The CSL Limited (ASX: CSL) share price has risen by almost 10% in July. But can the ASX healthcare share keep rising?

Despite gaining around 15% since mid-June, it’s still down around 8% from its 52-week high in November.

During July, the S&P/ASX 200 Index (ASX: XJO) has gone up more than 3%. So, while the performance of just a few weeks is a very short-term timeframe in investing, CSL has beaten the index.

The healthcare giant claims to be the number one global player in protein therapies, a $37 billion industry. It also says it’s the number two in influenza vaccines, which is a $6 billion industry. CSL generates revenue of more than $10 billion across more than 100 countries.

It has spent billions of dollars on research and development to create the next generation of treatments and vaccines.

Pathway back to growth

In a recent investor presentation, CSL noted that COVID-19 has been a tailwind for its vaccine business, but a headwind for its blood plasma business.

However, CSL outlined a number of areas where the business can get back to growing after the effects of COVID-19. As such, these factors could be useful for boosting the CSL share price over time.

The ASX healthcare share said that its plasma collections are improving and are now around pre-COVID levels.

To date, product demand has been limited by supply, but this is expected to improve.

CSL’s gross profit margin is expected to return to pre-COVID levels over time. Improved efficiencies will also help, while an improvement in plasma volume will reduce the fixed cost per unit.

The company also said that a digital transformation is underway. Plasma donation pre-screening can be done through an app and people will know the value of their next donation.

CSL also outlined changes that will improve flow for donors and efficiencies in the future. Namely, all testing will be done bedside and a continuous nomogram, or graphic calculation, will increase the yield per donor while also improving donor safety. CSL pointed out that the total donation time will be reduced by more than 30%.

CSL is continuing to invest in capacity expansion. There is also a cluster of late-stage research and development (R&D) programs.

Finally, its Vifor Pharma acquisition could also be a boost for the business.

Reasoning behind the acquisition

CSL is buying Vifor Pharma for US$11.7 billion. Vifor was described as a world leader in the discovery, development, manufacturing, and marketing of pharmaceutical products for the treatment of kidney disease and iron deficiency.

CSL management said this acquisition would add a durable and growing business to its portfolio, across complementary and adjacent franchises. It builds a significant renal franchise, while CSL’s global reach, R&D, capabilities, and financial scale will help global expansion, according to the company.

The acquisition is also expected to enhance CSL’s scale and free cash flow. Cash flow is one of the main ways that investors can evaluate a business.

Can the CSL share price keep rising?

A price target is where a broker thinks the share price will be in 12 months from the time of the opinion.

Morgan Stanley has a price target of $312 on CSL with an ‘overweight’ rating — a positive rating.

Macquarie has an ‘outperform’ rating on the company, with a CSL share price target of $312.

Citi is one of the most optimistic, with a price target of $330 and a ‘buy’ rating. That implies a possible share price rise of more than 10%.

The post Up 10% so far in July, is the CSL share price heading back above $300? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
• Is Adairs considered an ASX 300 dividend share?
• Why did the ANZ share price smash the other ASX 200 banks today?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday

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 CSL Ltd. The Motley Fool Australia has recommended Macquarie 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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ASX shares involved in infrastructure are back in vogue due to the current macroeconomic and geopolitical climate.

That’s according to ClearBridge Investments portfolio manager Charles Hamieh, who said investors are turning to such stocks to counter rapid interest rate rises and rampant inflation.

“This is because infrastructure returns are driven by investment plans in essential services, which span 10 or more years into the future, accelerate over time, and provide considerable predictability compared to more volatile equities,” he said.

“The relative predictability of infrastructure returns is delivered by regulated and contracted assets, which are our focus as we build infrastructure portfolios.”

Two attractive features of infrastructure shares

Hamieh reckons infrastructure offers a couple of advantages that are well-suited to the current global environment.

“First, infrastructure works as an inflation hedge,” he said.

“Infrastructure’s pricing power comes from the essential nature of its assets: even at times of economic weakness, consumers continue to use water, electricity and gas; drive cars on toll roads, and use other essential infrastructure services.”

Even better is that infrastructure providers often have long-term contracts with their clients.

The second attractive feature is the role infrastructure plays in the global decarbonisation trend.

“Infrastructure and utilities are at the forefront of this effort and can offer investors a stable return on equity without taking technology risk,” said Hamieh.

“Annual power sector capital spending is expected to increase from US$760 billion in 2019 to US$2.5 trillion (in 2019 dollars) by 2030, with approximately half spent on solar, wind and other renewable energy generation and a third on modernising and extending electricity networks.”

