The Allkem Ltd (ASX: AKE) share price has been having a tough time of late.

Due to the market volatility, this lithium producer’s shares have lost 25% of their value since this time last month.

In light of this, some investors may be wondering if the Allkem share price weakness has created a buying opportunity.

Is the Allkem share price good value now?

According to a note out of Bell Potter this morning, its analysts have reiterated their buy rating with a trimmed price target of $17.53.

Based on the current Allkem share price of $9.85, this implies potential upside of 78% for investors over the next 12 months.

Why is the broker bullish?

Bell Potter is bullish on Allkem due to its equally bullish view on lithium prices.

Unlike some analysts, the team at Bell Potter is expecting lithium prices to remain strong for the foreseeable future thanks to market deficits caused by increasing demand for the battery making material.

Combined with its growing production, the broker expects this to boost Allkem’s cash generation and profits materially in the coming years.

Bell Potter explained:

We expect AKE’s near term cash generation to lift substantially into 2023 as strength in lithium commodity indices flows through to lagged realised prices. AKE is aiming to maintain 10% share of supply in a global lithium market experiencing unprecedented growth; it has a portfolio of growth projects, balance sheet strength and cash flow from existing projects to achieve this. On our estimates, lithium demand will lift from current levels of around 500ktpa to over 1.1Mtpa in 2025 and more than 3.2Mtpa by 2030, driving market deficits and strong lithium pricing.

As for its profits, the broker is forecasting a reported net profit of US$309 million in FY 2022. After which, it expects Allkem’s net profit to lift to US$680 million in FY 2023 and US$912 million in FY 2024.

All in all, this could make Allkem a share to consider if you’re looking for lithium exposure.

The post Top broker tips Allkem share price to jump 80% appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Mineral Monday: What you need to know about lithium and which ASX shares are cashing in on it
• 5 things to watch on the ASX 200 on Monday
• The lithium and iron ore ASX shares that I like right now: expert
• 3 ASX All Ordinaries shares that leapt more than 10% on Thursday
• Why’s the Allkem share price flaring higher today?

Motley Fool contributor James Mickleboro has positions in Allkem Limited. 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/fgLUSG3

The Betashares Global Cybersecurity ETF (ASX: HACK) has fallen in value by more than 20% over the last couple of months. It has been a difficult time for the HACK exchange-traded fund (ETF), as it has for many businesses.

When companies fall in value, it is worth considering whether an investment is more attractive or not. The situation with inflation and interest rates is capturing many headlines.

Only time will tell when will inflation slow and how high interest rates have to go to help cool the economy.

The cybersecurity industry is seeing long-term growth as businesses, governments, and households look to protect themselves. In 2018, the global cybersecurity market was worth around US$152 billion. By 2023, it’s expected (according to Statista) to reach US$248.3 billion.

With that underlying growth in mind, is the HACK ETF now an attractive opportunity?

The HACK ETF was rated as a buy

In mid-April 2022, one expert said that the Betashares Global Cybersecurity ETF is worth a spot in every investor’s portfolio.

Felicity Thomas from Shaw and Partners said in a Livewire interview that the HACK ETF was her pick:

The reason I’ve chosen this is because cybercrime is meant to cost the world $10.5 trillion by 2025, which is huge. It also has amazing names in it like CrowdStrike. In a connected world where everyone is attached to their devices, it’s becoming the biggest problem that we’re all facing.

The HACK ETF has dropped around 20% since the date of that positive commentary from Thomas.

What’s in the portfolio?

Thomas alluded to some “amazing names” in the portfolio, so let’s look at the biggest positions in the portfolio.

On 16 June 2022, these were the biggest holdings and their weightings:

• Crowdstrike (6.5%)
• Palo Alto Networks (6.4%)
• Cisco Systems (6.3%)
• Zscaler (4.6%)
• Booz Allen Hamilton (4%)
• VMware (4%)
• Leidos (3.8%)
• Sailpoint Technologies (3.6%)
• Juniper Networks (3.3%)
• Check Point Software (3.3%)

There are a total of 40 positions in the ETF.

