BHP Group Ltd (ASX: BHP) has been a solid performer on the ASX 200 in 2021, with the BHP share price rising over 13% so far this year.

After a solid first half to the year, investors will no doubt be keen to discover where analysts think the BHP share price will go from here.

What are leading brokers saying about the BHP share price?

Although the BHP share price is currently up 13% in 2021 to $48.73, a number of leading brokers believe it can still go higher.

Chief among them are the analysts at Goldman Sachs. A recent note out of the investment bank reveals that the broker has a buy rating on its shares. Furthermore, Goldman’s BHP share price target of $53.80 implies potential upside of 10.5% before dividends over the next 12 months.

And thanks to the strong free cash flow the mining giant is generating from favourable commodity prices, Goldman is very positive on the BHP dividend in 2021. It is estimating a fully franked dividend of $3.10 per share, which represents a very attractive 6.4% yield currently.

Goldman commented: “We retain our Buy rating on BHP on: (1): Strong earnings growth and FCF: We forecast a c. 50% increase in EBITDA and a doubling of FCF in FY21 (equating to c. 10-11% FCF yield), driven by our positive view on met coal, copper and oil prices. (2) Strong production growth: BHP’s group Cu Eq production should increase by 4-5% in FY22 and 6-7% in FY23, driven by a +250-270kt lift in copper volumes from Spence and Escondida, +10MMboe of oil volumes with new production from Mad Dog II/Atlantis Phase 3/Shenzi.”

Who else is positive on BHP?

Another broker that is bullish on the BHP share price is Macquarie. Its analysts have an even higher BHP share price target of $63.00. This represents potential upside of over 29% for BHP shares over the next 12 months.

And like Goldman Sachs, Macquarie is expecting the BHP dividend in 2021 to be very generous. It has pencilled in a fully franked $4.08 dividend per share, which equates to a massive 8.4% yield.

Macquarie notes that BHP’s iron ore operations are generating material free cash flow at current spot prices. It is expecting this to support solid shareholders cash returns in the near term.

UBS is sitting on the fence

One leading broker isn’t as positive, though. Analysts at UBS currently have a neutral rating and $42.00 BHP share price target. This implies potential downside of almost 14% over the next 12 months.

While it sees positives from potentially strong cash returns, it does have concerns over risks to the iron ore price. It suspects that a recovery in Brazilian supply and slowing Chinese demand could weigh on prices.

Nevertheless, the broker doesn’t expect this to stop BHP from paying a big dividend in 2021. It is forecasting a fully franked dividend of $3.58 per share, which represents a 7.3% yield.

The post Here’s what leading brokers are saying about the BHP (ASX:BHP) share price in July 2021. appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• ASX blue chips set to unleash buybacks and dividends! But which is better?
• These high yield ASX dividend shares could be buys
• BHP (ASX:BHP) share price caught between bulls and bears in June
• Why this broker thinks the BHP (ASX:BHP) share price can storm higher

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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Today’s a good day for shares on the S&P/ASX 200 Info Tech Index (ASX: XIJ). Currently, the index is up 2.65%.

For comparison, the rest of the S&P/ASX 200 Index (ASX: XJO) is up 0.71% right now.

The tech index’s gains have seemingly been spurred by a strong night’s trade on the tech-heavy Nasdaq Composite (NASDAQ: .IXIC).

Let’s take a look at some of the ASX 200 tech shares reaping the rewards today.

5 ASX 200 tech shares flying higher today

Afterpay Ltd (ASX: APT)

Afterpay shares are performing solidly today, despite the company not releasing any news.

Right now, the Afterpay share price is 4.17% higher than it was at yesterday’s close. Shares in the ASX 200 buy now, pay later giant are swapping hands for $119.58.

Some brokers are bullish about Afterpay over the rest of 2021, and it looks like parts of the market are too.

Xero Limited (ASX: XRO)

The Xero share price is also gaining today. The company’s shares are up 4.08% at the time of writing, trading for $137.57.

The business and accounting software provider hasn’t announced anything new today either. But it’s also had brokers feeling bullish lately, with Goldman Sachs putting a $151 price target on Xero shares on Monday.