As well as electrical infrastructure, there is infrastructure involved with electric vehicles, public transport, hydrogen and carbon capture.

“So there are several areas of infrastructure benefiting from decarbonisation tailwinds, not to mention other secular trends like 5G driving investment in communication towers.”

Three ASX shares going gangbusters

In its quarterly report, ClearBridge named three infrastructure ASX shares it holds that have performed well in recent months.

Atlas Arteria Group (ASX: ALX) is a toll road operator that has 75% of its business in France.

“Atlas Arteria has an experienced management team with a long track record in toll road and infrastructure investment, making them well placed to further optimise the Atlas Arteria portfolio,” read the report.

ClearBridge analysts have especially high hopes for the APRR concession in eastern France.

“We expect APRR to continue to negotiate network enhancements resulting in concession extensions or toll increases.”

Atlas shares performed well after pension fund IFM Investors snapped up 15% of the stocks last month.

There is a possibility that IFM will want to take over the entire company, the ClearBridge report read.

Gas and energy operator APA Group (ASX: APA) also contributed significantly to ClearBridge last quarter.

“Most of APA’s assets consist of gas transmission pipelines that are regulated or have long-term contracts,” read the report.

“Average contract tenor at APA is in excess of 12 years.”

According to the analysts, APA generates “attractive” return on investments from its contracted gas assets, above the cost of capital.

“Following a period of heavy investment (organic and acquisition-based), APA is generating high levels of operating cash flow and returning strong dividend growth to investors.”

ClearBridge also holds Transurban Group (ASX: TCL), which dominates toll road ownership in Sydney and Melbourne.

“Transurban is an attractive company due to its increasing free cash flow profile driven by traffic growth, toll increases linked to CPI and strong cost control resulting in their ability to increase dividends,” read the report.

“Transurban has a high-quality management team and actively manages assets through its owner/operator model to extract cost savings and synergies, which maximises margins and returns on capital.”

The company has contracts that allow for price increases at or above inflation.

“As the dominant toll road owner in the regions it operates, Transurban has significant optionality in the network for future enhancement projects and a proven track record of working with government partners.”

ClearBridge analysts also like Transurban’s “attractive yield with growth potential”.

The post 3 ASX shares for ‘predictability’ through tough times: expert appeared first on The Motley Fool Australia.

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• Atlas Arteria share price lifts as revenue spikes 19%
• How to beat the market with ‘boring’ ASX shares: fundie
• Is the Transurban share price a buy ahead of earnings season?
• Here are the top 10 ASX shares today
• These were the best (and worst) performing ASX 200 sectors of FY22

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

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The Bank of Queensland Limited (ASX: BOQ) share price is in focus as Australia and New Zealand Banking Group Ltd (ASX: ANZ) seeks to buy the banking division of Suncorp Group Ltd (ASX: SUN).

BOQ may be best known as the regional bank based in Queensland. But it recently bought ME Bank which decreased its focus on Queensland and increased its exposure to other states like Western Australia, Victoria, and so on.

Now ANZ is making a similar move. By buying Suncorp’s banking operations for $4.9 billion, ANZ would increase its market share in Queensland.

Why is Queensland attractive?

The ANZ CEO Shayne Elliott explained why the big four ASX bank wants to increase its exposure to the sunshine state:

ANZ is committed to making a meaningful contribution to the economic and social prosperity of Queensland and today’s announcement will see ANZ increase its presence, and we believe improve competition, in one of Australia’s most important regions.

Since March 2020, Queensland has recorded better economic growth, better workforce participation and more interstate migration than any other state or territory in Australia. It contributes 18% to Australia’s GDP and we believe we can use the resources at our disposal to further contribute to its continued success.

What will this mean for ANZ’s business?

The bank believes that, as the smallest of the major banks, a stronger ANZ will be able to “compete more effectively” in Queensland. It thinks this would offer better outcomes for customers.

Based on the FY22 net profit after tax (NPAT) of approximately $355 million from Suncorp’s banking operations, ANZ is buying it at a price/earnings (p/e) ratio of 13.8 times.

It’s partly funding this deal through a fully underwritten pro rata accelerated renounceable entitlement offer to raise $3.5 billion. In other words, it’s launching a capital raising.

ANZ said, for Suncorp team members, it will be business as usual with no net job losses for Suncorp bank for at least three months after completing the deal. There will also be no changes to the total number of Suncorp Bank branches in Queensland for at least three years after completion.

