Investors holding Appen Ltd (ASX: APX) shares probably have a bad case of whiplash after last week’s wild ride.

A takeover approach from Telus International (owned by Canadian IT giant Telus Corporation) was stripped as quickly as it appeared. Unfortunately for shareholders, this meant the Appen share price yo-yoed from $6.40 to $8.35 and back.

The decision to withdraw its $9.50 takeover bid was made without further comment. However, in light of this drama, there might a silver lining.

Appen shares’ chance to rebuild and recoup

Appen shareholders, prepare yourself for this tough reflection. Once upon a time, Appen shares were commanding a price of $40 per share. Even more painful, anyone who had invested in Appen in the last four years is now in the negative.

As Motley Fool chief investment officer Scott Phillips notes in a recent Motley Fool Money podcast:

[…] if you had bought the shares at $10; $15; $20; $25; $40 — up to 40 bucks. If you had bought at $40 in the middle of 2020 you’ve literally dusted four-fifths of your money… 80% of your cash, even after the takeover premium is put in, and you’re not going to get a chance to get that back.

In other words, if all the Appen shares were acquired it would remove the opportunity for investors to claw back some of their money. By accepting a cash takeover bid, any shareholder losses would be realised. So, the fact that Telus revoked its bid means shareholders hold that chance again.

Now, in saying that, it can obviously work the other way. Without the takeover parachute, Appen shares might proceed to fall even lower. This is a real possibility considering that its last trading update suggests lower revenue and EBITDA compared to the prior year.

However, CEO Mark Brayan is adamant the company is in the midst of a transformation. Part of this entails a goal of doubling revenue by 2026 and an EBITDA margin of 20%. If the company can achieve this while remaining publicly listed, it might heal some of those shareholder wounds.

Based on the current value of Appen shares, the company holds a market capitalisation of $765 million.

The post Silver lining for Appen shares following takeover turmoil  appeared first on The Motley Fool Australia.

More reading

• Where next for the Appen share price after its takeover collapse?
• 5 things to watch on the ASX 200 on Tuesday
• Why Appen, Elders, Predictive Discovery, and Yancoal shares are dropping
• ASX 200 midday update: AGL demerger scrapped, A2 Milk jumps
• These are the 10 most shorted ASX shares

Motley Fool contributor Mitchell Lawler has positions in Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen 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.

from The Motley Fool Australia https://ift.tt/Ijue30E

The Pro Medicus Limited (ASX: PME) share price failed to take off on Thursday due to weakness in the tech sector.

This was despite the health imaging technology company announcing a major new contract win.

What did Pro Medicus announce?

Yesterday, Pro Medicus announced a $28 million, seven-year contract with Allina Health. It is a not-for-profit health care system based in Minneapolis with 28,000 employees across 11 hospitals and more than 90 clinics.

The contract is based on a transactional licensing model and will see the company’s increasingly popular Visage 7 Enterprise Imaging Platform and Visage 7 Workflow module implemented throughout Allina Health. This will provide it with a unified diagnostic imaging platform across the network.

What was the response?

While the market’s response was subdued, analysts at Bell Potter were very pleased with the news.

According to a note, Bell Potter believes this new contract win highlights that Visage could “be the emerging standard for the viewing of radiology images in the US.”

In addition, the broker was pleased to see management commenting that its sales pipeline remains strong.  It said:

[T]he CEO has again described the pipeline as “remaining strong”. The same phrase has consistently been used to describe the pipeline for several years and the company is yet to disappoint the market’s expectation for revenue growth.

We maintain our expectation of ongoing growth in contracts noting that PME has barely scratched the surface of the IDN market in the US. There are approximately 1,000 IDN’s operating in the US Healthcare system.

In light of this, the broker has retained its buy rating and $55.00 price target on the company’s shares.

Based on the current Pro Medicus share price, this implies potential upside of approximately 25% over the next 12 months.

