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It can be confusing for a beginner investor to know what ASX stocks to invest in. Should dividends or growth be the focus? What is a good price to pay for this investment?

There are plenty of interesting companies on the ASX that may be good investments, but there’s one S&P/ASX 200 Index (ASX: XJO) stock that I believe could suit almost every portfolio: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

What Soul Patts does

Soul Patts is not one of the most famous business names, like BHP Group Ltd (ASX: BHP) or Qantas Airways Limited (ASX: QAN), but it is one of the oldest. It has been listed on the ASX since 1903.

The company started off as a pharmacy business and eventually started making external investments in names like Brickworks Limited (ASX: BKW) and New Hope Corporation Ltd (ASX: NHC).

These days, the investment house has exposure to various industries and asset classes, including ASX shares, private equity, credit, and property.

Some of its larger ASX stock investments include Brickworks, New Hope, TPG Telecom Ltd (ASX: TPG), Tuas Ltd (ASX: TUA), BHP, Macquarie Group Ltd (ASX: MQG), CSL Ltd (ASX: CSL), Goodman Group (ASX: GMG) and Wesfarmers Ltd (ASX: WES).

Good mixture of returns

Soul Patts shareholders benefit when the underlying value of its portfolio increases. The company has designed its portfolio to be defensive and resilient to economic shocks, which might be comforting for beginner investors.

It’s steadily making new investments, such as its acquisition of the entire electrification business Ampcontrol. As these businesses grow in value, they can drive up the value of Soul Patts, leading to capital growth for shareholders.

The cash flow received from its investment portfolio helps pay for dividends. The ASX stock has paid a dividend every year to shareholders since it was listed in 1903, and it has grown its annual dividend each year since 2000.

Over the 10 years to 30 April 2024, Soul Patts shares delivered an average return per annum of 11.3%, outperforming the All Ordinaries Accumulation Index (ASX: XAOA) by an average of 3.2% per annum. These figures do not include the benefit of franking credits. However, it must be said that past performance is not a reliable indicator of future performance.

It currently has a trailing grossed-up dividend yield of close to 4%, which I think is a solid starting yield for beginner investors.

Foolish takeaway

Soul Patts is an effective investment for beginners, in my opinion, because it can provide a mixture of dividends and capital growth. Its portfolio investments offer diversification while the growing dividend means we can benefit from owning shares without having to sell.

This ASX stock is one of the largest positions in my portfolio, and I’m planning to buy more of it over time. I think the current valuation is a good price to start a position.

The post 1 ASX stock that’s just right for beginner investors appeared first on The Motley Fool Australia.

More reading

• If I were 60 I’d buy these ASX shares for dividends
• Should you buy Brickworks or Soul Patts shares today?
• How to invest for retirement in an inflationary environment
• 10 ASX shares that have raised dividends for a decade
• 3 winning tips both Warren Buffett and Peter Lynch recommend

Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, CSL, Goodman Group, Macquarie Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Brickworks, Macquarie Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has recommended CSL and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Over the past few weeks, the Commonwealth Bank of Australia (ASX: CBA) share price has been in the news again, and for all the right reasons. We have seen fresh new record high after record high tumble for this ASX 200 bank stock. No doubt that has made CBA’s veritable army of retail shareholders a very happy bunch.

The bank’s most recent all-time high came just yesterday. This saw CBA shares hit $128.68 each. Today, the bank is trading just under that, going for $126.90 a share at the close on Wednesday.

At this share price, CBA stock is up 5.7% over the past month alone. Investors have also enjoyed a year-to-date gain of 11.71% over 2024 so far and a 29.6% lift over the past 12 months.

Now, I regard CBA as a quality business and probably the best-run bank in Australia. It deserves to keep its place as one of the top stocks in the S&P/ASX 200 Index (ASX: XJO).

But I also think the CBA share price is highly likely to crash or at least stagnate over the next 12 months.

Here are three reasons why.

3 reasons why the CBA share price might crash

The bank isn’t growing

You’d think that a stock that has appreciated by almost 30% over the past 12 months would be demonstrating at least some earnings growth. Or even revenue growth. Unfortunately, that isn’t the case when it comes to CommBank.

CBA’s last earnings report, covering the half-year ended 31 December 2023, showed revenues of $13.58 billion, down 3% on the same period in 2022.

The bank’s profits from ordinary activities after tax, as well as its net profits, both fell 8% compared to the prior period as well.

That doesn’t inspire confidence that this CBA share price rally that we’ve seen is built on solid ground.

