The S&P/ASX 200 Index (ASX: XJO) could be the place to look for shares that are leaders in their industry, while also being good value.

But which ASX shares should investors go for? The broker Ord Minnett has named some companies it thinks are opportunities to buy.

Recent volatility makes it tricky to know which shares are the best value. However, brokers like to name share price targets, which is their best guess about where a share price will be in 12 months.

While a share price target is certainly not a guarantee of returns, it can indicate how much potential an ASX share may have in the broker’s eyes.

These two are rated as buys by Ord Minnett and seemingly have good upside potential.

ResMed Inc (ASX: RMD)

ResMed is an expert in helping people with sleep apnea. The company says it has innovative solutions that treat and keep people out of hospital, empowering them to live healthier, higher-quality lives.

It says it has digital health technologies and cloud-connected medical devices that can transform care for people with sleep apnea, chronic obstructive pulmonary disease (COPD), and other chronic diseases. It operates in more than 140 countries.

Ord Minnett recently focused on the news that the ASX 200 share will acquire Medifox Dan for approximately US$1 billion. This company specialises in software solutions for professional and non-professional care, therapeutic practices and child, family and youth welfare facilities. It also has digital solutions for modern training and education management.

Medifox Dan made pro forma net revenue of US$83 million in 2021, with pro forma adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $35 million.

While Ord Minnett rates ResMed as a buy with a price target of $35, it thought the acquisition price was high considering what’s going on globally with the decline of share prices.

At the time of writing, the ResMed share price is up 0.8% at $31.05.

Hub24 Ltd (ASX: HUB)

Hub24 is a platform business in the financial technology (fintech) world. It has different segments including Hub24, Xplore, HUBconnect and Class.

The company boasts that it is Australia’s fastest-growing platform provider. Hub24’s market share has grown to around 5%, with an ongoing strong share of net flows.

It aims to lead the wealth industry as the best provider of an integrated platform, technology and data solutions.

The ASX 200 share is growing quickly. In the quarter for the three months to 31 March 2022, it saw net inflows of $2.6 billion, which was an increase of 36.4% year on year. Total funds under administration (FUA) was $68.3 billion at 31 March 2022 – platform FUA of $51 billion was up 43.3% year on year.

The financials are showing rapid growth. FY22 first-half platform segment revenue rose 76% to $77.3 million, while underlying net profit after tax (NPAT) went up 103% to $14.2 million.

It’s currently rated as a buy by Ord Minnett, with a price target of $30. The broker thinks Hub24 has an attractive long-term future and can continue to achieve attractive inflows.

The Hub24 share price is up 0.59% to $20.41 in early trading on Thursday.

The post Broker rates these 2 top ASX 200 shares as buys in July appeared first on The Motley Fool Australia.

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• Why Goldman Sachs sees 13% upside for the ResMed share price
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 Ltd and 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 Hub24 Ltd and 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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The Core Lithium Ltd (ASX: CXO) share price has continued to head south in June.

Shares in the Australian lithium producer are trading at 97.5 cents this morning, down 1%.

This means that the Core Lithium share price has lost 30.5% since this time last month.

Let’s take a look at what could be driving the fall.

What’s happening with Core Lithium?

Investors are continuing to offload Core Lithium shares after heavy losses across the lithium sector in the past month.

The prominent investment firm, Goldman Sachs sent shockwaves across the lithium industry with its bearish report in late May.

The broker forecasted that lithium prices would drop to US$16,400 per tonne in 2023, before rebounding in the following year.

At the time of writing, the price for lithium carbonate is around US$71,200 per tonne.

Notably, when the report came to light, the Core Lithium share price plummeted 20.43% to $1.11 along with other ASX lithium shares on 1 June.

And while its shares moved in circles in the following weeks, the company’s Finniss Lithium Project update drew more wrath from investors.

When released on 21 June, Core Lithium shares sank 6.51% with another 15.42% decline the next day.

Evidently, this caused its shares to register a three-month low of 82 cents on 23 June.

On the upside, Core Lithium is targeting first production of spodumene concentrate by the end of the 2022 calendar year.

