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Two of the big reasons why ASX shares have been so volatile this year are persistent inflation and rising interest rates.

Many experts say the most direct way to get around such headwinds is to invest in businesses that can set their own prices.

This can happen if the company provides a product or service so unique that there is not much competition, or its market share is so dominant that customers are unlikely to depart even if prices went up.

Such pricing power can offset higher supplier costs or interest rates, thereby preserving margins and earnings.

“As the inflation dynamic becomes more significant, the ability of companies to pass through input cost increases to their customers is one of the most significant themes for investors to understand,” said Martin Currie Australia chief investment officer Reece Birtles.

“Companies that have done well in this respect either have in-built inflation protections for their revenue streams and supply chains, or inflation leverage in their profit margins.”

Birtles then named three examples of ASX shares that fit this bill:

Product makers are naming their own prices, while service providers flounder

The first thing to note is that the type of business with pricing power seems to have changed in recent months.

“Until recently, service providers – typically growth-stye stocks – were more likely to be able to increase prices,” said Birtles.

“But now it is goods companies that appear to have a better ability to quickly pass through their input cost increases in a transparent manner.”

The shortage of labour in the post-COVID era is causing a bottleneck for service providers.

“Service companies are seeing higher costs in IT, compliance and wages, but with less price elasticity, meaning they cannot push prices up and still maintain sales.”

During last reporting season, Birtles’ team met executives of more than 100 companies to analyse how they’re coping with inflation.

The 3 ASX shares that stood out for him are:

• Amcor CDI (ASX: AMC)
• Scentre Group (ASX: SCG)
• APA Group (ASX: APA)

Packaging maker Amcor has dealt with higher costs by increasing prices, but this has not affected sales.

“Due to the essential nature of the goods they sell, Woolworths Group Ltd (ASX: WOW) and other supermarket businesses are doing a solid job of holding their gross profit margins by passing through the rising cost of goods.”

Amcor shares are down 2.7% for the year so far.

Scentre operates the ubiquitous Westfield shopping malls in Australia.

“Accelerating inflation has been a positive for Scentre Group’s regional and super-regional shopping centres,” said Birtles.

“They have high tenant occupancy and rental contracts with CPI-adjusted lease renewal mechanisms.”

The Scentre share price is down more than 10% so far in 2022.

APA Group is an owner of gas infrastructure — a great position to be in during times of rising energy prices.

Utility and infrastructure companies often have contracts with clients that have inflation-linked price rises already baked in. 

“Gas pipeline company APA Group’s operating expenses are a modest part of revenues, while revenue contracts are typically long-term take or pay with CPI-linkage mechanisms. 

“As inflation increases, the dollar value of cash flow will increase.”

The APA stock price has gained more than 15% this year.

The post 3 ASX companies that can raise prices whenever they want appeared first on The Motley Fool Australia.

More reading

• How is the Woolworths share price managing to defy today’s sell-off?
• 2 ASX shares that could benefit from rising inflation
• Wow! Here’s how much $5,000 of Woolworths shares bought 5 years ago would be worth now
• 3 ASX 200 stocks smashing 52-week highs today
• The APA share price just powered to a 52-week high

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 owns and has recommended APA Group and Amcor Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re looking for dividend shares with attractive yields, then you may want to look at the ones listed below.

Here’s why analysts rate these dividend shares as buys:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is this footwear focused retailer.

Accent is the owner of a wide range of retail brands including HYPEDC, Platypus, Stylerunner, Subtype, Supra, and The Athlete’s Foot.

Accent’s shares have been hit hard this year due to COVID lockdowns impacting its profits materially and concerns over sports giants Adidas and Nike focusing on growing their direct to consumer businesses.

Nevertheless, the team at UBS remain positive and are expecting the company to rebound strongly in FY 2023. As a result, the broker has put a buy rating and $2.50 price target on the retailer’s shares.

As for dividends, UBS is forecasting fully franked dividends of 7 cents per share in FY 2022 and then 13 cents per share in FY 2023. Based on the current Accent share price of $1.47, this will mean yields of 4.75% and 8.8%, respectively.

