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At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Pilbara Minerals Ltd (ASX: PLS) continues its long run as the most shorted ASX share with 21.4% of its shares held short. This is down slightly week on week again but is still significantly higher than second place. Concerns over a lithium surplus appear to be behind this.
• IDP Education Ltd (ASX: IEL) has 12.8% of its shares held short, which is down materially week on week. Last week, this language testing and student placement company revealed that it is being negatively impacted by student visa changes in a number of key markets.
• Syrah Resources Ltd (ASX: SYR) has short interest of 10.7%, which is down week on week again. This graphite miner’s shares have been targeted due to weak battery materials prices, production suspensions, and further cash burn.
• Liontown Resources Ltd (ASX: LTR) has 10% of its share held short, which is up slightly week on week. There are concerns that lithium prices will stay at low levels for years. This doesn’t make it a good environment to commence production at Kathleen Valley in the middle of the year.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest fall week on week to 9.6%. There are concerns over the travel agent giant’s revenue margins and consumer travel spending.
• Westgold Resources Ltd (ASX: WGX) has short interest of 9.6%, which is now up for a fifth week in a row. This appears to have been driven by doubts over the gold miner’s proposed merger with Canada-based Karoa Resources.
• Chalice Mining Ltd (ASX: CHN) has short interest of 9.5%, which is up week on week again. This mineral exploration company’s Gonneville Project is a globally significant critical minerals project, but it is still a long way off production and even a final investment decision.
• Sayona Mining Ltd (ASX: SYA) has short interest of 9.4%, which is flat from last week. It is yet another lithium miner that is being targeted due to weak lithium prices.
• Australian Clinical Labs Ltd (ASX: ACL) has short interest of 8.5%, which is down meaningfully since last week. This health imaging company is guiding to another sharp decline in its earnings in FY 2024.
• Healius Ltd (ASX: HLS) has short interest of 8.4%, which is up week on week. It is another health imaging company that is battling tough trading conditions at present.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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

The share market has been getting very excited about the artificial intelligence (AI) megatrend this year.

And rightly so. It’s no exaggeration to say that AI is going to change the world.

We’ve only really had a small taste of this in the last few years but expect things to accelerate as AI continues to improve and more money is invested in the space.

The good news for investors is that there are ways to gain exposure to AI with ASX shares.

And I don’t mean with supposed AI shares like Brainchip Holdings Ltd (ASX: BRN), which has promised the world and delivered nothing in a market dominated by a US$3 trillion behemoth.

I mean with genuine industry leaders that are leveraging AI to cement their position and drive long-term growth. Let’s take a look at two:

Pro Medicus Limited (ASX: PME)

The first ASX AI share to look at is health imaging technology company Pro Medicus,

Goldman Sachs recently spoke about how the company’s AI revenues could grow from a small percentage of its overall sales into something significant in the future. It said:

AI opens an incremental US$620mn TAM today (growing at a +34.7% CAGR) with radiology receiving the majority (c.80%) of recent FDA AI algorithm clearance. We believe PME is well positioned to take share as the incumbent viewing platform across many large, and likely early adopters of new technology.

PME is generating revenue from its Visage breast density AI algorithm (developed via a partnership with Yale) today, and we see the potential value for AI to be significant with adoption driven by improved accuracy and clinical outcomes. We forecast AI to comprise 9% of PME’s revenue by FY30E (from <1% in FY25E), with upside if PME achieves faster AI attach penetration, higher price per scan, and a greater proportion of algorithms developed in-house where no royalties are paid to a partner.

Goldman has a buy rating and $136.00 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX AI share to look at is data centre operator NextDC. While it isn’t necessarily offering AI services, it is servicing the huge data centre demand for capacity that AI needs to function.

In April, Goldman Sachs commented on this. It said:

NextDC believes AI is driving global data centre growth from 15% to 19% with Australia and broader APAC remaining well-positioned for growth and the fastest growing region. AI is increasing average power density racks (kW/Rack) growing 2.5x to c80-100kW. NXT are seeing demand pipeline for singular deals in the vicinity of 50-100MW and see market growth accelerating. AI demand is also stemming from a 40%/60% mix from inference/training, with upside for inference to reach 70%.