If they keep to this schedule, it could bode well for the lithium developer should prices remain stable.

Core Lithium share price summary

Despite its recent falls, the Core Lithium share price has stormed 67% higher in 2022.

When looking at the longer term, the company’s shares are up an astonishing 320% over the past 12 months.

For context, the S&P/ASX 200 Materials (ASX: XMJ) index has tumbled 4% in 2022, and 5% since this time last year.

Based on today’s price, Core Lithium commands a market capitalisation of roughly $1.7 billion.

The post Down 30% in a month, what’s been driving the Core Lithium share price lower? appeared first on The Motley Fool Australia.

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• Why have ASX lithium shares had such a lousy month in June?
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• Here are the top 10 ASX shares today

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 positions in and has recommended Goldman Sachs. 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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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.

What happened

Shares of Apple (NASDAQ: AAPL) climbed higher on Wednesday, adding as much as 2.4%. As of 12:42 p.m. ET today, the stock was up 1.3%.

The catalyst that sent the stock higher on a mixed market day was news that iPhone demand may be holding up better than investors expected, which could spell additional upside for the stock.

So what

After initiating supply chain checks in China, Wedbush analyst Daniel Ives concluded there have been “steady with slight improvements, despite the zero-COVID-driven demand issues.” The Chinese government has acted swiftly, initiating lockdowns for some of the country’s largest cities to curb the spread of the pandemic, which has caused intermittent delays in the manufacturing sector. 

Apple has not been immune as the iPhone factories were temporarily shuttered earlier this year.  

However, Ives’ checks suggest iPhone sales could surprise to the upside. “We believe iPhone demand is holding up slightly better than expected,” the analyst wrote, “despite the various supply issues that have plagued Apple and the rest of the tech sector.” Furthermore, Ives believes that worry over the iPhone supply chain and production issues should peak in the June quarter, giving way to optimism regarding the coming launch of the iPhone 14, which is expected this fall.

Now what

It’s important to note that any protracted economic downturn would weigh on the tech giant’s stock, at least in the short term. With an average iPhone selling price of roughly $825, consumers would likely put off upgrading to the latest device, which in turn would pressure Apple’s revenue.

The iPhone is by far the biggest contributor to Apple’s revenue. In the March quarter, iPhone sales topped $50.5 billion, up 5.4% year over year, accounting for roughly 52% of the company’s total revenue. In the event of a recession, sales could temporarily stall, which would spook investors. 

That said, Apple dominates the global smartphone market, taking home roughly 44% of worldwide smartphone revenue last year. Additionally, with more than $192 billion in cash and marketable securities on its balance sheet, the company has the resources to weather any economic storm, and should be viewed as a safe haven for investors with a long-term outlook. 

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

The post Why Apple stock climbed on Wednesday appeared first on The Motley Fool Australia.

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Danny Vena has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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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Lithium shares were once the golden child of the ASX, but the last month dragged many deep into the red.

In fact, many of the market’s favourites have tumbled by more than 20% since the start of June, seemingly driven by experts’ bearish sentiment and concerns about demand.

Here’s how some of the ASX’s most renowned lithium shares performed over the last 30 days, as of Wednesday’s close:

• Pilbara Minerals Ltd (ASX: PLS) – down 22%
• Core Lithium Ltd (ASX: CXO) – down 29.6%
• Allkem Ltd (ASX: AKE) – down 22.7%
• Liontown Resources Limited (ASX: LTR) – down 21.1%
• Sayona Mining Ltd (ASX: SYA) – down 27.2%
• Lake Resources NL (ASX: LKE) – down 48.7%

For context, the S&P/ASX 200 Index (ASX: XJO) has slipped 7.4% so far in June, while the S&P/ASX 200 Materials Index (ASX: XMJ) has fallen 9.9%.

Read on to learn what went so wrong for shares involved in the battery-making commodity.

What weighed on ASX lithium shares this month?

ASX lithium shares suffered a major downturn on the first day of June and failed to recover throughout the month.

