Tag: Fool

Life360 Inc (ASX: 360) shares have returned from their trading halt on Friday and are dropping into the red.

At the time of writing, the location technology company’s shares are down 3.5% to $14.16.

Why were Life360 shares in a trading halt?

The high-flying ASX tech stock was placed into a trading halt yesterday as it finalised its Nasdaq IPO.

This is now complete with Life360 shares trading on Wall Street overnight under the (NASDAQ: LIF) ticker.

And the good news for shareholders is that the company’s shares didn’t have a terrible start to life on the Nasdaq boards. More on that soon.

Nasdaq IPO

After the market close on Thursday, Life360 revealed that it had finalised the pricing of its initial public offering in the United States.

It was offering a total of 5,750,000 shares of its common stock at an initial public offering price of US$27.00 per new share.

Life360 advised that it intends to use the net proceeds it receives from the offering to increase its capitalisation and financial flexibility, to create a public market for its common stock in the United States, and for general corporate purposes, including working capital, operating expenses and capital expenditures.

Management also stated that it “views the Offering and increased exposure to U.S. investors as a natural next-step in its growth.”

What is Life360?

In case you’re not familiar with the company. Life360 is a family connection and safety company aiming to keep people close to the ones they love.

Its category-leading mobile app and Tile tracking devices allow members to stay connected to the people, pets, and things they care about most. This is through a range of services, including location sharing, safe driver reports, and crash detection with emergency dispatch.

At the last count, Life360 was serving approximately 66 million monthly active users (MAU) across more than 150 countries.

Wall Street debut

As I mentioned at the top, Life360 shares were offered at US$27.00 per new share to investors in the United States.

During a relatively subdued session on Wall Street, they traded as low as $26.00 and as high as $27.26.

And at the end of Thursday’s night session they closed at $27.00, which is exactly where they started it.

But with the Nasdaq index falling 0.1%, this can be described as a reasonably positive debut for the tech stock. But perhaps not the explosive start that many investors were hoping for.

The post Life360 shares tumbles after Wall Street debut appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Life 360 shares halted ahead of Nasdaq IPO
• 3 high-flying ASX shares that could keep on climbing
• Here are the top 10 ASX 200 shares today
• Why Clarity Pharmaceuticals, Life360, Ramsay Health Care, and Spartan Resources shares are rising today

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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.

The Australian share market is a great place to generate a passive income.

But which ASX stocks would be good options for income investors right now?

Let’s take a look at three ASX income stocks that analysts have recently named as buys:

Inghams Group Ltd (ASX: ING)

The team at Morgans thinks that income investors should be looking at Australia’s leading poultry producer, Inghams.

Its analysts believe the company’s shares are being undervalued by the market. Particularly given its leadership position and attractive dividend yield. Morgans also highlights that the company is “leveraged to poultry – the affordable, healthy, sustainable and growth protein.” This bodes well for the future.

As for those attractive dividend yields, Morgans is expecting fully franked dividends of 22 cents per share in FY 2024 and then 23 cents per share in FY 2025. Based on the current Inghams share price of $3.67, this equates to dividend yields of 6% and 6.25%, respectively.

Morgans has an add rating and $4.40 price target on its shares.

Orora Ltd (ASX: ORA)

Over at Goldman Sachs, its analysts think that Orora could be an ASX income stock to buy. It is one of the world’s largest packaging companies. It manufactures packaging products such as glass bottles, beverage cans, and corrugated boxes.

Goldman appears to believe a selloff this year has created a buying opportunity for patient investors. Especially given its cheap valuation and above-average dividend yields.

In respect to the latter, the broker is forecasting dividends per share of 12 cents in FY 2024 and 13 cents in FY 2025. Based on the current Orora share price of $2.19, this will mean yields of 5.5% and 5.9%, respectively.

Goldman has a buy rating and $3.00 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

A third ASX income stock to buy could be Super Retail. It is the owner of popular retail brands BCF, Macpac, Rebel, and Super Cheap Auto.

Goldman Sachs is also a fan of Super Retail and thinks it would be a great option for income investors. Especially given its loyalty program. Its analysts continue to “believe that SUL is building a competitive advantage through 11.1mn members and 76% sales to members, which will help drive sales in a more complex operating environment.”

