Tag: Motley Fool

Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Cyan Investment Management portfolio manager Dean Fergie shares his thoughts on the small-cap market.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

Dean Fergie: We’re a small-cap Aussie equity fund. We have a very small amount of pre-IPO in there as well, but we’re looking for what we see as undiscovered gems in the market — industrial businesses that have long-term growth prospects and we think will grow significantly faster than the overall market over the medium to longer term, being three-plus years.

MF: The market’s changed dramatically since the last time we spoke. It’s been a tough time for small caps recently, hasn’t it?

DF: Incredibly difficult, yes. 

Maybe not as challenging as the GFC, but getting up there in terms of the sentiment and the movement in share prices. There’s a lot of stocks that are off 90% or more. So there’s been a lot of money lost on paper in the past six to 12 months, for sure.

MF: Have you had nervous clients having a chat to you? Have you had to convince people to stay invested for the long term?

DF: That’s a good question. I would say 5% to 10% of investors are really nervous and worried, the fact that their investments are going down. Most, I think, appreciate that there’s volatility if you’re invested in equities and you’ve got to look at it over the long term. 

There’s obviously a handful that see a decrease in share prices as an opportunity and are buying more in. And there’s a lot of investors who just go, “You know what? It’s a long-term investment. I’m going to park it there and pull it out in five to 10 years. And I expect it’ll be more than when I invested.” I think that’s probably the right strategy.

MF: How do you see the state of play for ASX shares at the moment, and where do you see it going?

DF: The sentiment is almost as poor as it could be. Everyone’s worried about so many just different aspects of the economy. Coming into June 30, there was a lot of tax-loss selling. So there’s negative momentum. People are worried about interest rates, property prices, consumer behaviour, and the like. 

For me, when there’s overwhelming negative news, that’s usually a good time to buy. I think interest rates have gone up pretty substantially, but they’re still at historically very low levels. So I don’t see that as being as much of a risk as most investors see it.

So I’m actually pretty optimistic. I’ve been around for a long time, and I know that the market has pretty big swings. 

From what I’ve seen, because I’m not seeing underlying pessimism from the companies to which I’m speaking to, that gives me confidence that the underlying fundamentals are still intact. And that spells an opportunity in depressed share prices to make some good buys.

The post Why this is the best time to buy small-cap ASX shares: fund manager appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• 6 ways to protect your ASX shares against recession
• Here are 2 ASX dividend shares that brokers rate as buys
• Why did the BrainChip Holdings share price leap 14% on Monday?
• Broker names 2 ASX growth shares to buy now

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 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a very strong gain. The benchmark index rose 1.2% to 6,687.1 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 26 points or 0.4% lower. On Wall Street the Dow Jones dropped 0.7%, the S&P 500 fell 0.85%, and the NASDAQ tumbled 0.8%. A late selloff wiped out some strong intraday gains.

ANZ rated neutral

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares remain neutral rated at Goldman Sachs following its agreement to acquire the banking operations of Suncorp Group Ltd (ASX: SUN). However, with a price target of $27.44, Goldman sees significant upside for ANZ’s shares. It commented: “While the deal somewhat improves ANZ’s lack of scale in domestic retail/commercial banking, we see operational risk as elevated.”

Oil prices jump

It could be a very good day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 4.7% to US$102.17 a barrel and the Brent crude oil price has risen 4.45% to US$105.68 a barrel. Concerns about Russia’s gas supply to Europe boosted prices.

BHP’s Q4 update

The BHP Group Ltd (ASX: BHP) share price will be one to watch on Tuesday when the mining giant releases its fourth quarter update. The Big Australian is guiding to full-year production of 249Mt to 259Mt for iron ore, 1,570kt to 1,620kt for copper, and 38Mt to 41Mt for metallurgical coal.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.2% to US$1,706.7 an ounce. A softer US dollar gave the precious metal a lift.

