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The Sayona Mining Ltd (ASX: SYA) share price is lifting off today.

Shares in the S&P/ASX 300 Index (ASX: XKO) lithium stock closed yesterday trading for 3.4 cents. In morning trade on Wednesday, shares are swapping hands for 3.5 cents apiece, up 2.9%.

For some context, the ASX 300 is up 0.2% at this same time.

Here’s what’s happening.

New leadership for ASX lithium miner

The Sayona Mining share price is marching higher after the North American lithium producer announced that Lucas Dow will take over as managing director and CEO as of today, 3 July.

Lucas is a relative newcomer to Sayona Mining, having joined the board only back in February.

He’ll take over from interim CEO James Brown, who will remain executive director until 31 January 2025 to facilitate the handover and ensure business continuity.

Dow is a mining engineer with extensive executive and hands-on operational experience in mining and renewable energy.

Commenting on his appointment, which is boosting the Sayona share price today, he said, “I am thrilled to lead a company with such outstanding potential.”

 Dow added:

Sayona is fortunate to have multiple emerging tier one assets including North American Lithium (NAL) and Moblan, which will underpin the success of the business into the future.

Commenting on the successful ramp-up of NAL, Dow said:

The operation is now delivering industry leading results for plant utilisation and recovery both of which are a testament to the commitment and leadership of James and the operational team in Quebec.

Interim CEO Brown said, “The board is pleased to appoint Lucas as the MD & CEO to lead Sayona through the next stages of the company’s development.”

Brown continued:

We are fortunate to have secured someone with such extensive technical and corporate experience. I am confident that under Lucas’ leadership, Sayona will further enhance its market position with a dynamic future and a steadfast commitment to excellence in the lithium sector.

Separately, Sylvain Collard was appointed president and COO of Sayona’s Canada operations. Collard joined Sayona in 2022 and is a specialist in mine project management for both open pit and underground mines.

Commenting on that appointment, Brown said:

With extensive experience in mine project management and operations across diverse environments, including significant roles at IAMGOLD and various mining projects in Canada and abroad, Sylvain is ideally positioned to lead our strategic initiatives in Québec and drive continued growth and excellence.

Sayona Mining share price snapshot

If you look back to the chart up top, you’ll see the rather dismal year Sayona has faced amid cratering lithium prices. That rout sees the Sayona Mining share price down 79% over 12 months.

The post Sayona Mining share price lifts off on new CEO appointment appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 4 ASX mining shares going gangbusters while the market dives
• Why is short interest in Sayona Mining shares growing?
• These are the 10 most shorted ASX shares
• Why are Sayona Mining shares outperforming other ASX lithium stocks today?

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.

It’s that time of year again when investors check their leaders and laggards and potentially rotate into cheap ASX 200 stocks. Analysts have already started the process.

Deterra Royalties Ltd (ASX: DRR) has caught Goldman Sachs’ attention. In a Tuesday note, the broker revised its rating on the ASX 200 stock from a hold to a buy.

Goldman’s note puts it out of sync with the consensus rating of hold, per CommSec.

Deterra on the other hand has opened Wednesday’s session at $4.10 apiece, up 1.87%. This produces a dividend yield of 7.29% with its trailing dividend of 30 cents per share.

Here’s a closer look at the reasons behind Goldman’s revised rating.

Goldman upgrades ASX 200 stock

Goldman Sachs has revised its forecasts on Deterra’s earnings per share (EPS) for FY24-26 by 2% in both years based on a better iron ore and forex outlook.

It also notes the large sell-off of the ASX 200 stock following management’s decision to acquire Trident Royalties Plc for $276 million. This, it says, could mean the stock is undervalued.

The market initially reacted negatively, with a sharp drop in share price. This was possibly furthered by Deterra’s decision to alter its dividend policy. Moving forward, it will move from paying 100% of net profit after tax (NPAT) to a minimum of 50%.

