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Perpetual Ltd (ASX: PPT) shares could be a bit of a bargain buy right now.

That’s the view of analysts at Bell Potter, which feel that the ASX 200 fund manager stock is being undervalued by the market.

What is the broker saying about this ASX 200 stock?

Bell Potter notes that the company recently announced the sale of its Corporate Trust (CT) and Wealth management (WM) businesses to KKR for $2.175 billion.

It was pleased with the price, highlighting that it was ahead of its expectations of $1.5 billion to $1.9 billion.

The broker assumes a tax liability of $100 million to $400 million and expects the sale to result in a cash payment to shareholders of between $804 million to $1,104 million or $6.95 to $9.55 per share.

Adjusting for the above, the broker believes this leaves the ASX 200 stock trading at a level that makes it undervalued compared to peers. It explains:

Deducting the range of cash payments above, from the current market cap, we estimate the asset management business is being valued at between $1.3-1.6bn including cash and balance sheet assets (seed capital and holdings). Adjusting for these, implies the residual asset management business is being valued at between 3.5x-5.5x EBITDA. We believe this is too low for an international asset manager. Valuing the residual asset management business on 6.3x FY25 would imply a value of $2.1bn or $18.17/per share.

‘Considerable upside’

In light of the above, the broker has reaffirmed its buy rating and $27.60 price target on the ASX 200 stock. Based on its current share price of $21.27, this implies potential upside of 30% for investors over the next 12 months.

In addition, the broker is forecasting dividend yields of 6.4% in FY 2024 and then 7.7% in FY 2025.

Commenting on its valuation, the broker said:

As we draw closer to the demerger, the outcome for shareholders will depend upon the level of tax and deal costs associated with the sale, and current trading. Our unchanged price target of $27.60/sh is at the top of this range of outcomes ($18.17 for AM plus a cash distribution up to $9.55), as we are comfortable with the lower tax estimation, although we have increased our estimate of deal costs (to $200m from $100m). We continue to see considerable upside from the current share price. We have not changed our forecasts in this note, although as the demerger proceeds, we expect to adjust our forecasts for profitability, debt costs and dividends.

The post Guess which ASX 200 stock has ‘considerable upside’ appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday

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.

Innovation is one of the buzzwords of the international business world and stock markets these days.

Low productivity growth is a significant and persistent challenge across many Western nations.

Innovation is seen as essential to turning this around. Technological advancements like artificial intelligence (AI) are among many innovation measures that companies are exploring today.

Innovation means developing new products and services that deliver new revenue. It also means developing new business methods that increase efficiency and thereby raise productivity.

At the recent ASX Investor Day, Betashares investment strategist Tom Wickenden discussed the importance of innovation in powering shareholders’ returns.

He also provided some tips for investors on how to spot an innovation stock in their research.

Which are the best innovation stocks of our era?

Wickenden points out that seven of the nine listed companies that ever reached a trillion-dollar market capitalisation are United States stocks that achieved this feat through major innovation.

Those stocks are known as the Magnificent Seven. They are Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG), Meta Platforms Inc (NASDAQ: META), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc (NASDAQ: AAPL), Nvidia Corp (NASDAQ: NVDA), Microsoft Corp (NASDAQ: MSFT), and Tesla Inc (NASDAQ: TSLA).

What makes them so magnificent?

The short answer is incredible revenue growth and, hence, share price growth over the past 10 years.

All seven stocks are listed on the NASDAQ-100 Index (NASDAQ: NDX), which Wickenden describes as “the home of innovation globally”.

The NASDAQ 100 has many technology stocks, but that’s not the only sector represented.

For example, six of the Mag Seven are US tech shares. The outlier is Tesla, a consumer cyclical stock.

Tesla is certainly an innovation leader among car manufacturers. It’s now the second-biggest electric vehicle manufacturer in the world.

Other companies in other sectors are also innovation leaders.

In the healthcare sector, consider the companies producing GLP-1 medicines. Their innovation has led to new medicines with incredible efficacy in treating the worldwide epidemic disease of obesity.

Consider the energy companies pioneering renewables in the era of decarbonisation. And so on.

How do you identify an innovation stock?

Wickenden says innovation requires a serious commitment to research and development (R&D).

So, examining a company’s R&D spending is a good place to start in identifying an innovation stock.

Take a look at the amount of money spent on R&D, the percentage of profits reinvested, and whether R&D investment is rising.

He emphasises that a large R&D spend doesn’t guarantee success, so investors need to conduct further research once they’ve identified stocks that are investing in innovation.