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

• ‘Not bricks and mortar’: The real value in ANZ acquiring Suncorp’s banking operations
• Flight Centre share price leaps as ‘revenge travel’ takes off
• Here are the top 10 ASX shares today
• ‘Really strong case’: Can ANZ win over the new ACCC boss?
• Why a Suncorp buyout could mean more green funding for Queensland

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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Inflation is at levels not seen in decades, interest rates are steeply rising to combat it, and the war in Ukraine continues to take a tremendous human and economic toll.

It’s no wonder there is considerable fear about a recession.

Fidelity International investment director Tom Stevenson reminded us only a couple of months ago that US Federal Reserve chair Jerome Powell was talking about engineering a “softish” landing.

“Today that seems almost childishly optimistic,” he posted on Livewire. 

“My strategy colleagues here at Fidelity now believe there is a 60% chance of a hard landing in which central banks push the economy into recession, by accident or by design, in order to rein in dangerously rising inflation expectations.” 

Even if Australia luckily avoids it, the US falling into a recession will leave an indelible mark on Australian investors.

This is because ASX shares generally follow the fortunes of their American counterparts.

So with this in mind, what can you do to protect your portfolio against economic calamity?

Stevenson this week set out a useful checklist for investors to go through:

Buy quality

In troubled times, the simple strategy is to avoid buying shares in speculative companies.

“The companies usually best placed to pull through a recession are those with solid balance sheets, decent profit margins, and strong positions in their markets.”

Steven said added that once it seems like a recession — or the fear of a recession — will pass, pre-profit growth companies will come back into favour.

“But we’re a long way from that point. Consider sticking to the best for now.”

Defensive companies

It’s the same thinking that dictates investors should buy into companies that consumers will keep patronising through downturns.

“Those selling goods and services that we can’t do without — such as food, household products, utilities, insurance, and critical infrastructure,” said Stevenson.

“Cyclical stocks will have their day as we move through the recession but, again, we are not there yet.”

Diversify by sector and geography

Buying shares in different sectors, but also geographies, is important to protect one’s portfolio.

That’s because no person — not even the experts — can predict which markets will be favoured.

As an example, Stevenson referred to the outperformance of the FTSE 100 Index (FTSE: UKX) this year, which no one could have guessed in January.

“Likewise, preferring China and emerging markets is a minority view today,” he said.

“Investors in Shanghai and Shenzhen took their medicine through Beijing’s regulatory squeeze and the zero-COVID months. Things could look up from here.”

Don’t try to time the market

We hear this advice from experts all the time, but human nature dictates every investor is guilty of trying.

“You probably won’t catch the bottom, just as you probably missed the top at the start of the year.”

Keep the bear out of your mind

It is not uncommon for investors to go into their shells when turbulence hits the markets.

But rationally, it is the best time to buy. Everything’s on sale.

“Most importantly, don’t become more bearish as the market falls,” said Stevenson.

“It’s human nature to do so. Resist it.”

Consider bonds to counterbalance shares

If a recession arrives, central banks will stop hiking interest rates.

This means the current yields on bonds may not last for too long.

“Government bonds yielding more than 3% will seem rather interesting if interest rates head lower once more,” said Stevenson.

“Consider locking in some of that yield now.”

The post 6 ways to protect your ASX shares against recession appeared first on The Motley Fool Australia.

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More reading

• Here are 2 ASX dividend shares that brokers rate as buys
• Why did the BrainChip Holdings share price leap 14% on Monday?
• Broker names 2 ASX growth shares to buy now
• ‘Not bricks and mortar’: The real value in ANZ acquiring Suncorp’s banking operations
• Flight Centre share price leaps as ‘revenge travel’ takes off

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 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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Income investors that are looking for dividend options this week might want to check out the two ASX shares listed below.

Both of these ASX dividend shares have recently been tipped as buys by brokers. Here’s why analysts are bullish:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share that is rated as a buy is leading baby products retailer Baby Bunting.