The broker currently has a buy rating and $18.59 price target on its shares. Though, it is worth noting that other brokers are even more bullish. For example, Morgan Stanley has an overweight rating and $20.00 price target.

The post 2 ASX AI shares that could be set to soar in 2024 and beyond appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc and Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are on the hunt for some ASX dividend shares to buy this month, it could be worth checking out the two below that Bell Potter has named as top picks for income investors in June.

Here’s what the broker is saying about them:

Rural Funds Group (ASX: RFF)

Bell Potter thinks that this agricultural property company could be an ASX dividend share to buy this month.

It highlights that its shares are trading at an abnormally large discount to their net asset value. It feels this is excessive and has created a compelling buying opportunity for income investors. The broker said:

RFF trades at a historical high discount to its market NAV per unit ($2.78 pu) at ~28%. While we are in general seeing large discounts to NAV in ASX listed farming and water assets to market NAV, the discount that RFF is trading appears excessive and we are seeing a valuable opportunity in RFF. While the timing of that value discount closing is difficult to call, investors are likely to be rewarded with a ~6% yield to hold the position until such a time as the asset class rerates. Furthermore, RFF aims to achieve income growth through productivity improvements, conversion of assets to higher and better use along with rental indexation which is built into all of its contracts with its tenants.

Bell Potter has a buy rating and $2.40 price target on Rural Funds’ shares.

As for income, it is forecasting dividends per share of 11.7 cents in FY 2024 and FY 2025. Based on its current share price of $2.02, this will mean yields of 5.8% for investors.

SRG Global Ltd (ASX: SRG)

Bell Potter also thinks that SRG Global would be one of the best ASX dividend shares to buy this month.

It is a diversified industrial services group that provides multidisciplinary construction, maintenance, production drilling and geotechnical services The broker believes that SRG will be a beneficiary of accelerating growth in iron ore and gold production volumes over the next five years. It commented:

SRG’s short-to-medium term outlook is reinforced by Government-stimulated construction activity in the Infrastructure and Non-Residential sectors and increased development and sustaining capital expenditures in the Resources industry. The resulting expansion in infrastructure bases across these sectors will likely support increased demand for asset care and maintenance in the medium to long-term. We anticipate Mining Services will be a beneficiary of accelerating growth in iron ore and gold production volumes over the next five years.

Bell Potter has a buy rating and $1.30 price target on its shares.

In respect to dividends, the broker is forecasting fully franked dividends of 4.7 cents in FY 2024 and then 6.7 cents in FY 2025. Based on its current share price of 89 cents, this will mean dividend yields of 5.3% and 7.5%, respectively.

The post 2 of the best ASX dividend shares to buy in June 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 positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There’s one S&P/ASX 200 Index (ASX: XJO) share that looks really cheap to me, and I’m not the only one who believes it has good growth potential.

Collins Foods Ltd (ASX: CKF) is a large franchisee of KFC outlets in Australia, Germany and the Netherlands. It also has a relatively small network of Taco Bells in Australia.

The chart below shows that Collins Foods share price has dropped more than 20% since January 2024. A lower share price is part of the reason why I think it’s cheap, but it’s also the appealing price/earnings (P/E) ratio and potential growth rate.

So, let’s look at what makes this ASX 200 share seem such a bargain, in my opinion.

Low forward earnings multiple

I’m very attracted to businesses where the P/E ratio is low, but earnings are compounding at a pleasing rate.

Collins Foods’ most recent result showed good same-store sales (SSS) growth and an ongoing increase in its store network, generating pleasing total revenue growth and profit growth.

During the FY24 first-half period, KFC Australia saw SSS growth of 6.6% and KFC Europe SSS growth was 8.8%. KFC Australia expects to open nine to 12 new restaurants in FY24, while KFC Europe is expected to see another three stores open in the FY24 second half.

Collins Foods’ continuing operations HY24 revenue grew by 14.3% to $696.5 million, and the underlying net profit after tax (NPAT) rose by 28.7% to $31.2 million.

The broker UBS thinks the ASX 200 share could generate earnings per share (EPS) of 53 cents in FY24, which would put it at 18x forward earnings.

But profit could be much better than that. The broker UBS has projected EPS of 79 cents for FY26, 92 cents for FY27, and $1.03 for FY28. That implies profit could also double over the next four years, which could make the FY24 P/E ratio of 18 very good value, in my opinion.