How has it performed?

Past performance is certainly no guarantee of future performance. However, when including the annual management fee of 0.67%, investors can see that it returned an average of 15.9% per annum in the five years to 31 May 2022.

However, the six months to 31 May 2022 showed a drop of 18.3% for the Betashares Global Cybersecurity ETF. HACK ETF shares are currently valued at $8.19.

The post Down 23% since mid-April, is the HACK ETF a golden opportunity? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 popular ETFs for ASX investors to buy next week
• 3 popular ETFs for ASX investors to buy now
• How has the HACK ETF averaged annual returns of 19%?
• 2 great ETFs I’d buy in June 2022
• Why I’d buy these 2 excellent ASX shares exposed to megatrends

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 BETA CYBER ETF UNITS, Cisco Systems, and CrowdStrike Holdings, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended VMware. The Motley Fool Australia has positions in and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended CrowdStrike Holdings, Inc. 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/sNDLaX4

There are several dozen ASX shares that are on the hunt for lithium. A handful of others are in the pre-production stages.

But only three ASX shares are currently actually producing the metal.

We take a look at those below.

But first…

What is lithium?

Lithium is a lightweight, malleable alkali metal, silvery in colour.

Historically it’s been used to increase the heat resistance of glass and ceramics. Lithium salts are also used as antidepressants.

But it’s lithium’s high level of heat and electricity conductivity that has seen demand boom alongside the fast-growing lithium-ion battery market. Batteries that power most every electric vehicle (EV) on the road.

Lithium’s crucial role in the transition to renewables has seen the Australian government list the metal as a critical mineral.

The metal is primarily mined from ore and brines, with Australia, Chile, China and Argentina holding the largest deposits.

The government reports that Australia has high geological potential for lithium, with a 2020 Economic Demonstrated Resource of 6.17 million tonnes. In 2020, Australia produced 40,000 tonnes of lithium out of total global production of 82,000 tonnes.

So, which three ASX shares are producing lithium?

Three ASX shares cashing in on lithium

Taking them in alphabetical order, we start with Allkem Ltd (ASX: AKE), former known as Orocobre.

Allkem has a market cap of just under $6.6 billion. Based in Brisbane, its projects are primarily located in Argentina. The company supplies lithium carbonate to a variety of industrial and technical sectors, supplying roughly 10% of the global lithium market.

Allkem claims to be among the lowest-cost lithium producers in the world. The company intends to ramp up production by three times its current levels by 2026.

The Allkem share price is up 72% over the past 12 months.

The second ASX share already producing lithium is Mineral Resources Limited (ASX: MIN), with a market cap of $10.1 billion.

Though you may think of Mineral Resources as a mining services company, which it is, the company also has a large footprint in the lithium space. Its operations in Western Australia are Mt Marion, located in the Goldfields; and Wodgina, in the Pilbara region.

The company mines and produces both direct shipping ore lithium and spodumene concentrate.

The Mineral Resources share price is up 8% since this time last year.

Moving on to our third ASX share in the production stage for lithium, we have Pilbara Minerals Ltd (ASX: PLS), which has a market cap of $6.3 billion.

Pilbara’s flagship Pilgangoora Lithium-Tantalum Project is also located in the Pilbara region of WA.

Pilgangoora project counts amongst the largest hard-rock lithium-tantalum deposits in the world. Pilbara Minerals has big expansion plans for the project. It forecasts spodumene concentrate capacity at Pilgangoora to increase to 560,000 to 580,000 dry metric tonnes (dmt) this year.

The Pilbara share price is up 57% over the past 12 months.

The post Mineral Monday: What you need to know about lithium and which ASX shares are cashing in on it appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Monday
• The lithium and iron ore ASX shares that I like right now: expert
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why I think the Pilbara Minerals share price is currently undervalued
• 3 ASX All Ordinaries shares that leapt more than 10% on Thursday

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

from The Motley Fool Australia https://ift.tt/zA6l7FN

The outlook for the international economy is looking significantly darker than it was even 10 days ago.