The dividend yield is not impressive

If you ask almost any owner of ASX bank shares why they have a bank in their portfolio, they will probably tell you it’s for the fat, fully-franked dividends. That’s fair enough. Most ASX banks, including CBA, have been responsible for some of the largest and most consistent dividend payouts on the Australian share market over the past two or three decades.

Unfortunately, CBA’s recent rises have somewhat neutered its dividend yield. While its rivals like Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ) still offer dividend yields of more than 5% today, CBA’s yield currently sits at a rate unimpressive 3.58%.

Not only can you get a better yield from any other bank stock right now, but you can also get more cash if you buy Coles Group Ltd (ASX: COL), Telstra Group Ltd (ASX: TLS), Medibank Private Ltd (ASX: MPL) or Transurban Group (ASX: TCL) shares.

In my view, this reality will eventually hollow out buying pressure for CB shares, at least until its dividend yield returns to something one could consider normal for an ASX bank.

The CBA share price is insanely expensive

Finally, let’s talk about valuation. The recent rally in the CBA share price has resulted in this bank having the most expensive valuation out of any of its ASX peers, and by a mile. CBA stock is currently trading on a price-to-earnings (P/E) ratio of 22.23. In contrast, National Australia Bank Ltd (ASX: NAB) is presently on a P/E ratio of 16.7. Westpac is at 15.23 and ANZ at 12.53.

This means that CBA investors are paying almost double for one dollar of earnings than ANZ investors are right now.

Commonwealth Bank also currently has a price-to-book (P/B) ratio of 2.96, which is also extremely high for a bank.

According to Bloomberg, this not only makes CBA the most expensive bank on the ASX, but in the world. Its P/E ratio is even double that of the world-class American bank JP Morgan Chase. Not exactly a title you want in an investment.

Foolish takeaway

From where I’m looking, CBA shares are grossly overvalued, period. I’m not saying that this stock is destined to crash in the next 12 months. But for me, the fundamentals point to investor exuberance in this case.

I can’t see how CBA can continue to climb in value while its earnings fall and its dividend yield drops. All in all, this is one ASX 200 stock I am staying the heck away from at its current price.

The post 3 reasons I think the CBA share price may crash! appeared first on The Motley Fool Australia.

More reading

• CBA shares hit another new high! Too late to buy?
• CBA share price outpacing BHP shares on Monday in the race for biggest ASX stock
• Here’s how the ASX 200 market sectors stacked up last week
• Surely CBA shares can’t just keep rising?
• How to turn your savings account into a gold mine starting with $10,000

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in National Australia Bank and Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase and Transurban Group. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation ‘growth’ funds look likely to deliver a median 9% return in FY24, according to Chant West research.

Growth funds are superannuation funds made up of 61% to 80% growth assets like ASX shares.

In FY23, growth funds delivered a median 9.2% return.

Let’s look into the details.

Resilient share markets drive FY24 superannuation returns

FY24 is set to become the 13th year of positive superannuation returns out of the past 15 years.

Chant West Senior Investment Research Manager Mano Mohankumar says resilient share markets have driven the strong FY24 result.

International shares have been the stand-out category for growth, with the S&P 500 Index (SP: .INX) up 25.85% over the past 12 months compared to a 10.39% gain for the S&P/ASX 200 Index (ASX: XJO).

Mohankumar commented:

A final result close to 9% would be an excellent outcome given all of the uncertainty around inflation, expectations of when the Fed will start cutting interest rates and ongoing geopolitical tensions.

The experience over the past two years is another reminder of the importance of remaining patient and not getting distracted by shorter-term noise.

If you think back to nearly two years ago, FY22 closed with some sharp losses over the June quarter amid surging inflation and uncertainty as to when interest rate rises might come to an end.

At that time, very few could have foreseen a return of 19% over the subsequent two years.

The following chart shows the annual median returns of growth superannuation funds over 30 years.

Mohankumar commented that since the introduction of the Superannuation Guarantee, the median growth fund has returned 7.9% per annum.

The annual inflation or consumer price index (CPI) increase over the same period was 2.7%.

This means a real return of 5.2% per annum to superannuation investors.

This is well above the typical target of 3.5% per annum.

He adds:

On the risk side, there have only been five negative years over the entire period, which translates to about one year in every six.

Again, funds have done better than their typical long-term risk objective which is one negative return in every five years, on average.

Some workers prefer higher-risk superannuation funds, such as those with 96% to 100% of monies invested in growth assets (‘super growth’ funds) or those with 81% to 95% in growth assets (‘high growth’ funds).