However, Goldman Sachs believes this move positions Deterra for long-term growth, backed by its strong balance sheet:

[U]ndervalued: The stock is trading at ~0.8x NAV, and pricing in ~US$64/t 62% [iron ore] Fe vs. spot at ~US$105/t and our long run US$78/t (real $, from 2028) 62% Fe iron ore price forecast.

Deterra is trading on c. 10x EBITDA for FY25 versus global precious in ~15x and bulk royalty companies ~5x.

The broker mentioned Deterra’s approximate 7% free cash flow and dividend yield implied for FY24, which is “broadly in line with major iron ore producers”. It also leaves its dividend forecast at 100% of NPAT for FY24.

Strong balance sheet

With a net cash position of $30 million and access to a $500 million debt facility, Goldman says Deterra could be well-placed to pounce on future opportunities.

[Deterra] will have ~A$30mn net cash at end of June on our estimates and has access to an A$500mn undrawn debt facility and we believe they are well positioned to capitalise on potential growth opportunities in the current high rate debt environment, including the Trident acquisition and potential other opportunities.

Aside from that, the ASX 200 stock is ” less leveraged” compared to other iron ore miners “given the high margin nature of [its] royalty business”.

Interestingly, Goldman analysts also took a peek at Trident’s potential advantages, noting that it has a portfolio of various gold offtakes.

Based on Trident’s 2023 financial result, we note underlying earnings were essentially 0 and [greater than] 60% of earnings come from the gold offtake agreements which DRR noted [it] will look to divest.

Goldman set a price target of $4.70 per share on the ASX 200 stock. This equates to a multiple of 12 times the next 12 months’ earnings before interest, tax, depreciation and amortisation (EBITDA).

Foolish takeaway

According to some experts, Deterra’s sharp sell-off in recent weeks could be an overreaction. For this ASX 200 stock, the upgrade from Goldman Sachs suggests investors are thinking long-term.

In the last 12 months, Deterra shares are down 10%. This is an underperformance of nearly 17% versus the S&P/ASX 200 Index (ASX: XJO).

The post Goldman Sachs just upgraded this ASX 200 stock to a buy appeared first on The Motley Fool Australia.

More reading

• 5 potentially cheap ASX shares being bought by insiders
• Top ASX passive income shares to buy before June 30
• Why Core Lithium, Deterra Royalties, Northern Star, and Opthea shares are dropping
• ASX 200 stock nosedives 10% on new lithium play
• Guess which ASX 200 mining stock is making a $276m UK acquisition

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 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.

ASX artificial intelligence (AI) shares have been all the rage in 2024. By all accounts, AI is set to revolutionise the way we eat, sleep, and think. You name it, and AI will probably have an impact on it at some point in the future.

What’s exciting is that ASX-listed companies are among the cohort leading this wave of innovation. Even more exciting is that investors now have many means to gain exposure to AI themes.

For instance, the Global X Fang+ ETF (ASX: FANG) exchange-traded fund (ETF) enables investors to buy AI-linked stocks without overextending the risk budget. According to my colleague Tristan, the ETF has delivered annualised returns of 21% since 2021 and contains many of the US tech behemoths driving the AI impulse.

For investors eyeing individual AI stocks on the ASX, Life360 Inc (ASX: 360), Megaport Ltd (ASX: MP1), and Dicker Data Ltd (ASX: DDR) offer promising prospects for FY 2025, according to analysts. Here’s a closer look.

ASX AI share Life360 in focus

One of the more successful growth stories in FY 2024 was Life360. The company’s share price has surged 105% this year, closing at $15.73 on Tuesday.

The company’s core product, a smartphone app for location sharing, has become indispensable for families. It helps track children, elderly individuals, and those with special medical needs.

In Q1 CY2024, Life360’s revenues jumped 15% year-over-year to US$78.2 million, while operating cash flow rose to US$10.7 million.

Analysts from Morgan Stanley are bullish on the ASX AI share, noting Life360’s vast data collection capabilities as a major AI advantage.