It has been tipped as a buy by analysts at Citi. This is partly due to its private label opportunity, which the broker believes has a significant runway for growth. Citi also highlights that it has a strong position in a less discretionary category, which bodes well for sales in the current environment.

As for dividends, the broker is forecasting fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.64, this will mean yields of 3.45% and 4.1%, respectively.

Citi has a buy rating and $6.22 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that has been named as a buy is HomeCo Daily Needs REIT. It is a property company with a focus on neighbourhood retail, health and services, and large format retail.

Goldman Sachs is a big fan of HomeCo Daily Needs. Its analysts believe the company is well placed for growth thanks to the shift to omni channel retailing. In addition, Goldman highlights that the company has additional development and asset optimisation opportunities.

In respect to dividends, the broker is forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.36, this will mean dividend yields of 5.9% and 6.6%, respectively.

Goldman has a buy rating and $1.70 price target on its shares.

The post Here are 2 ASX dividend shares that brokers rate as buys appeared first on The Motley Fool Australia.

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More reading

• Why cheap hamburgers could give beginner ASX share investors food for thought
• What I love about these 2 ASX dividend shares
• Top brokers name 3 ASX shares to buy today
• 2 top ASX dividend shares that analysts rate as buys
• 2 excellent ASX dividend shares rated as buys by experts

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 Baby Bunting. 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 BrainChip Holdings Ltd (ASX: BRN) share price had a stellar day on the market on Monday.

The company’s shares leapt 13.87% to close at 98.5 cents. For perspective, the  S&P/ASX 200 Index (ASX: XJO) rose 1.23% today.

Let’s take a look at what could have impacted the Brainchip share price today.

What’s going on?

Brainchip shares soared today, but they were not alone among the ASX technology shares. The Wisetech Global Ltd (ASX: WTC) share price jumped 7.16% while Life360 Inc (ASX: 360) gained 8.24%.

The S&P/ASX All Technology Index (ASX: XTX) closed 2.54% higher today.

Today’s gains in the technology sector followed in the footsteps of the United States on Friday. The technology-heavy NASDAQ leapt 2.31% in Friday’s trade. The NASDAQ-100 Technology Sector Index (NASDAQ: NDXT) jumped 2.47%. This followed some positive consumer economic data, the Washington Post reported.

Brainchip did not release any news to the market on Monday. In early June, the company was added to the ASX 200 index.

Brainchip is a a global artificial intelligence (AI) chip maker. The company has partnerships with high profile companies including NASA and Mercedes.

The AI cybersecurity market is predicted to be worth US$133.8 billion by 2030, according to a report cited by Globe Newswire today.

It stated the AI cybersecurity market was worth $14.9 billion in 2021.

Brainchip share price snapshot

The Brainchip share price has soared 107% in a year, rising nearly 45% in the year to date.

For perspective, the benchmark ASX 200 index has shed 9% in the past year.

Brainchip has a market capitalisation of nearly $1.7 billion based on the current share price.

The post Why did the BrainChip Holdings share price leap 14% on Monday? appeared first on The Motley Fool Australia.

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More reading

• Here’s a look at the 5 best ASX All Ords tech shares in FY22
• How Brainchip shares gained 63% in a year when tech stocks nosedived
• Why did the BrainChip share price crash 30% in June?
• Why is the BrainChip share price sliding 4% today?
• Why is the BrainChip share price gaining 5% on Friday?

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 positions in and has recommended Life360, Inc. and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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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Are you interested in adding some ASX growth shares to your portfolio this week?

Two ASX growth shares that could be worth considering are listed below. Here’s why analysts at Bell Potter are bullish on them:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is Altium. It is the leading printed circuit board (PCB) design software provider behind the Altium Designer platform.

Thanks to the company’s leadership position in a market growing rapidly, Altium’s management team has set itself some bold growth targets over the coming years. This includes more than doubling its revenue to US$500 million by 2026 and dominating its market.

