Analysts have identified some S&P/ASX 200 Index (ASX: XJO) blue chip shares that could be opportunities to buy in May 2022.

Blue chip shares are some of the biggest businesses on the ASX. Often, they are the market leaders of their industries in Australia.

With that in mind, here are two potential opportunities that analysts like:

Xero Limited (ASX: XRO)

Xero is one of the world’s largest accounting software providers.

After a 34% decline in the Xero share price since the start of the year, it now has a market capitalisation of $14.6 billion.

It’s currently rated as a buy by the broker Citi, with a price target of $132.60. That implies a possible rise of close to 40% over the next year for Xero.

Xero is due to release its FY22 result in a couple of weeks.

However, the company’s FY22 half-year result indicated ongoing growth for the ASX 200 blue chip share. It reported that both operating revenue and total subscribers increased by 23%. This helped annualised monthly recurring revenue increase by 29% to NZ$1.13 billion.

Xero pointed to the strength of its software as a service (SaaS) metrics that have continued to “trend positively” including the average revenue per user (ARPU), the gross profit margin (up 1.4 percentage points to 87.1%,) and its subscriber churn.

The company says that it will continue to focus on growing its global small business platform and maintain a preference for reinvesting cash flow generated to drive long-term shareholder value.

Sonic Healthcare Ltd (ASX: SHL)

Sonic is a large, global provider of pathology services. It’s also growing its radiology presence in Australia. The company has a significant pathology presence in Australia, the US, Germany, the UK, and Switzerland.

The company continues to see the ongoing growth of its ‘base’ business revenue, which excludes COVID-19 testing. It’s expecting ongoing growth of its base thanks to “strong” underlying drivers, including a catch-up of other testing postponed throughout the pandemic.

However, COVID testing has been a significant earner for the business. In the first six months of FY22, COVID revenue rose 16% to $1.3 billion.

While COVID testing volumes may be changing, the ASX 200 blue chip share is expecting a sustainable level of COVID testing into the future, including “routine COVID testing, screening programs, variant testing, whole genome sequencing and antibody tests”.

The business has been making acquisitions with the extra capital that it has accumulated thanks to the COVID testing cash flow. Two examples of that are ProPath, which generates US$110 million of revenue, and Canberra Imaging Group, which generates A$60 million of revenue.

Sonic Healthcare says that an active pipeline of opportunities is under evaluation.

It’s currently rated as a buy by the broker Credit Suisse, which suggested that Sonic Healthcare can keep benefiting from COVID PCR tests. The broker thinks the Sonic share price is valued at 19 times FY23’s estimated earnings.

The post 2 ASX 200 blue chip shares to buy in May: Analysts appeared first on The Motley Fool Australia.

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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. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Wesfarmers Ltd (ASX: WES) is one of ASX’s oldest dividend paying shares.

The company has been handing investors a portion of its profits every half since 1985 – 2 years earlier than the ASX’s formation.

The ASX came together in 1987 when 5 different state-based stock exchanges merged into the one we now know and love.

On top of that, most of Wesfarmers’ dividends have been fully franked.

But owners of Wesfarmers shares might not know their dividends can serve a different purpose.

Their payouts can help them increase their hold in the company without paying brokerage fees through Wesfarmers’ dividend reinvestment plan. Let’s take a closer look at what the plan entails.

As of Tuesday’s close, the Wesfarmers share price is $49.02.

The nitty-gritty of Wesfarmers’ dividend reinvestment plan

Owners of Wesfarmers shares are likely used to a cash dividend being deposited into their bank account every half year.

But there’s another way they can benefit from the payout. Wesfarmers offers a dividend reinvestment plan.

The plan sees the company’s dividends paid via shares instead of cash. And those shares might come at a discount to the market price.

By opting into the plan, shareholders will receive a number of shares to the value of a dividend payout, with the company able to offer a slight discount on market price.

Any remaining balance – that is, a portion of a dividend payment that doesn’t amount to the value of a full share – will be rolled over to the next dividend payout.

Shareholders can also choose to partly participate in the plan, opting for only a portion of their shares’ dividends to go towards increasing their holding.

Additionally, participation in the plan doesn’t change a shareholder’s tax position with respect to the dividend payment.

Finally, the company can choose whether to offer new or existing shares through the dividend reinvestment plan. It can also suspend the plan at any time with a month’s notice.

Sadly, not everyone can get on board with Wesfarmers’ dividend reinvestment plan. Only shareholders with an Australian or New Zealand address can opt in.

Wesfarmers’ next dividend will likely be announced alongside its upcoming full year results. They should hit the market on 26 August.

