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Are you a fan of investing at the small side of the market? If you are, then you may want to take a look at the small cap ASX shares listed below that have been tipped as buys by analysts at Goldman Sachs.

Here’s why the broker is bullish on these small cap shares:

Hipages Group Holdings Ltd (ASX: HPG)

The first small cap ASX share to consider is Hipages. It is a growing Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies.

Hipages recently released its fourth quarter update and delivered further solid growth. This went down well with Goldman Sachs, which believes the update points to a rebound in momentum after a tough period. It said:

We view HPG’s beat in net new tradies (400 vs GSe of 300) as a positive sign that the momentum in the business is returning; a slowing economy and housing cycle should make the HPG platform incrementally more valuable as a source of work for tradies. We believe difficulties in new tradie additions and elevated churn in previous quarters reflected labour shortages across the industry and are confident a rebalancing in industry supply/demand will see these challenges resolve.

Outside this, the broker has previously suggested that “the opportunity for HPG is similar to REA/CAR, which are now the leading online platforms in their respective industries.”

Goldman has a buy rating and $2.55 price target on its shares. Based on the current Hipages share price of $1.40, this implies potential upside of 82% over the next 12 months.

Nitro Software Ltd (ASX: NTO)

Another small cap ASX share that Goldman Sachs is bullish on is Nitro Software. It is a growing software company driving digital transformation in businesses around the world across multiple industries.

It is doing this through its key solution: the Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers via a software-as-a-service and desktop-based software solution.

Nitro’s shares were hammered last month after the company downgraded its guidance. While Goldman was disappointed with its update, it hasn’t changed its view that this is a company with enormous long term growth potential.

Goldman explained:

We see the update as re-basing market expectations on NTO’s growth outlook and highlighting the path to breakeven; however, we acknowledge that NTO will likely enter a “show me” phase where consecutive quarters of strong ARR performance are necessary to allay concerns over execution challenges. That said, we continue to see NTO as an undervalued global growth opportunity and highlight that the company now trades at ~12x FY24E EV/EBITDA on a capitalisation-adjusted basis.

The broker has a buy rating and $2.05 price target on its shares. Based on the current Nitro share price of $1.11, this implies potential upside of 85% over the next 12 months.

The post Goldman Sachs names 2 small cap ASX shares to buy with 80%+ upside appeared first on The Motley Fool Australia.

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More reading

• ‘Power and resilience’: Hipages share price leaps 14% on revenue boost
• Top brokers name 3 ASX shares to buy today
• Why Block, Iluka, Nitro, and Novonix shares are dropping today
• Down 28% in two days: Is the Nitro share price crash a buying opportunity?
• Why Flight Centre, Iress, Nitro, and Perseus shares are dropping 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 Hipages Group Holdings Ltd. The Motley Fool Australia has positions in and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX dividend shares are rising on investor radars.

More investors are seeking out income paying shares as fast rising interest rates put a brake on the past years of significant share price growth.

But if you’re on the hunt for ASX dividend shares you’ll want to look at more than simply the trailing yields these companies pay.

Even if they continue to payout a substantial portion of their profits to shareholders, what’s the outlook for these profits? And are they likely to be able to deliver some capital growth as well?

Finding an ASX dividend share that ticks the right boxes is no easy feat in today’s volatile market.

But Jack Collopy, portfolio manager at Perpetual, brought one to our attention in a recent interview with Livewire.

Invest in a sector with ‘pockets of good value’

Collopy was asked to offer a sector he believes will outperform as the 2023 financial year unfolds.

“One sector where we see pockets of good value currently is consumer discretionary,” Collopy said. “Many of the small and mid-cap listed retailers have been sold off aggressively in recent months on concerns that central banks are going to push economies into recession in their attempts to get the inflation genie back in the bottle.”

Perpetual believes “the market is pricing in a very negative scenario for many of the retail stocks,” he added. “In general, they are coming into this tougher environment with very strong balance sheets and there are some valid reasons why the Australian consumer may be more resilient than expected.”

‘Extremely well run’ ASX dividend share

Collopy singled out Nick Scali Limited (ASX: NCK) as a retail stock Perpetual has recently increased its holdings of.

“Nick Scali is extremely well run, has an excellent balance sheet and we think the recent Plush acquisition will prove to be a great use of capital,” he said.

Collopy continued:

Whilst there’s a chance that trading is volatile and challenging over the near term, we think a lot of this is already reflected in the share price and that NCK will continue to become a better business and reward shareholders over time.

Collopy didn’t mention Nick Scali’s lengthy track record as a reliable ASX dividend share.

