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S&P/ASX All Ordinaries Index (ASX: XAO) shares are down 0.073% in early trading on Tuesday.

Meantime, The Australian reports that brokers have upgraded their ratings on these three ASX shares.

Let’s check them out.

3 ASX shares just upgraded by the experts

ASX communications share has ‘a very strong position’, says Citi

Citi has raised its rating on ASX large-cap communications share CAR Group Limited (ASX: CAR) from hold to buy. The broker has placed a 12-month price target of $39.80 on Car shares.

The broker expects double-digit earnings growth over the medium term. It is tipping earnings per share (EPS) growth of 17% for FY24 compared to the 13.2% achieved in FY23.

We’ll find out if Citi is right on 12 August when Car Group reports its full-year results.

Citi analyst Siraj Ahmed said:

While another RBA rate rise and weakening demand are risks to the Australian business, we see Car Group having a very strong position and expect it to deliver solid growth even in a tough environment.

Goldman Sachs also has a buy rating on Car shares. The broker recently raised its price target to $41.40.

As we recently reported, Car Group was the top-performing stock of the communications market sector in FY24. The Car share price surged by 48% over the financial year.

The ASX communications share is currently $35.89, up 2.08% today and 14.33% in the year to date.

Broker positive on ASX real estate share

JP Morgan has commenced coverage on ASX mid-cap property share PEXA Group Ltd (ASX: PXA). The broker has given the stock an overweight rating and a $15 price target over the next 12 months.

Late last month, the Australian Registrars National Electronic Conveyancing Council (ARNECC) ceased its interoperability program, which aimed to enable more competition for electronic conveyancing services. The news lifted PEXA shares by 2.06% on the day.

PEXA will release its full-year FY24 results on 21 August.

The PEXA share price is $14.21, up 3.57% on Tuesday and 28.83% in the year to date.

10% potential upside on ASX industrials share

Barrenjoey has raised its rating on diversified industrials and investment company Seven Group Holdings Ltd (ASX: SVW) to overweight. The broker has a 12-month share price target of $40 on the stock.

Seven Group was the No. 1 stock for price growth in the industrials market sector in FY24. Seven shares rose by 52.9% over the 12-month period.

Last week, Seven announced it would pay a fully franked final dividend of 30 cents per share, up 30% on last year. The ex-dividend date is 19 August, and shareholders will be paid on 2 September.

This brings Seven’s total dividends for FY24 to 53 cents per share, equating to a dividend yield of 1.45%.

The Seven share price is $36.35, up 1.42% on Tuesday and down 2.21% in the year to date.

The post Brokers say buy! 3 ASX shares receiving upgrades today appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy now
• Buy this ASX tech stock for a 20%+ return: Goldman Sachs
• 5 things to watch on the ASX 200 on Friday
• Why Ora Banda, Paladin Energy, Seven Group, and Telix shares are charging higher
• The best ASX 200 share of each market sector in FY24

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

ResMed Inc (ASX: RMD) shares have been on an interesting journey this year to date. The stock is around 20% higher since January, and hit yearly highs of $33.10 in May after a volatile period.

This pertains to the market’s response to various announcements regarding GLP-1 weight loss medications, which have had far-reaching effects.

The thinking is that these compounds could impact everything from obesity and blood pressure to lifestyle and food choices, including respiratory and sleep disorders. Naturally, companies in the healthcare industry have seen their share prices wobble as new studies emerge on these drugs.

In fact, despite their impressive run in 2024, Resmed shares are currently trading at $30.49, down more than 6% over the past 12 months.

Despite this decline, some analysts believe now is a good time for investors to consider adding this ASX 200 healthcare stock to their portfolios.

Resmed shares rated buy

Brokers are generally bullish on Resmed shares. According to CommSec, consensus rates the company a buy.

Bell Potter is one of those firms. It points to the company’s consistent annual profit before tax increases and a 7% revenue boost in Q3 FY 2024.

Analyst Christopher Watt believes ResMed’s growth trajectory is solid, despite recent concerns over the impact of weight loss drugs, according to The Bull.

This means it could be undervalued, offering “an attractive entry level” to buy the stock.

[Resmed] shares suffered in the first half of fiscal year 2024 over investor concerns regarding the potential negative impact that weight loss and diabetes drugs could have on its business. 

However, RMD lifted revenue by 7 per cent in the third quarter of fiscal year 2024 when compared to the prior corresponding period. Income from operations increased by 25 per cent. In our view, RMD is undervalued and presents an attractive entry level for long term investors.