Solaris Investment Management is also optimistic. Chief investment officer Michael Bell recently praised Life360’s aggressive subscriber growth, which now boasts 66 million users. This expansive user base provides valuable data, fuelling AI-driven innovations.

Megaport in the AI revolution

Megaport’s shares, which are currently trading at $10.96 apiece, have climbed more than 50% over the past year.

The company offers Network as a Service (NaaS), connecting businesses to cloud services, which is crucial for AI integration.

In its latest quarterly update, Megaport reported a 30% revenue increase to $49.5 million and a 92% rise in EBITDA to $14 million. Founder Bevan Slattery’s ongoing strategic advisory role adds confidence, according to my colleague Bron. These are important takeouts for investors seeking exposure to ASX AI shares, in my view.

Goldman Sachs rates Megaport a buy with a $14.85 per share price target on its stock. In an April note, the broker says the ASX AI share was well positioned for growth in FY25:

We believe MP1 will benefit from strong structural tailwinds from the adoption of public cloud including multi-cloud usage and the transition towards NaaS technologies.

[W] are buy rated on the name as we remain confident MP1 has a clear product advantage vs. peers and a decade-long runway for robust growth.

Dicker Data – ASX AI share with mixed ratings

Dicker Data recently received a neutral rating upgrade from Goldman Sachs. The company’s strong balance sheet and defensive revenues are key highlights in the investment debate, Goldman says.

The broker set a price target of $9.85 per share, which indicates a potential 4% upside from Dicker’s closing price of $9.56 apiece at the time of writing.

Furthermore, the broker notes that effective inventory management and higher free cash flow generation could provide additional growth.

This, its high margins relative to peers, and “tight inventory management” means Dicker is well capitalised to grow its business – and potentially shares – in FY 2025.

The company had “a modest sales growth outlook of mid-single digit FY23-26E CAGR and appears fairly valued compared to peers and its cash flow generation potential”, Goldman said.

Foolish takeaway

Life360, Megaport, and Dicker Data are three ASX AI shares well-positioned to grow in FY 2025, experts say.

Life360’s extensive data collection, Megaport’s essential cloud connectivity services, and Dicker Data’s solid financial management could be standouts.

However, it’s crucial to consider the risks involved and remember that past performance is not a guarantee of future results.

The post Here’s the outlook for 3 ASX artificial intelligence (AI) shares in FY25 appeared first on The Motley Fool Australia.

More reading

• Shares vs. property: Which delivered the best growth in FY24?
• Leaders and laggards of the ASX market sectors in FY24
• Here’s how the ASX 200 market sectors stacked up last week
• Why this ASX ETF is one of the best ways to invest in artificial intelligence (AI)
• 2 exciting ASX growth shares to buy in July

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 Life360 and Megaport. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Rincon Resources Ltd (ASX: RCR) shares are among the best performers on the market on Wednesday.

In morning trade, the ASX mining stock is up a sizeable 14% to 12 cents.

Why is this ASX mining stock rocketing?

The catalyst for this strong gain has been the release of an announcement from the mineral exploration company today.

According to the release, Rincon Resources has received aboriginal heritage clearance for drilling activities to commence at the West Arunta Project in Western Australia.

The ASX mining stock will now be able to drill its high-priority Avalon niobium and rare earth elements (Nb-REE) target, as well as the Sheoak, K1, and K2 targets.

Management is particularly positive about its Avalon gravity anomaly. It highlights that the anomaly is comparable in size to the one underlying the Luna deposit owned, which is owned by WA1 Resources Ltd (ASX: WA1). That deposit was recently confirmed as the most significant niobium discovery globally in over 70 years with an inferred mineral resource estimate of 200Mt @ 1.00% Nb2O5.

Rincon Resources has planned an initial 3,000m diamond drilling/reverse circulation (DD/RC) drill program to primarily test the source of the Avalon gravity target. It will also test the 3 km lateral extent of weathered zone where potential niobium enrichment may be present.

Drilling is set to begin in the middle of July following the completion of site works. These activities will be supported by a recent $5.6 million capital raising.

