The Sayona Mining Ltd (ASX: SYA) share price just closed out a financial year to forget.

Shares in the S&P/ASX 300 Index (ASX: XKO) lithium stock ended FY 2023 trading at 18 cents. On 28 June, the final trading day of FY 2024, shares finished the day changing hands for 3.6 cents apiece.

That saw the Sayona Mining share price down a painful 77.8% over the year.

For some context, the ASX 300 gained 7.7% over this same period.

Here’s what happened over the financial year just past.

What went wrong for the ASX lithium stock?

As you can see in the above chart, the Sayona Mining share price was in a marked downtrend for most of FY 2024. That came despite the company reporting on a number of high-grade drilling results over the course of the financial year.

The majority of the headwinds battering the miner were driven by the ongoing fall in lithium prices.

With global supply growth outpacing demand growth, lithium carbonate ended FY 2024 trading for roughly US$11,000 a tonne. That was well down from lithium’s 2022 record highs. And it was less than a third of the US$32,000 a tonne we saw lithium prices averaging in 2023.

To get a better idea of how heavily this has impacted the Sayona Mining share price, we need look no further than the company’s most recent half-year and quarterly updates.

Over the half-year to 31 December (H1 FY 2024), the miner reported maiden half-year revenue of $118 million. Now, that’s obviously a good thing. Except it also coincided with a $32 million loss after tax for the six months.

Sayona Mining’s quarterly results, released on 26 April, confirmed just how much pain the plunging lithium price was causing.

As Motley Fool analyst James Mickleboro pointed out on the day:

The company reported a sizeable 142% quarter on quarter increase in concentrate sales volumes to 58,055 dmt. However, this was achieved with an average realised selling price of AU$999 per dmt.

This means that the company is selling its lithium for over AU$500 less than it costs to dig it out of the ground.

With the miner selling at a loss, its cash balance dropped from AU$158 million at the end of December to AU$99 million at the end of March.

That’s the financial year just past.

The question now is, what can ASX investors expect from Sayona Mining shares in FY 2025?

What’s ahead for the Sayona Mining share price in FY 2025?

Two weeks into FY 2025, the Sayona Mining share price is at 3.4 cents, down 5.6% so far in the new financial year.

While a number of company-specific factors will come into play to determine just how well or poorly the miner fares over the 50 remaining weeks of FY 2025, the biggest factor will be the global lithium prices.

Now many analysts believe lithium prices will remain subdued well into 2026. But there’s recently been a growing cohort of bulls in this sector as well.

“Lithium could be a surprise into the end of 2024, as lithium equities are trading at levels that imply the whole EV transition is over,” Janus Henderson’s Global Natural Resources Fund portfolio manager, Darko Kuzmanovic said.

“The groundwork is set for a strong rebound in resources equities and commodity prices over the next few months into year’s end,” he added.

If Janus Henderson’s forecast proves out, we could see a big rally in the Sayona Mining share price in H1 FY 2025.

The post Down 79% in FY 2024, can the Sayona Mining share price rebound in FY 2025? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• ASX lithium shares: Screaming bargains or falling knives?
• Sayona Mining share price lifts off on new CEO appointment
• These are the 10 most shorted ASX shares
• 4 ASX mining shares going gangbusters while the market dives

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.

ASX AI stocks have caught a strong bid in 2024. The artificial intelligence domain has seen tremendous growth, spurred on by the meteoric rise of US tech giants like Nvidia Corp (NASDAQ: NVDA).

One Australian tech company is also capturing investor attention thanks to its links to AI, with its share price surging more than 87% in the last month.

SKS Technologies Group Ltd (ASX: SKS) is in the news today with two market-sensitive announcements.

SKS provides audiovisual products alongside electrical and communications cabling to various industries. At the time of writing, the ASX AI stock is up 17.9% on Friday and is fetching $1.35 apiece.

Here’s a look at the company’s latest updates.

ASX AI share secures $90 million contract

SKS Technologies announced today it has landed a $90 million contract as part of an international hyperscale data centre being refurbished in Melbourne.

The West Melbourne project will expand the current facility’s capacity to 185MW, making it “one of the largest data centres in Australia offering both cloud and AI services to a growing base of customers”, according to the company.