UBS has a price target of $10.95 on Collins Foods shares, which implies a possible rise of 15% over the next year, though the broker only rates the ASX 200 stock as neutral right now.

Foolish takeaway

I’ve put my money where my mouth is and recently bought Collins Foods shares for my own portfolio.

I think it’s a cheap growth stock and can provide good dividend income. UBS’ predictions suggest it could pay a grossed-up dividend yield of 4.4% for FY24 and 9.4% in FY28.

The post This ASX 200 share still looks cheap to me. But don’t just take my word for it! appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Collins Foods. 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 Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Chances are if you offered most Australians who are working today the opportunity of a comfortable retirement beginning tomorrow, they would seize it with both hands. After all, most of us wouldn’t work if we didn’t have bills to pay… at least as much as we do.

Late last month, my Fool colleague Bronwyn went through the average age at which most Australians officially retire and enter their golden years. She found that the average age for the 130,000 people who retired in 2022 was 64.8 years. That broke down to 66.9 years for men and 63.2 years for women.

Interestingly, the most common reason that Australians chose to retire was reportedly “access to financial support”. That came in ahead of “sickness, injury or disability” and “not being able to find employment”.

So we know that a plurality of those Australians who decide to retire do so because they can afford to.

Once we reach the Age Pension eligibility age of 67, the possibility of at least a modest retirement becomes a reality for most Australians.

But what about those Australians who, through luck, hard work or a combination of the two, find themselves able to retire much earlier than that? Is there an age too young to retire?

Retirement: How early is too early?

This is obviously going to be a highly subjective question. Many of us love working, keeping busy and making a valuable contribution to society. Perhaps some of these people intend to keep working until they drop, not because they have to but because they want to.

There’s nothing wrong with that.

But what about others who would retire tomorrow if they could? Well, I’m a firm believer in a quote often attributed to the late Queen Elizabeth II:

Work is the rent you pay for the room you occupy on Earth.

It’s my belief that in order to achieve and maintain true happiness, we must pursue a valuable contribution to society.

What that contribution is can be whatever you make it through. It could be working for a company (perhaps your own) or in a government in order to bring more good into the world.

But it could also be raising children or grandchildren, looking after a loved one or working for a charity. It could be creating beautiful art or music, or else writing a book or poetry.

Life is too short to dedicate time to a job we don’t like, and that doesn’t bring fulfilment. So if you have the opportunity to retire, use it to bring happiness to yourself and those around you. If everyone adopted this attitude, I don’t think there’s an age that is too young to ‘retire’ in Australia.

The post What age is too young to retire in Australia? appeared first on The Motley Fool Australia.

More reading

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• Top brokers name 3 ASX shares to buy next week

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. 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.

There are a good number of options for investors to choose from in the gold sector, but one of the best ASX 200 gold stocks to buy right now could be Capricorn Metals Ltd (ASX: CMM).

That’s the view of analysts at Bell Potter, which believe the gold miner’s shares are undervalued at current levels.

What is the broker saying about this ASX 200 gold stock?

According to a note, the broker has been running the rule over Capricorn Metals following a couple of recent developments.

It feels that the ASX gold stock has all the qualities required to trade at a premium to sector averages. So, with its shares pulling back materially due to a surprise weather-related quarterly production miss, its analysts feel that investors have been gifted a great opportunity to pick up shares. It explains:

We have reviewed our sector-based valuation metrics in the context of a pullback in the CMM share price and the recent 26% increase in the Ore Reserve at CMM’s 100%-owned Mt Gibson Gold Project (MGGP). We have also reviewed CMM’s track record of project construction and commissioning and delivery to production and cost guidance, which screens as one of the most reliable in the sector.

Combined with CMM’s sector leading cash generation, we take a view that CMM should trade at a premium to sector average valuation metrics. As such, we view CMM’s current market valuation as an attractive entry opportunity to the stock.

What else is the broker saying?

Bell Potter highlights that the Mt Gibson Gold Project is a high quality operation with significant growth potential.