WiseTech Global Ltd (ASX: WTC)

Joining today’s high-flying ASX 200 tech shares club is Wisetech. And, once more, there’s been no news from the company.

The Wisetech share price has gained 3.9% today. The company’s shares are currently trading for $32.23 apiece.

While we haven’t heard much from Wisetech lately, brokers are continuing to feel positive about the cloud-based software provider. Morgan Stanley currently has an overweight rating and a $35 price target on the ASX 200 company’s shares.

Appen Ltd (ASX: APX)

The Appen share price is gaining 2.81% today, fetching $12.46 at the time of writing.

Appen develops data for machine learning and artificial intelligence.  

There’s been no news from Appen to explain its gains today. However, after it fell 5.9% yesterday, shareholders are likely to be relieved by today’s gains.

NextDC Ltd (ASX: NXT)

The NextDC share price isn’t soaring as high as the abovementioned ASX 200 tech shares, but it’s still up a respectable 0.93%.

The data centre operator’s shares are currently swapping hands for $11.96.

As The Motley Fool reported today, NextDC has been performing well lately and has been tipped as a buy by brokers.

The post These ASX 200 tech shares are beating the broader market today appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares looking pretty cheap right now: expert
• Is momentum slowing for the Afterpay (ASX:APT) share price?
• The AFIC (ASX:AFI) share price just hit an all-time high
• Why Afterpay, Challenger, MyDeal, & St Barbara shares are charging higher
• Why the A2 Milk (ASX:A2M) share price is up more than 3% today

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. owns shares of and has recommended AFTERPAY T FPO, Appen Ltd, WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Appen Ltd, WiseTech Global, and Xero. 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 Monday, we discussed the then-imminent departure of the founder and long time CEO of Amazon.com, Inc. (NASDAQ: AMZN), Jeff Bezos. Monday (our time) was Mr Bezos’ last day as CEO of the company he founded back in 1994. Yes, anyone aged 27 or under has never experienced a world without an Amazon with Bezos at the helm. Amazon now has a new CEO in Andy Jassy. Mr Jassy was formerly the head of one of Amazon’s largest profit engines – Amazon Web Services (AWS).

Bezos steps back from his baby, Amazon

So with Bezos going quietly into the night (well, not entirely, he is set to stay on as company chair), what does the future of the one of the world’s largest and most dominant companies look like? That’s a question that broker eToro is trying to answer. Josh Gilbert, eToro market analyst, reckons Bezos is “handing the reins to Jassy at a critical time”. He noted that Jassy has been at Amazon for nearly as long as Bezos. Indeed, since his graduation from Harvard Business School in 1997. He also notes that Jassy was one of the architects behind AWS in the first place, and has helped it grow into “a crucial role in Amazon’s overall income… [which accounts for] 47 per cent of Amazon’s overall operating income”.

Here’s some more of what he had to say:

The company has grown from strength-to-strength, with revenues surging each year. However, this sort of growth often attracts scrutiny, which we have seen from antitrust regulators globally. The regulators’ plan is to ‘de-monopolise companies such as Amazon with the capital and power to buy any competitor that stands in its way, which Jassy will have to suppress.

Bezos’ leadership has also come under fire previously, with employees saying targets took a physical toll on their health. Jassy will undoubtedly have his work cut out in areas like these. Despite this, it’s

expected that Jassy’s softer personality could work in Amazon’s favour. I believe that Jassy will add a

character that we haven’t seen from Amazon before, making it a more friendly and appealing

company.

What can investors expect in the age of Jassy?

But what about Amazon’s legion of loyal investors? What can they expect from Amazon now that one of the world’s greatest wealth creators in Bezos is stepping back? Gilbert is equally sanguine:

The post What will Amazon (NASDAQ:AMZN) look like in a post-Bezos world? appeared first on The Motley Fool Australia.

