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The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price has dropped by over 10% since the start of 2022.

But, since mid-March, the Soul Pattinson share price has risen by 8%.

Is it still an opportunity, or has it recovered too much to be good value?

What does this ASX share do?

Soul Pattinson is an investment house that owns a diversified portfolio across different sectors, with some ASX shares being significant holdings within the business.

It is invested in sectors like telecommunications, building products, property, resources, agriculture and financial services.

In terms of the biggest ASX shareholdings, these are some of the biggest positions: Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC), Macquarie Group Ltd (ASX: MQG), Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Tuas Ltd (ASX: TUA), Wesfarmers Ltd (ASX: WES), CSL Limited (ASX: CSL) and Pengana Capital Group Ltd (ASX: PCG).

What has happened to the Soul Pattinson share price?

There has been a lot of volatility in the ASX share market since the start of the year. There has been an increasing focus on strong inflation and the possible interest rate rises to deal with that. There is also the ongoing Russian invasion of Ukraine.

However, one of Soul Pattinson’s main holdings called New Hope Corporation, a coal miner, has seen its share price rise by 43% this year amid a strong environment for coal prices.

The investment house recently announced its FY22 half-year result. The group’s regular net profit after tax was up 281% to $343.7 million thanks to increased commodity prices, property profits in Brickworks and higher dividend income after the Milton merger.

HY22 net cash flow from investments increased 114% to $182.6 million, while cash flow per share increased by 42% year on year.

The company’s portfolio value was $9 billion at the end of the first half of FY22, while the fully franked interim dividend was increased by 11.5% to 29 cents per share. That was the 24^th consecutive increase in interim dividends.

Is the Soul Pattinson share price a buy?

Morgans rates it as a buy. The broker’s price target on Soul Pattinson is $30.60. That implies a potential rise of the Soul Pattinson share price of more than 10%, plus the dividends.

Soul Pattinson boasts that an investment in the company over the last 20 years has increased over ten times. The annualised total shareholder return over the last two decades has been an average of 13% per annum. However, past performance is not a guarantee of future results.

The company’s investment philosophy is to be diversified, unconstrained, long-term and provide capital protection.

The unconstrained part of the strategy allows the company to “invest in and support companies from an early stage and grow with them over the long-term.”

How does Soul Pattinson achieve capital protection? The company says its portfolio of assets generate “reliable cash(flow) through market cycles which serves to protect downside in market corrections.”

At the current Soul Pattinson share price, it has a trailing grossed-up dividend yield of 3.4%.

The post Is the Soul Pattinson share price a buy after falling over 10% in 2022? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Soul Patts share price is getting whacked today
• Keen to bag the Washington H Soul Pattinson dividend? Read this
• 2 defensive ASX dividend shares for long-term income
• Top ASX dividend shares to buy in April 2022
• Why has the Washington H. Soul Pattinson share price leapt 13% in 3 weeks?

Motley Fool contributor Tristan Harrison owns Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks, CSL Ltd., and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Brickworks, Washington H. Soul Pattinson and Company Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Macquarie Group Limited and TPG Telecom 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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Bendigo and Adelaide Bank Ltd (ASX: BEN) has one of the best dividend yields going around on the ASX.

The regional bank offers an attractive dividend yield of 5.03% which is higher than most of the major banks.

In contrast, Commonwealth Bank of Australia (ASX: CBA) has a dividend yield of 3.56%, while National Australia Bank Ltd. (ASX: NAB) stands at 3.82%.

However, with the first half of FY22 already wrapped up, it’s time to look towards August’s earnings season.

The Bendigo Bank dividend in a nutshell

In the first half of FY22, Bendigo Bank paid an interim dividend of 26.5 cents per share. That reflected an increase of 12.8% compared to the H1 FY21 dividend.

This came off the back of stronger cash earnings of $260.7 million in the first six months of FY22. The result was 19% higher than the prior corresponding period.

The H1 FY22 payout ratio stood at 57%, which is below the target range of 60% to 80% of cash earnings. However, management noted that it expects this to be in the low end of the range for the full year. This means there should be a slightly higher payout ratio for the second half.

So, what about the FY22 dividend?