The post Does Wesfarmers have a dividend reinvestment plan? appeared first on The Motley Fool Australia.

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• Why has the Woolworths share price outperformed Wesfarmers so far in 2022?

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 no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX mining shares softened yesterday amid sector weakness and China’s worsening COVID-19 prognosis.

The S&P/ASX 300 Metals & Mining Index (ASX: XMM) closed the session down by almost 6% on Tuesday. This brought the benchmark’s losses to 11% for the past week. It’s down 6% this past month.

Meanwhile, these three ASX mining shares managed to surge more than 20% yesterday.

BMG Resources Ltd (ASX: BMG)

The first ASX mining share to highlight is BMG Resources. BMG shares spiked to finish 20% in the green following a company announcement.

The company revealed it had intersected new portions of thick, high-grade gold at its Capital Prospect located at the Abercromby Gold Project.

According to the company, results “significantly add to the known mineralised envelope at the Capital Prospect which remains open at depth and along strike.”

Speaking on the results, BMG managing director Bruce McCracken said that it’s “now well and truly game on at Abercromby”.

“In one single program, we have more than doubled the likely size of the deposit, intersected extremely high-grade gold in fresh rock, and proven the system is fertile at depth via the deepest drilling undertaken at the Project to date.”

Western Mines Group Ltd (ASX: WMG)

Next on our list of outstanding ASX mining shares is Western Mines. Its share price also surged higher on Tuesday, closing at 34 cents. That was a 19% gain for the day. At one point, they were fetching 37 cents apiece before levelling off in afternoon trade.

The company advised today that the diamond drilling program at its flagship Mulga Tank Ni-Cu-PGE Project has now commenced.

The company says that numerous exciting drill targets have been defined at the project. WMG managing director Caedmon Marriott said, “each hole will take between eight to fifteen days to complete”.

Continuing, he added:

The Company is also pleased to have completed the due diligence hurdle for the sale of the Pavarotti Project iron ore rights to Mineral Resources. Cash proceeds of $200,000 are expected to be received this week and these funds will go towards expanding the Mulga Tank drilling program.

The Western Mines share price has gained 70% since listing in mid-2021 and is up 84% this year to date.

Far East Gold Ltd (ASX: FEG)

Our final ASX mining share is Far East Gold. It also finished up 21% at 40 cents apiece. In an announcement, the company advised it had returned bonanza grade assays from its Rek Rinti and Aloe Eumpeuk gold and silver ‘vein systems’ in Indonesia.

Within the Aloe Eumpeuk prospect, Far East says that rock chip sampling of quartz veins has returned further bonanza gold and silver grades of 63 g/t gold, 1,179 g/t silver, and 26.16 g/t gold, 597 g/t silver.

“The bonanza grade samples exhibit ginguro bands which are a key textural feature common to highgrade low sulphidation epithermal vein deposits within the Gosowong Goldfield (>6Moz Au at
grades of 20-40 g/t Au) in Indonesia and at Hishikari (8Moz Au at grades of 30-40g/t Au) in Japan,” the company says.

Regarding its study results, Far East said that it expects “detailed mapping” will establish continuity of the structural corridor between the Rek Rinti and Aloe Eumpeuk vein systems.

It notes the Aloe Rek vein system is located about 2km south of Aloe Eumpeuk. If confirmed, this would “form a continuous system of veins over a strike length of about 4.5km”.

After listing in March 2022 the Far East Gold share price has doubled and gained 35% in the past week.

The post 3 ASX mining shares that surged by 20% or more on Tuesday appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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Megatrends are major global changes than can impact the economy, ASX companies and the world.

Examples over time include electricity and the internet. But right now, there are new megatrends at play.

Let’s take a look at what they are and which ASX shares could be impacted?

What are the megatrends in 2022

Five megatrends identified in a recent Livewire article include battery minerals, decarbonisation, automation, digital currencies and the ageing population.

Speaking to the publication, Felicity Thomas from Shaw and Partners recommended ETFS Battery Technology and Lithium ETF (ASX: ACDC) as a way to get exposure in the battery minerals space. She cited the Biden administration’s investment in electric vehicles (EV).

Thomas said:

For me, this is a buy. I really like future-facing commodities and ACDC is a way to get diversified exposure to that kind of theme. The US has also created a 50% electrification target, so I think there’s going to be a push there.

However, Pivot Wealth founder Ben Nash had a different take on this fund, suggesting investors sell it. He said, “I think if you look at the performance of this ETF relative to the market and relative to commodity prices over the period, it probably doesn’t seem to be lining up for me.”