Investors need to find out what products, services or business practices have improved due to R&D, and whether this has translated into revenue growth that is likely to be ongoing.

Wickenden said the NASDAQ 100 is “home to some of the most innovative companies in the world and also some of the biggest R&D spenders in the world”.

Wickenden stated:

We can see … over the past 10 years huge growth of research and development spending has coincided with huge growth of revenue and ultimately earnings growth for that index compared to other companies globally and especially compared to the Australian market.

Innovation often requires companies to “cannibalise” their own market share, Wickenden explains. This means developing products and services that make a company’s existing ones irrelevant.

If they fail to do so, they are likely to “succumb to new players in the market” as technology advances.

Case study: Microsoft

Ten years ago, Microsoft was a leader in locally stored enterprise software.

However, it chose to invest tens of billions in cloud computing — which would eventually make locally stored software redundant — and this has delivered exceptional revenue growth.

Between 2011 and 2014, Microsoft was the second-biggest R&D spender in the world behind Samsung Electronics Co Ltd (LSE: BC94).

Wickenden said:

Interestingly, in 2011 … they spent 90% of their research and development expenses on a cloud computing division. And … that cloud computing division is driving their growth in terms of revenue and earnings and, ultimately, their share price growth.

Today, Microsoft’s cloud computing division alone delivers more revenue than Australia’s Big Four ASX 200 bank shares combined.

The banks’ combined revenue has been nearly stagnant at about $80 billion over many years.

This is partly because the scope for innovation in a mature sector like banking is far lower than in the information technology sector.

Meantime, revenue from Microsoft’s cloud computing division has skyrocketed. Its leapt from nearly AU$30 billion in 2015 to more than AU$120 billion in 2023, Wickenden said.

Since January 2015, the Microsoft share price has risen by about 850% to US$$447.67 today.

But if doing all this research is too much trouble, Wickenden says the exchange-traded fund (ETF) Betashares Nasdaq 100 ETF (ASX: NDQ) provides a simple way to invest in many innovation stocks.

Over the past five years, the NDQ ETF share price has risen 135%, while the ASX 200 has risen 18.5%.

The post How do you spot an innovation stock? appeared first on The Motley Fool Australia.

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• 5 excellent ASX ETFs to grow your wealth
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• 4 of the best ASX ETFs to buy and hold for a decade
• Want to buy Nvidia but don’t have a US share account? Buy these ETFs instead

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Income investors are a lucky bunch. The Australian share market is home to a large number of dividend shares.

But which two could be among the best to buy right now? Let’s take a look at a couple that analysts are tipping as top buys:

Transurban Group (ASX: TCL)

Bell Potter thinks that Transurban could be one of the best Australian dividend shares to buy. It manages and develops urban toll road networks in Australia and the United States.

The broker likes the company due to its positive exposure to inflation and low risk cashflows. It said:

We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group’s current pipeline of growth projects is $3.3 billion (TCL’s share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.

Bell Potter is forecasting dividends per share of 63.6 cents in FY 2024 and then 65.1 cents in FY 2025. Based on the current Transurban share price of $12.81, this will mean dividend yields of 5% and 5.1%, respectively.

The broker has a buy rating and $15.50 price target on its shares.

Woodside Energy Group Ltd (ASX: WDS)

Morgans thinks that Woodside Energy could be a top income share to buy right now. It is one of the world’s largest energy producers with high-quality operations across the globe.

The broker likes the company due to its “high-quality earnings” and attractive valuation. It said:

A tier 1 upstream oil and gas operator with high-quality earnings that we see as likely to continue pursuing an opportunistic acquisition strategy. 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.

In respect to dividends, Morgans is forecasting Woodside to pay fully franked dividends of $1.25 per share in FY 2024 and then $1.57 per share in FY 2025. Based on its current share price of $27.96, this represents dividend yields of 4.5% and 5.6%, respectively.

The broker has an add rating and $36.00 price target on its shares.

The post 2 of the top dividend shares in Australia appeared first on The Motley Fool Australia.

More reading

• Beat the ASX with these cash-gushing dividend stocks
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Buying ASX 200 energy shares? Here’s what to expect in FY 2025
• Buy Coles and these ASX 200 dividend stocks

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 Transurban 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.

There are a lot of options for investors in the mining sector. But one of the best right now could be Bellevue Gold Ltd (ASX: BGL).

That’s the view of analysts at Goldman Sachs, which have just initiated coverage on the gold miner’s shares.