Goldman believes this positions the company to pay fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $13.23, this will mean yields of 5% and 5.5%, respectively.

Goldman has a buy rating and $17.80 price target on its shares.

The post Analysts name 3 ASX income stocks to buy now appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• What are 3 of the safest ASX consumer discretionary shares in Australia right now?
• 4 top ASX dividend shares to buy next week
• 2 ASX income shares with 20%+ upside and 6%+ dividend yields

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

The Australian share market is home to a large number of listed companies.

However, only a small portion of these can be classed as truly high quality companies.

Examples of this include ASX 100 stocks such as biotech giant CSL Ltd (ASX: CSL) and industrial property company Goodman Group Ltd (ASX: GMG).

But Bell Potter thinks that we should be adding a new ASX 100 stock to the list. That is enterprise technology company TechnologyOne Ltd (ASX: TNE).

What is the broker saying about this ASX 100 stock?

According to a note this morning, the broker believes that TechnologyOne’s quality makes it deserving of a re-rate to higher multiples. It commented:

Technology One has had very consistent and an increasing rate of PBT [profit before tax] growth the last four years: 13% in FY20, 14% in FY21, 15% and FY22 and 16% in FY23. This trend looks set to continue for the short to medium term with VA consensus forecast growth of 16%, 18% and 18% in FY24, FY25 and FY26 which is slightly below our forecasts of 17%, 19% and 19%. In our view this consistent and increasing growth has been a key driver of the PE re-rating in the stock over the last few years from around 30x to now around 40x. If the trend of consistent and increasing growth continues – as both consensus and we expect – then we believe this PE re-rating can continue up to a forward PE of around 50x.

Commenting on its comparison to other quality companies that have re-rated, the broker adds:

What’s interesting, however, is that while all these stocks have had re-ratings largely on the back of strong earnings growth over multiple years, the growth has not been consistent and in some cases has even been quite volatile. We believe, therefore, this is a key differentiator for Technology One in its favour and the comfort the market has in knowing the growth is going be consistent and not spike in one year or sink the next only supports in our view a continued re-rating in the multiple.

Double-digit returns

In light of the above, the broker has reaffirmed its buy rating and lifted its price target on the ASX 100 stock to $20.25.

Based on its current share price of $18.14, this implies potential upside of 11.6% for investors over the next 12 months.

The broker also expects a 1.2% dividend yield, lifting the total potential return to almost 13%.

The post Buy this quality ASX 100 stock that deserves a re-rating like CSL and Goodman appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 tech stocks that smashed the market in May
• Brokers name 5 fantastic ASX growth shares to buy in June
• Should I buy TechnologyOne shares before they trade ex-dividend on Thursday?
• 4 ASX growth shares to buy to supercharge your portfolio in June
• Here’s how the ASX 200 market sectors stacked up last week

Motley Fool contributor James Mickleboro has positions in CSL and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, and Technology One. The Motley Fool Australia has recommended CSL, Goodman Group, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian share market traditionally trades with an average dividend yield of 4%.

While this is a great yield and comparable to what you might find with savings accounts, you don’t have to settle for that.

Not when there are some ASX dividend stocks out there offering significantly larger yields.

In addition, one of these stocks has been tipped to grow its dividend in the coming years, meaning bigger and bigger yields could be coming.

So much so, the ASX dividend stock in this article is forecast by one leading broker to provide a yield as large as 8% in 2026.

The stock in question is Accent Group Ltd (ASX: AX1).

What is Accent?

In case you’re not familiar with Accent Group, let’s take a little look at what it does.

Accent is a footwear retailer and wholesaler which owns and operates a number of footwear businesses in the performance, comfort, and active lifestyle sectors.

This includes many store brands that readers will be familiar with such as The Athlete’s Foot, Platypus, HypeDC, and Stylerunner. In addition, it has the local rights to global brands such as Skechers, Vans, Timberland, Reebok, and Hoka.

Accent also has an emerging presence in youth apparel following the acquisition of Glue Store in 2021.

Big yields expected from this ASX dividend stock

Thanks to the strength of these brands and favourable consumer trends, Bell Potter believes that Accent is well-positioned to reward shareholders with some very attractive dividends in the coming years.