The ETFS Battery Tech and Lithium ETF has fallen nearly 15% year to date.

Looking at decarbonisation, Thomas recommends VanEck Global Clean Energy ETF (ASX: CLNE). She again cited the United States investment in green technology, adding:

For me, CLNE is a buy. It’s the only ETF that is actually a pure-play green energy ETF. So I think it’s quite unique and I believe that the US last year spent a lot of money on climate change, so I think it’s going to come into its own.

However, Nash again had a different take, rating this ETF as a sell:

I think it is extremely niche, and while I do believe in the theme and that the space will grow over time, for me, the lack of diversification just suggests a bit more volatility for investors.

VanEck Global Clean Energy ETF has dropped nearly 13% year to date.

The post What is a megatrend and which ones are impacting ASX shares right now? appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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This one ASX lithium share has surged 30% in a month to trade at its top level since joining the ASX.

The Green Technology Metals Ltd (ASX: GT1) share price has surged 29.78% since 28 March. In Tuesday’s trade, the company’s share price climbed another 5% to $1.155.

Let’s take a look at what is driving this share price boost.

This ASX lithium share just keeps on rising

This ASX lithium share may be on the rise in the last month, but it is not a new trend. In fact, the Green Technology Metals share price has rocketed more than 200% in the past six months.

The Western Australian company is one of many ASX lithium players to surge recently amid the rising demand for electric vehicles (EVs). Lithium is an essential component of EV batteries. Deloitte predicts electric vehicle sales will make up 32% of the car sales market by 2030.

Green Technology Metals is exploring the Seymour Lithium project in Ontario, Canada.

On 12 April, Green Technology reported drilling intercepted “thick, high grade” lithium oxide.

Commenting on the results, CEO Luke Cox said:

The phase 1 drilling program at Seymour continues to deliver excellent outcomes. The latest set of assays have returned further thick, high-tenor intercepts that significantly extend the known boundaries of the North Aubry deposit.

On 28 March, Green Technology Metals furthered its joint venture interest in Ontario Lithium Projects by 29% to 80%, up from 51%. This includes the Seymour, Root and Wisa projects.

Share price snapshot

The Green Technology Metals share price has soared 122% in the year to date and 28% in the past week.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen nearly 2% in the year to date.

The ASX lithium share has a market capitalisation of $122 million based on the current share price.

The post Guess which ASX lithium share has leapt 30% in a month to trade at all-time highs? appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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The South32 Ltd (ASX: S32) share price was out of form on Tuesday.

The mining giant’s shares ended the day 8% lower at $4.46.

Why did the South32 share price tumble?

Investors were selling down the South32 share price yesterday amid broad weakness in the resources sector and a negative reaction to the company’s quarterly update.

The latter revealed that South32 has increased its cost guidance to reflect higher input costs, royalties, and foreign exchange.

Is this a buying opportunity?

According to a note out of Goldman Sachs, its analysts remain very positive on the South32 share price and appear to see yesterday’s selloff as a buying opportunity.

The broker has retained its conviction buy rating with a trimmed price target of $5.70.

Based on the current South32 share price, this implies potential upside of 28% for investors over the next 12 months.

In addition, Goldman is forecasting a fully franked 8% dividend yield in FY 2022 and then 13% in FY 2023 and FY 2024.

Why is Goldman bullish?

Goldman Sachs has listed three key reasons why it is bullish on the South32 share price. It explained:

Valuation: The stock is trading at c. 0.95x NAV (A$5.10/sh) including the completion of the acquisition of a 45% stake in the Sierra Gorda copper mine in Chile.

Strong FCF outlook: We forecast a FCF yield of c. 18% in FY23 (over 25% at spot), driven mostly by exposure to base metal price momentum (aluminium & alumina c. 50% of FY23 EBITDA, copper c. 10%, zinc/nickel c. 20%), met coal (c. 15% of EBITDA), a c. 30% or c. 280ktpa increase in aluminium production over the next 18 months from the Alumar restart & a c. 17% increase in Mozal stake, creep in nickel from Cerro Matoso and lead/zinc/silver from Cannington, and uplift from the Sierra Gorda acquisition.

Increased capital returns: We assume the buyback continues to be extended (at ~US$200mn p.a) and assume S32 resets its balance sheet metrics (we think targeting US$0-800mn net debt through the cycle based on our view of suitable balance sheet leverage) pays out 60% of earnings (40% ordinary, 30% special dividend component) with the FY22 result. On our estimates, S32 is on a dividend yield of c. 8-13% in FY22-FY24.”