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

According to the note, Goldman believes that Bellevue Gold’s shares are undervalued at current levels based on its long term gold price assumptions.

The broker also highlights its compelling expansion potential and significant mine optionality. It said:

Compelling expansion potential, where BGL has proven capability to grow processing capacity 20% to 1.2Mtpa (no further capital expected), where we factor in a ramp-up to a ~1.2Mtpa run rate by the end of FY25. A study is in progress for expansion to 1.5Mtpa (expected 1HFY25), where existing oversized equipment (crusher/proposed paste plant) helps mitigate capex requirements, supporting increased gold production of ~250koz (ramp up through FY27E), with a highly compelling IRR under various gold price scenarios.

In respect to its mine optionality, Goldman adds:

Significant mine optionality from investment to-date de-risks ore access/exploration, where recent drilling highlighted assays with significantly higher grades than current resources (from already above peer gold grades), and potential for additional high-grade shoots. On our estimates, a prolonged mine life from resource extension could add ~A$430mn/~20% to our NAV from a 5-year mine extension (excluding the 1.5Mtpa mill expansion), with further upside if LT prices are closer to spot.

Goldman tips big returns

The note reveals that the broker has initiated coverage on the ASX 200 mining stock with a buy rating and $2.20 price target.

Based on its current share price of $1.77, this implies potential upside of 24% for investors over the next 12 months.

And while no dividends are expected in the near term, Goldman sees potential for capital returns in the future. This is based on its strong free cash flow (FCF) yields. It concludes:

Relative to peers, BGL remains undervalued in our view, trading at ~1x NAV or pricing in our LT gold price of US$1,800/oz (peer average ~1.1x NAV and ~US$1,900/oz), and near-term FCF yields of c. 10% in FY25/26 remain attractive vs. peers and support upside to the outlook for possible future capital returns (despite ~25% of medium-term gold sales being hedged at ~A$2,700-2,900/oz).

All in all, this could make Bellevue Gold one to consider if you’re looking for mining sector exposure.

The post Goldman Sachs just slapped a buy rating on this ASX 200 mining stock appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• As ASX gold stocks cool off, here are 2 to buy when the price is right
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

Do you have room for some new ASX dividend shares in your income portfolio?

If you do, then it could be worth looking at the three names in this article.

That’s because analysts think they are in the buy zone and destined to provide investors with some very attractive dividend yields.

Here’s what they are forecasting from them:

Aurizon Holdings Ltd (ASX: AZJ)

Analysts at Ord Minnett think that Aurizon could be an ASX dividend share to buy. It is a rail freight operator with a network spanning thousands of kilometres. With this network it transports a range of commodities, including mining, agricultural, industrial and retail products for a diverse range of customers across Australia.

The broker is positive on the company due partly to its belief that coal usage in China and India will continue to keep Aurizon busy for a long time to come. The broker expects this to underpin partially franked dividends of 18.6 cents per share in FY 2024 and then 24.4 cents per share in FY 2025. Based on the current Aurizon share price of $3.69, this will mean dividend yields of 5% and 6.6%, respectively.

Ord Minnett has an accumulate rating and $4.70 price target on its shares.

Charter Hall Retail REIT (ASX: CQR)

Another ASX dividend share that analysts are bullish on is the Charter Hall Retail REIT. It is a property company with a focus on supermarket anchored neighbourhood and sub-regional shopping centre markets.

Citi likes the company due partly to its inflation-linked rental increases. It is expecting this to underpin dividends of 28 cents per share in both FY 2024 and FY 2025. Based on the current Charter Hall Retail REIT share price of $3.38, this will mean very large yields of 8.3%.

Citi has a buy rating and $4.00 price target on its shares.

Eagers Automotive Ltd (ASX: APE)

A third ASX dividend share that analysts are tipping as a buy is Eagers Automotive. It is the leading automotive retail group in Australia and New Zealand.

Bell Potter believes that recent share price weakness has created a buying opportunity for income investors. Especially given its expectation for above-average dividend yields in the near term.

It is forecasting fully franked dividends of 64.5 cents per share in FY 2024 and then 73 cents per share in FY 2025. Based on its current share price of $10.89, this represents dividend yields of 5.9% and 6.7%, respectively.

The broker has a buy rating and $13.35 price target on its shares.

The post Buy these ASX dividend shares with ~5% to 8% yields appeared first on The Motley Fool Australia.

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Aiming to beat the ASX with some cash-gushing dividend stocks?

You’re not alone!

Below we look at three high-yielding ASX dividend stocks that have been smashing the average yields delivered by ASX shares.