Dexus Industria REIT (ASX: DXI)

Another ASX dividend share that could be in the buy zone is Dexus Industria.

It is an industrial and office focused property company that was formerly known as APN Industria. Dexus Industria owns interests in office and industrial properties across the country that provide functional and affordable workspaces for businesses.

Morgans is a fan of the company and appears to believe it well-placed to deliver sustainable income and capital growth prospects for shareholders over the long term.

Its analysts recently put an add rating and $3.65 price target on the company’s shares. They are also forecasting attractive dividends per share of 17.3 cents in FY 2022 and 17.6 cents in FY 2023.

Based on the current Dexus Industria share price of $3.37, this will mean yields of 5.1% and 5.2%, respectively.

The post Analysts name 2 ASX dividend shares with big 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 Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The first few months of 2022 has seen share market volatility like we could not even imagine last year.

This means that quite a few businesses have seen their stock fall like a stone. Yet their operations and fortunes may not have changed all that much.

That’s why it’s worth noting ASX shares that have plunged that professional investors are still holding onto.

The idea is that, over the long term, any massive disjoint between company performance and share price will moderate.

Here’s a trio of ASX shares in that situation that Firetrail Investments is holding:

Fell 48%, but still up over last 12 months

Shareholders for cancer treatment developer Telix Pharmaceuticals Ltd (ASX: TLX) have been crying in despair this year.

“Shares fell 48% in the quarter with news that its competitor, Novartis AG (SWX: NOVN), had received FDA [US Food and Drug Administration] approval for a competing prostate cancer imaging agent (PCIA),” Firetrail analysts said in a memo to clients.

However, the shares are still more than 14% higher than where they were 12 months ago. 

The Firetrail team is still bullish on Telix, noting that it launched its own PCIA in the US at the start of this month.

“The US PCIA market is estimated to be a US$900 million per annum market, and we expect Telix to gain meaningful share thanks to broad coverage of imaging centres and hospitals across the US via distribution partners Cardinal Health and Pharmalogic.”

‘Valuation upside over the next 2 to 3 years’

The Firetrail team blamed the 25% drop in technology stock Megaport Ltd (ASX: MP1) in the first quarter on “a disappointing second quarter update”.

“Port and Megaport Virtual Edge additions were weaker than expected, resulting in consensus downgrades,” the memo read.

“The weaker result was exacerbated by a selloff in technology and growth names in the quarter.”

But the fall in Megaport’s share price just meant that Firetrail was able to buy more at a bargain price.

“We used the stock weakness to add to our long position,” stated the analysts.

“Our investment thesis remains intact and we see material earnings and valuation upside over the next 2 to 3 years.”

Market yet to catch onto true potential

Building materials provider James Hardie Industries plc (ASX: JHX) saw its share price freefall 27% in the first quarter.

That puzzled Firetrail analysts, as they felt the company’s latest result was “solid” and the financial year 2023 guidance was “ahead of expectations”.

“The ability to provide earnings guidance 12-months out should have stoked confidence,” the memo read.

“However, the stock has instead followed US homebuilders and building products companies lower in response to rising US 30-year fixed mortgage rates.”

Investors are yet to understand the big picture potential of the company, according to Firetrail.

“We believe the market is missing a material market share and margin-accretion opportunity which lies ahead of James Hardie as it shifts its product mix towards higher-margin products,” its memo read.

“We estimate current North America margins of 29% could increase to 46% by FY27, materially higher than consensus FY27 margins of 34%.”

The post 48% fall: Fund names 3 ASX shares to take off after heavy crash appeared first on The Motley Fool Australia.

More reading

• Top broker tips Megaport share price to rebound 45%
• 5 things to watch on the ASX 200 on Tuesday
• Brokers name 2 ASX shares to buy after the tech selloff
• These were the worst performing ASX 200 shares last week
• The Megaport share price just tumbled another 10%. Is it now a super bargain?