For example, in FY 2024, the broker is forecasting the company to pay a fully franked 13 cents per share dividend. Based on its current share price of $1.98, this will mean a 6.6% dividend yield for investors.

Looking ahead, Bell Potter believes the ASX stock will increase its dividend to 14.6 cents per share in FY 2025. This equates to a fully franked 7.4% dividend yield for anyone buying its shares at current levels.

This trend is expected to continue in FY 2026, with Bell Potter forecasting an increase to 16.4 cents per share. This will mean a very large 8.3% dividend yield for income investors to look forward to receiving that year.

But wait, there’s more! Bell Potter isn’t just expecting outsized dividend yields. It also expects Accent shares to deliver big capital gains over the next 12 months.

The broker has a buy rating and $2.50 price target on them. This implies potential upside of 26% for investors from current levels.

The post This ASX dividend stock is predicted to pay an 8% yield in 2026! appeared first on The Motley Fool Australia.

More reading

• Now could be an opportunity to snap up overlooked ASX shares
• With 6%+ yields, here are 2 ASX dividend shares to consider buying now
• Forget NAB and buy these ASX dividend shares
• 3 Australian shares to help secure your future
• 4 excellent ASX dividend stocks to buy in June

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

A couple of ASX 200 shares have released updates this week to very different receptions.

One impressed the market and saw its shares launch higher, the other disappointed investors and led to its shares sinking deep into the red.

Goldman Sachs has been running the rule over the updates and while not overly impressed with one of them, still believes both ASX 200 shares are in the buy zone right now.

Let’s take a look at what the broker is saying about them:

IDP Education Ltd (ASX: IEL)

This language testing and student placement company is the one that disappointed the market. The ASX 200 share sank 7.5% after warning about recent changes to regulatory settings.

It advised that a more restrictive policy environment in its key destination countries is reducing the size of the international student market. This has negatively impacted testing and student placement volumes during the second half. As a result, IDP Education is guiding to flat earnings in FY 2024.

Commenting on the update, Goldman said:

IEL’s trading update was soft, but should help investors better frame the earnings base for FY25 as the impacts of regulatory tightening measures become clearer.

The broker has now reduced its earnings forecasts for the coming years and expects its earnings to bottom in FY 2025. After which, Goldman believes its growth will resume.

Despite this weak near term outlook, the broker feels that its shares are undervalued. It said:

Overall we now expect FY25 EBIT of A$222mn, -4% vs FY24E, and cut FY24/25/26E EBIT -9%/-17%/-17% with IEL trading on 23x FY26E P/E, even assuming a modest FY26E recovery, though we acknowledge uncertainty remains on the CY25 CA cap and AU university placement caps.

Goldman now has a buy rating and $21.75 price target on its shares. This implies potential upside of approximately 50% for investors.

Treasury Wine Estates Ltd (ASX: TWE)

This wine giant’s shares charged higher this week after it reaffirmed its guidance for FY 2024 and spoke positively about its opportunity in North America.

In respect to the former, management continues to expect mid-high single digit EBITS growth for the year. It also advised that work to assess the future operating model for the company’s global portfolio of Premium brands is continuing with an update expected in August.

Goldman was impressed with this update and believes its growth is about to accelerate. It said:

In FY22-24e, we expect the company to deliver sales/EBITS/EPS CAGR of 4.0%/12.0%/8.7%, while from FY24-26e, we expect this to accelerate to ~7%/13%/12% respectively. All of this is against a moderately declining growth environment in US/China wine.

In light of the above, the broker has reiterated its buy rating on the ASX 200 share with an improved price target of $13.40. This suggests a potential return of 11% before dividends and almost 15% including them. Goldman concludes:

Our valuation multiple and methodology are unchanged. Our 12m TP of A$13.40/sh (from A$13.00/sh) implies 15% TSR and we reiterate Buy given positive delivery of the strategy reset as well as attractive double-digit EPS growth at an attractive valuation. The stock is trading at 1yr fwd P/E of 20x. The key catalyst for the stock will now be its June 20 Business Update focused on China.