These works form part of the 100MW expansion of the data centre in Melbourne’s western region, which will take the facility to a total capacity of 185MW upon completion and will be one of the largest data centres in Australia offering both cloud and AI services to a growing base of customers.

As such, this project award takes SKS Technologies’ work on hand to another record high of $178 million, which is considerable given the rate at which work is being completed and converted to revenue.

The ASX AI stock advised it would handle the “electrical design and construction works” of the project’s current stage.

This involves electrical infrastructure, installing transformers, generators, powertrain units, and comprehensive electrical design

SKS Technologies CEO Matthew Jinks said the contract reflected the market’s confidence in the company’s ability “to deliver superior electrical systems”.

It is also indicative of the strength of the pipeline of opportunities in the data centre sector,
which saw $18 billion of projects announced for hyperscale data centres in Melbourne and
Sydney in 2023 alone.

Jinks went on to say:

Furthermore, based on past initiatives to apply our expertise and experience to the datacentre market and capture a share of this rapidly growing opportunity, SKS Technologies is now able to execute sophisticated, large-scale projects for the organisations at the forefront of this new and growing frontier.

Updates to FY4 and FY25 revenue forecasts

In a separate announcement today, the ASX AI stock updated its FY25 outlook. Management now forecasts generating more than $200 million in revenue for this financial year. ]

This is based on its current workload of $178 million, which includes the new data centre project mentioned above.

“It’s pleasing to see the continued growth of the business, which reflects the market’s confidence in SKS Technologies’ ability to scale resources and deliver projects,” Jinks said.

Today’s announcements follow another from SKS Technologies on Monday this week when management announced it expected $130 million in FY24 revenues for the ASX AI stock. This is up from the previous $120 million forecast.

The revision was based on “the continually accelerating level of work on hand” alongside its recent contract wins and “the general health of the business and its ability to fund a substantial level of further growth with its recently increased bank facilities”

Moreover, the company says the pipeline of opportunities for new work shows no sign of abating.

The post Up 87% in a month, this ASX stock is winning millions in AI work appeared first on The Motley Fool Australia.

More reading

• Down 79% in FY 2024, can the Sayona Mining share price rebound in FY 2025?
• Why Immutep, Kingsgate, Netwealth, and Ora Banda shares are storming higher
• Why GR Engineering, Infratil, Paladin Energy, and WiseTech shares are falling today
• ASX 200 re-writes history. Which companies are leading the charge?
• Why did the Nasdaq Index take a dive on promising US inflation data?

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

The S&P/ASX 200 Index (ASX: XJO) is having another strong session and is on course to end the week with a big gain. At the time of writing, the benchmark index is up 0.85% to 7,957.3 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are storming higher on Friday:

Immutep Ltd (ASX: IMM)

The Immutep share price is up 25% to 36.8 cents. This morning, this clinical-stage biotechnology company announced positive results from Cohort B of the TACTI-003 Phase IIb trial. This trial is evaluating eftilagimod alfa in combination with Keytruda as a first-line treatment of recurrent or metastatic head and neck squamous cell carcinoma patients with negative PD-L1 expression. Management notes that that these results are “among the highest recorded for a chemotherapy-free approach in negative PD-L1 patients and compare favourably to a historical control of 5.4% ORR and 32.4% DCR from anti-PD-1 monotherapy.”

Kingsgate Consolidated Limited (ASX: KCN)

The Kingsgate Consolidated share price is up 3% to $1.63. This follows the release of drilling results from high potential exploration prospects near its Chatree Gold Mine in Thailand. According to the release, the company continues to intersect significant gold in these prospects. It also notes that the drilling results have extended mineralisation to the west, which will be further assessed in the upcoming dry-season field campaign.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is up 2.5% to $21.48. This appears to have been driven by a broker note out of UBS this morning. In response to the investment platform provider’s quarterly update, the broker has reiterated its buy rating and lifted its price target to $24.50. This implies potential upside of 14% for investors from current levels. It notes that Netwealth outperformed expectations in the fourth quarter. It also believes that management’s commentary indicates that further strong fund inflows are coming in FY 2025.