Motley Fool contributor Tony Yoo owns MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) started the shortened week in a very poor fashion. The benchmark index sank 2.1% to 7,318 points.

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

ASX 200 expected to sink again

The Australian share market looks set to have another bad day on Wednesday following a market selloff in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 110 points or 1.5% lower this morning. On Wall Street, the Dow Jones fell 2.4%, the S&P 500 dropped 2.8%, and the Nasdaq has crashed 3.95%. Investors were dumping equities on fears of an economic slowdown.

Oil prices rebound

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a better day after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 3.2% to US$101.63 a barrel and the Brent crude oil price has risen 2.7% to US$105.04 a barrel. Supply fears appear to have boosted prices.

South32 shares remain a buy

The South32 Ltd (ASX: S32) share price tumbled on Tuesday following the release of its quarterly update. The team at Goldman Sachs appear to see this as a buying opportunity. This morning the broker has retained its conviction buy rating with a trimmed price target of $5.70. Overall, while acknowledging that South32 has increased its cost guidance, Goldman was pleased with the company’s performance during the quarter.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.55% to US$1,906.5 an ounce. Economic growth and inflation concerns have supported the safe haven asset.

Mineral Resources tipped as a buy

The Mineral Resources Limited (ASX: MIN) share price could be great value according to analysts at Bell Potter. This morning the broker has retained its buy rating and $70.00 price target on the mining and mining services company’s shares. In response to its US$1 billion notes offering, the broker believes it is “ further confirmation of MIN’s commitment to the transformational portfolio of growth projects.”

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

More reading

• Are these 2 ASX tech shares top ideas for May 2022?
• Own ASX 200 energy shares? Here’s why Morgan Stanley says the oil price is set to surge
• Why Chalice Mining, EML Payments, Mineral Resources, and South32 shares are tumbling
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Is the Zip share price set to sink below the $1 mark for the first time since 2018?

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 Bruce Jackson.

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When the BetaShares Crypto Innovators ETF (ASX: CRYP) launched on the ASX last year, it caused quite the stir. This exchange-traded fund (ETF) took only eight minutes on the ASX to surpass $8 million worth of trades. By the end of its first day, investors had exchanged $39.7 million worth of the ETF’s units, smashing an ASX record.

This ETF from provider BetaShares doesn’t invest in cryptocurrencies like Bitcoin (CRYPTO: BTC) directly. Instead, it invests in companies that provide “‘picks and shovels’ exposure to the companies building crypto mining equipment, crypto trading venues, and other key services that allow the crypto economy to thrive”.

Some of its current top holdings include Silvergate Capital Corp, Microstrategy Inc, and Coinbase Global Inc.

But unfortunately for the BetaShares Crypto Innovators ETF’s early investors, there hasn’t been much in the way of good news since its launch. On its first day of ASX life, CRYP closed at $11.28 per unit. But as it stands at end of trading on Tuesday, this ETF is asking just $4.89. That’s a fall of almost 57%.

Of that fall, 23.35% has come during the past month alone. But now that we have seen such savage falls, many investors might be wondering if this ETF is in the bargain bin.

Is the BetaShares Crypto ETF a buy or a sell today?

Well, let’s check out what two ASX expert investors reckon. Felicity Thomas from Shaw and Partners and Ben Nash from Pivot Wealth both joined a Livewire podcast recently where they shared their views on this ASX ETF.

Here’s some of what Nash had to say:

This one’s a buy from me. I think crypto is a really interesting space, the blockchain technology has so many applications that I think we’re only just starting to see that. I think it will just grow and continue to grow. Also, the house always wins, so a lot of the companies that this particular ETF is investing in, they’re companies that are not necessarily tied to the price or value of cryptocurrency or other digital assets but instead that make money when they’re more and more popular. So I think that it’s a huge growth area.

So that’s pretty unequivocal there. Fortunately, Thomas agreed that CRYP units were a buy. Here’s some of what she added:

It’s another buy from me. It’s off 45% from its original initiation price. I really like what Ben said, in that it’s the picks and shovels of cryptocurrency in different companies, rather than direct cryptocurrency. You make money on the buyers and sales. So with ANZ and NAB and all the majors getting into cryptocurrency, I think it’s here to stay.