And with a resource update on the horizon, it feels that the ASX 200 gold stock could get a boost when it is released. It adds:

The MGGP is one of the largest undeveloped stand-alone gold projects in Australia, with a Resource of 125Mt @ 0.8g/t Au for 3.3Moz and Reserve of 62Mt @ 0.9g/t Au for 1.8Moz.

We view the MGGP as highly prospective for further Resource growth, which is a focus of current drill programs. We anticipate a Resource update in the September quarter 2024 being a positive catalyst for CMM. The MGGP sits on granted Mining Leases and is currently progressing through permitting, with updates expected in the coming month. Combined with CMM’s funding capacity, which will help preserve equity value through the development phase, and CMM’s strong track record of project development, we view the path to production and commercialisation as relatively low risk.

Big returns 

The note reveals that Bell Potter has a buy rating and $6.50 price target on the company’s shares. This implies potential upside of 36% for investors over the next 12 months. It concludes:

CMM is a sector leading gold producer with a strong balance sheet, clear organic growth options and a management team with an excellent track record of delivery. The MGGP continues to be advanced toward development and will position CMM as a ~270kozpa, top-10 ASX-listed gold producer.

The post Is this the very best ASX 200 gold stock to buy now? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are hunting for some ASX 200 income stocks to buy in June, then read on.

That’s because listed below are three that analysts think could be in the buy zone right now.

Another positive is that they have also been tipped to provide great dividend yields. Here’s what you can expect from them:

Charter Hall Retail REIT (ASX: CQR)

The Charter Hall Retail REIT could be a great option for investors that are looking for an ASX 200 income stock to buy this month.

It is a property company that invests predominantly in supermarket anchored neighbourhood and sub-regional shopping centre markets.

Analysts at Citi are feeling positive about the company and its prospects. Particularly given its inflation-linked rental increases. The broker expects this to underpin dividends of 28 cents per share in both FY 2024 and FY 2025. Based on the current Charter Hall Retail REIT share price of $3.35, this will mean huge yields of 8.4%.

Citi currently has a buy rating and $4.00 price target on its shares. This implies potential upside of almost 20%.

Telstra Group Ltd (ASX: TLS)

Another ASX 200 income stock that has been tipped as a buy is Telstra. It is of course Australia’s largest telecommunications company with millions of mobile phone and broadband customers.

Goldman Sachs thinks income investors should be buying its shares at current levels. Particularly given how its analysts “believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive.”

Goldman is expecting fully franked dividends of 18 cents per share in FY 2024 and then 18.5 cents per share in FY 2025. Based on the current Telstra share price of $3.56, this equates to yields of 5% and 5.2%, respectively.

Goldman currently has a buy rating and $4.25 price target on the ASX dividend stock. This suggests that upside of almost 20% is possible over the next 12 months.

Transurban Group (ASX: TCL)

Another ASX 200 income stock that could be a buy this month is Transurban.

It is an urban toll road company with assets in Australia and North America. In Australia, this includes the Cross City Tunnel, the Eastern Distributor, and Westlink M7. Whereas in North America, its roads include 95 Express Lanes and the A25.

The team at Citi is very positive on its outlook and is expecting some good dividend yields in the near term. It is forecasting dividends per share of 63.6 cents in FY 2024 and then 65.1 cents in FY 2025. Based on the current Transurban share price of $12.80, this will mean yields of 5% and 5.1%, respectively.

Citi has a buy rating and $15.50 price target on its shares. This implies potential upside of 21% for investors.

The post Telstra and these ASX 200 income stocks could be top buys this month appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Goldman Sachs Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For investors that have a high risk tolerance, it could be worth considering some small cap ASX shares for your portfolio.

That’s because the returns on offer at the small side of the market can be material. But which small caps could offer a compelling risk/reward?

Listed below are two small caps that analysts at Morgans are bullish on right now. Here’s what they are saying about them:

AVITA Medical Inc (ASX: AVH)

AVITA Medical could be a small cap ASX share to buy. It is a regenerative medicine company with a focus on wound care management and skin restoration with its RECELL technology.

A new version of this technology was granted FDA approval recently, which bodes well for the future. Especially given its significant market opportunity across various treatment areas.

Commenting on its market opportunity, Morgans said:

AVH is a regenerative medicine company focusing on the acute wound care market. It has recently expanded its indication into full thickness skin defects and Vitiligo (US$5bn TAM). The expanded indication in full thickness skin defects has the required reimbursement in place and sales have started.