The post Goldman Sachs names 2 ASX 200 shares to buy now appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 3 ASX 300 shares just rerated by leading brokers
• Why Core Lithium, IDP Education, Seek, and Skycity shares are sinking today
• 2 ASX All Ords shares crashing 13% and 21% today on big news
• 2 excellent ASX shares to buy and hold for a decade

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

Choosing the right ASX stock or stocks to buy for an investment portfolio is a tricky process. With so many options on the Australian stock market to choose from, many new investors can get overwhelmed and pick the wrong shares to start with. Or even worse, they may decide the whole investing thing isn’t for them after all, and keep their cash in the bank. But if I had $1,000 to put into a new ASX stock today, there’s only one I would choose. It would be the Vanguard Australian Shares Index ETF (ASX: VAS).

The Vanguard Australian Shares ETF is the largest index fund on the ASX. it offers investors a simple deal: invest in this exchange-traded fund (ETF) and immediately gain access to a portfolio of ASX shares that almost perfectly reflect the largest 300 stocks on the ASX, weighted by market capitalisation.

Those 300 shares include everything from Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Woolworths Group Ltd (ASX: WOW) to Telstra Group Ltd (ASX: TLS), AGL Energy Ltd (ASX: AGL) and Harvey Norman Holdings Limited (ASX: HVN).

You are effectively getting everything the Australian share market has to offer, the whole shebang. Miners, banks, energy stocks, consumer discretionary shares, real estate investment trusts (REITs), consumer staples companies, healthcare businesses… everything.

Why I would recommend the VAS ETF to any ASX investor today

This, in my view, makes VAS a great investment for almost anyone. Whether you’re an investing veteran or share market novice, this ASX stock can be a great addition to any portfolio.

For one, you are getting an investment that has historically given back a decent return over many decades. As of 30 April, VAS has averaged an ASX return of 8.97% per annum since its market inception in 2009. That includes both capital growth and dividends.

Speaking of dividends, VAS is an ASX investment that also has significant dividend income potential. Since this index fund holds the 300 largest shares on the ASX within its portfolio, it receives any dividends that these companies pay out. VAS passes these on to its ASX investors in the form of quarterly dividend distributions.

At recent pricing, the Vanguard Australian Shares ETF is trading on a trailing dividend distribution yield of 3.84%. This comes partially franked too, seeing as most of the dividends coming out of the ASX 300 come with at least some franking credits attached.

So with this VAS ETF, ASX investors can get instant diversification, a decent history of capital growth, and solid dividend income prospects all in one investment. For these reasons, I think VAS is a perfect place for any ASX investor to put $1,000 in spare cash today.

The post The ultimate ASX stock to buy with $1,000 right now appeared first on The Motley Fool Australia.

More reading

• Buy these ASX ETFs for income in June
• Top ASX shares to buy in June 2024
• Buying ASX shares, rentvesting and co-ownership: How young Australians are achieving home ownership
• Does Vanguard Australian Shares Index ETF (VAS) pay fully franked dividends?
• 5 ASX ETFs that could be great long-term buys

Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Vanguard Australian Shares Index ETF. 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 Harvey Norman and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woodside Energy Group Ltd (ASX: WDS) shares have been having a tough time this year.

Due largely to falling oil prices, the energy giant’s shares are thoroughly underperforming the market.

For example, since the start of 2024, the Woodside share price has lost approximately 13% of its value. As a comparison, the ASX 200 index is up 3% over the same period.

But given that Woodside is widely regarded as one of the highest quality companies in the global energy space, is this underperformance your cue to load up on its shares?

Let’s see what analysts are saying about the company and its shares right now.

Should you load up on Woodside shares?

A number of brokers see significant value in the company’s shares at the current level.

For example, even Macquarie, which has a neutral rating on its shares, has a price target of $32.00, implying 18% upside for investors over the next 12 months.

Elsewhere, Morgan Stanley recently put an overweight rating and $35.00 price target on Woodside’s shares. This suggests that they could rise by almost 30% between now and this time next year.

And over at Morgans, its analysts see even more value on offer. The broker has an add rating and $36.00 price target, which implies potential upside of 33% for investors from current levels.

In addition, Morgans is forecasting a 4.6% dividend yield in FY 2024, boosting the total potential return to almost 38%.