More reading

• A turning point: Jeff Bezos steps down as Amazon (NASDAQ:AMZN) CEO
• Amazon’s biggest threat in e-commerce
• Wondering which US shares Aussies bought last quarter? Here’s the answer
• FANG+ ETF (ASX:FANG) tumbles 10% on ex-dividend day
• Tesla back on top as the most popular US share for ASX investors

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 0.8% to 7,319.9 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is down 4.5% to $5.14. This follows the release of a bearish broker note out of Goldman Sachs this morning. According to the note, the broker has downgraded the infection prevention company’s shares to a sell rating and cut the price target on them to $4.93. Goldman has reduced its earnings estimates due to concerns that the growth recovery may be shallower than it was previously expecting. The broker also warned that there could be competitive risks from new technologies.

Oil Search Ltd (ASX: OSH)

The Oil Search share price is down 2.5% to $3.97. Investors have been selling Oil Search and other energy producers on Wednesday following a pullback in oil prices overnight. Traders were selling oil after OPEC postponed its production meeting indefinitely following disagreements.

Opthea Ltd (ASX: OPT)

The Opthea share price is down almost 5% to $1.33. This decline appears to have been driven by profit taking after a particularly strong gain on Tuesday. The biotech company’s shot higher after its OPT-302 therapy was granted fast-track designation for wet age‑related macular degeneration by the US FDA. The regulator “fast tracks” the review of novel therapies for serious conditions for which there is an unmet medical need.

Piedmont Lithium Inc (ASX: PLL)

The Piedmont Lithium share price has sunk 7% to 94.5 cents despite there being no news out of the lithium explorer. However, this follows a similarly severe decline occurred overnight with its US listed shares. This could be due to profit taking. Especially given how its shares are up over 150% in 2021.

The post Why Nanosonics, Oil Search, Opthea, & Piedmont Lithium are tumbling appeared first on The Motley Fool Australia.

More reading

• ASX 200 up 0.55%: Challenger jumps, Nanosonics sinks
• Nanosonics (ASX:NAN) share price sinks 7% on broker downgrade
• 5 things to watch on the ASX 200 on Wednesday
• 5 worst-performing ASX 200 healthcare shares of FY21
• Why Bigtincan, Oil Search, Opthea, & Xref shares are racing higher

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. owns shares of and has recommended Nanosonics Limited and Piedmont Lithium Inc. The Motley Fool Australia owns shares of and has recommended Nanosonics 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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Despite some volatility, ASX shares are still trading at record highs.

So is everything just too expensive to buy now? Are there any cheapies left that are actually decent businesses?

Burman Invest chief investment officer Julia Lee certainly thinks so. She this week picked out 3 ASX shares that pique her interest:

Even cloud computing needs to live somewhere

Cloud computing has become all the rage in the past decade, but was given an extra push by the masses forced to work from home from last year.

But even the ethereal cloud needs a physical location to exist. So a data centre provider like NextDC Ltd (ASX: NXT) will continue to see strong demand, according to Lee.

“I think NextDC is looking pretty attractive at these prices,” she told Switzer TV Investing.

“What we have seen in the data storage area is that supply has been increasing. But I think that’s because we’ve seen demand increasing as well.”

Lee reckons the next financial results will show NextDC has seen a big increase in business from the COVID-19 pandemic accelerating the migration to the cloud.

“Megaport Ltd (ASX: MP1) has been doing pretty well… NextDC has a bit of catch-up to play and I’ll put a valuation of around $14 to $15 [per share].”

NextDC shares are going for $12.04 in afternoon trading Wednesday, which is 1.6% up on the day.

People will eventually fly somewhere

Qantas Airways Limited (ASX: QAN) is a value-buy ASX share for Lee at the moment.

“At these prices, if you’re looking out to 2023 it’s a bit of a no-brainer.”

While great uncertainty still looms for Qantas’ international operations, its money-making domestic business is going gangbusters already.

“If we have a look at financial year 2022, it’s predicting that Jetstar capacity will get up to 122% of pre-COVID-19 levels, and Qantas to 107%,” she said.

“When things open up again we’re probably going to see everyone rushing to try to travel, so we’ll actually see demand initially spike up quite strongly.”

The Qantas share price is down 1.02% on Wednesday afternoon, trading at $4.86. It was up in the $6s and $7s early last year.