According to Goldman Sachs, the broker is anticipating Bendigo Bank to maintain a final dividend of 26.5 cents per share.

It said that Bendigo Bank faces continued margin pressure with headwinds expected to moderate by end of the second half.

Nonetheless, despite near term revenue challenges, management is firmly fixed on a continued improvement in cost-to-income ratio. This financial metric came to 59.3% for the H1 FY22 period, slightly below the 60.9% reported year-on-year.

Bendigo Bank also registered a bad debt benefit of A$17.8 million, which accounted for 5 basis points of total loans.

Looking further afield, Goldman Sachs analysts are forecasting the company to pay a full year dividend of 54 cents in FY23. While this is similar to FY22’s 53 cents, the dividend is expected to amplify to 70 cents in FY24. This translates to grossed-up dividend yields of 5.6% and 7.2%, respectively.

The post How big will the Bendigo Bank dividend be in 2022? appeared first on The Motley Fool Australia.

More reading

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• Why is the CBA dividend so low compared to the other ASX 200 banks?
• Top brokers name 3 ASX shares to sell next week
• The CBA share price has leapt 14% since February. Too late to buy?
• How has the Bendigo Bank share price outperformed its ASX peers by 10% in 2022?

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 owns and has recommended Bendigo and Adelaide Bank 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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So, it wasn’t a great past week for ASX 200 mining stocks. The S&P/ASX 200 Resources Index (ASX: XJR) finished the week down 5.36% and the S&P/ASX 200 Materials Index (ASX: XMJ) was also down 5.38%. Meantime, the S&P/ASX 200 Index (ASX: XJO) faltered just 0.68% to finish trading last week at 7,473 points.

But for a couple of mining giants, the week was worse. Let’s take a look.

BHP Group Ltd (ASX: BHP)

The BHP share price tanked 7.13% last week to finish trading at $48.49 on Friday. On Thursday, the Big Australian released its March quarterly activities report. It noted that coronavirus-related labour disruptions weighed on many of its operations. BHP management reaffirmed the FY22 production guidance for iron ore, metallurgical coal, and energy coal but lowered it for copper and nickel.

Broker Citi says BHP is a buy and has upped its share price target to $56. As my Fool colleague James wrote earlier today: “While the broker concedes that BHP and its peers have underwhelmed during the March quarter, it thinks investors should overlook this due to the significant cash flow the company is generating thanks to sky high commodity prices.”

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price has fallen 6.8% in the past week to finish trading on Friday at $113.60. The mining giant also released a quarterly update last week that appeared to disappoint ASX investors. It reported production declines but Rio management says things will improve and reiterated its full-year production and cost guidance.

Citi likes Rio Tinto shares and rates them a buy with a $135 price target. As my Fool colleague Aaron reported last week, Goldman Sachs reckons Rio Tinto will pay the biggest dividend among the top three miners in 2022. The broker projects dividends of US$9.30 in FY22 and US$8.90 in FY23.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price did better than BHP and Rio last week. It fell by 1.58% over the past week to finish trading at $21.22 on Friday.

As my Fool friend Aaron wrote last week, two brokers price Fortescue shares at $16 but this represents an upgrade by one of them and a downgrade by the other. A recent broker note from RBC Capital Markets raised its rating on Fortescue shares by 6.7% to $16, while Citi slashed its outlook by 5.9% to $16.

This implies a potential downside of 24.5%.

The post ASX 200 mining stocks just ended a dire week of trade. What’s next? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 dividend shares experts are tipping as buys
• Top brokers name 3 ASX shares to buy next week
• How much were Fortescue shares when they first listed on the ASX?
• Brokers name 3 ASX shares to buy today
• Why BHP, Megaport, OZ Minerals, and Zip shares are dropping

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen owns BHP Billiton Limited and Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Goldman Sachs. 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 growth shares to buy? Then take a look at the three listed below that are rated as buys with major upside potential.

Here’s what you need to know about these growth shares:

Life360 Inc (ASX: 360)

The first ASX growth share to look at is Life360. It is the company behind the hugely popular Life360 app, which is the world’s leading real time, location-sharing app used by families across the world to stay safe and communicate. At the last count, there were almost 34 million monthly active users on its platform. This is generating significant recurring revenue and creates material cross-selling and upselling opportunities for the company.