The Suncorp banking operations come with $47 billion of home loans, $45 billion in “high-quality” deposits, and $11 billion in commercial loans.

How will this impact BOQ shares?

Bank of Queensland is obviously a smaller bank than ANZ, so the sound of a stronger competitor may not be helpful for the bank.

Yet, on the other hand, it reduces the amount of competition for BOQ.

Competition has been one of the main factors driving down margins in recent times for banks.

In its FY22 half-year result, BOQ said that its net interest margin (NIM) was 1.74% for the half, representing a decline of 12 basis points in that period. This included seven basis points of an underlying decline primarily due to “industry dynamics including ongoing competition”.

Faster loan growth from here for ANZ (and the Suncorp banking operations) could come at the expense of growth for another bank. After all, a person or business has to pick which bank to get their loan from.

In the last result, BOQ reported housing loan growth momentum, with $2.6 billion of growth in the half across all brands. BOQ and Virgin Money Australia saw growth of 1.8 times the system, while ME Bank returned to growth at 0.3 times the system.

Is the BOQ share price a buy?

The broker Morgan Stanley rates BOQ as a buy, with a price target of $8.10. That implies a possible rise of around 10%.

The post What might the ANZ deal mean for Bank of Queensland shareholders? appeared first on The Motley Fool Australia.

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• ANZ share price edges lower after capital raising

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The current Brickworks Limited (ASX: BKW) share price looks like a leading buying opportunity in my opinion.

I don’t own any Brickworks shares in my portfolio at present, but I already have sizeable indirect exposure through my holding of Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares.

In my opinion, after the recent Brickworks update, I think it looks very attractive as a long-term pick. As long as the Brickworks share price doesn’t shoot higher over the next few days, it’s likely I could buy shares when Fool’s trading rules allow me to.

There are a number of different reasons why I like the business, which I’ll outline below:

Dividends

Businesses that are able to keep sustainably growing their dividends are appealing to me. Brickworks’ normal dividend has been increased or maintained every year since 1976. In other words, it has been 46 years since the normal dividend was last decreased.

Dividends aren’t everything, but I like the cash rewards that shareholders can receive from the company every few months.

Soul Pattinson investment

Brickworks has a 26.1% holding of the investment business Soul Pattinson. According to the ASX, Soul Pattinson has a market capitalisation of $9 billion. Brickworks has a market capitalisation of $3.05 billion, according to the ASX.

The diversified investment has “delivered strong returns over many years” for Brickworks.

Soul Pattinson has a portfolio across a number of sectors including telecommunications, resources, agriculture, building products, financial services, and healthcare.

This investment can provide a level of consistent earnings and growing dividends for Brickworks, while its building products divisions’ performance can be variable. The Soul Pattinson shares can smooth out Brickworks’ profit year to year.

Industrial property trust

I think this is a key part of the picture for the Brickworks share price.

This trust is owned in partnership with Goodman Group (ASX: GMG). These properties are “prime” industrial or logistics buildings which are tenanted by third party customers. The estates are across Sydney and Brisbane.

Development land already held within the trust will provide “significant” further growth for both the capital value and rental profit.

Brickworks’ net asset value of this industrial trust is estimated (by the company) at $1.5 billion at 31 July 2022. This could grow over the next few years as more properties are completed.

The growing rental profit from this trust can help fund higher dividends for investors in the coming years.

Manufacturing trust

Brickworks has launched its manufacturing trust. The business is retaining 50.1% and Goodman will own the other 49.9%.

Initially, this trust will have 15 sites with a gross asset value of $416 million. Brickworks will get net cash proceeds of $193 million, which will be used to reduce debt.

With this sale, Brickworks has been able to ‘realise’ value after a strong run-up in industrial real estate prices.

The initial net rent is $17.75 million, with annual increases of 2.5% for most properties.

Brickworks said there are some opportunities to develop sites to improve utilisation, with development opportunities in the medium-term. Some of the sites have potential for industrial development in the long-term.

Additional building product land may be sold into the trust in future years.

Future new plant developments may be funded within the manufacturing trust structure.

Extra land

Brickworks building products division retains 100% ownership of around 5,300 hectares of operational and surplus land across Australia and North America. Brickworks said that “some of these assets have significant valuation upside if/when developed”.

Land holdings include operational brick sites, quarries, clay lands, sales centres, and surplus land.

Based on independent market valuations, there are four particular owned sites that Brickworks listed that have a combined current “as is” value of $0.8 billion and a rezoned value of $1.3 billion, according to Brickworks.