Others take a more conservative approach, selecting balanced funds with 41% to 60% of monies invested in growth assets and the rest in defensive assets such as cash and bonds.

Balanced funds are typically the default option for workers who do not nominate a superannuation strategy themselves.

Balanced funds and conservative funds (21% to 40% growth assets) are popular with workers close to retirement, given they usually want to preserve their superannuation savings as much as possible.

The post Superannuation growth funds on track to deliver 9% returns in FY24 appeared first on The Motley Fool Australia.

More reading

• ASX expert: Time to buy Telstra shares
• 2 ASX penny stocks that pay dividends
• Here are the top 10 ASX 200 shares today
• Analysts name 3 ASX income stocks to buy now
• 2 exciting ASX growth shares to buy in July

Motley Fool contributor Bronwyn Allen 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.

Telstra Group Ltd (ASX: TLS) shares have been a fairly disappointing investment for ASX investors in recent months. This ASX 200 telco was flying high only in July last year, reaching new multi-year highs of $4.36 a share.

Alas, today, those highs seem like a distant memory. Telstra shares are currently trading for $3.62. At this pricing, the telco remains a chunky 17% or so off its highs from last July.

Year to date in 2024, Telstra stock is down 8.82%. That stretches to a loss of 16.01% over the past 12 months.

Check that all out for yourself below:

There is one silver lining to this cloud though. Telstra’s share price falls over the past 12 months or so have had the effect of lifting the company’s storied dividend yield up to an impressive 4.83%. That comes with full franking credits too.

Even so, Telstra shareholders probably aren’t a happy bunch right now. But they soon might be if one ASX expert is to be believed.

ASX broker calls 21% upside for Telstra shares

ASX broker UBS sees significant value at the current Telstra share price. According to reporting in The Australian this week, the broker has reiterated a ‘buy’ rating on the ASX 200 telco, along with a 12-month share price target of $4.40.  

If realised, this would see Telstra shares gain more than 21.5% from their current levels.

This optimism hailed in part from a survey of Telstra customers that UBS conducted. This survey found that “40 [per cent] of respondents were unlikely to make changes to their plans, and only 10 per cent were likely to leave to different networks if prices rise by $5”.

That comes from a continuing customer perception of Telstra having the best “network quality” on the market. Telstra also reportedly made improvements when it came to “value for money”.

This led UBS to conclude that Telstra’s mobile pricing power is “likely intact” and that the company is “still well placed to raise prices”.

So good news for Telstra investors. But let’s see if UBS is on the money here, or whether Telstra shareholders will have to wait a little longer to see their shares rebound in value.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $41.83 billion, with a price-to-earnings (P/E) ratio of 20.70.

The post ASX expert: Time to buy Telstra shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Telstra Group. 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 Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I think it is fair to say that most ASX penny stocks are speculative in nature and do not generate profits.

But that doesn’t mean there aren’t any out there that aren’t profitable.

In fact, some are even profitable enough to reward their shareholders with dividends.

For example, two ASX penny stocks that analysts have named as buys and are tipping to offer attractive dividend yields are listed below.

Here’s what you need to know about these shares that you can buy for less than a dollar:

GDI Property Group Ltd (ASX: GDI)

Bell Potter thinks that GDI Property could be an ASX penny stock to buy right now. It is a property owner and fund manager that is currently managing property investments in Greater Sydney, Brisbane, Perth, South East Queensland, and North Queensland.

Its shares are changing hands for 59 cents. This could be cheap according to the broker, which has a buy rating and 75 cents price target on them.

The broker’s analysts highlight that “GDI offers a +10% 3yr EPS CAGR which is amongst the highest amongst our coverage while many other passive REITs are still facing CoD headwinds and declining earnings growth.”

In respect to income, the broker is forecasting dividends per share of 5 cents across FY 2024, FY 2025, and FY 2026. Based on the current GDI Property share price of 58 cents, this implies dividend yields of 8.6% for the next three years.

SRG Global Ltd (ASX: SRG)

Another ASX penny stock that pays dividends is SRG Global. It is a diversified industrial services group that offers multidisciplinary construction, maintenance, production drilling and geotechnical services.

The company’s shares are currently trading at 83 cents. Bell Potter thinks this makes SRG Global undervalued at current levels. In fact, it believes its penny stock status should come to an end in the near future. The broker currently has a buy rating and $1.30 price target on its shares.

It believes that “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.”

As for dividends, Bell Potter 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, this will mean dividend yields of 5.65% and 8.1%, respectively.

The post 2 ASX penny stocks that pay dividends appeared first on The Motley Fool Australia.