Earlier in the year, the broker estimated that more than a billion people worldwide suffer from obstructive sleep apnoea (OSA), with many remaining undiagnosed. This could be a tailwind for ResMed, it says.

Bell Potter has set a price target of $36.00 for ResMed shares.

Morgans also rates Resmed a buy. According to my colleague James, it sees weight loss drugs as “having little impact on the large, underserved sleep disorder breathing market…”.

It has a price target of $34.11 on Resmed shares, around an 11.5% upside potential at the time of writing.

Fundies are also bullish on Resmed. ECP Asset Management finds ResMed’s valuation very appealing. Wilsons’ analysis supports this view, noting that ResMed trades at a significant discount to its historical price-to-earnings (P/E) multiples.

It expects the ASX healthcare stock to rise as concerns about GLP-1 weight loss drugs ease, allowing the market to focus on ResMed’s fundamentals.

Foolish takeaway

Despite market concerns about the impact of GLP-1 weight loss drugs, many experts believe these concerns are overblown for Resmed shares.

Whether or not they are correct remains to be seen. The stock is down around 4.5% in the past month.

As always, broker opinions are just that – opinions. Remember to conduct your own due diligence.

The post Buy Resmed shares at ‘attractive entry level’ says top broker appeared first on The Motley Fool Australia.

More reading

• Why the ResMed share price tanked in FY 2024 and what to expect in FY 2025
• Investing in ASX shares? Why CEO pay DOES matter when misaligned
• Here are the top 10 ASX 200 shares today
• These top ASX 200 growth shares could rise 20% to 45%
• Top ASX shares to buy for FY25

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

The Wesfarmers Ltd (ASX: WES) share price is up 0.3% after the company revealed it had appointed a new director with significant healthcare and services experience. This movement comes with the S&P/ASX 200 Index (ASX: XJO) currently down 0.04%.

Wesfarmers may be best known for its Bunnings, Kmart, and Officeworks retailers, but it also has a growing healthcare division that it wants to expand further.

Some of the businesses inside its healthcare segment include Priceline, the Soul Pattinson Chemist brand, Clear Skincare, SILK Group (which operates laser clinics) and InstantScripts (a digital service to access prescriptions and doctors).

Wesfarmers appoints new director

The company has appointed Kate Munnings to the Wesfarmers board. Munnings has worked across a range of roles, professions, and industries. She started her career as a registered nurse before studying law, practising as a lawyer, and holding senior executive and board positions in healthcare organisations.

Between 2020 and 2023, she was the managing director and CEO of Virtus Health, an ASX-listed assisted reproductive services business that was taken private in 2022. Between 2016 and 2020, Munnings was the chief operating officer of Ramsay Health Care Ltd (ASX: RHC).

Munnings worked at Transfield Services for ten years, from 2006 to 2016, where she finished as the chief executive of operations. She also served as chief risk and legal officer and company secretary.

She’s currently the non-executive director of Ryman Healthcare. Munnings is also the chair of the Digital Health Cooperative Research Centre, as well as the CEO of Vitrafy Life Sciences Ltd.

Leadership comments

The Wesfarmers chair, Michael Chaney, said:

Kate brings a unique blend of experience that will complement the capabilities on our Board and aligns with our focus on delivering shareholder value over the long term. Her background in healthcare will be particularly valuable as Wesfarmers continues to develop its health division.

The new director, Kate Munnings, said:

I look forward to joining Wesfarmers and contributing the insights I have gained from my diverse experiences, particularly most recently within the health sector.

Munnings will stand for election at the Wesfarmers annual general meeting, which is scheduled to be held on 31 October 2024.

What’s the attraction of healthcare?

Wesfarmers noted in its recent 2024 strategy briefing day presentation that the company operates in “large addressable markets with strong growth trends.”

The business said there is a “growing demand for health products and services and increasing role of community pharmacists in primary care.” Wesfarmers also pointed to an “increasing spend on beauty and wellbeing products and services”. The company then noted, “increasing adoption of digital delivery models and growing expectations for more personalised and integrated experiences.”

In total, Wesfarmers thinks there is an addressable market of around $60 billion, with “opportunities in logical adjacencies”. The breakdown of the total addressable market is: a $26 billion addressable market for health, beauty and retail, $23 billion for pharmacy wholesale, $6 billion for medi-aesthetics and $4 billion for digital health.