‘We are excited’

The ASX mining stock’s managing director, Gary Harvey, revealed that the company was excited to start its drilling activities. He said:

We are excited to commence drilling at our Avalon target, which we interpret as a potential carbonatite intrusion with niobium and rare earth element (Nb-REE) enrichment in the upper weathered profile. The size and characteristics of the Avalon anomaly, compared to recent significant discoveries in the region, heighten our anticipation for this program.

The Luni discovery by WA1 Resources has demonstrated the potential for world-class niobium deposits in the West Arunta region. With Avalon’s comparable size, we are eager to explore its full potential. With $5.6 million recently raised, our strong financial position enables us to aggressively pursue these opportunities and potentially extend our initial program should positive results warrant it.

Following today’s gain, this mining stock has now doubled in value over the last 12 months. Though, it still only has a market capitalisation of approximately $34 million.

The post ‘We are excited’: Why this ASX mining stock is rocketing 14% appeared first on The Motley Fool Australia.

More reading

• Why James Hardie, Mader Group, MMA Offshore, and WA1 shares are dropping today
• Why this ASX mining stock just got a huge broker upgrade
• Why Chrysos, Hansen Technologies, Pantoro, and WA1 Resources shares are pushing higher
• 2 ASX mining shares rocketing over 16% on big news

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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) share prices have recently reversed course after seemingly pushing higher for months without a breather. The stock now trades nearly 13% off its intraday high price of over $140 per share hit last month.

There is one Wall Street analyst who thinks shares of the artificial intelligence (AI) leader will soon rebound and even exceed its all-time high. Morgan Stanley analyst Joseph Moore put out a new note on Nvidia on Monday increasing his price target from $116 to $144 per share. Moore determined that share price based on what he sees as a jump in earnings per share (EPS) through next year. Moore thinks Nvidia stock is worth buying as his new price target would represent a gain of about 17.5% from its current price.

Nvidia’s “compelling narrative”

After data checks pointed to strong demand in China and Taiwan, as well as the U.S., Moore raised his EPS estimate for the semiconductor giant from $2.94 to $3.34 per share for next year. Moore believes Nvidia, “remains the most compelling narrative in the AI [semiconductor] space, and as we transition from H100 to H200 and then Blackwell, visibility and backlog will improve materially.”

That last point is the key to an investment in Nvidia right now. Even after its recent correction, Nvidia shares had run up ahead of revenue and earnings growth. In other words, further growth is already built into the stock price to some extent.

But even as Nvidia prepares to begin bulk shipments of its new, Blackwell AI platform, its H100 and H200 graphics processing units (GPUs) are still in high demand. That’s because many of Nvidia’s customers have been waiting in line to get these high-strength computing chips needed for training generative AI models.

Those sales will remain strong even as shipments of the new Blackwell chip accelerate. That’s why investors should still feel comfortable buying Nvidia shares. Even after the massive gains, there is a strong base of sales, and an even stronger pipeline of new AI products ahead.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Nvidia stock going to $144? appeared first on The Motley Fool Australia.

More reading

• Nvidia’s stock is up 160% in 2024, but is it a bubble waiting to pop?
• Can Nvidia stock cross $1,000 again after the stock split?
• One day, Nvidia stock will go down. Here’s how to keep it from hurting your portfolio
• Where will Nvidia stock be in 10 years?
• Nvidia is no longer the most valuable company in the world. Here’s what investors need to know

Howard Smith has positions in Nvidia. 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.

Chalice Mining Ltd (ASX: CHN) shares are catching the eye on Wednesday.

In morning trade, the ASX mining stock is up 8% to $1.64.

Why is this ASX mining stock racing higher?

Investors have been scrambling to buy the company’s shares this morning after it made a big announcement.

According to the release, Chalice Mining and Mitsubishi Corporation have entered into a non-binding memorandum of understanding (MOU).