The broker also described the recent FDA approval as a significant milestone. It adds:

AVH has received FDA approval for its automated product, RECELL Go, for use in burns and full thickness skin defects. This approval marks a significant milestone for the company, with management expecting this device to increase adoption of the technology amongst clinicians. We have made no changes to our forecasts and recommendation.

Morgans has an add rating and $5.60 price target on its shares. Based on the current AVITA Medical share price of $2.86, this suggests that the company’s shares could rise 96%.

Tyro Payments Ltd (ASX: TYR)

Another ASX small cap share that could be in the buy zone according to Morgans is Tyro Payments.

It is a payments provider with approximately 70,000 merchants on its network. This makes it Australia’s fifth largest merchant acquiring bank by number of terminals in the market.

Morgans notes that its shares have been under pressure recently and believes this has created a buying opportunity for investors. It said:

TYR sold off heavily in 2023 affected by the broad pull back in technology stocks and overall concerns regarding its earnings trajectory. However, we believe FY24 will show significantly improved business momentum, importantly driven by a much greater focus on lifting overall profitability. TYR still trades at a significant discount to valuation.

Morgans has an add rating and $1.47 price target on its shares. Based on the current Tyro share price of 79 cents, this implies potential upside of 86% for investors.

The post Why these small cap ASX shares could rise 85%+ appeared first on The Motley Fool Australia.

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

Investing in the ASX large-cap stocks can be rewarding, but knowing when to sell is crucial. Some of us use sell rules. Others go by changes in fundamentals. Some, via the stars.

With the ASX bustling in 2024, it’s a good time for investors to assess their portfolios. Today, I’m going to look at two large-cap ASX stocks: Bank of Queensland Ltd (ASX: BOQ) and Mineral Resources Ltd (ASX: MIN).

Here’s what brokers are saying about the 2 ASX large-caps in their recent notes.

Should you sell this ASX large-cap stock?

Bank of Queensland shares have struggled in 2024, having compressed by around 2% into the red at the time of writing.

The ASX large-cap stock currently has one of the highest trailing dividend yields of all the ASX 200 banking majors and boasts a 2.7% share of the Australian residential mortgage market.

Despite this, Goldman Sachs has a bearish outlook on BOQ shares. It rates the bank a sell based on foreseeable risk and valuation grounds. Its BOQ price target is $5.44 apiece, below the $5.98 per share the bank was trading at on Friday’s close.

The broker points out that Australian banks – including BOQ – no longer offer the robust returns on equity (ROE) they once did.

Back in 2015, Australian banking majors boasted “the second highest average ROE of global comparable banks…”. BOQ’s 9.25% projected returns on equity for FY 2026 also fall short of this mark.

While we believe the company’s transformation program a positive long-term strategy (aiming to deliver a lower cost to serve on the back of its digitisation efforts), we remain wary of both the high degree of execution risk and the potential for going over budget on investment spend (as has often been the case historically when banks undergo such large scale initiatives).

However, Goldman Sachs believes the high price-to-book (P/B) valuations aren’t sustainable given the underwhelming ROE and potential for lower returns moving forward.

Despite this view, BOQ’s current trailing dividend yield is 6.4%, which is attractive for income-focused investors, in my opinion. In fact, for the dividend-minded, I believe BOQ could offer compelling value.

Mineral Resources reiterated a sell

Goldman Sachs recently released a note on Mineral Resources highlighting several factors that investors should consider.

Despite the company’s impressive $1.3 billion Onslow Haul Road asset sale in June, which generated significant proceeds, Goldman Sachs maintains a cautious outlook on the ASX large-cap stock.

The broker points out that the current market price reflects long-run commodity prices about 20% higher than their estimates.

It also highlights that Mineral Resources trades at a multiple significantly above its peers, with a price-to-net asset value (NAV) ratio of 1.35x and a 17x forward EBITDA multiple. The peer group is priced at 8x forward EBITDA.

This valuation suggests that much of the company’s future growth is already priced in, leaving limited upside potential.

Furthermore, Goldman Sachs is concerned about the expected decline in lithium prices over the next couple of years. It expects lower spodumene prices going forward.