Time will tell how effective Wesfarmers is at growing in those areas.

Wesfarmers share price snapshot

The chart below shows that the Wesfarmers share price has risen by around 20% since the start of 2024.

The post Wesfarmers share price rises amid healthcare expert appointment appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• Investing in ASX shares? Why CEO pay DOES matter when misaligned
• How I’d aim to build a $75,000 income from ASX shares and never work again!
• ASX 200 re-writes history. Which companies are leading the charge?
• Wesfarmers vs Woolworths: Which are the best ASX shares to buy today?

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

One ASX defence stock is trying to upstage the high-flying DroneShield Ltd (ASX: DRO) on Tuesday.

That stock is Electro Optic Systems Holdings Ltd (ASX: EOS), which comprises two divisions. These are Defence Systems and Space Systems.

The Defence Systems division specialises in technology for weapon systems optimisation and integration, as well as ISR (Intelligence, Surveillance and Reconnaissance) and C4 systems for land warfare. Its key products include next-generation remote weapon systems, vehicle turrets, and high-energy laser weapons (directed energy).

Whereas the Space Systems division includes its Space Technologies and EM Solutions businesses. These are businesses specialising in applying optical sensors and effectors to detect, track and characterise objects in space, as well as delivering RF and optical space communications technology.

Why is this ASX defence stock rocketing?

Investors have been bidding the Electro Optic Systems share price 10% higher to $1.79 this morning following the release of the company’s half year sales update.

According to the release, the company achieved unaudited first half revenue of approximately $142.6 million. This is an increase of 92% on the $74.3 million that it recorded in the prior corresponding period.

However, management has warned that investors should not necessarily expect similar growth in the second half. It explains that “[g]iven the lumpy nature of EOS revenue, quarterly figures should not be used to imply full year estimates.”

Management advised that its strong first half revenue performance was driven by growth across all of businesses. This includes the impact of accelerating production and delivery of remote weapons systems under an existing contract with a customer in the Middle East, growth in the EM Solutions business, and growth in the Space Technologies business.

At the end of the period, the ASX defence stock had an unaudited cash balance of $52.2 million. While this is down from a cash balance of $72.4 million at the end of March, it includes the previously announced repayment of $20.5 million of debt during the month of April.

A further debt repayment of $52.1 million is due in October 2025. This gives the company over a year to build its cash position and make its repayment. Speaking of which, management has not included any cash flow information with this update. However, this will be released to the market before the end of the month.

Following today’s gain, this ASX defence stock is now up over 70% since the start of the year.

The post Guess which ASX defence stock is rocketing 10% today (Hint: not DroneShield!) appeared first on The Motley Fool Australia.

More reading

• ‘Geopolitical risk is unlikely to subside’: Should you pile into ASX defence shares right now?

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 DroneShield and Electro Optic Systems. 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.

IGO Ltd (ASX: IGO) shares are having a tough time on Tuesday.

In morning trade, the battery materials miner’s shares are down 1% to $5.94.

This latest decline means that its shares are now down 61% over the past 12 months.

Why are IGO shares under pressure today?

Investors have been hitting the sell button today after the company completed a detailed review of its exploration portfolio.

As a reminder, IGO has previously announced that it has been undertaking a comprehensive exploration business review. This has included a detailed examination of its portfolio of exploration tenement holdings and land positions.

It notes that the review was focused on rationalising the portfolio and ensuring that the company’s resources are allocated effectively to the targets which are most prospective for commercial success.

What were the results?

According to the release, following the review, IGO expects to record an impairment against these assets in its FY 2024 financial results.

At this stage, the determination of the final impairment value is incomplete and will be subject to audit review.

However, IGO has laid out its expectations for what could appear when it releases its results

It estimates that the impairment charge to its exploration assets will be between $275 million and $295 million for the full year. This impairment relates to the revaluation of the Silver Knight and Mt Goode nickel exploration assets, as well as the broader exploration portfolio rationalisation.

The non-cash impairment will not impact IGO’s FY 2024 EBITDA but will be recorded in the company’s audited financial results when they are released on 29 August 2024.

Should you buy the dip?

While analysts at Goldman Sachs have not yet responded to this update, the broker currently sees IGO shares as a great option for investors looking for battery materials exposure.

Last week, its analysts retained their buy rating with a new price target of $7.15. This implies potential upside of 19% for investors over the next 12 months.

