growth over the long term.

Morgans certainly believes this will be the case. As a result, it has an add rating and $244.50 price target on Cochlear’s shares.

Goodman Group (ASX: GMG)

Another blue chip ASX share to look at is Goodman Group. It is a leading integrated commercial and industrial property company.

Goodman is another company that appears well-placed for growth over the long term. This is thanks to to its world class portfolio, which has been developed to give it exposure to key growth markets such as ecommerce and logistics.

The team at Citi are very positive on Goodman and are forecasting strong earnings growth in the coming years. For example, the broker expects earnings per share growth of ~23% in FY 2022 and then ~20% in FY 2023.

Citi also sees value in Goodman’s shares at the current level with its buy rating and $22.00 price target.

The post 2 blue chip ASX 200 shares tipped as buys by experts appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Broker names 3 ASX 200 shares to buy and hold
• Here are the top 10 ASX 200 shares today
• Experts name 3 ASX 200 shares to buy now
• Why these blue chip ASX 200 shares are rated as buys by experts

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 CSL Ltd. 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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