Brickworks share price snapshot

Over the last month, the Brickworks share price has risen by around 10%.

The post Why I think the Brickworks share price is a great buy right now appeared first on The Motley Fool Australia.

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• Why Brickworks, Ioneer, Telix, and Zip shares are charging higher
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• Brickworks share price higher on record earnings, Goodman deal
• Why has the Brickworks share price leapt 10% in a month?
• Why cheap hamburgers could give beginner ASX share investors food for thought

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company 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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Many ASX shares that aren’t energy producers have taken a battering in 2022.

So quite a few are now in the realm of bargains, and are ready for a nice rebound.

But which are genuine contenders for a bounce and which are just pretenders that will disappoint?

A pair of experts nominated a stock each that they believe is set up for a resurgence:

Infrastructure builder that the analysts love at the moment

According to Investors Mutual Limited portfolio manager Hugh Giddy, his team has not yet bought Mirvac Group (ASX: MGR) but thinks there could be “an opportunity” for investors.

The share price has plunged more than 30% year-to-date.

“Most of the value is in the company’s office portfolio,” he said in a Livewire video.

“And they are also known for their residential development, but I think that’s going to be a little bit trickier, given we have had a bit of a housing boom.”

For income investors, Giddy likes how Mirvac is paying a 4.9% dividend yield.

“The NTA [net tangible assets] is going to come down because offices are valued too highly,” he said.

“As interest rates go up, that NTA will fall, but the share price has already taken that into account.”

The broader professional community seems to agree with Giddy.

According to CMC Markets, eight out of 12 analysts currently rate Mirvac shares as a strong buy.

Don’t like the pizza, but love the business

For Atlas Funds Management chief investment officer High Dive, Domino’s Pizza Enterprises Ltd (ASX: DMP) is due for a rebound.

The once high-flying stock has lost almost 60% of its value since September.

“Bit of a caveat, similar to Hugh, we don’t own Domino’s,” he said in the video.

“But I think that they’ll be well placed to do quite well.”

Dive said he personally isn’t a Domino’s customer due to his personal tastes.

But with interest rates rising and Australians reducing their spending, there could be a boom in quick-service restaurants. 

“They’re a high-quality company,” he said.

“There’s going to be very few $30,000, $40,000 bathroom remodels over the next year. I think you should stick with the cheap pizza.”

Other analysts are more lukewarm on Domino’s than Dive.

Seven out of 14 analysts surveyed on CMC Markets rate the stock as a hold, against six who recommend it as a buy.

The post 2 ASX 200 shares ready for a massive resurgence: experts  appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Experts name 2 beaten down ASX growth shares with plenty of upside potential
• Why I think Domino’s can deliver as an ASX dividend share
• AMP share price in focus as Mirvac wins control of $7.7 billion office fund
• Top brokers name 3 ASX shares to buy next week

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 Dominos Pizza Enterprises 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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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished a strong week with a very small decline. The benchmark index fell 2.8 points to 6,791.5 points.

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

ASX 200 expected to fall

The Australian share market looks set to start the week in a subdued fashion after a poor night on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 12 points or 0.2% lower this morning. On Wall Street, the Dow Jones was down 0.45%, the S&P 500 dropped 0.9%, and the NASDAQ tumbled 1.9%.

Oil prices fall

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor start to the week after oil prices pulled back on Friday. According to Bloomberg, the WTI crude oil price fell 1.7% to US$94.70 a barrel and the Brent crude oil price dropped 0.65% to US$103.30 a barrel. This was driven by a weakening global demand outlook and the resumption of some Libyan crude oil production.

South32 quarterly update

The South32 Ltd (ASX: S32) share price will be on watch today when the mining giant releases its fourth quarter update. The market is expecting a 3% increase in alumina production to 1,343kt and a 4% lift in aluminium production to 265kt. This is expected to underpin full year revenue of US$9.58 billion in FY 2022.

Gold price pushes higher

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a decent start to the week after the gold price pushed higher on Friday night. According to CNBC, the spot gold price was up 0.8% to US$1,745.30 an ounce. Thanks to softening US dollar and bond yields, the gold price snapped its five-week losing streak.

Domino’s given sell rating

Goldman Sachs has reaffirmed its out of consensus sell rating and $59.20 price target on the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price after looking through the results of its US parent. The broker commented: “DPZ.US, the global master franchisor to DMP reported its CY2Q22 results overnight, in-line with GSe with better US SSS though weaker unit growth, while International SSS disappointed.”