So that’s how these two ASX experts view CRYP right now. Although this ETF’s first few months of life haven’t been easy, who knows what the future of cryptocurrency might bring to the companies that enable this technology.

The BetaShares Crypto Innovators ETF charges a management fee of 0.67% per annum.

The post The Betashares Crypto Innovators ETF has dumped 23% in a month. Is it now a bargain? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns Bitcoin and Coinbase Global, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Betashares Crypto Innovators ETF, Bitcoin, and Coinbase Global, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended MicroStrategy and Silvergate Capital Corporation. 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 Bruce Jackson.

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Believe it or not, it’s nearly May 2022 already. Could there be some compelling ASX tech shares to look for next month?

The ASX share market has seen elevated volatility so far this year with the S&P/ASX 200 Index (ASX: XJO) closing more than 2% lower on Tuesday.

Could these two ASX tech shares be top contenders to consider in the current climate?

Airtasker Ltd (ASX: ART)

Airtasker describes itself as “Australia’s leading online marketplace for local services, connecting people and businesses that need work done with people who want to work”.

The latest quarterly update from the company showed ongoing business progress.

For the three months to 31 March 2022, the ASX tech share’s gross marketplace volume (GMV) increased 24.9% to $51.5 million, while revenue jumped 21.2% to $8.6 million.

Despite investing for growth, the company said that it generated a positive operating cash flow of $1 million. It also has $32.8 million of cash in the bank.

International growth continues for the business at a very fast pace. UK GMV growth was 138% year on year. Meanwhile, US-posted task growth was up 90% quarter on quarter. The UK and US markets represent large market opportunities, according to Airtasker. However, these segments are starting from much smaller bases for Airtasker.

The company also noted that it achieved these growth numbers, and the positive operating cash flow, despite COVID impacts and severe weather events, including flooding.

The ASX tech share said in its FY22 half-year result that it had a gross profit margin of 93%, which is one of the highest on the ASX.

The broker Morgans rates the share as a buy.

Betashares Global Cybersecurity ETF (ASX: HACK)

This exchange-traded fund (ETF) is all about the global cybersecurity sector.

BetaShares says that with cybercrime on the rise, “the demand for cybersecurity services is expected to grow strongly for the foreseeable future.” Indeed, the ETF provider points to projections by Statista that the cybersecurity market could grow from US$137.63 billion in 2017 to US$248.26 billion in 2023.

There are a number of different businesses in the HACK ETF’s portfolio. The ASX tech share has around 40 positions at the moment.

These are some of the largest positions in the portfolio: Crowdstrike, Palo Alto Networks, Cisco Systems, Zscaler, Cloudflare, Akamai Technologies, Booz Allen Hamilton, Juniper Networks, Leidos, and Mandiant.

The fund has an annual management fee of 0.67%. Of course, past performance is not a reliable indicator of future performance. However, in the five years to February 2022, the average annual net return has been an average of 20.5%.

The post Are these 2 ASX tech shares top ideas for May 2022? appeared first on The Motley Fool Australia.

More reading

• Own ASX 200 energy shares? Here’s why Morgan Stanley says the oil price is set to surge
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Is the Zip share price set to sink below the $1 mark for the first time since 2018?
• ‘Super pleased’: Why the Airtasker share price is rocketing 12% today
• 5 things to watch on the ASX 200 on Tuesday

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. owns and has recommended BETA CYBER ETF UNITS, Cisco Systems, Cloudflare, Inc., and CrowdStrike Holdings, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended CrowdStrike Holdings, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The National Australia Bank Ltd (ASX: NAB) share price is ratcheting up in 2022 and is now 13.5% higher since trading resumed in January.

It continues to surge in April and rests near 52-week highs at its closing price of $32.74 on Tuesday.

What tailwinds are behind the NAB share price?

There have been a number of catalysts that appear to have helped the banking and financial sector in Australia this year.