It likes IGO due to its low costs and compelling lithium expansion potential. It said:

Greenbushes is the lowest cost lithium asset in our coverage; Production growth more than offsets increasing strip ratio: The addition of CGP3 (under construction) and CGP4 (planned) should take Greenbushes production capacity from ~1.5Mtpa today to ~2.4Mtpa (excluding tailings processing of ~0.3Mtpa), and they are planned to be funded from existing Greenbushes debt facilities, combined with Greenbushes cash flows (though we factor in below nameplate).

We reiterate our belief that further Greenbushes expansion remains one of the most economically compelling brownfield lithium projects, where the JV also retains significant optionality around extending/converting the TRP, while the resource likely underpins even further expansion (i.e. CGP5, subject to market conditions). Further, we note on our mass balance analysis that JV partners may need further Greenbushes expansions.

The post IGO shares drop on $295 million hit 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 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.

Hub24 Ltd (ASX: HUB) shares are charging higher on Tuesday morning.

At the time of writing, the ASX 200 stock is up almost 4% to a record high of $48.17.

This means the investment platform provider’s shares are up 82% since this time last year.

Why is this ASX 200 stock charging higher?

Investors have been buying Hub24 shares this morning following the release of its fourth quarter update.

According to the release, Hub24 continued to deliver strong growth during the fourth quarter with platform funds under administration (FUA) increasing to $84.4 billion. This represents a 6% quarter on quarter increase and a 35% improvement on the prior corresponding period.

Management notes that this was driven by record quarterly net inflows of $5 billion, which was up 138% on the prior corresponding period.

However, this includes $1.8 billion from EQT. Excluding large migrations, fourth quarter net inflows were $3.2 billion, which is up 50% on the same period last year. This more than offset negative market movement of $0.3 billion for the quarter.

For the 12 months ended 30 June, the ASX 200 stock reported a record year of net inflows. They came in at $15.8 billion, which is up 62% on the prior corresponding period. Management believes this reflects Hub24’s continued market leadership, strong customer relationships, and proven ability to successfully deliver large, complex migrations.

Excluding large migrations, it still achieved a joint record for net inflows of $11.4 billion. This was in line with FY 2022’s net inflows.

Adviser growth

Also growing in the quarter was the number of advisers on its platform.

The ASX 200 stock advised that its proposition continues to resonate with advisers and licensees, delivering a strong pipeline of opportunities.

During the fourth quarter, 29 new distribution agreements were signed and the total number of advisers using the platform increased by 13% to 4,525.

Market share growth continues

Management notes that in the latest available Plan for Life data, Hub24 ranked first for quarterly and annual net inflows. It also had the largest quarterly and annual organic market share gains of all platform providers.

Hub24’s market share increased to 7.3%, which is up from 6.1% at the end of March 2023. This means it is ranked in seventh place overall. This places it just behind Netwealth Group Ltd (ASX: NWL) and AMP Ltd (ASX: AMP), with Insignia Financial Ltd (ASX: IFL) still the clear market leader.

The post Up 80% in a year, why is this ASX 200 stock hitting a record high today? appeared first on The Motley Fool Australia.

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• Why Hub24, Netwealth, Pantoro, and WA1 shares are falling today
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• Buy this ASX tech stock with a $600b opportunity
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• Shares vs. property: Which delivered the best growth in FY24?

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 Hub24 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Rio Tinto Ltd (ASX: RIO) shares are falling on Tuesday.

In morning trade, the mining giant’s shares are down 2% to $116.75.

This follows the release of the company’s second quarter update.

Rio Tinto shares fall on soft Q2 update

For the three months ended 30 June, Rio Tinto reported iron ore production of 79.5Mt and shipments of 80.3Mt. This represents an increase of 2% and 3%, respectively, over the first quarter.

This took the mining giant’s iron ore shipments to 158.3Mt for the half, which is a 2% decline on the prior corresponding period.

Management advised that productivity gains offset ore depletion during the quarter. However, production and shipping were impacted by a train collision in mid-May, which resulted in around six days of lost rail capacity and full stockpiles at some mines.

Elsewhere, aluminium production was flat quarter on quarter at 824kt, but up 3% for the half to 1,650kt. And copper production increased 10% from the first quarter to 171kt and 13% for the first half to 327kt.

How does this compare to expectations?

Goldman Sachs was expecting iron ore shipments of 79Mt for the quarter, whereas the consensus estimate was 82Mt.

With shipments coming in at 80.3Mt, Rio Tinto has outperformed Goldman’s estimate but fallen short of the market’s expectations.