So, if it’s market-beating passive income you’re after, read on.

Three high-yielding ASX dividend stocks

Before we proceed, note that the yields you generally see quoted are trailing yields. Future yields can be higher or lower depending on a range of company-specific and macroeconomic factors.

And while we’re looking at three cash-gushing ASX dividend stocks here, the ideal passive income portfolio will contain more than ten companies. Ideally, these will operate in different sectors and geographic locations. That kind of diversity will lower the overall risk to your income portfolio.

With that said, the first dividend stock to buy to beat the ASX is Australia and New Zealand Banking Group Ltd (ASX: ANZ).

ANZ shares have been on fire over the year gone by, soaring more than 26% over 12 months.

As for that passive income, ANZ paid a final partly franked dividend of 94 cents a share on 22 December. The S&P/ASX 200 Index (ASX: XJO) bank will pay the interim dividend of 83 cents a share on Monday, 1 July.

That equates to a full-year payout of $1.77 a share, and it sees ANZ shares trading on a partly franked dividend yield of 6.14%.

Which brings us to the second ASX dividend stock to buy to beat the ASX, Yancoal Australia Ltd (ASX: YAL).

The Yancoal share price has also rocketed over the past year, up a whopping 42% over 12 months.

And that’s not including the two super-sized dividends the ASX coal miner paid out over the year.

Yancoal paid a fully franked interim dividend of 37 cents per share on 29 September. The coal stock paid the final dividend of 32.5 cents a share on 30 April. That works out to a full-year payout of 69.5 cents a share.

And it sees this top stock trading on a fully franked yield of 11.05%. Take that ASX!

Rounding off our list of high-yielding ASX dividend stocks is Woodside Energy Group Ltd (ASX: WDS).

Unlike our other two ASX smashing companies, the Woodside share price has lost ground over the past year, down 17%.

But the oil and gas company continued to please passive income investors. Woodside paid a fully franked interim dividend of $1.243 a share on 28 September and a final dividend of 91.7 cents a share on 4 April for a full-year payout of $2.16 a share.

That sees this ASX dividend stock trading on a fully franked trailing yield of 7.72%.

The post Beat the ASX with these cash-gushing dividend stocks appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Buying ASX 200 energy shares? Here’s what to expect in FY 2025
• Own ANZ shares? You need to know these important dates
• Buy Coles and these ASX 200 dividend stocks

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.

With the global uranium race heating up, investors may want to run their slide rule over ASX exchange-traded fund (ETF) Betashares Global Uranium ETF (ASX: URNM).

URNM is intended to track the performance of a basket of Australian and international uranium miners.

You can buy and sell shares in this top ASX ETF just like you would with individual stocks.

And it gives you instant diversification and exposure to 38 leading uranium producers across the globe.

Launched in June 2022, URNM’s top four holdings are internationally listed companies:

• Cameco Corp
• NAC Kazatomprom JSC
• Sprott Physical Uranium Trust
• CGN Mining Co LTD

Two leading ASX uranium stocks are also in the ETF’s top 10 holdings. Namely Paladin Energy Ltd (ASX: PDN) and Boss Energy Ltd (ASX: BOE).

Australia is second only to Canada in terms of URNM’s country allocation, with Kazakhstan at number three and the United States at number four.

The ASX ETF has been running hot amid the global uranium renaissance. According to Betashares, as at 31 May and including dividends, the fund had returned 89.4% over the prior 12 months (although returns will have partially retreated from this figure as at the time of writing).

ASX ETF making hay amid global nuclear revival

As you’re likely aware, nations around the world are fast reversing their opposition to nuclear energy as a means to provide reliable baseload power without carbon emissions.

And that change in sentiment has been a boon for this ASX ETF.

Today, at least 58 new nuclear power stations are under construction across 16 countries. Twenty-two of these are in China, with India also investing heavily in new nuclear plants.

But the world’s two most populous nations aren’t alone.

In December, 22 nations – including the United States, Japan and France – pledged to triple their nuclear power capacity by 2050.

And in good news for uranium producers and this ASX ETF, the US Government recently unveiled a major spending package to up its nuclear capacity.

According to US Energy Secretary Jennifer Granholm:

We are entering a new era of nuclear energy, our single largest source of carbon-free electricity. We plan to invest up to US$900 million to accelerate nuclear deployment, add more small modular reactors, and reach more Americans with clean energy.

With uranium supply growth trailing demand growth, uranium prices hit all-time highs of around US$107 per pound in late January, up from an average of US$67 per pound in 2023.