But the company has made two regular dividend payments dating back to 2014, including the horror pandemic addled year of 2020.

The Nick Scali share price is down 39% year-to-date, closing yesterday at $9.45 per share.

At that price, the furniture focused retail company pays a trailing dividend yield of 6.3%, fully franked.

The post ‘Extremely well run’: 1 ASX dividend share this fundie just topped up on for FY23 appeared first on The Motley Fool Australia.

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More reading

• Here’s why I think these ASX shares are top ideas to buy right now
• ‘Recession-like levels’: Why ASX retail shares could still be in for a bumpy ride
• Take a seat: What inflation data might mean for ASX retail shares

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.

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Investors are urged to ignore an 81% tumble in the share price for an up-and-coming Australian company that’s headed for a bright future.

Bluebet Holdings Ltd (ASX: BBT) has seen its stock price tumble from $2.86 on 25 August 2021, to now just 54 cents, less than a year later.

However, Red Leaf Securities chief executive John Athanasiou recommends punters buy the stock while it’s going for cheap.

“This sports betting technology company had cash and cash equivalents of about $51 million at the end of the third quarter of fiscal year 2022,” he told The Bull.

Massive growing market in the USA

The betting provider is a participant in the land grab in the lucrative US market, as individual states move to legalise sports gambling.

“Bluebet is expanding in the lucrative US market,” said Athanasiou.

“It recently signed a 10-year market access agreement to operate in Indiana.”

Another bonus is that Bluebet plays in an industry that can endure an economic downturn, should rising interest rates start to impact Australian and American consumers.

“Gambling stocks traditionally do well during challenging times, and we believe this will be the case with Bluebet.”

Bluebet’s ‘longer-term potential is significant’

Athanasiou is not the only one keen on Bluebet.

According to CMC Markets, both Morgans and Ord Minnett rate the stock as a strong buy.

Morgans senior analyst Alexander Mees explained last month how much his team is looking forward to Bluebet’s annual report.

“The longer-term potential is significant,” he said.

“Bluebet’s Australian business is forecast to achieve strong growth in turnover in FY22 (48%) as it increases marketing costs to drive customer acquisition.”

Bluebet is due to report its numbers on 30 August.

The company was founded by bookmaker Michael Sullivan, who is now executive chair and holds more than 40% of the shares.

He was formerly the chief executive of Sportingbet, which he grew into a multi-billion dollar business.

The post Buy this ASX share that’s 80% cheaper than a year ago: expert appeared first on The Motley Fool Australia.

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More reading

• BlueBet share price leaps 8% before flatlining following robust quarter
• 3 ASX All Ords shares tumbling into the weekend
• Players gonna play: 3 ASX shares set for a strong reporting season

Motley Fool contributor Tony Yoo 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 BlueBet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Vulcan Energy Resources Ltd (ASX: VUL) share price was out of form on Monday.

The lithium developer’s shares tumbled 6% to close the day at $7.35.

This means the Vulcan share price is now down 32% since the start of the year.

Can the Vulcan share price rise again?

The good news is that a leading broker in Europe sees significant value in the German-based lithium developer’s shares.

According to a note out of Alster Research, its analysts have retained their buy rating with a trimmed price target of $20.00.

Based on the current Vulcan share price, this suggests potential upside of 172% for investors over the next 12 months.

What did the broker say?

Alster highlights that Vulcan is facing a very important 12 months and will soon be pushing ahead with a major drilling program.

The broker also notes that the company’s definitive feasibility study (DFS) and pre-feasibility study (PFS) are on the horizon. Its analysts suspect that they could result in production targets being lifted, which they feel could give the Vulcan share price a boost.

The broker commented:

Vulcan faces a landmark year, as it will soon enter a multi-year capex-intensive phase. Building on a strong cash position of EUR 175m per 30 June 2022, the company is preparing its drilling program to commence, while the rigs are currently being prepared. The favorable political environment should continue to provide tailwinds.

Regarding the upcoming DFS and PFS, we will update our capex projections upon release. More importantly, we expect the production targets to increase, which we believe to be a catalyst for Vulcan’s share price. We confirm our PT with AUD 20.00, equivalent to EUR 13.71 and reiterate to BUY.

The post Lithium alert: Broker says Vulcan share price could rise by 170% appeared first on The Motley Fool Australia.

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More reading

• Charging up: Vulcan share price lifts 3% as cash balance surges
• Why Myer, South32, Vulcan, and Zip shares are racing higher
• Why is the Vulcan share price charging higher today?
• Why is the Vulcan Energy share price leaping 7% on Thursday?
• What’s the ahead for the Vulcan Energy share price?

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.