After last week’s massive 75 basis point interest rate hike in the US, a global recession is in serious contention.

One phenomenon often seen in such troubled times is that the value of the US dollar is reinforced.

This is because the currency is seen as a stable safe haven while volatility is seen in other assets.

T Rowe Price Group Inc (NASDAQ: TROW) head of Australian equities Randal Jenneke reckons it won’t be any different this time. And he believes two ASX shares in particular stand to benefit.

“As we expect the US dollar to remain firm in 2022, we are positive toward the prospects for the [US] dollar earners in our portfolio, companies such as ResMed CDI (ASX: RMD) and Aristocrat Leisure Limited (ASX: ALL).”

The sleeping giant among ASX shares

Even though the company has its origins in Australia, ResMed has been headquartered at San Diego in the US for decades now.

The business exists on the ASX as a CHESS depositary interest (CDI), which allows Australian shares to be issued as a representative of ResMed Inc (NYSE: RMD) stocks.

And Jenneke is quite right in that the sleep apnea treatment device maker does most of its business in US dollars.

Firstly, the ASX 200 share reports its financials in that currency. 

Secondly, its latest quarterly result showed North and Latin America revenue of US$576.6 million far exceeded sales from the rest of the world, which generated US$287.9 million.

ResMed shares have fallen around 21% since the start of the year.

‘A high-quality growth business’

Unlike ResMed, gaming provider Aristocrat still has its head office in northern Sydney.

But its casino machines and mobile games are sold all over the world.

Aristocrat’s latest investor presentation showed 81% of its casino machine revenue came from the Americas region, while Australia and New Zealand reaped just 17%.

The mobile games, like most apps, are sold on borderless markets.

Morgans advisor Jabin Hallihan last week agreed with Jenneke that Aristocrat has tremendous prospects while other ASX shares are flopping.

“The slot machine maker remains a high-quality growth business with long-term opportunities,” he told The Bull. 

“We’re forecasting 16% growth in earnings before interest, taxes, and amortisation in the coming year.”

Morgans has a price target of $43 on this ASX 200 share, which compares to $32.76 at the close of Friday trading.

The post 2 ASX shares to benefit from strong US dollar: expert appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 ASX tech shares brokers rate as buys this month
• Why I would invest $10,000 in these 3 ASX shares
• 3 ASX shares to buy for scary times: experts
• Analysts name 2 ASX growth shares to buy with huge upside potential
• ASX 200 midday update: ResMed’s US$1bn acquisition, tech shares continue to sink

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

from The Motley Fool Australia https://ift.tt/4Myp5re

After a month of super-sized interest rate hikes in Australia and the United States, T Rowe Price Group Inc (NASDAQ: TROW) Australian equities head Randal Jenneke is nervous.

Nervous about the prospect that the shock of the rate rises will plunge the globe into a recession.

“Given our view that global monetary tightening will result in a cyclical recession in profits due to slowing activity, we retain the cautious stance in our portfolio first adopted over six months ago.”

Fortunately, Jenneke reckons ASX shares still look cheap compared to their international peers, and this means there are investments worth getting into.

“We believe Australian stocks look set for further relative outperformance in the second half of the year,” he said.

“Australia has created less excess local liquidity to distort domestic equity valuations, driving them to levels that were historically rich relative to fundamentals.”

Considering the outlook, Jenneke’s team is investing in a couple of different types of ASX shares:

Defensive growth with pricing power

The first type that the T Rowe Price team likes at the moment is “defensive growth”.

“We seek quality stocks that have good pricing power in the more defensive growth segments, such as Computershare Limited (ASX: CPU), a provider of stock registration and transfer services that has delivered good exposure to rising interest rates.”

Computershare’s share registry business benefits from higher interest rates because it holds a pool of dividends and distributions that are yet to be transferred to the investor.

That capital is invested and reaps better returns for the business when rates rise.

“Besides share registry, Computershare is a global provider of services for employee equity plans, corporate trusts, stakeholder communications, and corporate governance.”

Computershare shares have risen 35% over the past 12 months and the company hands out a tidy dividend yield of 2%.