Bell Potter is bullish on Life360 and believes recent share price weakness is a buying opportunity. It currently has a buy rating and $10.00 price target on its shares. This suggests that its shares could almost double in value from current levels.

ResMed Inc. (ASX: RMD)

Another growth share to look at is ResMed. It is a medical device company with a focus on the sleep treatment market. ResMed has been growing at a strong rate for over a decade and has been tipped to continue this positive form over the long term. This is thanks to its industry-leading products and massive market opportunity. In respect to the latter, management estimates that there are ~1 billion people impacted by sleep apnoea worldwide, with just ~20% already diagnosed.

Morgans is a fan of ResMed and has an add rating and $40.46 price target on its shares. This implies potential upside of 25% for investors.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share to look at is this online furniture and homewares retailer. Its shares have been hit hard this year amid weakness in the tech sector and particularly the online shopping category. While this is disappointing, it could have created a buying opportunity for long term focused investors.

Goldman Sachs has a buy rating and $12.65 price target, which implies over 100% upside. The broker likes Temple & Webster due to its “early lead in the home furniture category which is still in the early stages of online penetration.”

The post 3 fantastic ASX growth shares with major upside potential appeared first on The Motley Fool Australia.

More reading

• 2 beaten-up ASX shares with massive upside: experts
• Why Alliance Aviation, Life360, Ramsay Health Care, and Whitehaven Coal are racing higher
• 5 things to watch on the ASX 200 on Wednesday
• Mining and tech: Experts name 2 ASX 200 shares to buy now
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. and Temple & Webster Group Ltd. 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 to help you beat inflation, then the two listed below could be worth considering.

Here’s why these ASX 200 dividend shares are rated as buys right now:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share to look at is BHP. The Big Australian’s shares have been on fire this year and are up over 14% since the start of 2022 despite a recent pullback. This has been driven by the rising iron ore price, among with other commodities, which has positioned BHP to deliver bumper free cash flows again in the coming years.

The team at Citi believes the BHP share price still has a long way to run. It recently upgraded its shares to a buy rating with a $56.00 price target. Citi said: “BHP cash flow generation is up strongly on our revised IO price deck and we think market outperformance can continue given the hefty cash forecast cash build and upgrade to Buy.”

As for dividends, the broker expects fully franked dividends of $4.80 per share in FY 2022 and $4.55 per share in FY 2023. Based on the current BHP share price of $48.49, this implies potential yields of 9.9% and 9.4%, respectively.

Centuria Industrial Reit (ASX: CIP)

Another ASX 200 dividend share to look at is Centuria Industrial. It is the largest domestic pure play industrial REIT and the owner of a portfolio of high-quality industrial assets situated in key metropolitan locations throughout Australia.

Demand for these properties has been very strong in FY 2022, leading to strong rental growth during the first half. Management explained: “Strong leasing activity increased portfolio occupancy to a high 99.2%. Leasing across CIP’s portfolio delivered 10% rental growth driven by elevated occupier demand, particularly from the e-commerce sector, creating competition for high-quality industrial assets.”

The team at Macquarie expect this trend to continue. As a result, the broker has put an outperform rating and $4.27 price target on its shares.

Macquarie is also forecasting a 17.3 cents per share distribution in FY 2022 and an 17.8 cents per share distribution in FY 2023. Based on the current Centuria Industrial share price of $3.95, this will mean yields of 4.4% and 4.5%, respectively

The post 2 ASX 200 dividend shares experts are tipping as buys appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy today
• Why BHP, Megaport, OZ Minerals, and Zip shares are dropping
• Is this why the BHP share price is down 4% today?
• Dividend beasts: 5 ASX 200 shares with the highest dividend yield right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) finished the shortened week deep in the red. The benchmark index fell 1.6% to 7,473.3 points.

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

ASX 200 expected to sink

The Australian share market looks set to start the week as it ended the last one. According to the latest SPI futures, the ASX 200 is poised to open the day 160 points or 2.15% lower. On Wall Street, the Dow Jones rose 0.7%, the S&P 500 climbed 0.6%, and the Nasdaq jumped 1.3%. However, all three indices fell hard on Friday amid a market selloff.