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There is a fact that many retail investors ignore about their ASX shares.

It is that the biggest shocks to the portfolio don’t usually come from external forces like inflation, interest rates, or wars in Europe.

It’s most likely to come during reporting season.

“Results present a bi-annual moment of heightened risk for all stocks that report,” stated the analysts at Marcus Today in a blog post.

“Thanks to continuous disclosure requirements — meaning companies’ dump’ information at results — and high-frequency trading, the results reactions can be surprising and savage.”

These conditions can mean even multibillion-dollar S&P/ASX 200 Index (ASX: XJO) companies can see their share price shift 20% on results day, sometimes within minutes.

“Thanks to the herd that now thunders around the market in the short term, and the computers that react to a whiff, rather than a sniff, or even a taste, the results season has become a dangerous time,” read the memo.

“Holding stocks in August and February (the two results seasons) is like running around in an orange vest on a battlefield during an artillery barrage — you’re never quite sure whether you’re going to get blown up.”

So to assist investors, the blog post set out some rules to successfully navigate the August reporting season.

Know your reporting schedule

This one’s pretty basic. It’s to simply know which dates companies in your portfolio will announce their results.

“If you find a stock you hold is down 10% one morning after announcing results you didn’t know were due, it is a bit negligent,” read the memo.

“Don’t be surprised by announcements — there’s no excuse.”

History of surprising

Although past performance is no indicator of the future, certain companies have a track record of under-promising then over-delivering.

The Sydney Morning Herald’s Elizabeth Knight has written about how Macquarie Group Ltd (ASX: MQG) has such a habit, which is reportedly dubbed “Macquarie speak”. 

Switzer Group’s Paul Rickard has mentioned multiple times how CSL Limited (ASX: CSL) has a record of surprising on the upside during reporting season.

Identifying such companies before they report can be fruitful, according to the Marcus Today team.

“Go back and look at the last earnings announcement — the AGM maybe, a trading statement, a presentation — and see if the share price went up or down, whether it was positive or not, and whether brokers upgraded the next day or not,” read the memo.

“It is unlikely a company that has seen earnings upgrades running into results is going to disappoint, and there is an even better chance they will not disappoint.”

Don’t catch the falling knife

The other side of the coin is to not buy into down-in-the-dumps ASX shares, expecting a miracle turnaround in its results.

This is especially prudent in a turbulent year like 2022.

“Don’t catch the knife. Don’t swim against the tide. It’s not clever — it’s dumb,” read the blog post.

“It’s a game of odds, not heroics… Don’t bet on results being surprisingly good when the history is bad. For most of us, results are about risk minimisation, not risk-taking.”

Safer way to harvest a dividend

Rather than gambling on a dividend-paying stock before the results, just wait to see how their numbers look.

“If they are okay or good, buy the stock after the results and still collect the dividend that’s coming up. It’s dividend-stripping in full possession of the facts and avoids the gamble on the results.”

“If the results are good quite often, the stock will trend up after the announcement as well.” 

Don’t think you missed the boat

If a company reveals excellent results and the share price rockets up, don’t give up on buying, thinking you’ve missed the boat.

“There is an academic study about shock drops and shock rises in share prices. The conclusion was that when it comes to shares, a stock that has a shock move up or down continues to move in that same direction for the next nine days,” read the blog post.

“It’s the nine-day rule. In other words, if a stock has a good set of results and pops up 5%, don’t say ‘I’ve missed it’ — just buy it, because it is likely to keep going in that direction for a while.”

The theory is that the initial boost is just the start of a longer-term rise for the stock.

“The research the next day will be upbeat. Brokers will raise target prices and recommendations over the next week — fund managers make decisions slowly, it takes a while for the news to be discounted,” the memo read.

“You may miss the first day and the best day, but you’ll catch the next few days of trend, and your risk is much lower than punting ahead of the results.”

The post 5 things to do during ASX results season appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• The Endeavour share price is trading near all-time highs. Is it too late to buy?
• Here are the 3 most heavily traded ASX 200 shares on Monday

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

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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in fine form. The benchmark index rose 0.7% to 6,993 points.

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

ASX 200 expected to fall

The Australian share market is expected to open the day lower on Tuesday following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 19 points or 0.3% lower. On Wall Street the Dow Jones fell 0.15%, the S&P 500 dropped 0.3%, and the NASDAQ was down 0.2%.

RBA meeting

The Reserve Bank of Australia is meeting again today to decide on the cash rate. According to the latest cash rate futures, the market sees a 67% probability of the central bank raising the cash rate by 0.65% to 2%. Though, another 0.5% rise to 1.85% appears to be the more likely outcome at this afternoon’s meeting according to the Westpac Banking Corp (ASX: WBC) economic team.