The post Broker tips Pro Medicus share price to shoot 25% higher appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 midday update: Pilbara Minerals names new CEO, Wesfarmers’ strategy update
• Pro Medicus share price falls despite major contract win
• Here are 3 highly profitable shares I’ll be buying this month
• Best ASX shares to buy in June 2022

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

from The Motley Fool Australia https://ift.tt/AVoivck

Extended rallies in steel and iron ore markets have spurred on shares of BHP Group Ltd (ASX: BHP) in 2022, such that the stock now trades 23% higher year to date.

The BHP share price bounced from a 3-month low on 12 May of $40.02 to finish at $45.61 in yesterday’s session.

Meanwhile, the price of iron ore has levelled off in recent weeks and now trades 2% down over the past month. Steel prices have also tumbled 14% from former highs of $1,075 per tonne on 5 May to rest at $922 per tonne at the time of writing.

Sentiment appears mixed

Despite the relief rally BHP shares exhibited in May, it appears as though market pundits are still cautious on what direction the resource giant’s share price will head next.

Analysts at Barclays investment bank are constructive on the stock and rated it equal weight in a recent note, expecting the stock to “underpin [a] longer-term premium”.

“We expect BHP to be supported by two factors,” Barclay’s analysts wrote.

“[F]irstly that once BHP goes ex the petroleum sale distribution, it is set to leave a relatively attractively valued BHP ex-petroleum…”.

“Secondly,” they remarked, “with BHP having 100% of market cap listed in Australia following the unification earlier this year, we expect BHP’s London line to re-rate over time…”

Meanwhile, JP Morgan reinstated coverage of BHP shares with a neutral stance, having formerly suspended its rating on the stock.

The broker values BHP at $46 per share, having recently updated its ‘iron ore scorecard’ for the mining giant.

“BHP has established a solid iron ore track record over recent years, which will become even more important post the Petroleum exit, given the increased focus,” JP Morgan said.

Referencing the ‘scorecard’, the broker wrote that, compared to other players in the space, “BHP’s 10yr scorecard is more balanced, with 3 years showing upward revisions (twice in FY14), 3 downgrades, and 1 year where the range was narrowed”.

“Importantly,” JP Morgan argued, “guidance was achieved over FY20/21 and FY22 guidance [at 278–288Mt] looks comfortable”.

According to Bloomberg data, 10 analysts covering the stock have it rated as a buy, whereas 14 analysts rate it a hold. There are five analysts on this list urging clients to sell BHP shares.

The consensus price target is $43.62 per share, indicating the potential for a small correction should that number be correct.

In the last 12 months, the BHP share price has clipped a 3.3% gain.

The post What is the BHP share price forecast for June? appeared first on The Motley Fool Australia.

More reading

• 2 top ASX dividend shares to buy according to analysts
• Top broker names 2 of the best ASX shares to buy in June
• Why is the ‘new’ Woodside share price leaping 6% today?
• Top broker tips BHP share price to jump 12%
• Cashed up with massive dividends: Advisor reveals ASX share to hold for 4 years

Motley Fool contributor Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/76jV4GP

The Telstra Corporation Ltd (ASX: TLS) share price has edged higher this week despite the market weakness.

This appears to have been driven by the telco giant announcing price increases to its mobile plans.

What are the changes?

Telstra has announced the introduction of inflation linked pricing. This will see the company index its mobile plans by CPI on an annual basis.

According to a note out of Goldman Sachs, its analysts see this “as a positive development” and “could be meaningful for supporting industry rationality.” This is based on what the broker has seen globally in the industry.

Its analysts highlight that that in July Telstra’s advertised postpaid plans will increase by $3 to $4. This will see its Basic/Essential/Premium plans now at $58/$68/$89 per month.

And while no changes were made to its Belong or MVNO pricing, the broker suspects that the introduction of 5G to these brands will be a “potential catalyst for updated pricing.”