The sell-off event came amid news Goldman Sachs expects demand for lithium to fall in the future, while a Chinese electric vehicle manufacturer reportedly announced its plan to source its own lithium from mines in Africa.

On top of that, Argentina set a reference price for lithium carbonate exports.

Interestingly, my Fool colleague James Mickleboro pointed out, Goldman Sachs had been bearish on lithium for months before the sell-off.

Additionally, other brokers have shown far more optimism about the future of lithium prices, as The Motley Fool Australia’s Brendon Lau reported.

The rollercoaster for lithium stocks continued later in the month. They plunged once more last week amid reports Germany was considering not banning petrol and diesel cars by 2035.  

Here’s what went down with lithium stocks in June

The inclusion of some well-known ASX lithium shares in the ASX 200 wasn’t enough to turn the tide this month. Core Lithium and Lake Resources both made it into the all-important index. Meanwhile, Mineral Resources Limited (ASX: MIN) was bumped into the S&P/ASX 50 Index (ASX: XFL) on 20 June.

Neither was news Pilbara Minerals accepted an “unprecedented” pre-auction bid for its next lithium cargo. The company also announced it expected to increase its production by 54% in the third quarter.

Meanwhile, Liontown signed offtake agreements with Tesla and Ford. It also approved the development of its Kathleen Valley lithium project this month.

Finally, Sayona announced the discovery of a potentially world-class deposit and the planned restart of its North American Lithium operation this month.  

The post Why have ASX lithium shares had such a lousy month in June? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs and Tesla. 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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Buy now, pay later (BNPL) shares have been falling lately, but could they be on the verge of facing more regulation?

BNPL shares on the ASX include ZIP Co Ltd (ASX: ZIP), Sezzle Inc (ASX: SZL), and Block Inc (ASX: SQ2).

Let’s take a look at what is impacting BNPL shares?

What’s going on in the BNPL sector?

The Zip share price has plummeted 94% in the past year, while Sezzle shares have dived 97%. Block shares have sunk nearly 47% since joining the ASX on 1 February.

Now, it appears ASX BNPL shares could be facing tighter regulation. Federal Financial Services Minister Stephen Jones is planning to introduce legislation within a year to regulate the industry, ABC 7.30 reported.

Jones said:

Whatever you do in the financial services space, there’s big voices with deep pockets.

I don’t want to have an argument about whether this is credit or not, it clearly is.

The publication noted Australians exhausted nearly $12 billion on BNPL companies in FY21. This is more than double what was spent three years prior to the 2021 financial year.

However, a recent report shows that the BNPL market is pivotal for competition, as my Foolish colleague Zach reported this week.

The report highlighted that BNPL companies garner 4% of revenue from merchant fees, while credit cards depend on interest rates and late fees for profits.

Share price recap

Block shares have fallen 19% in the past month, while Zip shares have descended nearly 47% and Sezzle shares have dived 50% in this time frame.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed nearly 7% in a month.

The post Could ASX BNPL shares be set for imminent regulation as spending swells to $12 billion? appeared first on The Motley Fool Australia.

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• Why this economist believes ASX 200 BNPL shares are key to keeping the market competitive

Motley Fool contributor Monica O’Shea 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 Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, 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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The Macquarie Group Ltd (ASX: MQG) share price has been on a bumpy ride in 2022, trading 18% down so far this year to date.

ASX investors have pushed the Macquarie share price a further 8% into the red in this past month of trade, with the final trading day of June yet to complete.

In broader market moves, the S&P/ASX 200 Financials Index (ASX: XFJ) has also slipped 11% in the past month.

How’s July look for the Macquarie share price?

ASX banks have traded down in June amid uncertainty on Australia’s housing and mortgage markets looking ahead.

In addition to the traditional banking model, Macquarie’s operations are spread across several adjacent markets. These include capital markets, commodities, real assets, infrastructure, and asset management.

Analysts have recognised this strength and reckon there’s more to look forward to if the investment bank can stick to its track record.

The Wilsons team of analysts wrote in a recent note that “the medium to long-term opportunity for the [Macquarie] group is significantly stronger than other large cap financials on the market”.