Oil prices sink

It could be a difficult day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices sank deep into the red on Monday night. According to Bloomberg, the WTI crude oil price is down 5% to US$93.66 a barrel and the Brent crude oil price has fallen 4.1% to US$99.72 a barrel. Traders were selling oil following concerns over weak Chinese factory data.

Credit Corp results

The Credit Corp Group Limited (ASX: CCP) share price will be on watch on Tuesday when the debt collector kicks off earnings season. According to a note out of Morgans, its analysts are expecting the company to report a full year net profit after tax of $96.2 million. This will be the top end of Credit Corp’s guidance range of $92 million to $97 million. Looking ahead, the broker is expecting management to guide to a net profit of $94 million to $104 million for FY 2023.

Gold price higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.35% to US$1,788 an ounce. A softer US dollar and weak Chinese economic data boosted demand for the precious metal.

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

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More reading

• Will the RBA increase rates today?
• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• The Endeavour share price is trading near all-time highs. Is it too late to buy?
• Here are the 3 most heavily traded ASX 200 shares on Monday

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

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This afternoon, the Reserve Bank of Australia (RBA) will be meeting to discuss the cash rate once again.

The previous two meetings have seen the central bank raise rates by 0.5% on each occasion. Will the same happen again this time?

Will the RBA raise rates today?

The good news for savers and the bad news for borrowers is that the market is expecting the RBA to raise rates again on Tuesday.

According to the latest cash rate futures, the market is pricing in a 67% probability of an increase from 1.35% to 2%.

However, the more likely outcome according to economists will be a third consecutive 0.5% increase to 1.85%.

The economics team at Westpac Banking Corp (ASX: WBC) are among those forecasting a 0.5% increase this afternoon.

Westpac’s chief economist, Bill Evans, explained last week that he doesn’t expect this to be the final time the central bank lifts rates by this amount. He said:

For August, the Governor will continue to make the case for justifying a third consecutive 0.5% move therefore laying the foundation for the expected [0.5%] move in September.

After which, Evans is expecting rates to continue to rise but in smaller increments. He explained:

Just as we saw Chairman Powell, during the post FOMC Press Conference this week, imply that having reached the neutral zone (around 2.5%) with the federal funds rate (now 2.375%) it would be appropriate to slow the pace of tightening, we expect that following the 0.5% increase in September the RBA Board will move back to 0.25% increments from October as policy moves into the contractionary zone.

All in all, the bank expects this to eventually lead to the RBA maintaining the cash rate at 3.35% throughout 2023.

The post Will the RBA increase rates today? appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• Why is the Westpac share price outperforming the other ASX 200 banks on Monday?
• Experts name 2 ASX 200 dividend giants to buy
• 5 things to watch on the ASX 200 on Monday
• ‘Raises a whole lot of issues’: Which ASX 200 banks are still funding new fossil fuel projects?

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

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The Domino’s Pizza Enterprises Ltd (ASX: DMP) fell slightly today, but could it have better days ahead?

The company’s share price closed 0.44% lower today to trade at $72.12. In comparison, the  S&P/ASX 200 Index (ASX: XJO) jumped 0.69%.

Let’s take a look at the outlook for the popular pizza company.

What’s ahead?

According to Atlas Funds Management chief investment officer Hugh Dive, Domino’s pizza is due for a boost.

Despite not owning shares in the company, Dive predicted Domino’s could be “well placed to do quite well”. He added in an interview with livewire:

Bit of a caveat, similar to Hugh, we don’t own Domino’s.

But I think that they’ll be well placed to do quite well.

At a recent strategy presentation in Tokyo, Japan, the company announced the appointment of two new executives to boost sales in the continent.

Analyst’s at Ord Minnett also recently retained a buy rating on Domino’s share price.

The broker can see value in the company’s shares, my Foolish colleague James reported recently. Ord Minnett has placed an $88 price target on Domino’s shares. This is 14% higher than their current price.

However, the broker highlighted that Domino’s was facing some headwinds, including the falling Japanese yen and inflation.

Domino’s share price snapshot

The Domino’s share price has dropped 4% over the past 12 months and 10% year to date.

For perspective, the ASX 200 has slid more than 5% in the last 12 months.

Dominos has a market capitalisation of nearly $8.5 billion based on the current share price.

The post Top brokers say Domino’s share price has loads of extra topping in it, here’s why appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• Why is the Domino’s share price struggling on Monday?
• 2 ASX 200 shares ready for a massive resurgence: experts 
• 5 things to watch on the ASX 200 on Monday
• Experts name 2 beaten down ASX growth shares with plenty of upside potential

Motley Fool contributor Monica O’Shea 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 Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Whitehaven Coal Ltd (ASX: WHC) share price accelerated in July.