Overall, the broker appeared pleased with the changes, though they may have fallen a touch short of its expectations. Goldman commented:

While the Jul-22 pricing increase was within our range of expectations for Telstra (headline +$3-6 increases), it appears the impact from these plans will be lower than our +$2.50 prior growth expectations for FY23 (adjusting for GST, share of in-market plans, and impacts from spin downs / Belong dilution). Looking forward, we believe Optus’ pricing strategy will now be in focus following recent comments at its FY22 result, and noting TPG is awaiting the outcome of its Mobile Network sharing proposal with Telstra.

Is the Telstra share price good value?

Goldman Sachs currently has a neutral rating on the company’s shares.

However, with its price target of $4.30, based on the current Telstra share price of $3.98, this still implies potential upside of 8% for investors over the next 12 months.

Goldman is also forecasting 16 cents per share dividends in FY 2022 and FY 2023. This equates to a 4% annual yield, which stretches its total potential 12-month return to 12%.

The post Is the Telstra share price in the buy zone after the telco giant’s mobile plan increases? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• 3 ASX 200 shares smashing the market today
• Why Bailador, Fortescue, Nufarm, and Telstra shares are rising
• Why is the Telstra share price dialling higher today?
• Why did the Telstra share price backtrack in May?

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

from The Motley Fool Australia https://ift.tt/IDd9GcT

The Zip Co Ltd (ASX: Z1P) share price hit a fresh multi-year low of 79 cents yesterday.

The buy now, pay later (BNPL) company’s shares continue to be volatile, with investors probably questioning where the bottom is.

Unfortunately, not even legendary investor Warren Buffett can accurately predict where falling shares will stop.

Over the past month alone, the Zip share price has hit seven multi-year lows.

At Thursday’s market close, Zip shares finished at 80 cents, down 4.79%.

What’s dragging Zip shares down?

Investors have continued to sell off Zip shares due to negative sentiment across the financial industry.

The word “recession” has been a major talking point for economists in recent times following debates on whether or not one is around the corner. This is being driven by high inflation, a tightening monetary policy, and concerns about a global economic slowdown.

The S&P/ASX 200 Financials (ASX: XFJ) sector ended yesterday in the red, down 1.21% to 6,545 points. When looking at the past month, the index is down 2.4%.

Consumer confidence is being weighed down as the United States experiences the biggest rise in consumer prices in 40 years.

Australian consumer prices have surged at the fastest annual pace in 20 years.

The Reserve Bank of Australia updated its statistics to show inflation climbed by 5.1% in the March quarter.

Key contributors included record fuel prices, and the rising costs of construction due to high demand but low supply of building materials and labour.

However, in an effort to slow down the rising price of goods, the RBA has intervened.

Last month, Australia’s central bank decided to lift its official cash rate to 0.35%, the first rise since 2010.

In essence, this means that consumers are less likely to spend money on discretionary items when interest rates are picking up and increasing the cost of their debt.

We will have to wait until next Tuesday to see if the RBA will again increase interest rates.

Zip share price summary

It has been a whirlwind 18 months for Zip investors.

The company’s shares rocketed to an all-time high of $14.53 in February 2021 but have plummeted ever since.

In the past 12 months, the Zip share price has fallen by almost 90%. This means it would need to increase nine-fold to break even.

Based on today’s price, Zip presides a market capitalisation of approximately $574 million.

The post The carnage continues: Why the Zip share price has hit 7 multi-year lows in a month appeared first on The Motley Fool Australia.

More reading

• Why Nanosonics, REA, Sayona Mining, and Zip shares are dropping
• Why is the Zip share price sinking yet again on Thursday?
• Is this a ‘fundamental flaw’ with ASX BNPL shares like Zip
• Why Allkem, Origin, PointsBet, and Zip shares are sinking today
• Why Bubs, PolyNovo, Suncorp, and Zip shares are dropping

Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://ift.tt/kQ6mTSN

After a turbulent few months, there are plenty of ASX shares out there going for far cheaper now than when the year started.