Mitsubishi is one of Japan’s largest conglomerates and a leading global natural resources investor. Management notes that it has a long and successful track record of partnering with mining companies to fund and develop major mining projects globally. As a result, it is considered a tier-one strategic partner.

What is the MOU?

This MOU will see the parties work together with the intention of forming a potential strategic partnership to develop the ASX mining stock’s 100%-owned Gonneville PGE-Nickel-Copper-Cobalt Project in Western Australia.

Management notes that the agreement establishes a general framework for collaboration on technical, financing, marketing, and offtake aspects of the project during the ongoing pre-feasibility study (PFS).

It also highlights that Mitsubishi brings a broad range of capabilities, experience and relationships across equity and debt financing, product marketing, procurement and large-scale project development.

The MOU is non-exclusive and does not restrict the ASX mining stock from entering into any other transaction involving the project.

A foundational, long-term relationship

Chalice Mining’s managing director and CEO, Alex Dorsch, was very pleased with the news. He said:

We are very pleased to have executed the MOU with Mitsubishi, which marks the beginning of a foundational, long-term relationship. Mitsubishi’s involvement in the Gonneville Project follows extensive due diligence and discussions over the past ~12 months and highlights the longer-term strategic nature and value of the Project as a potential large-scale, long-life and low-carbon source of critical minerals for Western markets.

From the outset of the strategic process, Mitsubishi was always considered one of the most impressive and best suited strategic partners for the Gonneville Project, based on its decades-long development, operational and trading track record. In the context of key ongoing PFS workstreams and optimisations, the MOU structure is favourable, as it provides a framework for collaboration for both parties during the PFS and allows for the progression and de-risking of the Project prior to having good faith discussions around a potential joint arrangement and investment following the completion of the PFS.

Despite today’s gain, this ASX mining stock is still down ~73% over the past 12 months.

The post Guess which ASX mining stock is jumping 8% on deal with Mitsubishi appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
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• Why Bapcor, Chalice Mining, Integral Diagnostics, and Winsome Resources shares are dropping
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• Why are ASX gold shares being trashed on Tuesday?

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.

Medibank Private Ltd (ASX: MPL) shares could be a candidate to produce solid returns in FY25 and perhaps beyond, according to a leading broker.

The ASX healthcare share has seen its fair share of volatility, as shown on the chart below, as it was smashed by a cyberattack in October 2022 and then recovered from the fallout.

One leading broker spies an opportunity with the leading Australian private health insurer.

The company could deliver returns through both a rising share price and a growing dividend, according to UBS.

Why UBS is excited about Medibank shares

The broker’s positive view on the ASX healthcare share is based on the low ongoing claims inflation, which supports margins remaining in the 8% to 9% range.

Medibank experienced claims inflation, meaning average claims per policy unit, of just 2% during the first half of FY24, compared to guidance of 2.6%. UBS noted FY24 guidance has been upgraded to 2.2% to 2.4%.

The broker described the outcome as “positive” and said it demonstrated that the claims base had “several different gears”. UBS noted that claims remained below pre-COVID levels in psych, rehab, respiratory and prosthesis, which was funding higher claims inflation in private surgical.

The broker also pointed out that the favourable claims outcome triggered another customer’s $215 million ‘giveback.

UBS said the resident claims ratio improved by 0.4 percentage points compared to the prior corresponding period, while the private health insurance net margin rose by 0.1 percentage points to 8.1%.

The broker forecasts that the private health insurance margin will remain “higher for longer” at above 8% between FY24 and FY26, which is a positive for Medibank shares.

Some disappointments

One negative for the ASX healthcare share was that its other costs were “disappointing”, with cost growth of 10.9%. There were several “unusual” items, including non-resident commissions increasing by more than 40%, resident commissions being fully expensed, business-as-usual cost inflation of around 5%, and IT security and payroll tax costs of $4 million.

FY24 guidance costs of between $610 million to $615 million implied 4% to 6% cost growth in the second half of FY24, and this will be aided by a “small step-up in productivity gains.