Buying oversold growth shares for a later revival

The other category that Jenneke’s analysts are bullish on is “oversold” growth shares.

“Recently, we have taken the opportunity to add to growth companies that we believe [have] become oversold based on near-term inflation fears and higher projected interest rates,” said Jenneke. 

“In this category of oversold growth names, we include Carsales.com Ltd (ASX: CAR), the dominant automotive online classifieds business which in our view possesses a durable business model and good pricing power.”

Carsales shares have shed more than 30% of their value since 9 December.

After months of plunging valuations, Jenneke reckons that “quality growth” ASX shares would come roaring back later this year as rates stabilise.

This is why, despite selling out of many growth stocks last year, the T Rowe Price team is turning back to them now.

“In our view, this could help the portfolio to strive to perform well as markets move beyond their current inflation and interest rate fears to refocus on the issue of slowing growth.”

The post 2 ASX shares to buy to win the rest of 2022: expert appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These were the best performing ASX 200 shares last week
• Why Computershare, Lithium Plus, Lynas, and ResApp shares are pushing higher
• 3 ASX 200 shares that avoided today’s sell-off
• Big chance to buy ASX share that benefits from rising interest rates: expert
• How to turn $20,000 into $180,000 in 10 years with ASX shares

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 carsales.com 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/6nUZypP

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished a difficult week deep in the red. The benchmark index fell 1.75% to 6,474.8 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 the red following a mixed night on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 19 points or 0.3% lower this morning. On Wall Street, the Dow Jones was down 0.1%, the S&P 500 was up 0.2%, and the Nasdaq jumped 1.4%.

Oil prices sink

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a very difficult start to the week after oil prices sank on Friday. According to Bloomberg, the WTI crude oil price dropped 6.8% to US$109.56 a barrel and the Brent crude oil price fell 5.6% to US$113.12 a barrel. This was driven by concerns that a potential global recession could weigh on demand.

ASX 200 rebalance takes effect

S&P Dow Jones Indices’ recently announced rebalance of the ASX 200 index will take effect today. Among the notable changes are Appen Ltd (ASX: APX) and PolyNovo Ltd (ASX: PNV) being kicked out of the index. Brainchip Holdings Ltd (ASX: BRN) and Core Lithium Ltd (ASX: CXO) are two of the new entrants to the benchmark index.

Gold price falls

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price dropped on Friday night. According to CNBC, the spot gold price is down 0.5% to US$1,840.6 an ounce. A stronger US dollar put pressure on the precious metal.

Allkem shares rated as a buy

The Allkem Ltd (ASX: AKE) share price could be great value after recent weakness according to Bell Potter. This morning the broker has retained its buy rating but trimmed its price target on the lithium producer’s shares to $17.53. This implies almost 80% upside for investors over the next 12 months. The broker said: “We expect AKE’s near term cash generation to lift substantially into 2023 as strength in lithium commodity indices flows through to lagged realised prices.”

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Can Woodside shares deliver an attractive dividend yield AND 16% upside in 2022?
• Have ASX 200 shares bottomed? Experts weigh in
• The lithium and iron ore ASX shares that I like right now: expert
• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd and POLYNOVO FPO. 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/pwArWCx

Exchange traded funds (ETFs) can be great additions to a balanced portfolio. This is because they give investors easy access to a large and diverse group of different shares.

Due to their growing popularity, there are an increasing number of ETFs for investors to choose from.

To narrow things down, I have picked out two ETFs that are popular with investors right now. They are as follows:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF tracks the performance of the ~50 largest technology and ecommerce companies that have their main area of business in Asia.

As these companies, or tigers, are among the fastest growing in the region and revolutionising the lives of billions of people, they have been tipped to generate strong returns for investors over the long term.

Among its holdings are the likes of Alibaba, Baidu, Samsung, and Tencent Holdings.

In respect to Tencent, it is a multinational technology conglomerate and one of the largest companies in the world. It is best known for its communication and social platforms, Weixin (WeChat) and QQ, which have over a billion users.