Unfortunately, the miner’s copper production of 171kt has fallen short of estimates. Goldman was forecasting 180kt and the consensus estimate stood at 175kt.

This may explain why Rio Tinto shares are falling today.

Management commentary

Rio Tinto’s chief executive, Jakob Stausholm, appeared to be pleased with the quarter. He said:

Our operational performance continues to progress. While there are still significant improvements ahead, we are beginning to see a step-change in production, including from our Queensland bauxite business following the roll-out of the Safe Production System.

Stausholm also revealed that it is full steam ahead for the US$11.6 billion Simandou iron ore project in Guinea, which has been granted approval today. He adds:

We are growing with discipline in the materials the world needs for the energy transition. Construction of the Simandou high grade iron ore project in Guinea is advancing at pace, the ramp up of the Oyu Tolgoi underground is on track and we are set to achieve first production from the Rincon starter plant by the end of the year.

Outlook

Rio Tinto has held firm with its iron ore shipments guidance for FY 2024. It continues to expect shipments in the range of 323Mt to 338Mt.

And while it has retained its copper guidance, it is now expecting this to be at the lower end of its 660kt to 720kt guidance range.

Elsewhere, Bauxite production is expected to be at the top end of its guidance range and aluminium guidance remains unchanged.

The post Rio Tinto shares fall on soft second quarter update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy today
• Are Rio Tinto shares a buy on a pullback?
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• Investing in ASX shares? Why CEO pay DOES matter when misaligned

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.

As the market continues to advance in 2024, one ASX 200 tech stock is outshining and is up double-digits this year to date.

Shares of Technology One Ltd (ASX: TNE) are now up 23.5% since January and have outpaced the S&P/ASX 200 Index (ASX: XJO) by more than 12% in the past year.

It was priced at $18.98 per share just before the open on Tuesday. You can see its performance in the last 12 months in the chart below.

These recent developments have caught the attention of top analysts. Based on recent fundamentals, one firm thinks the ASX 200 tech stock can grow. Here’s a closer look.

ASX 200 tech stock set for growth?

Bell Potter is one broker that rates the ASX 200 tech stock a buy. The firm has a price target of $20.25, indicating around 6.6% upside from the time of writing.

Analyst Christopher Watt said the company was “poised for significant growth”, noting the company’s consistent annual profit increases and a 20% rise in revenue for H1 FY24, according to The Bull.

Watt said:

This software-as-a-service provider is poised for significant growth given consistent annual profit before tax increases in the past few years, which are projected to continue. Revenue from ordinary activities was up 20 per cent for the half year ending March 31, 2024, when compared to the prior corresponding period. The stock’s price-earnings ratio has been re-rated higher. 

It’s not just Bell Potter who likes the company. Goldman Sachs also reiterates its buy rating on Technology One shares. In a June note, the broker raised its price target on the ASX 200 stock to $19.70, citing its “greater confidence” in earnings growth.

The firm highlighted a long-term opportunity for Technology One in the UK market, estimating it to be three times larger than Australia’s key sectors.

It says Technology One’s share price has been driven “by its strong rate of compound earnings growth” and market position. It sees this trend continuing:

In our view, the company is well placed to meet its A$500mn FY26 ARR target through a combination of SaaS flip uplift, net expansion and new customer growth. We see margin expansion resuming from FY24E onwards, which in combination with robust revenue growth should drive a mid-high teens EPS CAGR to FY26E, providing strong earnings visibility.

Meanwhile, Morgans also rates the ASX 200 tech stock a buy. According to my colleague James, it praised Technology One for its impressive earnings growth history and financial health.

Morgans expects the company’s earnings growth to shift even higher, potentially increasing valuation multiples. It values the company at $20.50 per share.

Foolish takeout

Technology One has consistently increased its annual profit over the past few years. For the half year ending March 31, 2024, revenue from ordinary activities was up 20% compared to the previous period.

Despite this track record, and growth prospects in the UK market, the consensus of analyst estimates rates Technology One a hold, according to CommSec.

Analysts from Goldman Sachs, Morgans, and Bell Potter make up 3 of the 7 rating the ASX 200 tech stock a buy, whereas three firms say it is a sell.

As always, remember to conduct your own due diligence.

The post Buy this ASX 200 tech stock ‘poised for significant growth’ appeared first on The Motley Fool Australia.