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

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More reading

• Top brokers name 3 ASX shares to buy next week
• Analysts name 2 ASX dividend shares to buy next week
• Is Adairs considered an ASX 300 dividend share?
• Experts name 2 beaten down ASX growth shares with plenty of upside potential
• Why did the ANZ share price smash the other ASX 200 banks 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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If you’re looking for some growth shares to add to your portfolio next week, then you may want to look at the ones below.

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

Allkem Ltd (ASX: AKE)

The first ASX growth share for investors to consider is this lithium miner.

Allkem was formed after two leading lithium miners, Galaxy Resources and Orocobre, merged last year to create a top five global lithium miner. It owns a number of operations across the world including Olaroz, James Bay, Mt Cattlin, and the Sal de Vida brine project.

Management believes that these operations provide it with the opportunity to maintain a 10% share of global lithium production in the future. This positions the company perfectly to profit from the significant and growing demand for the battery making ingredient.

Morgans is very positive on lithium prices and continues to rate Allkem as its top pick in the industry. It currently has an add rating and $16.72 price target on its shares.

Life360 Inc (ASX: 360)

Another ASX growth share to consider buying is Life360. It operates in the digital consumer subscription services market, with a focus on products and services for digitally native families.

The company’s key offering is the popular Life360 app, which offers families features such as communications, driver safety, and location sharing. In addition, the company has expanded into the wearables and items tracking market via the acquisitions of Jiobit and Tile. This gives Life360 significant cross-selling opportunities to its large subscriber base of over 30 million active users.

The team at Bell Potter is very positive on Life360 and has a buy rating and $7.50 price target on its shares.

The post 2 ASX growth shares that analysts love appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Is the Allkem share price dirt cheap? Broker tips 70% upside for investors
• 5 things to watch on the ASX 200 on Friday
• 3 fantastic ASX tech shares experts say are buys
• The Life360 share price has rocketed 69% in a month. Is it too late to buy?

Motley Fool contributor James Mickleboro has positions in Allkem Limited and Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be the answer.

But which ETFs should you look at? Listed below are three quality ETFs that could be worth getting better acquainted with. Here’s what you need to know:

iShares Global Consumer Staples ETF (ASX: IXI)

If you’re looking for low risk options for your portfolio, then the iShares Global Consumer Staples ETF could be worth considering. That’s because this fund gives investors exposure to many of the world’s largest global consumer staples companies such as Coca-Cola, Nestle, PepsiCo, Procter & Gamble, Unilever, and Walmart. As demand for these types of products is relatively consistent whatever the economy throws at them, this could make it a good option in the current environment.

iShares S&P 500 ETF (ASX: IVV)

Investors that are looking for instant diversification might want to consider the iShares S&P 500 ETF. That’s because this popular ETF gives investors access to a massive 500 of the top listed U.S. companies. Among the companies that you’ll be owning a slice of include Amazon, Apple, Disney, Facebook, JP Morgan, Johnson & Johnson, Microsoft, Tesla, and Visa. Given the positive long term outlooks of these companies, this ETF looks well-placed to generate solid returns over the long run.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Finally, if you’re interested in tech shares but already have exposure to the FAANGs, then you might want to look at the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors access to companies with exposure to the growing video game market. Among the shares included in the fund are hardware giant Nvidia and game developers Roblox, Take-Two, and Electronic Arts. VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports.

The post 3 quality ETFs for ASX investors in July appeared first on The Motley Fool Australia.

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More reading

• 3 high quality ETFs for ASX investors to buy today
• Why I think these 2 ASX shares are steals
• Has the iShares Consumer Staples ETF protected investors’ portfolios in 2022?
• Here are 3 ETFs for ASX investors to buy in FY23
• Here are 2 top ETFs for ASX investors 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Ethereum (CRYPTO: ETH), or rather, the Ethereum ecosystem’s Ether token, is the second-largest cryptocurrency on the market. Ether prices soared all the way to $4,892 in November 2021, but have come back down to roughly $1,500 per coin today.

Inflation concerns and a lack of robust cryptocurrency regulations have weighed on the crypto market as a whole, and on high-flying market darlings like Ether in particular.

However, the crypto market has shown some signs of stabilization and recovery in recent weeks. Ether’s price has gained 67% from its three-month lows, and many investors are wondering how high this digital asset can go from here. For example, will it ever be worth $10,000 per coin?

Market cycles and volatility

First of all, some people believe that cryptocurrencies are a fad with no inherent value at all. I’m not here to change your mind about the fundamentals of the crypto market, so if you fall in this group, you’ll probably be happier reading up on the best stock ideas on the market instead. It’s all right — cryptocurrencies aren’t every investor’s cup of Lapsang souchong.