Meanwhile, JP Morgan reckons the bank’s annuity division looks set to strengthen due to growth in Macquarie Asset Management (MAM).

JP Morgan is overweight on Macquarie and values the bank at a price of $218 per share.

In a research note, the broker said:

MAM [is] well placed to benefit from structural demand for alternative asset classes and MIM to benefit from several recent acquisitions, including Waddell & Reed.

Growth should be supported by significant deployment of capital into all operating divisions, given a healthy capital surplus.

We still see modest upside to our valuation, particularly given our forecast of a greater than 15% ROE in FY23-25.

In assigning a buy rating, JP Morgan joins another eight analysts telling their clients to buy Macquarie shares at today’s price, according to Bloomberg data.

Macquarie opened today’s session at $166.64, down 0.86% on yesterday’s close.

Meanwhile, four rate it a hold, whilst Credit Suisse has the sole sell rating. From this list, the consensus price target is $203 per share, suggesting considerable upside should that materialise.

In the past 12 months, the Macquarie share price has clipped a 7% gain.

The post What’s the outlook for the Macquarie share price in July? appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 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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The BetMakers Technology Group Ltd (ASX: BET) share price is rising on Thursday morning.

At the time of writing, the betting technology company’s shares are up 7% to 37 cents.

Why is the Betmakers share price rising?

The catalyst for the rise in the BetMakers share price is the release of a promising announcement.

According to the release, the company has been awarded the rights to offer Penn National Gaming’s racing content for fixed odds, booked bets, and exchange wagering outside of the US and Canadian markets.

These rights include over 946 race meetings a year for distribution from 1 July 2022 to globally licensed wagering operators.

BetMakers’s Global Racing Network currently delivers international racing content from more than 30 countries and offers rights holders new markets in which to monetise their racing. It receives a fee based on a percentage of turnover generated by wagering operators betting on the products in these new markets, while delivering rights holders new revenue.

Under the new agreement, BetMakers and Penn have agreed to a revenue share arrangement, with Penn to be paid a minimum guarantee amount annually. The term of agreement commenced on signing and will continue until 31 December 2025.

Management commentary

Partnerships Manager of BetMakers’ Global Racing Network, Kerry Gatten, was very pleased with the agreement. Gatten stated:

We are delighted to offer Penn’s first-rate content to a global audience and increase the awareness of the valuable content US racetracks have to offer.

It is exciting that we get to deliver Penn’s extensive racing content into our network of operators globally.

Despite this and a couple of recent positive developments, the BetMakers share price is still down a disappointing 55% since the start of the year.

The post Why is the BetMakers share price charging 7% higher today? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group 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 Argosy Minerals Limited (ASX: AGY) share price is on the move on Thursday morning.

At the time of writing, the lithium developer’s shares are up 10% to 36.5 cents.

This means the Argosy share price is now up over 25% since this time last week.

Why is the Argosy share price rising?

Investors have been bidding the Argosy share price higher today following the release of an update on the company’s Rincon Lithium Project in Argentina.

According to the release, approximately 90% of the total works have now been completed for the development of the 2,000tpa lithium carbonate production operation.

Positively, the company remains both on budget and schedule. It expects to achieve first battery quality lithium carbonate production during the upcoming third quarter of calendar year 2022.

The main work that remains relates to plant commissioning. Design phase work is complete, construction work is 94% complete, and plant commissioning work is 42% complete.

Management commentary

Argosy’s Managing Director, Jerko Zuvela, was pleased with the progress. Particularly given that the company will be entering the market at a time when lithium prices are at record levels.

Mr Zuvela commented:

The Company’s Puna operations team are getting closer to completing construction works and progressing with plant commissioning works, and then commencing lithium carbonate production operations.

The lithium market remains very positive and lithium carbonate prices are forecast to continue around record highs during 2022 and 2023, resulting in very robust upcoming product sales revenues.

The Company is very excited with our progress to become the next commercial scale lithium carbonate production operation, transforming into a cashflow generator, and progressing toward the next stage 12,000tpa scale operations.

The post Argosy Minerals share price jumps 10% on lithium update appeared first on The Motley Fool Australia.