More reading

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• Can ASX 200 tech shares produce another strong performance in FY25?
• Leading brokers name 3 ASX shares to buy today

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

Fortunately for growth investors, there are many growth shares to choose from on the ASX.

But which ones could be good long-term options? Let’s take a look at two that are highly rated by analysts right now:

Treasury Wine Estates Ltd (ASX: TWE)

The team at Morgans thinks that Treasury Wine could be an ASX growth share to buy. It is the wine giant behind a range of popular brands including Penfolds, Wolf Blass, Lindeman’s, and 19 Crimes.

As well as getting a boost from the removal of Chinese tariffs, the broker believes the acquisition of DAOU Vineyards could be significant to its growth prospects. It explains:

It may take some time for the market to digest TWE’s acquisition of Paso Robles luxury wine business, DAOU Vineyards (DAOU) for US$900m (A$1.4bn) given it required a large capital raising. The acquisition is in line with TWE’s premiumisation and growth strategy and will strengthen a key gap in Treasury Americas (TA) portfolio. Importantly, DAOU has generated solid earnings growth and is a high margin business. It consequently allowed TWE to upgrade its margins targets. While not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation.

Morgans has an add rating and $15.03 price target on its shares. This suggests that upside of 21% is possible over the next 12 months.

Xero Ltd (ASX: XRO)

Analysts at Goldman Sachs are feeling very bullish about this cloud accounting platform provider and see it as an ASX growth share to buy.

The broker highlights that Xero has an enormous runway for growth thanks to its large total addressable market (TAM). It explains:

Xero is a Global Cloud Accounting SaaS player, with existing focuses in ANZ, UK, North American and SE Asian markets. We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM. Given the company’s pivot to profitable growth and corresponding faster earnings ramp, we see an attractive entry point into a global growth story with Xero our preferred large-cap technology name in ANZ – the stock is Buy rated. Key catalysts include: High frequency data (downloads/visitation/pricing); CEO North America strategy update and results, and potential M&A.

Goldman currently has a conviction buy rating and $180.00 price target on its shares. This implies potential upside of 26% for investors over the next 12 months.

The post 2 outstanding ASX growth shares to buy and hold appeared first on The Motley Fool Australia.

More reading

• Could investing $10,000 in ASX shares make you a millionaire?
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Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you on the lookout for some ASX dividend stocks to buy? If you are, then you may want to check out the three listed below.

They have all been named as buys by brokers and tipped to offer some great dividend yields in the near term. Here’s what you need to know about them:

Centuria Industrial REIT (ASX: CIP)

The first ASX dividend stock that could be a buy according to analysts is Centuria Industrial.

It is Australia’s largest domestic pure play industrial property investment company with a portfolio of 88 high-quality, industrial assets situated in key in-fill locations and close to key infrastructure.

UBS is a fan of the company and believes it is well-positioned in the current environment thanks to strong demand for industrial property.

The broker expects this to allow Centuria Industrial to pay dividends per share of 16 cents in both FY 2024 and FY 2025. Based on the current Centuria Industrial share price of $3.19, this will mean dividend yields of 5% for income investors across both years.

UBS currently has a buy rating and $3.50 price target on its shares.

Deterra Royalties Ltd (ASX: DRR)

Another ASX dividend stock that could be a buy is Deterra Royalties.

It is a mining royalties company with a portfolio of assets across a number of commodities. This includes Mining Area C, which is operated by BHP Group Ltd (ASX: BHP).

Its shares have recently been sold off after announcing a major acquisition and making changes to its dividend policy. While UBS believes the latter will result in a significant dividend cut in FY 2025, it still expects a good yield next year. It also highlights the quality of its assets.

UBS is forecasting dividends per share of 31 cents in FY 2024 and then 16 cents in FY 2025. Based on the current Deterra Royalties share price of $4.05, this will mean yields of 7.7% and 4%, respectively.

The broker has a buy rating and $4.90 price target on its shares.

Eagers Automotive Ltd (ASX: APE)

A final ASX dividend stock that could be a buy is Eagers Automotive. It is a leading automotive retail group which has been around for over a century.

Analysts at Bell Potter remain positive on the company and believe that recent share price weakness has created a buying opportunity for income investors. Especially given its belief that above-average dividend yields are still coming despite tough trading conditions.

For example, Bell Potter 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 $10.56, this represents dividend yields of 6.1% and 6.9%, respectively.

Bell Potter has a buy rating and $13.35 price target on its shares.

The post Brokers name 3 ASX dividend stocks with great yields to buy 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 Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.