Bell Potter is bullish on the company and believes it will achieve its guidance in FY 2022. It commented:

We do not, however, believe this [missing guidance] is the case as: 1. 1HFY22 revenue growth was strong; 2. Altium narrowed the revenue guidance range towards the upper end in late February knowing it would implement these marketing initiatives in Q4; 3. The strong momentum in Octopart in 1HFY22 is likely to continue into 2HFY22 and offset any weakness in China (due to lockdowns) and Russia.

Bell Potter has a buy rating and $34.00 price target on its shares.

Life360 Inc (ASX: 360)

Another ASX growth share that Bell Potter rates highly is location technology company Life360. It has over 30 million active users and is generating material recurring revenue from them.

And while Bell Potter acknowledges that the company isn’t profitable yet, it feels investors should look beyond this. This is due to Life360’s explosive growth, strong balance sheet, and expectation to be cash flow positive next year.

It commented:

Life360 develops and delivers a mobile app for families – called Life360 – that provides communications, driving safety and location sharing. The company adopts a freemium model to attract customers but has been successfully converting a portion of these customers to paying subscribers over the last several years by providing valuable features. The company has also recently made two acquisitions – Jiobit and Tile – so that now it not only connects and protects people but also pets and things. Yes Life360 is currently not profitable but is expected to be operating cash flow positive from 4Q2023 and has more than sufficient cash to fund its operations till then.

Bell Potter has a buy rating and $7.50 price target on Life360’s shares.

The post Broker names 2 ASX growth shares to buy now appeared first on The Motley Fool Australia.

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More reading

• 3 reasons I think Altium is a top ASX growth share
• Chicken and chips: Experts name 3 ASX shares to buy right now
• 2 top ASX 200 shares brokers rate as buys
• Here’s why analysts are tipping these ASX growth shares as buys
• Has a turnaround already begun for ASX tech shares? Experts reveal the outlook for FY23

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium and Life360, Inc. 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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Australia and New Zealand Banking Group Ltd (ASX: ANZ) wants to buy the banking segment of Suncorp Group Ltd (ASX: SUN). But why?

The big four ASX bank is going to a lot of effort to acquire Suncorp, spending millions of dollars on transaction costs and capital raising.

Indeed, it’s raising around $3.5 billion in new shares at a 12.7% discount to the latest closing ANZ share price of $21.64.

ANZ is buying the earnings and the loan book of Suncorp. The purchase price of $4.9 billion represents a price/earnings (p/e) ratio of 13.8 times before synergies or 9.3 times after the full run-rate synergies. It also represents 1.3 times the net tangible assets (NTA).

It’s expected to be approximately neutral for earnings per share (EPS) on a pre-synergies, pro forma basis for FY23. Including the synergies, it’s expected to add to EPS in the low single-digits. The expected annual cost synergies are around $260 million, pre-tax, which is around 35% of Suncorp banking’s reported cost base in FY22.

Why does ANZ want to buy Suncorp Bank?

A low single-digit rise of EPS may not sound that compelling. But, there are other factors that ANZ is considering.

Speaking at the Suncorp and ANZ Media Conference, ANZ CEO Shayne Elliott said:

We’re acquiring a 1.2 million customer base, 700,000 of whom live here in Queensland, 400,000 of whom consider Suncorp Bank their main bank. That’s a very, very valuable franchise. Customers are really at the heart of what we’re acquiring, not bricks and mortar.

ANZ has committed to making no change to the total number of Suncorp bank branches in Queensland “for at least three years from completion”. Time will tell what happens after those three years.

Increases exposure to Queensland

ANZ described Queensland as one of Australia’s most important regions.

Buying Suncorp’s banking operations is aimed at accelerating the growth of its retail and commercial businesses, while also “improving the geographic balance of its business in Australia”.