UBS also said policy numbers were “disappointing”, falling by 1,800 in the November and December period. The broker attributed this to a “more competitive environment recently”, requiring “greater retention activity”. UBS said the FY24 guidance of 1.2% to 1.5% policy growth appeared to be “optimistic”. The broker’s estimate is for 0.9% growth.

Price target and dividend

UBS has a price target of $4.20 on Medibank shares, which suggests a possible rise of 14%. The broker projects Medibank could pay an annual dividend per share of 18 cents, which translates into a fully franked dividend yield of 4.9%.

Together, the capital growth and dividend could produce a total return of around 19% over the next year or so.

The post Top broker says Medibank shares could return 19% in FY25 appeared first on The Motley Fool Australia.

More reading

• Medibank shares: Here’s the dividend yield you’ll get today
• Buy or hold? Top broker rates these 2 ASX 200 shares
• Medibank shares dip as huge potential fines loom from 2022 data breach
• What is Goldman Sachs saying about Medibank shares in June?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

Do you want some retail sector exposure for your investment portfolio?

If you do, then it could be worth looking at the ASX retail stocks in this article.

They have been named as best buys for the new financial year by analysts at Bell Potter. Let’s see what the broker is saying.

What is the broker saying about ASX retail stocks?

Firstly, Bell Potter explained what it is looking for in the sector right now. It said:

We continue to look for retailers with differentiating customer value propositions and balance sheet strength and support names who may grow via market share expansion and have exposure to the customer categories who could benefit in the current consumer backdrop.

One ASX retail stock that has been given the thumbs up is Premier Investments Limited (ASX: PMV). Bell Potter has a buy rating and $35.00 price target on the Smiggle and Peter Alexander owner’s shares.

It believes the market is undervaluing its shares, especially given its demerger plans. It explains:

PMV is currently trading on ~15x FY26e P/E (BPe) which we think is conservative given the value that we see emerging from the potential demerger of PMV’s two key brands, Smiggle and Peter Alexander which we believe are global roll-out worthy and highly profitable. We see further upside from the higher ownership PMV shareholders could receive in the Myer Group (MYR) given the potential to grow post MYR’s turnaround phase and synergies from merging with PMV’s apparel brands

What else?

Another ASX stock that has been tipped as a buy is youth fashion retailer Universal Store Holdings Ltd (ASX: UNI). The broker has a buy rating and $6.15 price target on its shares.

Bell Potter is positive on the company’s outlook due to margin expansion opportunities and its store rollout. It said:

Management execution remains a key strength for UNI and we see good growth trajectory for the name given the building of core brands while growing its store rollout. In our view, the higher margin sales from the majority private label sales should become a major driver of margin improvement and earnings growth, in an expanded store footprint. While we remain cautious on the overall consumer sentiment, given the return to positive comps while cycling elevated pcp through Jan-Feb (+1% for Universal Store and +10% for Perfect Stranger) and potential benefits from income tax cuts to the customer demographic, we think UNI is well placed given supportive 4Q comps.

A final ASX retail stock to consider according to Bell Potter is Propel Funeral Partners Ltd (ASX: PFP). It has a buy rating and $6.20 price target on its shares. It said:

While PFP remains to be one of the few listed deathcare players globally, we think the premium to the peer group PFP trades at is justified considering the current market position, M&A firepower/opportunity and successful track record.

The post Bell Potter names the best ASX retail stocks to buy in FY25 appeared first on The Motley Fool Australia.

More reading

• These ASX shares could rise 15% to 35%
• Buy Rio Tinto and these ASX dividend shares in July
• Brokers name 3 ASX dividend stocks to buy
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• Why Calix, Collins Foods, Myer, and Patriot Battery Metals shares are charging higher

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Liontown Resources Ltd (ASX: LTR) shares were on fire on Tuesday.

The lithium developer’s shares ended the day 7% higher at 95.5 cents.

The catalyst for this was news that the company has secured a US$250 million convertible note (CN) investment and 10-year offtake extension from foundational partner, LG Energy Solution.