Ora Banda Mining Ltd (ASX: OBM)

The Ora Banda Mining share price is up a further 7.5% to 42 cents. Investors have been buying this gold miner’s shares since it announced the approval of the development of the Sand King Underground mine on Thursday. This approval paves the way for the company to grow its gold production to 150,000 ounces per annum in FY 2026. This will be a big increase on its production guidance of 100,000 ounces to 110,000 ounces for FY 2025.

The post Why Immutep, Kingsgate, Netwealth, and Ora Banda shares are storming higher appeared first on The Motley Fool Australia.

More reading

• Why is this ASX healthcare stock rocketing 25% on Friday?
• 3 ASX All Ords shares rocketing over 10% today
• Why Hub24, Netwealth, Pantoro, and WA1 shares are falling today
• Why Ora Banda, Paladin Energy, Seven Group, and Telix shares are charging higher
• Why is this ASX gold share racing 14% higher 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 Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In early afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is racing higher again and on course to end the week on a very positive note. At the time of writing, the benchmark index is up 1% to 7,965.9 points.

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

GR Engineering Services Ltd (ASX: GNG)

The GR Engineering Services share price is down almost 4% to $2.03. This follows news that mining giant BHP Group Ltd (ASX: BHP) has temporarily suspended its Nickel West operations and the West Musgrave Project. GR Engineering had entered into contracts with BHP for the design and construction works of the West Musgrave Project in Western Australia. Given the timing of the suspension, there will be no impact in FY 2024. However, in FY 2025, GR Engineering is forecasting that revenue from the West Musgrave Project will be up to $80 million lower than expected.

Infratil Ltd (ASX: IFT)

The Infratil share price is down 1.5% to $9.93. This morning, this infrastructure investment company announced that it has elected to exercise its discretion to accept oversubscriptions for the retail component of its equity raising. Infratil is accepting an additional NZ$125 million of subscriptions, bringing the total amount raised under the retail offer to NZ$275 million. Combined with the institutional component, Infratil will now be raising NZ$1,275 million. The proceeds of the equity raising will be used to fund further investment into data centre operator CDC’s accelerating growth as well as provide more flexibility for growth across its global portfolio.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is down 1.5% to $13.81. This appears to have been driven by some profit taking following strong gains on Thursday. Investors were buying ASX uranium stocks in response to news of a new uranium extraction tax increase in Kazakhstan. There are concerns that this tax increase could impact supply growth from the world’s largest uranium producer, Kazatomprom.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 3.5% to $95.37. Investors have been selling WiseTech Global and other high-flying ASX tech stocks today following a selloff on Wall Street’s NASDAQ index overnight. Investors in the United States were rotating out of 2024’s strongest performers and into other areas of the market. This led to the Nasdaq index dropping a sizeable 1.95% on Thursday.

The post Why GR Engineering, Infratil, Paladin Energy, and WiseTech shares are falling today appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why did ASX uranium shares like Boss Energy have such a bumper day?
• Why Ora Banda, Paladin Energy, Seven Group, and Telix shares are charging higher
• Which ASX shares could soar if AI falls into a $500 billion hole?
• 5 ASX growth shares that could rise 10% to 40%

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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Gr Engineering Services. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

What a momentous day this Friday is turning out to be for the S&P/ASX 200 Index (ASX: XJO) and most ASX shares. Yesterday, the ASX 200 closed at 7,889.6 points. But the index has enjoyed a spectacular open this morning.

After opening where it closed at yesterday, the Index has been steadily climbing all day, peaking at a new high of 7,969.1 points.

Not only is that a new 52-week high for the ASX 200 Index, but a new all-time record high.

At the time of writing, investors have cooled their jets a little, but the index is still sitting at 7,965.9 points, up a confident 0.97% for the day thus far.

It’s certainly not every day we see a new all-time high for the Australian share market. So investors across the country, savour this moment.

This latest run push for ASX shares comes after what has been a very strong run over the past year or so. Since July 2023, the Index has now gained a rosy 11.6%. The ASX 200 is also up a healthy 4.4% year to date in 2024 so far, as well as up 3.24% over the past month alone.

Check out those moves below for some visual context:

But the ASX 200 is really just a representation of the two hundred largest shares on the Australian stock market. So today, let’s dive into which ASX 200 shares have helped push the Index to today’s new record high.

Which ASX 200 shares are leading the charge to a new record high?