But among those who see real-world value in ultra-secure digital ledgers with extra features such as smart contracts and decentralized management, Ethereum is expected to bounce back from this downturn.

The crypto market has been highly cyclical so far, and 2022 looks a lot like the correction in 2018. Back then, Ether had never traded above $1,450 per coin and investors were wondering whether the cryptocurrency would get back up to the $1,000 level.

So the 52-week lows nowadays are comparable to the all-time highs of the previous upswing, and the beat goes on. But things are different this time because the cryptocurrency phenomenon is growing up quickly.

What may have looked like a forgettable fad four years ago is now powering decentralized finance apps, innovative loan and insurance services, online games, and international money transfers.

Regulators around the world are taking cryptocurrencies much more seriously today, and fellow sector giant Bitcoin now serves as an official currency in two countries.

Can Ethereum get back on its feet again?

The cryptocurrency market as a whole should achieve a full recovery in a year or two, followed by continued long-term growth. Again, I’m basing my analysis on the idea that developers will keep producing crypto-based products, apps, and services that consumers and businesses find useful in the real world.

As a veteran of the sector, with unique features and an unmatched army of app developers, Ethereum is poised to lead that surge from the front. Don’t forget that this crypto network is about to roll out the most important technology upgrade in its history, erasing the speed and efficiency advantages that some Ethereum rivals are boasting of today. This old dog is happy to learn new tricks.

In order to reach a price of $10,000 per Ether coin, the cryptocurrency has to double the peak prices seen in November. The target price is nearly seven times the current level. That sounds like a lot, but the volatile crypto market can deliver moves of that epic magnitude in a hurry. For example, Ether prices rose more than 20-fold from March 2020 to March 2022.

It’s a question of time

There are no guarantees that the next recovery will look like that, of course. Let’s just say that I wouldn’t be surprised if Ether multiplied its market value by seven or more amid a general crypto market recovery, with its own platform upgrade providing more fuel for the fire.

All the components of this potential future are in place, and the bullish market move is just a matter of time — as long as you agree that cryptocurrencies and blockchain networks have a useful future.

Under these circumstances, Ethereum looks almost certain to reach the $10,000 pricing milestone, and then keep going up in the long run. In the process, the market cap will pass the trillion-dollar mark when Ether prices reach $8,221 per coin. As I see it, these landmark metrics are coming, and probably within the next year or two.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Can Ethereum reach $10,000? appeared first on The Motley Fool Australia.

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More reading

• Will Ethereum and Bitcoin see the ‘flippening’ in 2022?
• Why Bitcoin, Ethereum, and Dogecoin are falling today
• Tesla sells 75% of Bitcoin holdings. Here’s why Elon Musk is unloading
• Here’s why the Bitcoin and Dogecoin prices are rocketing
• Ethereum surges, but Ethereum classic up much more on merge anticipation

Motley Fool contributor Anders Bylund has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Breville Group Ltd (ASX: BRG)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $25.00 price target on this appliance manufacturer’s shares. The broker believes that the pullback in the Breville share price has created a buying opportunity for investors. Especially given the company’s international expansion and the broker’s belief that it is well-placed to achieve its earnings estimates through to FY 2024. The Breville share price ended the week at $20.34.

Santos Ltd (ASX: STO)

A note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed their price target on this energy producer’s shares to $10.05. Although Macquarie was disappointed with Santos’ production and revenue in the last quarter, it was pleased with its free cash flow generation. In light of the latter, the broker remains positive and sees value in its shares at the current level. The Santos share price was fetching $7.03 at Friday’s close.

Woolworths Group Ltd (ASX: WOW)

Analysts at Goldman Sachs have retained their conviction buy rating and $40.50 price target on this retail giant’s shares. This follows news that the company intends to acquire out of home media company Shopper Media Group for $150 million. Goldman believes the transaction is strategically in line with its view of the retail media business being the next material growth lever for Woolworths. The Woolworths share price ended the week at $37.25.

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

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More reading

• Analysts rate these ASX 200 blue chip shares as buys
• 2 excellent ASX 200 shares to buy right now according to experts
• Why Leo Lithium, Rio Tinto, Santos, and Woodside shares are dropping today
• Record-breaking: Santos share price slips despite 85% jump in half-year revenue
• ‘Not enough’: Could Europe’s gas woes bolster ASX 200 energy shares?

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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