For the month, shares in the coal miner jumped 28% to finish at $6.21 on 29 July.

This means the company’s shares outperformed the S&P/ASX 200 Energy (ASX: XEJ) sector, which rose 2.1% over the same timeframe.

And looking at the start of the new month, Whitehaven shares are continuing their ascent.

At close of trade on Monday, the coal producers’ shares are up 2.09% to $6.34.

What’s fuelling Whitehaven shares lately?

Despite the gloomy outlook on the global economy, coal prices rebounded strongly over the month following significant tailwinds.

An International Energy Agency (IEA) report released last week stated that global coal demand is looking to return to its all-time high in 2022.

This comes on the back of news that China could reopen its ports to ships carrying Australian coal. The two-year ban follows a reset in political relations between the two countries since the Morrison government left office in May.

Subsequently, the price of coal has shot up to US$407 per tonne, a 5.6% increase since this time last month.

In its June quarterly report, Whitehaven achieved a record average coal price of AU$514 per tonne for the quarter and AU$325/t for FY22.

With higher coal prices translating to higher earnings, investors took notice of management forecasting its strongest ever full-year result.

As such, the company expects to report FY22 earnings before interest, tax, depreciation, and amortisation (EBITDA) of approximately $3 billion, subject to a final audit. 

The positive release led Whitehaven shares to lift 5.17% on the day, and another 8.79% over the next two days.

According to ANZ Share Investing, Citi remains confident on Whitehaven shares, raising its 12-month price target by 60% to $7.85. This represents an upside of around 24% based on the current share price.

Its analysts believe the miner’s shares are a buy as it is well-placed to benefit from strong coal prices.

Whitehaven share price summary

Due to the favourable commodity pricing, the Whitehaven share price has surged by more than 140% in 2022.

Although, when looking at the past 12 months, Whitehaven shares are up by 185%.

Whitehaven has a price-to-earnings (P/E) ratio of 55.61, and a market capitalisation of $5.93 billion.

The post Why did the Whitehaven share price surge 28% in July? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• How long can ASX coal shares keep this rally up?
• Why is Whitehaven share price climbing 5% today?
• Morgan Stanley tips 30% upside for the Whitehaven share price. Here’s why
• Rocks and lasers: 2 ASX All Ords shares securing new multi-year highs on Wednesday

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Aaron Teboneras 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.

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There are a lot of quality shares to choose from on the Australian share market. To narrow things down, listed below are a couple of ASX shares that are highly rated by analysts.

Here’s what they are saying about them:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX share to look at is Aristocrat. It is a gaming technology company best-known for its industry-leading poker machines. However, it also has a digital business, named Pixel United, which is generating significant recurring revenues from mobile games.

But management isn’t settling for that. As well as investing heavily in research and development each year, it is aiming to expand into the emerging real money gaming market.

Citi is very positive on Aristocrat. Its analysts believe the company “represents a compelling long-term growth story” and recently noted that “while industry-wide trends present a risk to Aristocrat’s digital bookings outlook, the company’s key social casino titles and RAID had outperformed within their respective genres.”

The broker currently has a buy rating and $41.00 price target on the company’s shares.

Lifestyle Communities Limited (ASX: LIC)

Another ASX share that could be a quality option for investors is retirement communities company, Lifestyle Communities.

It develops, owns, and manages affordable independent living residential land lease communities and, at the last count, had 26 residential land lease communities under contract, in planning, in development, or under management.

Goldman Sachs is very positive on the company and believes it is well-placed to benefit from Australia’s ageing population and the structural growth in land lease living. It explained:

We believe LIC is well positioned to benefit from shifting demographic trends, as its business helps address some critical emerging social issues. Its core business is to provide affordable housing to an ageing population, addressing a key social issue that is becoming more prevalent as the proportion of over 50’s increases. We expect as this population cohort continues to grow, this should deliver structural growth for the industry; we expect demand to far outpace supply at current build rates.

Goldman has a conviction buy rating and $24.30 price target on its shares.

The post Top analysts say investors should buy these quality ASX shares appeared first on The Motley Fool Australia.

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More reading

• Experts name 2 ASX growth shares to buy with double-digit upside potential
• Experts say these ASX tech shares would be excellent buys
• Goldman Sachs names 2 ASX shares as conviction buys
• Why this leading broker is bullish on the Aristocrat share price
• Can the Lifestyle Communities share price recover in FY23?

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.

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