But which ones have the best chance for future returns, as opposed to the stocks that are now value traps?

Morgans analyst Andrew Tang had a couple of examples in his monthly Best Ideas memo:

Demand that’s ‘resilient to economic cycles’

Gambling games provider Aristocrat Leisure Limited (ASX: ALL) is a recent addition to the Morgans Best Ideas list.

The company has enjoyed revenue growth of 17% per annum over the past five years, stated the Morgans memo. In the 2021 financial year, 80% of that revenue was recurring.

Rising interest rates and a slowdown in consumer spending will not worry it, according to Tang.

“Demand for its gaming machines and digital games is resilient to economic cycles,” he said.

“We expect Aristocrat to continue to take market share in all its product segments.”

The Aristocrat share price has plunged more than 25% year-to-date.

“The recent underperformance of the shares may have been a function of concern about Aristocrat’s exposure to Ukraine, although it has recently stated that 75% of its staff there have relocated to safer locations and there is no material impact on earnings.”

For Tang, the weakness in stock price merely presents an attractive buying opportunity.

“Aristocrat’s one-year forward P/E [price-to-earnings ratio] has derated to less than 20x from a high of 30x last September.”

He also loves the $3.3 billion of capital it has to fuel future growth.

“It has a stated ambition to build a meaningful presence in the rapidly growing online real money gaming segment, which we believe may be achieved both through organic investment and inorganic acquisitions.”

Plenty of Australians looking for better day jobs

Among the online classifieds players, Tang favours Seek Limited (ASX: SEK) as the best buy this month.

“We continue to see Seek as the one with the most relative upside, a view that’s based on the sustained listings growth we’ve seen over the period.”

Seek shares have dropped more than 29.3% so far this year, presenting a far cheaper entry point now.

According to Tang, the tailwinds that have seen job advertisements grow 35% and earnings before interest, tax, depreciation, and amortisation (EBITDA) head 16% north still remain.

“Subdued migration, candidate scarcity and the drive for greater employee flexibility,” he said.

“With businesses looking to grow headcount in the coming months and job mobility at historically high levels according to the RBA, we see these favourable operating conditions driving increased reliance on Seek’s products.”

The post Buy these 2 ASX shares going for a 25% discount: Morgans appeared first on The Motley Fool Australia.

More reading

• Experts pick 2 ASX shares to buy that move wealth around
• Analysts name 3 ASX 200 shares that could generate strong returns
• Analysts name 2 ASX growth shares to buy with major upside potential
• Looking to secure the Aristocrat biggest-ever dividend? Here’s what you need to do
• 3 ‘disruptive’ ASX companies Aussies now can’t live without

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 SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/8DPsujM

One ASX shares expert has warned investors that there is a golden opportunity now to buy a stock that’ll cash in from rising interest rates.

The Reserve Bank of Australia elevated the cash rate by 25 basis points last month, to take it to 0.35%.

More hikes are expected to come, to suppress inflation.

According to the ASX, on 1 June the local market had a 75% expectation that the RBA will push its rate up to 0.75% at its next board meeting on Tuesday.

In the longer term, experts are forecasting the rate may hit 2% by the end of this year, or 3% by the end of 2023.

Why Computershare loves higher interest rates

So considering all this, it’s critical now to buy ASX shares that will tolerate interest rate rises.

A stock that multiple experts have named as one that will not just put up with, but thrive with, higher rates is Computershare Limited (ASX: CPU).

The idea is that the share registry business holds a significant amount of funds in the form of dividends and distributions that are yet to be paid out to shareholders.

Computershare earns interest on that capital, which goes straight to the bottom line.

“At the 1H22 results release, the company disclosed that a 100 basis points increase in interest rates on the exposed average balances as at 31 December 2021 would generate an annualised EPS [earnings per share] increase of 26 US cents per share,” Fairmont Equities managing director Michael Gable said on his blog.