As for Baidu, it is a search engine giant and China’s answer to Google. It is dominating search in the lucrative market, with an estimated 80% share of the market.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ETF to look at is the BetaShares Global Cybersecurity ETF. This ETF aims to track the performance of an index that provides investors with exposure to the leaders in the global cybersecurity sector.

BetaShares notes that the cybersecurity sector is heavily under-represented on the ASX. As such, this ETF ensures that Australian investors don’t miss out on this rapidly growing side of the tech industry.

Among the ETF’s holdings are cybersecurity giants and emerging players. This includes Accenture, Cisco, Cloudflare, Crowdstrike, Fortinet, Okta, and Palo Alto Networks.

In respect to the latter, Palo Alto Networks, it is the global leader in cybersecurity solutions. It offers advanced firewalls and cloud-based products that extend firewalls to cover other aspects of security. It has over 85,000 customers across over 150 countries. From these customers it generated US$4.3 billion of revenue in FY 2021, which was up 25% year on year.

The post 2 popular ETFs for ASX investors to buy next week appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are 3 top ETFs for ASX investors to buy now
• 3 popular ETFs for ASX investors to buy now
• Get exposure to Asian shares with these 2 ETFs
• 3 ASX ETFs for investors to buy next week
• How has the HACK ETF averaged annual returns of 19%?

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 BETA CYBER ETF UNITS. The Motley Fool Australia has positions in and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF. 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/mzgjwdU

If you have room for some new additions this month, then it could be worth considering the two ASX tech shares listed below.

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

Aristocrat Leisure Limited (ASX: ALL)

The first ASX tech share that could be a buy is Aristocrat. It is a gaming technology company with a portfolio of leading pokie machines and digital games.

The team at Morgans is bullish on Aristocrat and recently added the company to its best ideas list. The broker has put an add rating and $43.00 price target on its shares.

It commented:

ALL is a global market leader in the rapidly growing land-based gaming and mobile gaming industries. It has delivered revenue growth of 17% pa over the past five years and 80% of revenue in FY21 was recurring. We expect ALL to continue to take market share in all its product segments. Demand for its gaming machines and digital games is resilient to economic cycles.

ALL’s 1-year forward P/E has derated to less than 20x from a high of 30x last September. With $3.3bn of currently available liquidity, ALL has significant funding capacity for growth, even after the buyback. 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.

Xero Limited (ASX: XRO)

Another ASX tech that could be in the buy zone is Xero. It is a cloud-based accounting solution platform provider to small and medium sized businesses globally.

Goldman Sachs is very bullish on Xero and recently reiterated its buy rating and $118.00 price target on the company’s shares. This followed news that the company has increased subscription prices in the key ANZ and UK markets.

The broker commented:

W remain confident Xero will be able to execute on these increases while preserving its existing subscriber base, noting their strong track record in putting through increases while driving churn lower. We would also not be surprised if NA/ROW markets were also considered for a pricing increase, given they previously followed ANZ/UK by 2 months in Nov-21.

We are Buy-rated on XRO.AX, with a 12m TP of A$118.

The post 2 ASX tech shares brokers rate as buys this month appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX 200 midday update: GUD crashes, tech shares tumble
• Why I think the Xero share price is now too compelling to ignore
• 3 ASX shares to buy for scary times: experts
• Analysts name 2 ASX growth shares to buy with huge upside potential
• Top brokers name 3 ASX shares to buy 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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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/Zge6f0M

Are you looking for dividend shares to add to your income portfolio? If you are, then the two listed below could be worth considering.

These dividend shares have been rated as buys and tipped to provide income investors with big yields.

Here’s what you need to know about them:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share for income investors to look at is the HomeCo Daily Needs REIT. It is a property company investing in neighbourhood retail, large format retail, and health and services.

Goldman Sachs is a fan of the company and has a buy rating and $1.70 price target on its shares. The broker believes it is well positioned to benefit from the shift to omni channel retailing.

Goldman commented:

We continue to believe HDN is undervalued at its current valuation given its diversified tenant base, and see it as well positioned to benefit from the shift to omni channel retailing, with additional external growth opportunities to drive earnings growth over the medium-term.