All in all, this could make South32 a top option if you’re looking for exposure to the resources sector.

The post Goldman Sachs names 3 reasons why the South32 share price is a bargain buy 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 Bruce Jackson.

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Two of the big reasons why ASX shares have been so volatile this year are persistent inflation and rising interest rates.

Many experts say the most direct way to get around such headwinds is to invest in businesses that can set their own prices.

This can happen if the company provides a product or service so unique that there is not much competition, or its market share is so dominant that customers are unlikely to depart even if prices went up.

Such pricing power can offset higher supplier costs or interest rates, thereby preserving margins and earnings.

“As the inflation dynamic becomes more significant, the ability of companies to pass through input cost increases to their customers is one of the most significant themes for investors to understand,” said Martin Currie Australia chief investment officer Reece Birtles.

“Companies that have done well in this respect either have in-built inflation protections for their revenue streams and supply chains, or inflation leverage in their profit margins.”

Birtles then named three examples of ASX shares that fit this bill:

Product makers are naming their own prices, while service providers flounder

The first thing to note is that the type of business with pricing power seems to have changed in recent months.

“Until recently, service providers – typically growth-stye stocks – were more likely to be able to increase prices,” said Birtles.

“But now it is goods companies that appear to have a better ability to quickly pass through their input cost increases in a transparent manner.”

The shortage of labour in the post-COVID era is causing a bottleneck for service providers.

“Service companies are seeing higher costs in IT, compliance and wages, but with less price elasticity, meaning they cannot push prices up and still maintain sales.”

During last reporting season, Birtles’ team met executives of more than 100 companies to analyse how they’re coping with inflation.

The 3 ASX shares that stood out for him are:

• Amcor CDI (ASX: AMC)
• Scentre Group (ASX: SCG)
• APA Group (ASX: APA)

Packaging maker Amcor has dealt with higher costs by increasing prices, but this has not affected sales.

“Due to the essential nature of the goods they sell, Woolworths Group Ltd (ASX: WOW) and other supermarket businesses are doing a solid job of holding their gross profit margins by passing through the rising cost of goods.”

Amcor shares are down 2.7% for the year so far.

Scentre operates the ubiquitous Westfield shopping malls in Australia.

“Accelerating inflation has been a positive for Scentre Group’s regional and super-regional shopping centres,” said Birtles.

“They have high tenant occupancy and rental contracts with CPI-adjusted lease renewal mechanisms.”

The Scentre share price is down more than 10% so far in 2022.

APA Group is an owner of gas infrastructure — a great position to be in during times of rising energy prices.

Utility and infrastructure companies often have contracts with clients that have inflation-linked price rises already baked in. 

“Gas pipeline company APA Group’s operating expenses are a modest part of revenues, while revenue contracts are typically long-term take or pay with CPI-linkage mechanisms. 

“As inflation increases, the dollar value of cash flow will increase.”

The APA stock price has gained more than 15% this year.

The post 3 ASX companies that can raise prices whenever they want appeared first on The Motley Fool Australia.

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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 owns and has recommended APA Group and Amcor Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re looking for dividend shares with attractive yields, then you may want to look at the ones listed below.

Here’s why analysts rate these dividend shares as buys:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is this footwear focused retailer.

Accent is the owner of a wide range of retail brands including HYPEDC, Platypus, Stylerunner, Subtype, Supra, and The Athlete’s Foot.

Accent’s shares have been hit hard this year due to COVID lockdowns impacting its profits materially and concerns over sports giants Adidas and Nike focusing on growing their direct to consumer businesses.

Nevertheless, the team at UBS remain positive and are expecting the company to rebound strongly in FY 2023. As a result, the broker has put a buy rating and $2.50 price target on the retailer’s shares.

As for dividends, UBS is forecasting fully franked dividends of 7 cents per share in FY 2022 and then 13 cents per share in FY 2023. Based on the current Accent share price of $1.47, this will mean yields of 4.75% and 8.8%, respectively.

Dexus Industria REIT (ASX: DXI)

Another ASX dividend share that could be in the buy zone is Dexus Industria.

It is an industrial and office focused property company that was formerly known as APN Industria. Dexus Industria owns interests in office and industrial properties across the country that provide functional and affordable workspaces for businesses.

Morgans is a fan of the company and appears to believe it well-placed to deliver sustainable income and capital growth prospects for shareholders over the long term.

Its analysts recently put an add rating and $3.65 price target on the company’s shares. They are also forecasting attractive dividends per share of 17.3 cents in FY 2022 and 17.6 cents in FY 2023.