More reading

• 4 ASX income stocks for Aussie investors to buy now
• Bell Potter says these ASX dividend shares are top buys this month
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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 recommended Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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

There are plenty of ASX income stocks out there for investors to choose from, but which ones could be in the buy zone right now?

Three that analysts have recently named as buys are listed below. Here’s what they are saying about them:

Cedar Woods Properties Limited (ASX: CWP)

Morgans is a fan of this property company and thinks it could be an ASX income stock to buy now.

Its analysts believe the company’s shares are undervalued and deserve to trade on higher multiples. Particularly given “CWP’s exposure to lower priced stock in higher growth markets sees further potential to drive earnings.”

Morgans expects this to underpin dividends per share of 18 cents in FY 2024 and then 20 cents in FY 2025. Based on the current Cedar Woods Properties share price of $4.60, this will mean dividend yields of 3.9% and 4.35%, respectively.

The broker has an add rating and $5.60 price target on its shares.

Dexus Convenience Retail REIT (ASX: DXC)

Another ASX income stock that Morgans is positive on is the Dexus Convenience Retail REIT. It owns a portfolio of service stations and convenience retail assets across Australia. This portfolio has a long lease expiry profile and contracted annual rent increases, which management expects to deliver a sustainable and strong level of income security.

Speaking of which, Morgans is forecasting the Dexus Convenience Retail REIT to pay dividends per share of 21 cents in both FY 2024 and FY 2025. Based on its current share price of $2.79, this implies yields of 7.5%.

Morgans has an add rating and $3.23 price target on its shares.

IPH Ltd (ASX: IPH)

A final ASX income stock that has been given the thumbs up by analysts is IPH.

It is an international intellectual property (IP) services company with a network of member firms working throughout 10 IP jurisdictions and with clients in more than 25 countries. Among its customer base are Fortune Global 500 companies and other multinationals.

Goldman Sachs is a fan of the company and sees it as a great option for investors right now. It is forecasting fully franked dividends of 34 cents per share in FY 2024 and 37 cents per share in FY 2025. Based on the current IPH share price of $6.30, this represents yields of 5.4% and 5.9%, respectively.

The broker has a buy rating and $8.70 price target on IPH’s shares.

The post Analysts name 3 ASX income stocks to buy now 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 recommended IPH. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With a new month on the horizon, now could be a good time to look at any additions you could make to your portfolio.

And if you’re a fan of growth shares, then it could be worth checking out the two ASX shares listed below that have been named as buys.

Here’s what you need to know about them:

Life360 Inc (ASX: 360)

Analysts at Bell Potter think that this location technology company’s shares could still be great value despite rocketing this year. The broker currently has a buy rating and $17.75 price target on its shares.

It has been impressed with Life360’s quicker than expected growth and believes this bodes well ahead of the seasonally strong third quarter of the year. The broker said:

Life360 put out a media release saying it has just reached 2m global paying circles. This was notably ahead of our forecast which was 1.98m at 30 June 2024 and an increase of 86k in 2Q2024. The figure at 31 March 2024 was 1.90m so this indicates the company has already added c.100k this quarter and will exceed the 96k added in 1Q2024. This far exceeds the growth of 73k in 1Q2023 and 62k in 2Q2023 which was admittedly after the material price rises which were put through for iOS users in the US in 4Q2022. We also note that Q1 and Q2 are traditionally not the strongest quarters for paying circle growth and this rather is in Q3 with back-to-school in the US so the current momentum suggests another quarter of around 100k or more in 3Q2024.

Light & Wonder Inc. (ASX: LNW)

Over at Morgans, its analysts are feeling bullish about Light & Wonder and see it as an ASX growth share to buy.

Light & Wonder, which was formerly known as Scientific Games, is an American cross-platform global games company that provides gambling products and services. Morgans currently has an add rating and $172.00 price target on its shares.

After winning market share in Australia, the broker believes the company is well-positioned to repeat this in the United States. It said:

We initiate coverage of Light & Wonder (LNW) with an ADD rating and a 12-month target price of A$172. LNW develops gaming content, hardware and technology solutions for traditional land-based, as well as digital customers and players. LNW is dual-listed on the Nasdaq (primary listing) and ASX. Since restructuring and rebranding from Scientific Games a few years ago, its experienced team has captured significant land-based share in Australia. We believe LNW can replicate this in the US. Additionally, its digital segments are also performing well with its social casino division, SciPlay, significantly outpacing the rest of the market. On our estimates, LNW is on an attractive FY25F PER (based on EPSA) of 14x, with an EV/EBITDA of 9x and a free cashflow (FCF) yield of 6%.