“This is significant given that EPS guidance for FY22 is for 57 US cents per share.”

This margin income will more than compensate for the inflation in wage expenses for Computershare, he added.

“We do not expect that the potential for higher-than-expected inflation presents a risk for either FY22 guidance or FY23 earnings, especially given the strengthening outlook for margin income.”

Why now is the time to buy Computershare shares

So that’s all well and good, but it’s not a massive secret that Computershare is about to enjoy increased earnings from higher rates.

That’s why the stock price has risen a stunning 46% over the past 12 months, during a time when most ASX shares outside mining and financials have suffered.

But Gable is convinced now is a nice dip to buy Computershare.

“The recent pullback from the April high has been fairly orderly and the share price is back at support,” he said.

“As long as the broader market can hold up here, we would view current levels as a buying opportunity.”

Indeed, the Computershare share price has cooled down 10.5% since 19 April.

Despite the spectacular rise in valuation over the past year, Gable believes there is still plenty of demand from investors looking for increasingly rare returns.

“We expect the shares to eventually be supported by Investors seeking such an exposure as a portfolio hedge… [and] the potential for higher-than-expected margin income to offset cost pressures,” he said.

“[There’s] potential for M&A/capital returns as a result of a lower forward gearing profile.”

The post Big chance to buy ASX share that benefits from rising interest rates: expert appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares (not banks!) to boom from rising interest rates: experts
• These 2 ASX tech shares have escaped obliteration so far this year
• Macquarie picks ASX 200 shares to buy in this volatile environment
• Here’s why ASX 200 tech shares are having such a disastrous run on Friday

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 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.

from The Motley Fool Australia https://ift.tt/wvbnyuB

Looking for dividend shares to buy in June? Then have a look at the two listed below that have been given buy ratings and tipped to pay big dividends.

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

Australia and New Zealand Banking Group (ASX: ANZ)

The first ASX 200 dividend share to look at is banking giant, ANZ.

It could be a dividend share to buy given the positive outlook for interest rates in Australia and its solid performance so far in FY 2022. The latter saw ANZ recently reveal its half-year cash earnings from continuing operations of $3,113 million. This was a 4% increase over the prior corresponding period.

The team at Citi was pleased with its results and is expecting this positive earnings growth to continue in the coming years. As a result, it has put a buy rating and $30.75 price target on the bank’s shares.

As for dividends, the broker is forecasting fully franked dividends per share of 147 cents in FY 2022 and then 170 cents in FY 2023. Based on the current ANZ share price of $24.97, this implies yields of 5.9% and 6.8%, respectively.

South32 Ltd (ASX: S32)

Another high yielding ASX 200 dividend share to look at is mining giant, South32.

Thanks to its diverse mining operations and exposure to in demand green metals, South32 has been tipped to generate bumper free cash flows in the coming years.

It is for this reason that the team at Morgans currently has an add rating on South32’s shares with a $6.10 price target.

Morgans also expects the company’s bumper free cash flow to underpin very big dividends in the coming years. It has pencilled in fully franked dividends per share of ~26 cents in FY 2022 and ~35 cents in FY 2023. Based on the current South32 share price of $4.98, this will mean yields of 5.2% and 7%, respectively.

The post Experts name 200 ASX dividend shares to buy with big fully franked yields appeared first on The Motley Fool Australia.

More reading

• What’s dragging on ASX 200 bank shares like NAB on Thursday?
• May wasn’t kind to the ANZ share price. Here’s what happened
• UBS warns of more downgrades for ASX 200 shares… but not all
• How might ‘green premiums’ impact the value of ASX mining shares?
• Why is the South32 share price falling 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 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.

from The Motley Fool Australia https://ift.tt/waobGAH

On Thursday, the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled notably lower. The benchmark index dropped 0.8% to 7,175.9 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to jump

The Australian share market looks set to end the week on a positive following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 80 points or 1.1% higher this morning. In the US, the Dow Jones was up 1.3%, the S&P 500 rose 1.8%, and the Nasdaq stormed 2.7% higher.