The broker believes that recent share price weakness has created an opportunity for investors to buy a high quality ASX stock at a great price. It said:

WDS’s share price has been under pressure in recent months from a combination of oil price volatility and approval issues at Scarborough, its key offshore growth project. With both of those factors now having moderated, with the pullback in oil prices moderating and work at Scarborough back underway, we see now as a good time to add to positions.

Increasing our conviction in our call is the progress WDS is making through the current capex phase, while maintaining a healthy balance sheet and healthy dividend profile. WDS still has to address long-term issues in its fundamentals (such as declining production from key projects NWS/Pluto), but will still generate substantial high-quality earnings for years to come.

All in all, this could make it a great option for investors. Especially those that are wanting exposure to the energy sector.

The post Should you load up on Woodside shares? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Are headwinds brewing for ASX 200 energy shares?
• 5 things to watch on the ASX 200 on Wednesday
• Why is the Woodside share price tumbling on Tuesday?
• 5 things to watch on the ASX 200 on Monday

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

Given June is upon us, so too is tax time… along with the moons and Ferris wheels. It’s natural for Australians to be thinking about any dollars they can save when they lodge their next tax return at this time of year. To indulge this admirable pursuit today, let’s talk about how building a bigger superannuation fund can help you save on your taxes.

As we discussed earlier, the superannuation retirement system in Australia is a grand bargain of sorts. In exchange for giving up control of the portion of our pay packets that end up in our super funds, the Federal Government gives us many lucrative tax breaks to encourage us to pad out our retirement funds.

Most of us would be aware that most contributions to superannuation are taxed at a 15% flat rate. Any earnings generated from super investments are also taxed at 15%. And once we enter the pension phase of our retirements, in many cases earnings can be enjoyed tax-free.

Of course, you’ll need to check with a tax professional to see what your personal circumstances might allow. You also might want to talk to a financial adviser about whether making extra super contributions might be the wisest course of action compared to paying down your mortgage or investing outside of super, for instance.

But those are the general rules for superannuation.

This means that for most Australians, contributing any extra funds above the mandatory 11% superannuation guarantee can automatically result in paying less in taxes.

Reduce your taxes using superannuation this tax time

According to the Australian Taxation Office (ATO), there are two kinds of contributions you can make to your super fund. Those are concessional contributions and… (you guessed it) non-concessional contributions.

Put simply, a concessional contribution is one that you can claim as a tax deduction. A non-concessional contribution is not eligible for that claim.

However, the good old days are no longer with us. Australians are no longer entitled to put as much cash as they want into super. At least without paying full taxes.

According to the ATO, the current cap on conventional contributions into one’s super fund is $27,500 per annum (including the 11% super guarantee). From 1 July this year, it will rise to $30,000. This means most Australians can only claim deductions of up to $27,500 in super contributions this tax time. That includes what your employer is required to pay you, of course.

However, you may be able to contribute more if you didn’t hit the cap in previous years.

The cap for non-concessional contributions is $110,000, but it will rise to $120,000 on 1 July. If you contribute more than this, you might have to pay extra taxes.

So, how much would someone be able to save in taxes from an extra contribution to their super fund?

As an example, let’s say someone who earns $100,000 per year before tax wants to make an extra superannuation contribution to save money at tax time.

This person would have already seen $11,000 taken out of their pay packets for their super fund.

But according to the MoneySmart website, our worker could save up to $5,692 in taxes if they were prepared to contribute an extra $10,000 to their super fund.

Foolish takeaway

Of course, all of this is just general advice. Everyone’s personal circumstances will be different. As such, it’s vital to check with a tax professional or financial adviser before making any big decisions when it comes to your super fund.

But super is a legitimate and potentially lucrative way to save some extra dollars this tax time. So make sure to check if you can do just that before 1 July.

The post Building a bigger superannuation fund could reduce your tax bill in FY24 appeared first on The Motley Fool Australia.

More reading

• Goldman Sachs names 2 ASX 200 shares to buy now
• The ultimate ASX stock to buy with $1,000 right now
• Should you load up on Woodside shares?
• 5 things to watch on the ASX 200 on Friday
• Guess who just slapped a buy rating on BHP shares?