Prices have come down from there, recently trading for US$86 per pound. That’s also seen the URNM share price drop by around 12% over the past month.

But with uranium demand widely expected to outstrip new supplies for years yet, I believe that’s just a bump in the road for longer-term investors in the top ASX ETF and could present an excellent entry point.

What are the experts saying?

Commenting on the global nuclear renaissance Guy Keller, fund manager at Tribeca Investment Partners said (quoted by The Australian Financial Review):

I think the real change has been global … which has made it much more politically safe… There has been a massive, wholesale global adoption of nuclear technology and its ability to solve decarbonisation of the electricity grid, and also some very serious energy security concerns.

Regal Partner’s Phil King is among those forecasting tight uranium supplies are likely to persist for some time.

According to King:

We’re seeing a huge rollout of nuclear plants all around the world, and this is very much led by India and China. Because of the time it takes to get new mines into production, this … almost guarantees that we’re facing a very, very tight scenario for uranium.

With this “very tight scenario for uranium” in mind, I think this ASX ETF looks well placed for more outperformance in the year ahead.

The post 1 top ASX ETF to buy now as the global uranium race heats up appeared first on The Motley Fool Australia.

More reading

• Why these 5 ASX ETFs could be quality options for investors
• Here’s why ASX uranium shares like Deep Yellow are running hot 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 recommended Cameco. The Motley Fool Australia has recommended Betashares Global Uranium Etf. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a very strong session and raced higher. The benchmark index stormed 1.35% higher to 7,838.8 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to fall

It looks set to be a red day for the Australian share market on Wednesday despite a relatively positive session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.45% lower. On Wall Street, the Dow Jones was down 0.75%, but the S&P 500 pushed 0.4% higher and the Nasdaq climbed 1.25%.

Oil prices fall

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough day after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1.1% to US$80.77 a barrel and the Brent crude oil price is down 1.2% to US$84.94 a barrel. Easing tensions between Israel and Lebanon were behind the weakness.

Buy Bellevue Gold shares

The Bellevue Gold Ltd (ASX: BGL) share price is good value according to analysts at Goldman Sachs. This morning, the broker has initiated coverage on the gold miner with a buy rating and $2.20 price target. This implies potential upside of 24% for investors. It said: “With BGL largely through initial ramp up, we see the business well positioned amongst mid-cap peers at ~200-250kozpa gold production, with higher average grades and stronger margin generation, where low cost mill expansion/underground optionality support further upside.”

Gold price falls

ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price eased overnight. According to CNBC, the spot gold price is down 0.6% to US$2,331.1 an ounce. A stronger US dollar and widening bond yields put pressure on the precious metal.

Perpetual rated as a buy

Analysts at Bell Potter think investors should be buying Perpetual Ltd (ASX: PPT) shares. According to a note, the broker has reaffirmed its buy rating and $27.60 price target on the fund manager’s shares. This implies potential upside of 30% for investors. Its analysts continue to believe that Perpetual’s shares are undervalued by the market. They said: “We continue to see considerable upside from the current share price.”

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

More reading

• Here are the top 10 ASX 200 shares today
• Buying ASX 200 energy shares? Here’s what to expect in FY 2025
• Want gold exposure? Goldman Sachs says this ASX 200 gold stock is a buy
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

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 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.

Your compulsory Superannuation Guarantee payment will rise from 11% to 11.5% of earnings and Stage 3 tax cuts will kick in from next week.

Let’s take a look at the details.

Superannuation changes starting next Monday

The Superannuation Guarantee ascends again from 1 July from 11% of earnings to 11.5% of earnings.

This is the payment made by your employer directly into your superannuation fund.

Say your salary is $100,000 plus superannuation. In FY24, you will have received $11,000 via the Superannuation Guarantee. In FY25, you will receive an extra $500 with your payment rising to $11,500.

Another superannuation change coming into effect next week is an increase in the personal concessional contributions cap from $27,500 to $30,000 for FY25. More about this later.

What about those tax cuts?

Every taxpayer will receive a tax cut from 1 July under the amended Stage 3 tax cuts.

Here are a few examples of how the tax cuts will affect wage earners.

Example 1. A worker earning $55,000 per year will save $1,054 per year in tax.

Example 2. A worker earning $80,000 per year will save $1,679 per year in tax.

Example 3. A worker earning $140,000 per year will save $3,729 per year in tax.

Here are the individual tax rate tables for FY24 and FY25. Use the following details to work out the exact tax savings you will receive based on your specific salary.