Wesfarmers remains a sell

The Wesfarmers Ltd (ASX: WES) share price is overvalued according to analysts at Goldman Sachs. In response to the company’s strategy update, the broker has retained its sell rating with a $40.00 price target. It said: “At its current trading FY23 P/E of 23.1 and GSe FY22-24e EPS CAGR of 2.6%, we see better value elsewhere, reiterate Sell.”

Oil prices push higher

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a solid finish to the week after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 2.1% to US$117.67 a barrel and the Brent crude oil price is up 1.75% to US$118.36 a barrel. This was despite OPEC increasing its production faster than expected.

Pro Medicus rated as a buy

The Pro Medicus Limited (ASX: PME) share price could be good value according to analysts at Bell Potter. This morning the broker retained its buy rating and $55.00 price target on the health imaging technology company. Following another contract win, the broker believes Pro Medicus’ Visage product could be “the emerging standard for the viewing of radiology images in the US.”

Gold price climbs

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price stormed higher overnight. According to CNBC, the spot gold price is up 1.4% to US$1,874.9 an ounce. The gold price rose following weakness in the US dollar.

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

More reading

• 3 ASX energy shares rocking new 52-week highs on Thursday
• Why Bubs, IGO, Strike Energy, and Woodside shares are pushing higher
• Here’s why JPMorgan is bullish on the Newcrest share price
• Why is the ‘new’ Woodside share price leaping 6% today?
• ASX 200 midday update: Pilbara Minerals names new CEO, Wesfarmers’ strategy update

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 Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/3LGbFHB

If you’re a growth investor with room for some new portfolio additions, then it could be worth considering the three ASX growth shares listed below.

Here’s what you need to know about these buy-rated ASX shares:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX growth share to look at is this pizza chain operator, Domino’s. With its shares down 44% since the start the year, now could be an opportune time to invest. Particularly given its positive long term growth outlook, which is being underpinned by its plan to more than double its network by FY 2033. Morgans is very positive on Domino’s and believes “there is meaningful upside to the current share price over the next 12 months.”

Morgans has an add rating and $100.00 price target on its shares.

Life360 Inc (ASX: 360)

Another ASX growth share to look at is Life360. This growing technology company is responsible for the Life360 mobile app, which is a market leading app for families. It recently released its first quarter results and revealed a 36% increase in its global monthly active users to 38.3 million. This helped underpin a 73% increase in annualised monthly revenue to US$166.1 million. And while Life360 still isn’t profitable, which is weighing on its shares in the current environment, it has a hefty cash balance and plans to be cash flow positive in 2023.

Bell Potter is positive on the company and believes it has ample cash to fund it through to cash flow breakeven. The broker has a buy rating and $7.50 price target on its shares.

Lovisa Holdings Limited (ASX: LOV)

A final ASX growth share that is rated highly is Lovisa. It is a fast-fashion jewellery retailer which, like Domino’s, has set itself big expansion goals. And with an experienced management team behind it, Lovisa appears well-placed for strong growth over the next decade.

Morgans is also very positive on Lovisa and has an add rating and $24.00 price target on its shares. Its analysts are bullish on the company’s global expansion plans and believe “LOV may just prove to be one of the biggest success stories in Australian retail.”

The post 3 excellent ASX growth shares with major upside potential appeared first on The Motley Fool Australia.

More reading

• I’d invest $5,000 into these excellent ASX shares for the long term
• ASX 200 midday update: Pilbara Minerals names new CEO, Wesfarmers’ strategy update
• Top broker says beaten-up Domino’s share price has 46% upside
• What to do with these 3 pummelled ASX shares: advisor
• Best ASX shares to buy in June 2022

Motley Fool contributor James Mickleboro has positions in 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 recommended Dominos Pizza Enterprises Limited and Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/4LDkeBN