Megaport shares rated as a buy

The Megaport Ltd (ASX: MP1) share price could be a bit of a bargain following its selloff according to analysts at Goldman Sachs. A note this morning reveals that the broker has retained its buy rating but cut its price target down to $13.10. This implies potential upside of 45% for investors. While its quarterly update was disappointing, Goldman believes “the long term opportunity for MP1 is unchanged.”

Oil prices tumble

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough start to the week after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 2.8% to US$99.12 a barrel and the Brent crude oil price has fallen 3.5% to US$102.97 a barrel. Concerns about falling demand in China weighed on prices.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a poor day after the gold price fell overnight. According to CNBC, the spot gold price is down 1.7% to US$1,901.10 an ounce. The precious metal hit a four week low amid rate hike fears.

Mineral Resources rated as a buy

Goldman Sachs is also very positive on the Mineral Resources Limited (ASX: MIN) share price. Its analysts have retained their buy rating and lifted their price target on the mining and mining services company’s shares to $73.80. Goldman notes that Mineral Resources is benefiting from stronger than expected iron ore and lithium prices.

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

More reading

• Top brokers name 3 ASX shares to buy next week
• Brokers name 2 ASX shares to buy after the tech selloff
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Own Westpac shares? Here’s why the bank has just copped a further $100m in fines

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 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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My father was a veteran of the Vietnam War.

For as long as I can remember, I’ve been going to the ANZAC Day Dawn Service.

Best I can recall, I’ve only missed one – when I was over in London more than a decade ago.

And attending Sydney’s ANZAC Day March, usually outside the Queen Victoria Building on George Street, was another annual ritual, as we waved our flags and applauded until our hands were sore, and waited for Dad and my grandfather to march past.

In those days, the march was led by a riderless horse, with boots backward in the saddle.

It was a poignant act of remembrance for the veterans of the Boer War, none of whom were still alive.

I’m getting older, and so are many of our veterans.

Now, there are no Great War veterans alive, either.

And the ranks of the Second World War veterans thin further with each passing year.

It evokes Eric Bogle’s song, The Band Played Waltzing Matilda:

But the band plays Waltzing Matilda

And the old men still answer the call

But as year follows year, more old men disappear

Someday no one will march there at all

Except, of course, there are more veterans, from more recent wars, just as our soldiers were in Vietnam when Bogle wrote his famous anti-war ballad.

Truth be told, my old man didn’t like Bogle’s song.

He was no warmonger, but he had an issue with a couple of the lines; the last two in this verse:

And the old men march slowly, old bones stiff and sore

They’re tired old heroes from a forgotten war

And the young people ask, “what are they marching for?”

And I ask myself the same question

Dad knew why they marched.

A Vietnam veteran, the song stung in particular, I assume, because of the terrible reception those men got when they returned home.

Their treatment was – and this is my phrase, not his – a betrayal.

Their country asked them to fight, then turned its back on them when they returned.

It was a deep wound. Many Vietnam veterans still don’t march on ANZAC Day for that reason, but the Welcome Home parade, in 1987, as well as the popularity of another folk song, I Was Only 19 (A Walk in the Light Green), helped salve the hurt for many.

They marched because they had served. They marched because some of their mates didn’t come home. They marched because it was an act of remembrance for those who served, suffered and died in other wars, too.

I don’t share Dad’s unhappiness with the song. But I understand it, and can’t blame him for it.

I wonder if, perhaps, that line might have been differently written or contextualised, but nor could Bogle have foreseen the country’s mistreatment of our Vietnam vets (something Bogle has spoken about, since).

And, of course, war is a tragedy for all involved.

Sometimes there are ‘winners’, but the cost is high on all sides.

My father never regretted doing his duty and serving his country. But he struggled with post-traumatic stress disorder for the rest of his life.

Some others came home with physical wounds.

Some didn’t come home at all.

Those are the reasons that Veterans march on ANZAC Day.

They are the reasons we remember those Australians, New Zealanders, and the service personnel of our allies, who served, suffered and died during war and warlike conflicts.

And we do remember. Gratifyingly, in increasing numbers.