The post 2 exciting ASX growth shares to buy in July appeared first on The Motley Fool Australia.

More reading

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

Now could be the time to buy Paladin Energy Ltd (ASX: PDN) shares.

That’s the view of analysts at Bell Potter, which have just upgraded the ASX uranium stock.

What is the broker saying about this ASX uranium stock?

Bell Potter notes that Paladin Energy has announced an all-scrip deal to acquire Fission Uranium (TSX: FCU).

While this will mean ~30% dilution for shareholders, Bell Potter points out that they will gain exposure to one of the pre-eminent uranium assets in the Athabasca Basin for an attractive price.

And although the broker acknowledges that the acquisition won’t add any new production in the immediate term, it won’t be too far into the future until it does. In the meantime, its Langer Heinrich Mine will be able to fund developments. It said:

Our largest drawback to PDN prior to the announcement was the lack of viable near term growth options in the portfolio. This drawback is effectively removed with the inclusion of FCU’s Paterson Lakes (PLS) project, a high-grade unconformity uranium project in Saskatchewan Canada. PLS aims to commence production in FY29, averaging ~9Mlbspa over 10 years.

We believe this profile fits neatly with production from PDN’s Langer Heinrich Mine (LHM), which will be in its 5th/6th year of operations and producing ~US$200-$220m in free-cash-flow providing potential funding options for PLS.

In light of this, the broker sees scope for the ASX uranium stock to be producing 15Mlbs annually by the end of the decade. It adds:

By the turn of the decade, PDN could be producing ~15Mlbs U3O8 annually (13.5Mlbs attributable) across two sites. The question is what is the new business worth? On a EV/ lb of production value, we would argue it’s significantly more than the current implied combined market capitalization. On a DCF basis, it sits somewhere in between. Either way, we argue the new PDN is bigger and better.

Buy the dip

Bell Potter notes that Paladin Energy’s shares have sold off since last month, which it feels has created a buying opportunity.

As a result, it has upgraded the ASX uranium stock to a buy rating with a $16.10 price target. This implies potential upside of approximately 30% for investors over the next 12 months. The broker concludes:

PDN has sold off since we moved to a Hold in May-24. We see this as a potential buying opportunity Irrespective of the transaction. We ascribe some additional value for the FCU transaction in this note and assume the deal goes through. Our recommendation moves to Buy, TP $16.10 (previously $15.70).

The post Guess which ASX uranium stock was just upgraded to a buy rating appeared first on The Motley Fool Australia.

More reading

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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.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to the release of a number of broker notes this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

Bellevue Gold Ltd (ASX: BGL)

According to a note out of Goldman Sachs, its analysts have initiated coverage on this gold miner’s shares with a buy rating and $2.20 price target. Goldman highlights that Bellevue Gold is now largely through its initial ramp up. As a result, it sees the business as well positioned and attractively priced compared to mid-cap peers. Especially given its higher average grades, stronger margin generation, and near-term free cash flow yields of ~10%. Goldman also sees low-cost mill expansion and underground optionality potentially supporting further upside for the company in the medium term. The Bellevue Gold share price is trading at $1.71 on Wednesday.

Collins Foods Ltd (ASX: CKF)

A note out of UBS reveals that its analysts have upgraded this quick service restaurant operator’s shares to a buy rating with an improved price target of $11.50. This follows the release of its FY 2024 results on Tuesday that were comfortably ahead of expectations. In addition, while some investors may be concerned with its soft start to FY 2025, with sales down 0.8% on a like for like basis, UBS isn’t fazed by this. In fact, it feels it is a strong showing given the tough comparables its KFC Australia business is facing. UBS also suggests that as its comparables ease in the second half, it could return to growth on a like for like basis. The Collins Foods share price is fetching $9.22 this afternoon.

Perpetual Ltd (ASX: PPT)

Analysts at Bell Potter have retained their buy rating and $27.60 price target on this fund manager’s shares. According to the note, the broker believes the market is undervaluing Perpetual’s business after announcing the sale of its Corporate Trust (CT) and Wealth management (WM) businesses to KKR for $2.175 billion. It thinks the company should be value at 6.3x FY 2025 EBITDA, which is in line with global peers. This values the company at $18.17 per share and then the remaining value comes from its estimated cash distribution following the sale of the CT and WM businesses. Bell Potter sees scope for a distribution of up to $9.55 per share. The Perpetual share price is trading at $21.07 at the time of writing.

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

More reading

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