In respect to dividends, Goldman is forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.27, this will mean dividend yields of 6.3% and 7.1%, respectively.

South32 Ltd (ASX: S32)

Another ASX dividend share to look at is South32. It is diversified mining and metals company producing a range of commodities. This includes alumina, aluminium, bauxite, coal, copper, manganese, nickel, and silver across operations in Australia, Southern Africa and South America.

Citi is a big fan of the company. It currently has a buy rating and $5.50 price target on the miner’s shares. The broker believes the company’s shares are trading at an attractive level. It commented:

S32 held a strategy update today and there was little to change baseline forecasts save for higher FY23/24 capex. Costs pressures are evident – but are industry not company specific. S32 has production growth, trades at a discount to DCF and on low valuation multiples. What’s not to like compared to peers.

As for dividends, the broker is forecasting fully franked dividends per share of 38 cents in FY 2022 and 40 cents in FY 2023. Based on the current South32 share price of $4.16, this will mean yields of 9.1% and 9.6%, respectively.

The post Here are 2 ASX dividend shares experts say are buys appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Broker names 2 ASX 200 mining shares with big dividends to buy now
• Here are the 3 most traded ASX 200 shares on Wednesday
• 2 high yield ASX dividend shares to buy according to analysts
• Here are the 3 most traded ASX 200 shares on Friday

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/bCwgmnl

Investors that have seen $100 billion of their wealth evaporate this week can take solace in the fact that ASX shares could still be among the safest bets in this turbulent environment.

That’s the assessment of Crestone Wealth Management head of equities Todd Hoare. He’s urging investors to hide their capital in Australia, reported The Weekend Australian.

Hoare explained that:

From an equity perspective, Australia looks like a safer place to be. It is lower beta (that is, less volatile), valuations are optically more attractive, we’re a resource-led economy, and even though inflation is proving a bit stickier, we shouldn’t get the same level of entrenched inflation seen elsewhere in the world.

Why ASX shares could outperform other share markets

It’s the fear of runaway inflation and the potential overshoot in interest rates that’s triggering the latest market sell-off.

Central banks in the US to Australia are rushing to hike rates to curb high inflation. This increases the risk of a recession or stagflation.

Given the overrepresentation of ASX resources shares on our market, this should put us in a better position to outperform.

Diversification remains key

But Hoare warned that ASX investors with a substantial share portfolio will need to diversify. He means owning other asset classes and not just shares. He said:

It comes down to multi assets, with bonds offering a little bit more value than what they have done for a long period of time, and alternative asset classes in the mix. Even cash to some degree, even though in real terms inflation is eroding that. With very few places to hide right now, all you can do is try to lose less.

This is also where gold could shine. While the precious metal hasn’t rallied, it’s at least managed to hold its ground at above US$1,800 an ounce as the US share indices crashed into a bear market.

The types of ASX shares to watch

Coming back to ASX shares, the sectors that Hoare likes in a high inflationary environment include consumer staples, energy companies, and defensives, such as healthcare.

Meanwhile, Doug Turek of Minchin Moore Private Wealth Investors echoed a similar view, reported The Australian. He highlighted ASX energy, resources, and agriculture shares as places to shelter from inflation.

No need to chase shares higher

However, he warns that these shares do not look cheap as many have outperformed over the past two years.

Turek noted: “All those assets that might work better than others in times of inflation could be very pricey now. Rushing after them at this stage might not be the right move.”

Investors should take their time as inflation can be volatile, Turek added. This means investors might get a second chance to buy ASX commodity shares at a better price later.

The post Why ASX shares are ‘a safer place to be’: fundie appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are 2 ASX dividend shares experts say are buys
• Top brokers name 3 ASX shares to buy next week
• Can Woodside shares deliver an attractive dividend yield AND 16% upside in 2022?
• Why I would invest $10,000 in these 3 ASX shares
• Is the Vanguard US Total Market Shares Index ETF now trading at bargain levels?

Motley Fool contributor Brendon Lau 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/4rlyo8E