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• Is this why ASX lithium shares are being crushed 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 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 exposure to the resources sector, then Iluka Resources Limited (ASX: ILU) shares could be worth considering.

That’s the view of analysts at Goldman Sachs, who believe the mineral sands and rare earths producer could be one of the best ASX 200 resources shares to buy right now.

What did the broker say?

According to a note out of the investment bank this morning, the broker has reiterated its conviction buy rating and $13.80 price target on the company’s shares.

Based on the current Iluka share price, this implies potential upside of 40% for investors over the next 12 months.

Why is Goldman bullish on Iluka’s shares?

Goldman has named three key reasons for its bullish view on Iluka shares. These include its valuation, its mineral sands and rare earths production growth, and the state of zircon and TiO2 feedstock markets.

In respect to its valuation, it commented:

Trading at 0.65x NAV (A$14.6/sh). We think the market is ascribing only some value to ILU’s Wimmera and Eneabba RE projects and the high grade zircon Balranald development project. We think ILU is undervalued (on c.4.5x EBITDA NTM) vs. key rare earth (c.13x) and mineral sands/pigment (c.5x) industry peers.

As for its mineral sands and rare earths production growth, the broker highlights the company’s strong production growth outlook. Goldman expects this to be a big boost to earnings in the coming years. It said:

We are positive on ILU’s project pipeline and forecast >40% production growth in mineral sands volumes, c.18ktpa of Rare Earths (~3.5-4ktpa of high value NdPr), and a >60% increase in EBITDA over the next ~5 yrs to 2027.

Finally, Goldman Sachs notes that the Zircon and TiO2 feedstock markets entered a supply side driven deficit in 2021. And with the markets remaining tight, its analysts see ongoing upside risk to prices in the second half of 2022.

The c.1.1Mt global zircon market entered a deficit in 2021 on our estimates, driven by a >10% fall in global supply on mine depletion and production cuts, and a strong rebound in global demand for ceramics. The Top 3 global zircon producers control 65%-70% of supply. We expect ILU to announce a further US$125/t zircon price increase from 1 July 2022, which should increase ILU’s realised price to around US$1,870/t.

We also believe the 7Mtpa TiO2 feedstock market has entered a deficit on stronger global pigment demand and expect at least a further US$180/t (+15%) increase in both rutile and synthetic rutile prices for 2022.

The post Goldman Sachs says Iluka shares are a strong buy with 40% upside appeared first on The Motley Fool Australia.

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

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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.

What happened

Are we witnessing the start of a tech stock rally? It’s too soon to tell, but numerous big names in the industry rose from the ground on Wednesday.

One of them was Amazon (NASDAQ: AMZN), which closed the day 1.4% higher against an essentially flat S&P 500 index. In addition to being the target of tech stock bargain hunters, the powerhouse online retailer also benefited from a high-profile bank picking it as a top buy in that beaten-down sector.

So what

The analysis in question came from JPMorgan Chase‘s near-namesake JPMorgan unit. Prognosticator Doug Anmuth updated his coverage of internet stocks, with notably muted enthusiasm.

“The Internet sector continues to have secular growth, but it is far more mature than in 2008-2009, and the ability to offset broader, macro trends is more limited,” he wrote in a new research note. “As a result, all of our companies are at risk in a slowing environment.”

Anmuth reduced estimates for a clutch of these stocks, especially those most heavily associated with online advertising and e-commerce.

Now what

That was the bad news in the JPMorgan analyst’s new take. The good news is that, according to Anmuth, several of the sector’s big titles already have such negative factors priced into their shares. He tapped three of these as his “Best Ideas,” one of them being Amazon (the other two were online travel agency incumbent Booking Holdings and rideshare king Uber).

In spite of that, Anmuth did give his price target on Amazon a haircut, to $175 per share from the previous $200. 

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

The post Why Amazon stock rose while the market slept on Wednesday appeared first on The Motley Fool Australia.

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Eric Volkman has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Booking Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Uber Technologies. The Motley Fool Australia has recommended Amazon and Booking Holdings. 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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