Resident tax rates FY25

Taxable income	Tax on this income
$0 – $18,200	Nil
$18,201 – $45,000	16 cents for each $1 over $18,200
$45,001 – $135,000	$4,288 plus 30 cents for each $1 over $45,000
$135,001 – $190,000	$31,288 plus 37 cents for each $1 over $135,000
$190,001 and over	$51,638 plus 45 cents for each $1 over $190,000

Resident tax rates FY24

Taxable income	Tax on this income
$0 – $18,200	Nil
$18,201 – $45,000	19 cents for each $1 over $18,200
$45,001 – $120,000	$5,092 plus 32.5 cents for each $1 over $45,000
$120,001 – $180,000	$29,467 plus 37 cents for each $1 over $120,000
$180,001 and over	$51,667 plus 45 cents for each $1 over $180,000

One week left to add extra funds to superannuation

There is only one week left to make personal contributions to your superannuation (and pick up the substantial tax concession that comes with it) before FY24 ends.

Personal superannuation contributions (up to the cap of $27,500 for FY24) are taxed at just 15%. This is far lower than most workers’ marginal tax rates.

Personal contributions include the compulsory superannuation guarantee paid by your employer, any salary sacrificing you have arranged, and any extra money you choose to add yourself before 30 June.

Here’s how the tax concession works.

Say you contribute $8,000 of post-tax earnings into superannuation. Your super fund will pay the 15% tax on your behalf. That will leave $6,800 to be invested in accordance with your selected strategy.

When you fill in your tax return, you will claim an $8,000 tax deduction, effectively cancelling out the original tax you paid on the $8,000.

Findex tax advisory partner Alex Duonis explains the benefit:

A high earning taxpayer may obtain a tax deduction at a rate of up to 47.5% in respect of such super contributions but may only pay contributions tax at the fund level of 15%, thus generating a potential immediate tax arbitrage benefit of 32.5%.

Make sure you check out all the rules relating to personal concessional superannuation contributions before making any decisions.

After depositing your funds, you must fill in a Notice of Intent to Claim or Vary a Deduction for Personal Super Contributions form and send it to your superannuation fund.

The post Superannuation and tax changes starting next week appeared first on The Motley Fool Australia.

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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.

The Pilbara Minerals Ltd (ASX: PLS) share price has sunk 35% in the last 12 months, as shown on the chart below. With FY25 just around the corner, it’s worthwhile considering if the ASX lithium share can recharge investor returns.

The ASX mining share has been struggling with the commodity price sinking. In the quarterly update for the three months to 31 March 2024, it revealed that its realised price for its production dropped 28% to US$804 per tonne, down from US$1,113 per tonne for the three months to December 2023.

Commodity businesses’ profits are closely linked to the strength of the commodity price. Production costs don’t cost much month to month, so a decrease in revenue significantly harms net profit as well, which can then flow onto the share price. That’s what has happened to Pilbara Minerals shares.

Lithium price stabilising

Pilbara Minerals reported in the quarterly update that, compared to the December 2023 quarter, the lithium price stabilised and then increased towards the end of the March 2024 quarter. A pre-auction sale in March of 5,000 dry metric tonnes (dmt) at a price of US$1,106 per dmt reflects the “ongoing demand and positive pricing for unallocated production volume”.

UBS said last week in a note that it thinks a spot price of US$1,050 to US$1,075 per tonne is a “fair reflection of a well-supplied market.”

The broker thinks the market is still pricing in a lithium rebound to US$1,440 per tonne based on the Pilbara Minerals share price. UBS suggests it could take a couple of years for the lithium price to return to UBS’ long-term target of US$1,400 per tonne.

UBS notes the recent announcement of a pre-feasibility study by Pilbara Minerals that shows the Pilgagoora project could expect to be 2mt per annum in the future.

However, in the short term:

We continue to see the market well supplied and now longer-term we see plans from the likes of P2000 and Zijin Mining’s Manono as quickly solving any potential 2030 deficit.

FY25 forecast for Pilbara Minerals shares

UBS now predicts the ASX lithium share can generate $1.27 billion of revenue in FY24 and FY25, while net profit after tax (NPAT) could increase to $398 million in FY24, up from a projected $359 million in FY24.

The UBS price target on Pilbara Minerals shares is $2.70, which currently suggests a 14% decline over the next 12 months from where the valuation sits today.

The post Is the Pilbara Minerals share price on track for a strong recovery in FY25? appeared first on The Motley Fool Australia.

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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.