A nice sell-off makes for a bright future

Logistics and infrastructure provider Qube Holdings Ltd (ASX: QUB) sold off its Moorebank facilities in western Sydney for $1.7 billion on Monday.

Lee reckons this is a great move for holders of this ASX share.

“I think this is a really great price. It’s a price that equates to $1.36 per share plus about 32 cents in a deferred payment.”

The types of freight that Qube helps transport are all in high demand, meaning more business for the logistics provider.

“Consumer spending is pretty strong at the moment. Not only that, commodity prices are strong… If you have a look at soft commodities — like grains and cereal —  not only is the outlook strong but prices are quite strong at the moment.”

Qube shares were up as high as $3.20 on Monday morning after the asset sale news. They’re now at $3.05 on Wednesday afternoon, currently down by 0.65% for the day so far.

The post 3 ASX shares looking pretty cheap right now: expert appeared first on The Motley Fool Australia.

More reading

• ASX travel shares slip as Sydney lockdown extends for another week
• 2 top ASX tech shares rated as buys by brokers
• 2 high quality ASX shares that could be buys
• Here are the 5 best performing ASX 200 tech shares from FY21
• Qube (ASX:QUB) share price lifts on $1.67 billion asset sale update

Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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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The Ramsay Health Care Limited (ASX: RHC) share price is pushing higher on Wednesday.

In afternoon trade, the private hospital operator’s shares are up 1.5% to $63.83.

Why is the Ramsay share price pushing higher?

The Ramsay share price was given a boost today by a positive broker note out of Citi this morning.

In response to Ramsay increasing its takeover offer for Spire Healthcare in the UK, the broker retained its buy rating and $76.00.

Based on the current Ramsay share price, this implies potential upside of 19% excluding dividends over the next 12 months. This potential return stretches to almost 22% if you include them.

What did Citi say?

Citi notes that Ramsay has increased its offer for Spire Healthcare to 250 pence per share. This values the UK-based private healthcare company’s equity at GBP1,040 million (A$1,900 million), which is an increase of ~$75 million.

According to the note, the broker believes that for Ramsay to maintain its investment grade rating, it will need to raise somewhere in the region of $600 million to $1,000 million. However, this is already factored into its valuation.

In light of this, it is focusing on the future and suspects that a successful acquisition and integration of Spire and a recovery in healthcare demand could drive a re-rating of the Ramsay share price later this year.

Citi commented: “We previously calculated that for RHC to maintain its investment grade rating, it will need to raise ~$850m in capital (we assume a hybrid security), which we include in our forecasts. Given the variables, the final capital gap could be between $600m and $1bn.

“Our TP implies RHC should trade on FY23E (normal year) PE of ~23x. There is risk to the FY21 result given the pandemic and more recently Australian lock downs – post the August result, we believe the market will focus on the recovery phase and integration of Spire, which will result in a re-rating of the stock,” the broker concluded.

The post Ramsay (ASX:RHC) share price higher on bullish broker note appeared first on The Motley Fool Australia.

More reading

• 2 growing ASX dividend shares named as buys
• 5 worst-performing ASX 200 healthcare shares of FY21
• ASX 200 drops, Myer soars, Ramsay down
• ASX 200 up 0.2%: Westpac asset sale, Ramsay increases Spire offer
• Ramsay (ASX:RHC) share price lower on UK acquisition update

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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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Shares in ASX golden child Afterpay Ltd (ASX: APT) aren’t all they’re cracked up to be, according to a May report from Yarra Capital Management.

In an analysis of how its Australian Equities Fund performed during May 2021, Yarra Capital Management called out Afterpay as among its poorer performing investments, highlighting a number of causes for concern and rating it is underweight.

The fund management firm is yet to release its report on the fund’s performance in June.

Despite Yarra Capital’s “negative view”, the Afterpay share price is having a great day on the ASX today. At the time of writing, shares in the buy now, pay later (BNPL) payments provider are trading almost 5% higher at $120.35 apiece.

However, the same couldn’t be said a few months ago. Let’s take a look at why Yarra Capital went cold on Afterpay in May.