Elliott explained the appeal of the Queensland economy:

Since March 2020, Queensland has recorded better economic growth, better workforce participation and more interstate migration than any other state or territory in Australia. It contributes 18% to Australia’s GDP and we believe we can use the resources at our disposal to further contribute to its continued success.

Bigger loan book

ANZ also said that the acquisition would include $47 billion of home loans, $45 billion in deposits, and $11 billion of commercial loans.

ANZ share price snapshot

Shares of the big bank were in a trading halt today. Over the last month, the ANZ share price has risen 2.27%.

The post ‘Not bricks and mortar’: The real value in ANZ acquiring Suncorp’s banking operations appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• ‘Really strong case’: Can ANZ win over the new ACCC boss?
• Why a Suncorp buyout could mean more green funding for Queensland
• State of the future: Why ANZ is excited about Queensland’s potential
• Why Ansell, EML, Suncorp, and Whitehaven Coal shares are charging higher

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.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price had a buoyant day on the ASX today.

The company’s share price jumped 4.32% to $17.37. For perspective, the S&P/ASX 200 Index (ASX: XJO) rose 1.23% today.

Let’s take a look at how the Flight Centre share price performed today.

Why is the Flight Centre share price higher today?

Flight Centre shares were not the only ASX travel shares to take off today. Webjet Ltd (ASX: WEB) shares jumped 3.7% while Qantas Airways Limited (ASX: QAN) shares gained 2.04%.

Flight Centre shares climbed today following comments on the weekend from Flight Centre general manager Brent Novak that “revenge travel” is back.

The online travel agency is seeing a strong interest in travel to Fiji, along with Indonesia and the United States, The Australian reported. Commenting on the outlook for travel, Novak said:

Our customers have had to put a wide range of holidays, ­family reunions and special events on hold over the last two years and are now booking these long-awaited trips.

We expect the trend for travel across the northern hemisphere to continue throughout the northern summer as steady volumes of Flight Centre customers continue to book revenge travel.

In the first week of July, 50% of online travel interest was for Indonesia, while Fiji was 18%, United States 8.1%, and Vanuatu 4%.

US travel shares also had a positive day on Friday, the most recent day of trading in the US.

The shares of online travel giant Expedia Group Inc (NASDAQ: EXPE) jumped 3.27%. Meanwhile, Delta Air Lines, Inc (NYSE: DAL) shares gained 1.07%, while American Airlines Group Inc (NASDAQ: AAL) shares closed 1.54% higher.

Flight Centre share price snapshot

The Flight Centre share price has gained almost 16% in a year although it has fallen around 1.5% year to date.

For perspective, the benchmark ASX 200 index has shed 9% about in a year.

Flight Centre has a market capitalisation of more than $3.47 billion based on the current share price.

The post Flight Centre share price leaps as ‘revenge travel’ takes off appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• This ASX 200 gold miner’s value has plunged from $2b to under $700m. Could it be set for some major M&A action?
• These are the 10 most shorted ASX shares
• I think these 2 ASX 200 dividend shares are buys for income
• ASX 200 midday update: ANZ to buy Suncorp Bank for $5bn, Whitehaven Coal’s update

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 recommended Delta Air Lines. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet 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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S&P/ASX 200 Index (ASX: XJO) shares bounced back from Friday’s disappointing trade today, starting the week out on the right foot. The index closed Monday’s session 1.23% higher at 6,687.10 points.

Leading the upwards charge was the S&P/ASX 200 Information Technology Index (ASX: XIJ). The tech sector lifted more than 2% on Monday following Friday’s strong session on Wall Street.

The tech-heavy NASDAQ Composite rose 1.79% on Friday overseas. The S&P 500 also lifted 1.92% while the Dow Jones Industrial Average gained 2.15%.

Financial shares were also among today’s winners. They were bolstered by news Suncorp Group Ltd (ASX: SUN)’s Suncorp Bank is set to be snapped up by Australia New Zealand Banking Group Ltd (ASX: ANZ) in a $4.9 billion takeover deal.