Our commodity team expect spodumene prices to average US$800/t and hydroxide at US$10,000/t (vs. spot c. US$1200/t and US$10,000/t) in 2H CY24 driven by our view of a market surplus over 2024-2025, and for the price to trade at or below marginal cost which we think will be set by Chinese integrated lepidolite producers.

The broker also forecasts low or negative free cash flow for the next two years, producing a free cash flow yield of negative 4% to negative 19%. As such, it values the miner at $47 per share, a 31.5% downside potential on the Mineral Resources share price of $68.63 at Friday’s close.

It’s not all negative sentiment on ASX large-cap stock, however. Analysts at Bell Potter rate Mineral Resources a buy. According to my colleague James, its diverse operations and growth outlook are two of Bell Potter’s themes.

The rating is “underpinned by MIN’s earnings diversification, strong insider ownership, clearly articulated strategies, expertise in contracting and internal growth options at Onslow as well as potential lithium expansions including into downstream”.

It values the company at $85.00 per share, almost double that of Goldman.

ASX large-cap shares on the block

Both BOQ and Mineral Resources present unique opportunities and risks. For BOQ, Goldman says the high valuation amidst underwhelming returns makes it a potential candidate for selling.

Meanwhile, Mineral Resources’ strategic asset sale offers have split hairs among brokers. Whilst Goldman rates it a sell, Bell Potter is bullish and sees it trading higher.

The difference in opinion highlights the importance of conducting your own due diligence.

The post Is it time to cash in these 2 ASX large-cap stocks? appeared first on The Motley Fool Australia.

More reading

• Mineral Resources shares race higher on $1.3b asset sale
• 5 things to watch on the ASX 200 on Thursday
• Bell Potter names the best ASX shares to buy in June
• Why you should sell CBA, Westpac, and Bank of Queensland shares in June
• 2 high-yield ASX shares I’d buy right now for dividends

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 Scott Phillips.

It has been another busy week for 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:

IDP Education Ltd (ASX: IEL)

According to a note out of Goldman Sachs, its analysts have retained their buy rating on this language testing and student placement company’s shares with a trimmed price target of $21.75. Goldman notes that IDP Education released a market update last week which revealed that it is being negatively impacted by a more restrictive policy environment in its key destination countries. While the broker acknowledges that the trading update was soft, it believes it should help investors better frame the earnings base for FY 2025. And with Goldman forecasting IDP Education’s earnings to rebound in FY 2026, its analysts think that now could be a good time for patient investors to snap up its shares. The IDP Education share price ended Friday’s session at $15.33.

Lovisa Holdings Ltd (ASX: LOV)

A note out of Bell Potter reveals that its analysts have retained their buy rating and $36.00 price target on this fashion jewellery retailer’s shares. Bell Potter notes that Lovisa has announced that its highly regarded CEO, Victor Herrero, will be leaving next year. While the broker sees some leadership transition risk, it was pleased with his replacement John Cheston, who is the current CEO of Smiggle. It believes the new CEO appointment aligns well to drive the next leg of growth and lift the penetration of a global business built by Herrero. In addition, its analysts anticipate a smooth transition over the next 12 months and expect Cheston’s background to assist continued execution in Lovisa’s ~40 markets globally. The Lovisa share price was fetching $31.25 at Friday’s close.

Xero Ltd (ASX: XRO)

Analysts at Macquarie have retained their outperform rating and $180.70 price target on this cloud accounting platform provider’s shares. Macquarie notes that Xero has announced price increases and plan updates in the United Kingdom that will take place in September. The broker was pleased with the changes, which are mirroring those undertaken in the Australia market recently. Macquarie believes the new plans will support a higher average revenue per user metric in the UK market through the simplification of its offering and increased bundling. The Xero share price ended the week at $129.29.

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

More reading

• These ASX shares could rise 25% to 50%
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now
• Why IDP Education, Novonix, PYC, and Regis Resources share are racing higher
• Goldman Sachs names 2 ASX 200 shares to buy now

Motley Fool contributor James Mickleboro has positions in Lovisa and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Idp Education, Lovisa, Macquarie Group, and Xero. The Motley Fool Australia has positions in and has recommended Macquarie Group and Xero. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.