The S&P/ASX 200 Financials Index (ASX: XFJ) has thrust hard off a low in early March. It has since gained 11% after trading as much as 14% higher in that time. It’s now up over 3% this year to date.

JP Morgan analysts are tipping NAB to outpace other banks in revenue growth and profitability this coming year, backed by “sound cost control”.

Despite some possible headwinds to cost targets, the broker sees “NAB’s pre-provision profit growth outstripping peers” in both FY22 and FY23.

Further, experts are almost certain the Reserve Bank of Australia (RBA) is set to hike base rates this year, slightly ahead of its previously outlined forecasts.

Until this point, the RBA has been reluctant to raise interest rates. However, soaring inflation, rising food costs, and a tumultuous property market have forced the RBA’s hand, experts say.

Meanwhile, the Australian Financial Review‘s survey of 36 economists revealed the RBA is tipped to lift rates three times by the end of 2022 — if the economists are correct.

The question is what this will mean for Australian banks like NAB, taking into account the heavy competition in an already saturated mortgage market. The other consideration is what it means for homeowners paying a mortgage.

According to analysts at UBS, Aussie mortgage holders appear to be well equipped to absorb any shock from a shift in interest rates.

In a note to clients, UBS analyst John Storey cited results of a recent Australian Mortgage Survey the investment bank conducted. Findings indicate that around half of respondents were at least three months ahead in their monthly mortgage payments.

That’s a positive sign for the sector, Storey says, as the macroeconomic climate begins to shift.

A total of 65% of analysts covering NAB rate it as a buy right now, according to Bloomberg data. The consensus price target is $32.50, meaning the stock is fairly valued using this metric.

The post Why is the NAB share price beating the other ASX 200 banks in April? appeared first on The Motley Fool Australia.

More reading

• If you’d invested $5,000 in NAB shares just after the COVID crash, here’s what you’d have now
• Should investors buy the NAB share price at its 52-week highs?
• NAB share price lifts again to hit new 4-year high
• Do CBA shares offer the highest big bank dividend yield?
• Why are ASX 200 bank shares having such a stellar start to the week?

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 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 Bruce Jackson.

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Looking for some small cap shares to buy? Then have a look at the ones listed below.

Here’s why they could be worth getting better acquainted with:

Adore Beauty Group Limited (ASX: ABY)

The first small cap for investors to look at is Adore Beauty. It is a leading online retailer in the Australian beauty and personal care (BPC) market. It currently has almost 1 million active customers and generated revenue of $113.1 million from them during the first half of FY 2022, which was up 18% year on year. And while this is a large number, even if you annualise it, it is still only a 2% share of the $11.2 billion Australian BPC market. This gives Adore Beauty a significant runway for growth over the next decade.

UBS is a fan of the company and currently has a buy rating and $4.70 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Another small cap share that could be in the buy zone is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies. At the last count, there were over 30,000 tradies using the platform, underpinning strong revenue growth.

Analysts at Goldman Sachs are confident that this strong growth will continue over the long term as it grows into its huge market. The broker has a buy rating and $3.60 price target on its shares.

Nitro Software Ltd (ASX: NTO)

A final small cap ASX share for investors to look at is fast-growing document productivity software company, Nitro. It is the company behind the increasingly popular Nitro Productivity Suite. It provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution. And while Nitro has been growing rapidly in recent years, it is still only scratching at the surface of a total addressable market estimated to be $28 billion per year.

The team at Goldman Sachs is also very bullish on Nitro. The broker currently has a buy rating and $4.50 price target on its shares.

The post Analysts name 3 small cap ASX shares to buy appeared first on The Motley Fool Australia.

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• 3 factors that could make the Adore Beauty share price too good to miss

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. owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Adore Beauty Group Limited and Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Own any energy shares on the S&P/ASX 200 Index (ASX: XJO)? No doubt you’ve got at least some whiplash from the wild ride this sector has endured so far in 2022. Oil prices have spent this year on a rollercoaster, assisted significantly by the disruptions to the world’s energy markets that the war in Ukraine has brought.