Meanwhile, the S&P/ASX 200 Health Care Index (ASX: XHJ) was the market’s worst performing sector, slipping around 0.7%.

At the end of today’s trade, eight of the ASX 200’s 11 sectors were trading in the green.

But which shares outperformed all others on Monday? Keep reading to find out.

Top 10 ASX shares countdown

The best performing share among ASX’s 200 biggest companies by market capitalisation on Monday was Genesis Energy Ltd (ASX: GNE).

The Genesis Energy share price soared around 10% today. Find out more about what the company has been up to here.

Lithium shares also outperformed today. Both Core Lithium Ltd (ASX: CXO) and Liontown Resources Limited (ASX: LTR) were among today’s ten best performers.

Today’s top 10 biggest gains were made by these ASX shares:

ASX-listed company	Share price	Price change
Genesis Energy Ltd (ASX: GNE)	$2.75	10%
Pendal Group Ltd (ASX: PDL)	$4.06	7.98%
Liontown Resources Limited (ASX: LTR)	$1.02	7.37%
WiseTech Global Ltd (ASX: WTC)	$47.05	6.62%
Ventia Services Group Ltd (ASX: VNT)	$2.64	6.02%
Suncorp Group Ltd (ASX: SUN)	$11.745	5.81%
Grange Resources Ltd (ASX: GRR)	$1.19	5.31%
Core Lithium Ltd (ASX: CXO)	$0.9425	5.31%
Stanmore Resources Ltd (ASX: SMR)	$2.00	5.26%
Boral Limited (ASX: BLD)	$2.705	5.25%

Data as at 3:59pm AEST.

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

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

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More reading

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• State of the future: Why ANZ is excited about Queensland’s potential
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• This ASX 200 gold miner’s value has plunged from $2b to under $700m. Could it be set for some major M&A action?

Motley Fool contributor Brooke Cooper 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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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 Lovisa Holdings Ltd (ASX: LOV) share price was on form on Monday.

The fashion jewellery retailer’s shares started the week with a 2.5% gain to $16.09.

Can Lovisa’s shares keep rising?

The good news is that the Lovisa share price could have significant room to climb from current levels.

According to a note out of Morgans from last week, its analysts have an add rating and $21.50 price target on the company’s shares.

Based on where Lovisa’s shares currently trade, this implies potential upside of ~34% for investors over the next 12 months.

Morgans is bullish on the company due to its belief that it could become a “global force.”

‘A global force’

Under the leadership of its relatively new and highly experienced CEO, Victor Herrero, the broker believes that Lovisa has a huge growth opportunity globally.

It explained:

Lovisa’s global footprint now spans 22 countries. In our opinion, investors can expect this number to increase steadily while, at the same time, Lovisa builds out its presence in its existing markets. We do not think there is any lack of opportunity.

In the US, for example, Lovisa now has 81 stores, representing 0.25 stores for every million people), compared to Australia with 158 stores, 6.15 stores for every million people. Given Mr Herrero is well-incentivised to grow Lovisa’s EBIT rapidly over the next three years, and has already appointed senior former Inditex executives to his regional team, we could be at the start of a period of remarkable expansion.

In light of this, Morgans believes Lovisa could become one of the biggest success stories in Australian retail.

LOV may just prove to be one of the biggest success stories in Australian retail. With ambitious (and financially well-incentivised) new leadership in place, we think now is the time LOV steps up to become a global force.

The post Own Lovisa shares? Why this broker believes the retailer could be a ‘global force’ appeared first on The Motley Fool Australia.

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More reading

• Here are 3 excellent ASX growth shares for investors to buy in July
• Analysts name 3 buy-rated ASX growth shares for July
• Here’s why I think Lovisa could be a top ASX dividend share
• Analysts name 2 excellent ASX shares to buy and hold
• Brokers name 3 ASX shares to buy today

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