Quick refresher

The Afterpay share price fell 21% in May, despite the company releasing no price-sensitive news to the market.

May was a particularly bad month for Afterpay shares, as well as for the S&P/ASX 200 Info Tech Index (ASX: XIJ). The entire index fell by around 10% across the month.

Luckily, the Afterpay share price has gained back the ground it lost plus more. It’s now almost 30% higher than it was at May’s end.

Why did the BNPL company disappoint Yarra Capital?

According to Yarra Capital, Afterpay underperformed in May as concerns its momentum is slowing started to escalate.

The fund management firm stated the growth rate of Afterpay’s app downloads slowed over the period. This caused it to question the sustainability of Afterpay’s “attractive” margins.

Yarra Capital also noted that competition in the BNPL space has increased. Over the period, high-profile companies such as PayPal Holdings Inc (NASDAQ: PYPL) ran onto the BNPL field, potentially stealing Afterpay’s thunder.

Additionally, increased regulation in the BNPL sphere was a cause for Yarra Capital’s concern.

Finally, the fund management firm stated it believes Afterpay’s intense capital growth is underappreciated by the market.

It said Afterpay’s current model is only able to function while its enterprise value-to-sales remain high. It says Afterpay’s enterprise value-to-sales is currently at 18.2 times on a 12-month forward basis.

Afterpay share price snapshot

So far, 2021 hasn’t been great for Afterpay. In fact, many BNPL shares beat it to the cake during the 2021 financial year.

Right now, the Afterpay share price has only gained around 2% year to date. However, it has gained around 77% since this time last year.

The BNPL giant has a market capitalisation of around $35 billion, with approximately 290 million shares outstanding.

The post Is momentum slowing for the Afterpay (ASX:APT) share price? appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Challenger, MyDeal, & St Barbara shares are charging higher
• Here’s what leading brokers are saying about the Afterpay (ASX:APT) share price in July 2021
• ASX 200 up 0.55%: Challenger jumps, Nanosonics sinks
• Got Sezzle (ASX:SZL) shares? What’s in store for FY22?
• Here are the 5 best performing ASX 200 tech shares from FY21

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. owns shares of and has recommended AFTERPAY T FPO and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings. 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 Lake Resources N.L. (ASX: LKE) share price is on the rise today following the company’s positive announcement.

At the time of writing, the clean lithium developer’s shares are selling for 38 cents, up 2.7%.

What did Lake Resources announce?

Lake Resources shares are climbing after the company revealed that drilling is underway at its flagship Kachi Lithium Brine Project in Argentina.

According to its release, Lake Resources advised increasing drill testing will support the doubling of current lithium production capacity.

A four well, 1,600-metre diamond drill program is advancing with brine sampling and pump testing also underway. The drilling works will see Lake Resources convert Inferred Resources to Measured and Indicated (M&I) resources.

The term Inferred Resources refers to quantity, grade (quality) and mineral content that’s estimated with a low level of confidence. On the other hand, M&I Resources are regarded with a reasonable to high level of confidence based on enough samples being collected.

The upgrade in Kachi’s 4.4 megatonnes (Mt) lithium carbonate equivalent (LCE) total resource is for a Definitive Feasibility Study (DFS). In addition, a production expansion study will be executed to identify opportunities.

Lake Resources stated that less than 20% of the current total resource is being utilised for its planned 25,500 tonnes per annum LCE production over 25 years.

Lake Resources managing director Steve Promnitz commented:

Interest continues to increase among potential offtakers to secure supply, especially of a premium product with ESG benefits which Lake can produce thanks to its sustainable direct extraction process.

This drilling program will support an expansion study to double production to 50,000tpa. This would make Kachi a globally significant producer and one of a few that can bring high purity lithium carbonate to market consistently with a low carbon footprint, perfect for the needs of leading EV makers.

About the Lake Resources share price

The Lake Resources share price has accelerated in the past year, gaining more than 880%. While renewed investor sentiment within the battery industry has helped support the share price, the company has been making tailwinds.

Based on the current share price, Lake Resources commands a market capitalisation of more than $400 million.

The post Why the Lake Resources (ASX:LKE) share price is storming higher appeared first on The Motley Fool Australia.