Anyone who has been following the ASX 200 probably knows that this index isn’t exactly balanced when it comes to different corners of the market. In fact, a whopping 31.28% of the index is currently weighted towards financial shares (mostly banks). Another 20.88% is taken up by mining shares.

Looking at the current top ten stocks in the ASX 200, we can see why.

The ASX 200 is, like most global indexes, weighted by market capitalisation. This means that the largest companies by size on our stock market have the largest presence in the ASX 200.

Here are the current top ten shares in the ASX 200 Index:

1. BHP Group Ltd (ASX: BHP) with a weighting of 9.38%
2. Commonwealth Bank of Australia (ASX: CBA) at 9.22%
3. CSL Ltd (ASX: CSL) at 6.16%
4. National Australian Bank Ltd (ASX: NAB) at 4.76%
5. Westpac Banking Corp (ASX: WBC) at 4.1%
6. ANZ Group Holdings Ltd (ASX: ANZ) at 3.83%
7. Wesfarmers Ltd (ASX: WES) at 3.23%
8. Macquarie Group Ltd (ASX: MQG) at 3.1%
9. Goodman Group (ASX: GYG) at 2.6%
10. Woodside Energy Group Ltd (ASX: WDS) 2.32%

You might notice that the big four banks and BHP alone account for 31.3% of the ASX 200’s weighting.

As such, these are the shares that have the largest impact on the movements of the index. Something like BHP, with its 9.38% weight in the ASX 200, is going to influence the index more than, for instance, Strike Energy Ltd (ASX: STX), with its weight of 0.03%.

Let’s now look at how these ASX 200 trendsetters have performed over the past month.

A great month for the ASX banks

BHP shares have fallen 0.08% since this time last month. So we can’t thank BHP too much for today’s new all-time high.

CBA, on the other hand, is a different story.

The CBA share price has exploded 5% higher over the past month alone and is also up a happy 14.7% in 2024 to date.

This means that this leading ASX bank stock has done much of the heavy lifting with today’s new high.

The other ASX banks have helped though. NAB shares are also up by around 5.8% over the past month. This bank has also gained more than 19% in 2024 so far. As such, the ASX 200 also owes NAB a thank-you note for today’s new high.

It’s a similar story for Westpac and ANZ. Westpac shares have climbed just over 4% in the past month, and ANZ by 2.33%. These banks are up 20.3% and 13.3%, respectively, over 2024 so far.

CSL shares have also been helpful. The healthcare giant has risen by a strong 8.22% since this time last month and has gained nearly 6% over 2024 to date.

Foolish takeaway

Sure, there are other shares in the ASX 200 that have done far better than these stocks. But when it comes down to it, the shares above are what investors can credit for today’s new all-time high.

Keep an eye on these names going forward as well because they will also determine the ASX 200’s next step.

The post ASX 200 re-writes history. Which companies are leading the charge? appeared first on The Motley Fool Australia.

More reading

• BHP shares tumble on nickel bombshell
• Wesfarmers vs Woolworths: Which are the best ASX shares to buy today?
• Why did ASX retail shares rise 19% in FY24 amid a cost of living crisis?
• Is it time to dive back into ASX lithium shares?
• Do ANZ shares offer the biggest dividend yield in the ASX bank sector?

Motley Fool contributor Sebastian Bowen has positions in CSL and National Australia Bank. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Nasdaq Composite Index (NASDAQ: .IXIC) took a sharp turn for the worse yesterday (overnight Aussie time).

By the time the smoke cleared, the tech-heavy index had ended the day down 2.0%.

Remarkably, the big Nasdaq sell-off came on the heels of some very promising inflation data out of the United States.

According to the US Bureau of Labor Statistics, inflation in the world’s top economy increased 0.1% in June from May. That’s the slowest inflationary increase in three years.

This news, as you’d expect, increased market expectations of a September interest rate cut from the US Federal Reserve. An expectation that has often offered significant tailwinds for tech stocks.

Yet the Nasdaq Index tumbled, pulled down by some of the world’s biggest and best-performing tech giants.

Shares in Apple Inc (NASDAQ: AAPL), for example, closed 2.3% lower. Alphabet Inc Class A (NASDAQ: GOOGL), or Google to you and me, shed 2.9%.