My earliest memory of ANZAC Day Dawn Services are of maybe 50 or 60 people, at best, attending our local RSL’s commemoration.

There were so few that they used to put a bottle of rum and a jug of milk on a table at the club after the service, and while I’m sure it was eventually emptied, I don’t remember it going quickly.

These days many hundreds of people turn up to that same location, to pay their respects to our fallen, and their comrades who served.

Eric Bogle rightly hoped for a time when there would be no veterans left to march, because he hoped for an end to war.

As do we all.

In the meantime, although it pales compared to the sacrifice of those who served, we are left with a sacred duty: to remember.

To remember those who went to war, and who did not return.

To remember those who returned, but who carry the emotional and physical scars of their service.

At Dawn Services around the country, the ANZAC Dedication will be delivered. It reads:

At this hour, upon this day, ANZAC received its baptism of fire and became one of the immortal names in history. 

We, who are gathered here, think of our comrades who went with us to the battlefields of war but did not return.  We feel them near us in spirit. 

We wish to be worthy of their great sacrifice. 

Let us therefore once more dedicate ourselves to the service and ideals for which they died. As dawn is even now about to pierce the night, so let their memory inspire us to work for the coming new light in the dark places of the world. 

We will remember them.

Perhaps that’s why ANZAC Day is so enduring.

Because it is absolutely about remembrance.

But it’s not about “tired old men from a tired old war”.

It’s about men (and women), who gave their best years (and for some, their lives) in the service of their country.

And it’s an opportunity for us not only to remember, but to, in the words of the dedication, “dedicate ourselves to the service and the ideals for which they died”.

The ‘ANZAC Spirit’ has been co-opted for many things, sometimes inappropriately.

But the ANZAC Dedication carries the true meaning of the phrase.

And it is what we will commemorate on ANZAC Day.

They shall grow not old,

As we that are left grow old;

Age shall not weary them,

Nor the years condemn.

At the going down of the sun

And in the morning

We will remember them

Lest We Forget

The post Lest We Forget appeared first on The Motley Fool Australia.

More reading

• Analyst names 2 top ETFs ASX investors should buy
• Analysts name 2 ASX growth shares to buy now
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• 2 ASX 200 dividend shares to buy according to brokers

Motley Fool contributor Scott Phillips 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 interested in buying some exchange traded funds (ETFs), then the two listed below could be worth considering.

Here’s what a top analyst is saying about these ETFs:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF for ASX investors to look at next week is the BetaShares Global Cybersecurity ETF. This fund provides investors with exposure to the leaders in the global cybersecurity sector. BetaShares notes that this sector is heavily under-represented on the ASX, which could make this ETF particularly attractive for local investors.

Among the companies in the BetaShares Global Cybersecurity ETF are cybersecurity giants such as Accenture, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

Felicity Thomas from Shaw and Partners is a big fan of this ETF.

She recently told Livewire that she rates this ETF highly “because cybercrime is meant to cost the world $10.5 trillion by 2025, which is huge. It also has amazing names in it like CrowdStrike. In a connected world where everyone is attached to their devices, it’s becoming the biggest problem that we’re all facing.”

VanEck Vectors MSCI World ex Australia Quality ETF (ASX: QUAL)

Another ETF that is highly rated is the VanEck Vectors MSCI World ex Australia Quality ETF.

As the name implies, this ETF gives investors exposure to a high quality basket of shares from across the world. And as it excludes Australian shares, it could be a good option for investors that are already overweight with local investments.

To be included in the fund, companies need to pass certain criteria. This includes low leverage, high earnings growth rates, and high returns on equity. Among its holdings are the likes of Apple, Microsoft, Nike, and Nvidia.

Thomas also believes this ETF is a buy. She explained: “So for me, it’s actually a buy. With rising interest rates and the war that’s going on in Europe, I actually think it’s important to invest in quality companies with high revenue growth and a solid balance sheet, which QUAL provides.”

The post Analyst names 2 top ETFs ASX investors should buy appeared first on The Motley Fool Australia.