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.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had another good session and stormed higher. The benchmark index rose 0.7% to 7,821.8 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 to rise again

The Australian share market looks set to end the week on a positive note despite a relatively poor session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 17 points or 0.2% higher this morning. On Wall Street, the Dow Jones was up 0.2%, but the S&P 500 was flat and the NASDAQ was down 0.1%.

Oil prices climb

It looks like ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a good finish to the week after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2% to US$75.59 a barrel and the Brent crude oil price is up 1.9% to US$79.89 a barrel. Traders were buying oil after the European Central Bank cut interest rates.

Buy Treasury Wine shares

The Treasury Wine Estates Ltd (ASX: TWE) share price could be good value according to analysts at Goldman Sachs. In response to its North America and guidance update, the broker has reiterated its buy rating with an improved price target of $13.40. Goldman commented: “We reiterate Buy given positive delivery of the strategy reset as well as attractive double-digit EPS growth at an attractive valuation.”

Gold price rises again

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a positive finish to the week after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.7% to US$2,392.7 an ounce. Rate cut optimism appears to have given the precious metal a boost and lifted it to a two-week high.

Life360 shares make Wall Street debut

Life360 Inc (ASX: 360) shares will be in focus today when they return from their trading halt. The location technology company halted its shares yesterday as it completed its Nasdaq IPO. Life360 listed on Wall Street at US$27.00 per new share. However, the company’s debut was relatively subdued, with its shares ending the session exactly where they started it. Management stated that it “views the Offering and increased exposure to U.S. investors as a natural next-step in its growth.”

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

More reading

• Here are the top 10 ASX 200 shares today
• Guess what new trend is taking off amid the soaring gold price
• Life 360 shares halted ahead of Nasdaq IPO
• 3 ASX 300 shares just rerated by leading brokers
• Why Genesis Minerals, Lovisa, Northern Star, and SRG Global shares are rising today

Motley Fool contributor James Mickleboro has positions in Life360 and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. The Motley Fool Australia has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares have just found a new bull.

And according to the broker, investors should be snapping up the Big Australian’s shares before it’s too late.

Who is bullish on BHP shares?

The broker in question is Goldman Sachs.

According to a note out of the investment bank, its analysts have reinstated coverage on the miner with a buy rating and $49.00 price target.

Based on the current BHP share price of $44.05, this implies potential upside of 11.2% for investors over the next 12 months.

But that isn’t the end of the returns. Goldman is forecasting fully franked dividend yields of 4.9% in FY 2024 and then 4.3% in FY 2025.

This stretches the total potential 12-month return from BHP shares to around 16%.

Why should you invest?

Goldman has named a few reasons why it thinks investors should be picking up the mining giant’s shares today. One is its attractive valuation. It said:

BHP is currently trading at ~6.0x NTM EBITDA (25-yr average EV/EBITDA of 6.6x), a slight premium to RIO on ~5x; both are trading at ~0.9xNAV. Over the last 10 years, BHP has traded at a ~0.5x premium to global mining peers. We believe this premium can be partly maintained due to ongoing superior margins and operating performance (particularly in Pilbara iron ore where BHP maintains superior FCF/t vs. peers).

The miner’s exposure to copper is another reason to invest according to the broker. It adds:

We remain bullish on copper and expect BHP to generate US$6.8bn in copper EBITDA in FY24 (27% of EBITDA) and almost doubling to US$11.5bn in FY25 (41% of EBITDA) due to ongoing supply side challenges and increasing demand.

In addition, Goldman highlights that the company has a significant growth opportunity in copper despite its recent failure to acquire Anglo American (LSE: AAL). It said:

We continue to believe that BHP’s major opportunity is growing copper production in Chile at Escondida and Spence, and growing production and capturing synergies in South Australia between Olympic Dam and the previous OZL assets. We think BHP has a competitive edge in copper heap leaching and believe it can potentially fill ~200ktpa of spare cathode capacity by 2030 and possibly the full ~315ktpa spare capacity by 2035.

Overall, this could make BHP shares a great option for investors that are looking for some mining sector exposure for their portfolio this month.

The post Guess who just slapped a buy rating on BHP 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 Goldman Sachs Group. 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.