Then there’s star AI player Nvidia Corporation (NASDAQ: NVDA), whose share price tumbled by 5.6%.

And Elon Musk’s Tesla Inc (NASDAQ: TSLA) was among the worst performers, closing a hefty 8.4% lower overnight.

Now, here’s the interesting thing.

While the Nasdaq Index fell 2.0%, the small-cap Russell 2000 Index (RUSSELL: RUT) gained 3.6%. That’s the biggest lead the small-cap index has had on the Nasdaq since late 2020.

So, what’s going on?

Why didn’t the Nasdaq Index rally on subdued US inflation?

It appears that a sizeable and much-needed stock rotation is taking place. One that’s benefiting the horde of beaten down and recently neglected small-cap companies at the expense of the small cohort of mega-cap Nasdaq Index companies that everyone’s been buying.

“The big tech trade is turning on itself, yet the rest of the market is finally stepping in. The S&P 500 is down today, but this is the best kind of selloff you could hope for if you’re a long-term investor,” Ritholtz Wealth Management’s Callie Cox said (quoted by Bloomberg).

Janney Montgomery Scott’s Dan Wantrobski noted that the stock rotation that saw small-caps soar and the Nasdaq Index tank is an early sign of a healthy expansion in overall market breadth.

“This fanning out from the narrow leadership areas throughout much of this year is what we would like to see continue over the coming weeks and months in order to confirm a healthier expansion cycle on a longer-term basis,” Wantrobski said.

Charles Schwab’s Kevin Gordon added:

It’s a pretty swift reversal in the momentum trade, and that tends to benefit the laggards to a significant degree. No question it’s in response to the fact that the prospect of rate cuts helps companies that have been struggling in the ‘higher for longer environment’.

In the longer term, the Nasdaq Index remains up an impressive 33% over 12 months. That’s three times the 11% one-year gain posted by the Russell 2000 small-cap index.

The post Why did the Nasdaq Index take a dive on promising US inflation data? appeared first on The Motley Fool Australia.

More reading

• Is it too late for ASX investors to start buying US shares?
• Which ASX shares could soar if AI falls into a $500 billion hole?
• Why ASX investors are ‘flocking back’ to BHP shares and these other top stocks
• Which US shares are ASX investors buying in 2024?
• Prediction: 2 US stocks that will be worth more than Nvidia 5 years from now

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 positions in and has recommended Alphabet, Apple, Nvidia, and Tesla. The Motley Fool Australia has recommended Alphabet, Apple, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX small-cap shares might be experiencing a resurgence if recent market trends hold.

The S&P/ASX Small Ordinaries Index (ASX: XSO) – a proxy for Australian small caps â€“ is up nearly 1.3% in the past week.

Meanwhile, the large-cap S&P/ASX 200 Index (ASX: XJO) is up around 0.7%.

But the picture is reversed when looking back at the past 12 months. In that time, the ASX 200 is up nearly 9%, whereas the small-cap index is up just 5%.

As a reminder, small-cap shares are typically those companies with a market capitalisation below $2 billion but above the $100–200 million mark.

According to StockTwits on X, there was a “huge rotation out of tech and into small caps” in the US session on Thursday.

That strength has continued on the ASX today, with the small-cap index up more than 1.1%. The ASX 200 has yet to break the 1% barrier.

Is the tide beginning to turn for ASX small-cap shares? Let’s take a look.

ASX small-cap shares to rise?

Global share markets were on edge on Thursday after the US released June consumer price index (CPI) data.

Core CPI for June came in at 3.3% year over year, below the market’s expectations of 3.4%.

Speaking to US Congress on Wednesday, Federal Reserve Chair Jerome Powell said the US was “no longer an overheated economy”.

This is en economy…that is more of less back by most measures to where it was before the pandemic.

We’re well aware that we now face two-sided risks and have for some time.

The unexpected decline triggered movements in large-cap stocks. Major tech stocks experienced notable declines, even though many had recently hit record highs, so a pullback had been anticipated.

Nevertheless, the data has some speculation that the Federal Reserve might cut interest rates as early as September.

Small-cap shares are “more vulnerable to recent interest rate rises”, according to JP Morgan Asset Management, so this helps explain the recent movements.