This has seen the value of ASX energy shares — oil shares as well as those involved with gas and coal — seesaw in value over the last few months. But the trend has unambiguously been to the upside. Just take some of the ASX 200’s largest energy shares.

Woodside Petroleum Limited (ASX: WPL) was a $22.67 share at the start of the year. Today, it is going for $30.60 a share, up 35% year to date. Whitehaven Coal Ltd (ASX: WHC) has done even better, rising almost 58% in 2022 so far.

So as most investors would know, the prices of ASX energy shares largely rise or die on the price of energy itself. Namely the oil price. As it stands today, Brent crude is currently at US$103.56 a barrel, according to Bloomberg. But where will it head from here?

MS: Oil heading to US$130 a barrel

Well, we don’t know for sure. But let’s see what one of the ASX’s expert investors reckons. According to reporting in The Australian, investment bank and broker Morgan Stanley has lifted its oil price forecast for the second half of 2022. The broker now sees Brent crude oil at US$130 a barrel by the third quarter of the year, and at US$120 by the fourth. That’s a US$10 per barrel hike on Morgan Stanley’s previous estimates.

In penning these predictions, Morgan Stanley reportedly is assuming a “high risk” that the European Union will impose an oil embargo on Russian energy exports. It is also assuming that stalled negotiations with Iran will not result in significant Iranian oil coming online by the end of the year. Its earlier analysis assumed one million barrels a day of Iranian oil hitting the markets by the end of 2022, but it is now only forecasting 500,000 barrels a day.

So if Morgan Stanley’s analysis proves accurate, it will arguably be very good news for ASX 200 energy shares like Woodside. But we shall have to wait and see what happens with the global oil markets to be sure.

The post Own ASX 200 energy shares? Here’s why Morgan Stanley says the oil price is set to surge appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Is the Zip share price set to sink below the $1 mark for the first time since 2018?
• Woodside share price plunges 6% following up-and-down quarter
• 5 things to watch on the ASX 200 on Tuesday
• These were the best performing ASX 200 shares last week

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Bruce Jackson.

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If you’re looking to bolster your portfolio with some blue chip shares, you may want to look at the two listed below.

Here’s why these blue chip ASX 200 shares are highly rated right now:

Healius Ltd (ASX: HLS)

The first blue chip ASX 200 share to look at is Healius. It is one of Australia’s largest pathology and diagnostic imaging providers.

Healius has been growing at a rapid rate over the last couple of financial years thanks to huge demand for COVID testing. Despite testing volumes inevitably declining now as Australia moves on from the pandemic, analysts at Morgans remain positive on the company and have an add rating and $5.26 price target on its shares.

The broker is expecting Healius’ base business to rebound as COVID headwinds ease.

It commented: “We continue to believe HLS is attractively valued and well placed, benefiting from the likely continuance of COVID PCR testing (at some level) and from the inevitable rebound in demand from a backlog in diagnosis and surgery.”

Wesfarmers Ltd (ASX: WES)

Another ASX 200 share that is rated highly is Wesfarmers. It is the conglomerate behind the Bunnings, Kmart, Officework, Priceline, and Target businesses. In addition, the company owns a collection of industrial businesses and even lithium mining operations.

The Wesfarmers share price is having a tough year and has pulled back materially from its highs. While this is disappointing, the team at Morgans believes it has created a buying opportunity for investors. Its analysts currently have an add rating and $58.50 price target on its shares.

Morgans commented: “WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While COVID-related staff shortages are a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the recent pullback in the share price as a good entry point for longer term investors.”

The post 2 blue chip ASX 200 shares to buy according to experts appeared first on The Motley Fool Australia.

More reading

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• Why is the Wesfarmers share price having such a rough trot in April?
• Down 20% in 2022, is the Wesfarmers share price a clear opportunity?
• Why has the Woolworths share price outperformed Wesfarmers so far in 2022?
• Here are the ASX retail share winners and losers of the last quarter

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 owns and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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