Based on the current Dexus Industria share price of $3.37, this will mean yields of 5.1% and 5.2%, respectively.

The post Analysts name 2 ASX dividend shares with big yields to buy 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 recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The first few months of 2022 has seen share market volatility like we could not even imagine last year.

This means that quite a few businesses have seen their stock fall like a stone. Yet their operations and fortunes may not have changed all that much.

That’s why it’s worth noting ASX shares that have plunged that professional investors are still holding onto.

The idea is that, over the long term, any massive disjoint between company performance and share price will moderate.

Here’s a trio of ASX shares in that situation that Firetrail Investments is holding:

Fell 48%, but still up over last 12 months

Shareholders for cancer treatment developer Telix Pharmaceuticals Ltd (ASX: TLX) have been crying in despair this year.

“Shares fell 48% in the quarter with news that its competitor, Novartis AG (SWX: NOVN), had received FDA [US Food and Drug Administration] approval for a competing prostate cancer imaging agent (PCIA),” Firetrail analysts said in a memo to clients.

However, the shares are still more than 14% higher than where they were 12 months ago. 

The Firetrail team is still bullish on Telix, noting that it launched its own PCIA in the US at the start of this month.

“The US PCIA market is estimated to be a US$900 million per annum market, and we expect Telix to gain meaningful share thanks to broad coverage of imaging centres and hospitals across the US via distribution partners Cardinal Health and Pharmalogic.”

‘Valuation upside over the next 2 to 3 years’

The Firetrail team blamed the 25% drop in technology stock Megaport Ltd (ASX: MP1) in the first quarter on “a disappointing second quarter update”.

“Port and Megaport Virtual Edge additions were weaker than expected, resulting in consensus downgrades,” the memo read.

“The weaker result was exacerbated by a selloff in technology and growth names in the quarter.”

But the fall in Megaport’s share price just meant that Firetrail was able to buy more at a bargain price.

“We used the stock weakness to add to our long position,” stated the analysts.

“Our investment thesis remains intact and we see material earnings and valuation upside over the next 2 to 3 years.”

Market yet to catch onto true potential

Building materials provider James Hardie Industries plc (ASX: JHX) saw its share price freefall 27% in the first quarter.

That puzzled Firetrail analysts, as they felt the company’s latest result was “solid” and the financial year 2023 guidance was “ahead of expectations”.

“The ability to provide earnings guidance 12-months out should have stoked confidence,” the memo read.

“However, the stock has instead followed US homebuilders and building products companies lower in response to rising US 30-year fixed mortgage rates.”

Investors are yet to understand the big picture potential of the company, according to Firetrail.

“We believe the market is missing a material market share and margin-accretion opportunity which lies ahead of James Hardie as it shifts its product mix towards higher-margin products,” its memo read.

“We estimate current North America margins of 29% could increase to 46% by FY27, materially higher than consensus FY27 margins of 34%.”

The post 48% fall: Fund names 3 ASX shares to take off after heavy crash appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) started the shortened week in a very poor fashion. The benchmark index sank 2.1% to 7,318 points.

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

ASX 200 expected to sink again

The Australian share market looks set to have another bad day on Wednesday following a market selloff in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 110 points or 1.5% lower this morning. On Wall Street, the Dow Jones fell 2.4%, the S&P 500 dropped 2.8%, and the Nasdaq has crashed 3.95%. Investors were dumping equities on fears of an economic slowdown.

Oil prices rebound

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a better day after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 3.2% to US$101.63 a barrel and the Brent crude oil price has risen 2.7% to US$105.04 a barrel. Supply fears appear to have boosted prices.

South32 shares remain a buy

The South32 Ltd (ASX: S32) share price tumbled on Tuesday following the release of its quarterly update. The team at Goldman Sachs appear to see this as a buying opportunity. This morning the broker has retained its conviction buy rating with a trimmed price target of $5.70. Overall, while acknowledging that South32 has increased its cost guidance, Goldman was pleased with the company’s performance during the quarter.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.55% to US$1,906.5 an ounce. Economic growth and inflation concerns have supported the safe haven asset.

Mineral Resources tipped as a buy

The Mineral Resources Limited (ASX: MIN) share price could be great value according to analysts at Bell Potter. This morning the broker has retained its buy rating and $70.00 price target on the mining and mining services company’s shares. In response to its US$1 billion notes offering, the broker believes it is “ further confirmation of MIN’s commitment to the transformational portfolio of growth projects.”

The post 5 things to watch on the ASX 200 on Wednesday 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 Bruce Jackson.

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