According to Charles-Henry Monchau, Syz Group’s CIO, the odds of a rate cut by September 2024 have skyrocketed to 83%.

Meanwhile, The Australian Financial Review reported the probability of a rate cut could be as high as 90%.

Before the June CPI report, the odds were 67%.

Scotiabank said the likelihood of a rate cut is now higher. Analyst Derek Holt commented, per The AFR:

Another softer core CPI reading makes our forecast for 50 basis point cuts this year starting in September look a little light.

The money that rolled into smaller equities on Thursday continues a trend that has been in place on the ASX since the start of the new financial year.

Since July began, the small-cap shares index is up 2.2%, compared to the ASX 200’s 2.2% return at the time of writing.

What ASX small-caps performed in FY24?

Two small-cap shares have caught serious investor attention of late, resulting in large gains in their stock prices.

The first is Droneshield (ASX: DRO). The counter-drone technology company saw its shares soar by over 647% in FY24, as seen below.

Investors are bullish on the company after several updates. For one, it secured a number of repeat orders of its counter-drone technology from the US Military. Secondly, its financial results saw revenues grow 900% year over year in Q1 CY 2024 to $16.4 million.

Tamim Asset Management is bullish on the company, noting it is “well-positioned to capitalise on the increasing need for effective counter-drone technologies”.

Another small-cap player currently outperforming is Zip Co Ltd (ASX: ZIP). The buy now, pay later (BNPL) company experienced a 256% increase in its share price during FY24.

Zip is now focused on key markets to drive revenue growth after a challenging period due to the pandemic.

The stock is rated a buy from Ord Minnett, and the consensus verdict is also a buy from analysts, according to CommSec.

Takeouts

ASX small-cap shares may be back in vogue, driven by a broader market shift and some impressive company performances.

Just remember that small-cap stocks may be more volatile and that you should always conduct your own thorough due diligence.

The post Are ASX small-cap shares back in vogue amid a big shift? appeared first on The Motley Fool Australia.

More reading

• Would I be crazy to buy DroneShield shares now at over $2?
• Is it too late to buy Zip shares at their 2-year highs?
• 3 ASX small-cap shares that soared 250% to 675% in FY24
• Up 327% in a year, the Zip share price just smashed new multi-year highs!
• Why DroneShield, GenusPlus, Monadelphous, and Telstra shares are roaring higher today

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield, JPMorgan Chase, and Zip Co. 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.

It has been another busy week for many of Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Citi, its analysts have retained their buy rating on this gaming technology company’s shares with an improved price target of $59.00. The broker has been looking into industry data and believes that Aristocrat’s key RAID mobile game has returned to bookings growth after a subdued period. And while it suspects that its Social Casino bookings could be down slightly year on year, it expects this to still be significantly better than the broader market. In light of this and its positive outlook, the broker remains bullish and sees value in its shares at current levels. The Aristocrat share price is trading at $52.44 on Friday.

CAR Group Limited (ASX: CAR)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating on this auto listings company’s shares and lifted their price target on them to $41.40. The broker has been looking at CAR Group’s near-term earnings outlook ahead of its FY 2024 results. The good news is that Goldman remains confident that despite foreign exchange and Trader Interactive dealer headwinds, the carsales.com.au operator is well-placed to continue delivering >10% per annum earnings growth for the foreseeable future. As a result, the broker thinks that CAR Group’s shares are undervalued at current levels and remain its preferred classified stock heading into earnings season. The CAR Group share price is trading at $34.61 at the time of writing.

Nextdc Ltd (ASX: NXT)

Analysts at Macquarie have retained their outperform rating and $20.00 price target on this data centre operator’s shares. According to the note, Macquarie is feeling very positive about NextDC’s outlook. It highlights that the artificial intelligence boom and migration to the cloud will continue to drive increased demand for data centre capacity over the medium term. This is particularly the case given the need for space in centres for ChatGPT type platforms and cloud GPU services. All in all, Macquarie believes the future is bright for this data centre leader and thinks it could be a top pick for investors. The NextDC share price is fetching $18.23 today.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

More reading

• Buy this ASX tech stock for a 20%+ return: Goldman Sachs
• 5 things to watch on the ASX 200 on Friday
• CBA and 7 other ASX 200 shares smashing new highs on Thursday
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Car Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.