Broker reaction

Bell Potter was pleased with the news and highlights that the company is now funded to steady-state production. It said:

The CN increases LTR’s cash liquidity by $129m; it replaces the $550m debt facility announced in March 2024, of which $300m was allocated to repay a debt facility with offtake partner Ford. LTR will now retain the $300m Ford debt facility which has a 5-year tenor and BBSW+1.5% rate. LTR reiterated that Kathleen Valley remains on schedule for first production by the end of July 2024. With the CN, LTR will have available cash of $501m and remaining capex of around $120m to first production. LTR expects the $381m balance to fund Kathleen Valley to steady-state production, even under current depressed lithium pricing.

The broker was pleased with the agreement and feels it was the right thing for management to do. Its analysts add:

The LG CN funding is a pragmatic solution to remove the onerous terms associated with traditional bank debt and increase the company’s cash liquidity headroom. LTR’s 100% owned Kathleen Valley lithium project remains highly strategic with initial production imminent, a long mine life and tier-one location. LTR has offtake contracts with top tier EV and battery OEMs (Ford, LG Energy Solution and Tesla). Under our modelled assumptions, we expect that LTR is fully funded to free cash flow.

Should you buy Liontown shares?

If you have a high tolerance for risk, then Bell Potter thinks you should be considering an investment in Liontown’s shares. Especially if you are looking for exposure to the lithium industry.

In response to this update, the broker has reaffirmed its speculative buy rating and $1.85 price target on the lithium developer’s shares. Based on its current share price of 95.5 cents, this implies potential upside of almost 95% for investors over the next 12 months.

To put that into context, a $5,000 investment could turn into approximately $9,750 by this time next year if Bell Potter is on the money with its recommendation.

Though, the broker warns: “LTR is an asset development company; our Speculative risk rating recognises this higher level of risk.”

The post Should you buy Liontown shares after its update? appeared first on The Motley Fool Australia.

More reading

• Is it time to buy FY24’s worst-performing ASX shares?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Liontown share price roars 17% higher on funding update and ‘tremendous endorsement’
• Why are Liontown shares in a trading halt 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 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 lot of ASX 300 dividend shares to choose from on the Australian share market.

To narrow things down for income investors, I have picked out two that brokers have named as top buys recently.

Let’s see what they are saying about these shares:

Dexus Industria REIT (ASX: DXI)

Over at Morgans, its analysts think that Dexus Industria could be an ASX 300 dividend share to buy this month. It is a real estate investment trust with a focus on industrial warehouses.

The broker believes the industrial property company is well-placed due to solid demand, its development pipeline, and the positive rental growth outlook. It explains:

The portfolio is valued at $1.6bn across +90 properties with 89% of the portfolio weighted towards industrial assets (WACR 5.38%). The portfolio’s WALE is around 6 years and occupancy 97.5%. Across the portfolio 50% of leases are linked to CPI with the balance on fixed increases between 3-3.5%. While we expect cap rates to expand further in the near term, DXI’s industrial portfolio remains robust with the outlook positive for rental growth. The development pipeline also provides near and medium-term upside potential and post asset sales there is balance sheet capacity to execute.

In respect to income, the broker is forecasting dividends per share of 16.4 cents in FY 2024 and then 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $2.84, this will mean dividend yields of 5.8% and 5.85%, respectively.

Morgans has an add rating and $3.20 price target on its shares.

Rural Funds Group (ASX: RFF)

Analysts at Bell Potter think that Rural Funds could be an ASX 300 dividend share to buy. It is the owner of a portfolio of high-quality agricultural assets. This includes orchards, vineyards, water entitlements, cropping, and cattle farms.

The broker believes that its shares are too cheap at current levels and sees this as a buying opportunity for income investors. It explains:

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.

As for dividends, Bell Potter is forecasting dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.00, this will mean yields of 5.85% for investors.

The broker has a buy rating and $2.40 price target on its shares.

The post Brokers says these ASX 300 dividend shares are top buys 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.