More reading

• Lake Resources (ASX:LKE) share price on fire today up 14%

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

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Woolworths Group Ltd (ASX: WOW) has been one of the more eventful ASX 200 companies in 2021, with the Woolworths share price climbing 11.3% so far this year.

At the time of writing, the Woolworths share price is trading 1.35% higher at $37.67.

To bring you up to speed, we look at what analysts are expecting from Woolworths shares next.

Broker thoughts on the Woolworths share price

While investors are shopping for a buy, some leading brokers believe Woolworths shares might be worth skipping at the checkout.

For example, analysts at Credit Suisse have downgraded the supermarket operator’s shares to an underperform rating. According to the note, the broker considers the Woolworth share price expensive at current levels, with shares trading at roughly 30 times FY22 estimated earnings.

Additionally, Credit Suisse analysts point out that the company is trading at a significant premium to its rival, Coles Group Ltd (ASX: COL). For this reason, the broker holds a $32.92 price target, representing a possible ~13% downside to the Woolworths share price.

Goldman’s take on Woolworths

Another leading broker that thinks any near-term upside is now priced in is Goldman Sachs. Just over a week ago, the broker released its updated rating after adjusting its estimates to account for the recent demerger.

As a result, Goldman downgraded the company’s shares to a neutral rating and a $36.80 price target. This would imply a potential downside of 2.4% to the Woolworths share price.

However, this estimate excludes the blue chip’s dividends. The broker’s 12-month estimated returns come to -0.1% with payments included from today’s share price.

Compared to latest close of A$37.85, our revised 12m target price of A$36.80 offers a total potential return of -0.5%. While the short-term catalyst of an off-market buyback remains in play, we are taking advantage of the current strength in WOW to downgrade to neutral.

Since we upgraded WOW to a buy rating on 7 March 2021 the share price has appreciated 14.1% prior to the demerger vs. the market up +8%

Goldman Sachs

Based on the current Woolworths share price, the supermarket giant holds around $47 billion market capitalisation.

The post Here’s what leading brokers say about the Woolworths (ASX:WOW) share price in July appeared first on The Motley Fool Australia.

More reading

• Woolworths (ASX:WOW) share price dips as experts predict growth
• These ASX shares are the latest to be hit by broker downgrades
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• ASX blue chips set to unleash buybacks and dividends! But which is better?
• Why Lendlease, Marley Spoon, Reece, & Woolworths shares are sinking

Motley Fool contributor Mitchell Lawler 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

BlueScope Steel Limited (ASX: BSL)

According to a note out of Morgan Stanley, its analysts have upgraded this steel producer’s shares to an overweight rating with an improved price target of $27.00. The broker made the move on the belief that current steel spreads will lead to consensus earnings upgrades and put the company in a position to consider capital management initiatives. In response to the favourable trading conditions, Morgan Stanley has upgraded its earnings forecasts materially for the coming years. The BlueScope share price is fetching $21.49 today.

IDP Education Ltd (ASX: IEL)

A note out of UBS reveals that its analysts have retained their buy rating and lifted their price target on this language testing and student placement company’s shares to $31.60. UBS has increased its earnings estimates to reflect the acquisition of the British Council India IELTS business. In addition to this, the broker suspects that this may not be the only business the company acquires from the British Council. This could mean plenty of further earnings accretive acquisitions down the line for IDP. The IDP Education share price is trading at $29.31 this afternoon.

Universal Store Holdings Ltd (ASX: UNI)

Analysts at Macquarie have initiated coverage on this retailer’s shares with an outperform rating and $8.60 price target. According to the note, Macquarie likes Universal due to its geographic spread and further planned expansion in Australia’s two most populous states. Overall, it believes the company’s shares deserve to trade on higher multiples. Particularly given its strong growth prospects and leading position in youth apparel. The Universal Store share price is fetching $7.29 today.

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

More reading

• The one thing ASX IPO losers have in common
• Leading brokers name 3 ASX shares to buy today
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
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• Why a2 Milk, Chalice Mining, IDP Education, & Imugene are charging higher

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

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