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• What the heck is so good about Cybersecurity ASX ETF, HACK?
• Here are 2 excellent ASX tech ETFs to buy
• 3 exciting ETFs for ASX investors to buy today
• Are these 2 leading ETFs good buys in April 2022?
• 2 popular ETFs for investors to buy in April

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 BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. 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 interested in adding some growth shares to your portfolio, then the two listed below could be top candidates.

Both these ASX growth shares have been named as buys and tipped to generate strong returns for investors. Here’s what you need to know about them:

Allkem Ltd (ASX: AKE)

The first growth share to look at is lithium miner Allkem. Thanks to its world class portfolio of lithium operations and projects across different geographies and product types, it has been tipped to grow strongly over the coming years.

Particularly given its production growth potential and the strong prices that lithium is commanding due to insatiable demand for battery materials.

Morgans is very positive and sees a lot of value in Allkem’s shares despite their strong gain over the last 12 months.

The broker recently said: “AKE has been a strong performer in recent weeks but we continue to see long term valuation upside with persistent tightness in the lithium market. […] We don’t think spot prices are likely to remain at current levels forever but we think there is still plenty of scope for contract prices to increase further before settling down into a long term average.”

Morgans has an add rating and $16.98 price target on Allkem’s shares.

TechnologyOne Ltd (ASX: TNE)

Another ASX growth share to look at is enterprise software provider TechnologyOne. It is currently in the process of shifting to become a software-as-a-service (SaaS) focused business.

The good news is that this shift is going well, with management recently reiterating its belief that it will almost double its annual recurring revenue (ARR) to $500 million by FY 2026.

Analysts at Goldman Sachs suspect that TechnologyOne could even outperform this target, noting that the risks are now to the upside.

It said: ““In our view, TNE is well-placed to meet its A$500mn FY26 ARR target and we are more constructive than consensus and the market (as implied by TNE’s current share price). SaaS flip uplift, elevated inflation (via contractual CPI pass-through) and underlying business growth underpin our A$505mn FY26 ARR estimate, and we think risks are skewed to the upside with our estimates assuming modest organic growth ex-flip (~10%).”

Goldman initiated coverage on the company last week with a buy rating and $14.00 price target.

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

More reading

• Analysts name 3 ASX 200 shares to buy now
• Why is it such a mixed day of trade for ASX lithium stocks?
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• Goldman Sachs has just slapped buy ratings on these ASX tech shares
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro owns Allkem. 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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The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

Two that investors might want to put on their watchlists are listed below. Here’s why they are rated highly:

Symbio Holdings Ltd (ASX: SYM)

The first small cap to watch is Symbio. It was formerly known as MNF Group and before that MyNetFone. Symbio specialises in the voice over internet protocol (VoIP) technology which is used to support services like teleconferencing, online business meetings, and digital data transfers.

It appears well-placed for growth over the long term thanks to increasing demand for VoIP technology, its expansion into Asia, and its strong balance sheet following divestments. The latter gives management opportunities to look at boosting its growth with acquisitions.

Not that it necessarily needs to. Symbio has been growing its recurring revenue at a solid rate in recent years thanks partly to strong growth in phone numbers on its network. For example, during the first half, the company reported a 13% lift in recurring revenue to $54.4 million. Pleasingly, management sees significant growth opportunity ahead and is boldly targeting 100 million numbers on its network by 2030. This compares to 6.4 million at the end of December.

Ord Minnett currently has a buy rating and $7.15 price target on Symbio’s shares.

Whispir Ltd (ASX: WSP)

Another small cap ASX share to watch is Whispir. It provides a leading software-as-a-service (SaaS) communications workflow platform that automates interactions between organisations and people.

Like Symbio, Whispir has been growing at a solid rate in recent years and management appears confident this will continue. This is due to the global mega trend of digital transformation which is providing strong tailwinds.

And given the low levels of churn the company is reporting (under 2%), it appears to have a sticky platform and a strong foundation to build on.

Ord Minnett is also a fan of Whispir. It has a buy rating and $2.85 price target on its shares.

The post 2 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia.

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• 3 exciting small cap ASX shares for your watchlist

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 Symbio Holdings Limited and Whispir Ltd. The Motley Fool Australia owns and has recommended Symbio Holdings Limited. The Motley Fool Australia has recommended Whispir Ltd. 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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