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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted ASX share with short interest of 18.1%. This was up slightly week on week. Unfortunately for those short sellers, the Flight Centre share price surged higher last week amid improving sentiment in the travel sector.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease to 11.2%. This betting technology company’s shares have lost over 50% of their value since this time last year. Concerns over its valuation and cash burn appear to be behind this weakness.
• Nanosonics Ltd (ASX: NAN) has short interest of 10.4%, which is down week on week again. Short sellers have been going after this infection prevention medical device company after it surprised the market with a big and disruptive change to its sales and distribution model in the United States.
• EML Payments Ltd (ASX: EML) has seen its short interest rise slightly to 9.5%. Regulatory risks and valuation concerns may be why short sellers are targeting EML.
• Webjet Limited (ASX: WEB) has short interest of 8.8%, which is down sharply week on week. Short sellers may be closing positions on the belief that trading conditions are now improving.
• Polynovo Ltd (ASX: PNV) has seen its short interest ease to 8%. Short sellers appear to have closed position in this medical device company after the release of a solid trading update earlier this month.
• Zip Co Ltd (ASX: Z1P) has seen its short interest ease to 8%. Despite short sellers closing positions, it hasn’t stopped this buy now pay later provider’s shares from continuing to slide. Last week they dropped to a multi-year low.
• Mesoblast limited (ASX: MSB) has returned to the top ten with short interest of 7.8%. Disappointing trial results and significant cash burn have weighed heavily on this biotech’s shares.
• Kogan.com Ltd (ASX: KGN) has seen its short interest fall sharply to 7.6%. Short sellers may have been closing positions on the belief that this struggling online retailer’s shares have finally found a bottom.
• AMA Group Ltd (ASX: AMA) has 7.1% of its shares held short, which is down week on week. This crash repair company disappointed the market in February when it reported a half year loss of $46.3 million.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week
• ASX 200 travel shares had a super day. What’s happening?
• Here are the top 10 ASX shares today
• Why has the Zip share price sunk to new multi-year lows every day this week?

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 Betmakers Technology Group Ltd, EML Payments, Kogan.com ltd, Nanosonics Limited, POLYNOVO FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended EML Payments, Kogan.com ltd, and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, 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 Bruce Jackson.

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There are more than 2,100 companies listed on the ASX, so it’s impossible for any one human to keep track of them all.

So it should not surprise you that there are a few bargains that you may not have thought of yet.

Red Leaf Securities chief John Athanasiou suggested two such ASX shares that you may want to consider picking up:

Can this airport hit the jackpot like Sydney did?

Now that Sydney Airport shareholders have been paid out after its private buyout and delisting, Auckland International Airport Limited (ASX: AIA) has become the big aviation infrastructure play.

Athanasiou sees excellent upside for the airport in New Zealand’s biggest city.

“A positive for Auckland International Airport is the New Zealand Government bringing forward its plans to re-open the country’s borders to international travellers,” he told The Bull.

“The return of international travel may encourage AIA management to resume dividends.”

According to The Motley Fool website, the company has not paid out a dividend since 2009. However, CMC Markets forecasts a 5.8 cents per share payout in 2023 and a 15.3 cent yield in 2024.

The resumption of dividends would be a massive catalyst, said Athanasiou. Maybe it will even end up with the same fate as its Sydney cousin.

“If the company starts paying dividends, AIA is likely to attract interest from global funds seeking yield from quality infrastructure assets.”

Auckland Airport shares have dipped more than 4% for the year so far. The stock price hasn’t yet approached its pre-COVID peaks.

Cashed-up Aussies spend big on pets

Online marketplace Mad Paws Holdings Ltd (ASX: MPA) only listed 13 months ago, hoping to ride the huge interest in growth stocks.

The company claimed at the time the initial public offer was oversubscribed four times over.

The recent market rotation to cyclicals has unfortunately meant the stock price has merely gone sideways from its IPO price of 20 cents per share.

But Athanasiou is upbeat after his team visited the business in real life recently.

“The pet chemist business is potentially the most lucrative segment of the company’s operations, as it’s able to sell pet pharmaceutical products at an attractive premium to repeat customers,” he said.

“There’s plenty of room for growth for the pet chemist business, as it uses the Mad Paws platform to sell their products.”

Athanasiou told The Motley Fool in February that Australians are “not shy” of spending big on their fur (or feather) children.

“We all know tailwinds in the industry of increased levels of pet ownership. Everyone bought a pet during lockdown to have some company.”

The post 2 ASX shares to buy you haven’t thought of: expert appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• These are the 2 best small cap ASX shares to buy right now: fund manager
• 5 things to watch on the ASX 200 on Tuesday
• 2 ASX dividend shares with great yields to beat inflation
• 2 buy-rated ASX growth shares that analysts say can double

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 Bruce Jackson.

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Ask a Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Matthew Booker, portfolio manager and co-founder of Spheria Asset Management, shares 2 small cap ASX shares to buy right now.

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

Matthew Booker: The Spheria Australian Smaller Companies Fund provides clients with a sensible way to gain exposure to the significant growth upside that small companies can provide relative to large companies. It aims to outperform the S&P/ASX Small Ordinaries Accumulation Index over the medium to long term.

MF: Small cap ASX shares can come with more risk. What types of risk management do you employ?

MB: Our bottom-up investment process has a strong emphasis on risk management and works to identify robust businesses which have solid and predictable free cash flow generation and, very importantly, where there is valuation support.

We naturally avoid parts of the market trading on nonsensical valuations and those aspirational concept stocks that often lead to capital losses.

MF: What are the advantages of investing in small cap ASX shares?

MB: It’s well known that the small cap sector can provide strong returns. If you look at the journey of a listed company, it is often the time as a microcap or small cap where investors are exposed to the greatest growth in its life cycle, and therefore the greatest gains are to be had.

Many smaller companies have very little analyst coverage or are not covered well. This is an advantage for professional investment teams like Spheria, who are dedicated to fundamental research and have systems and processes designed for this environment.

When our investment process identifies a likely winner, more often than not, the broader market is yet to realise the potential. In many cases, we’re investing against the trend. In our experience, most money tends to be made when taking a view contrary to conventional wisdom.

MF: Is the lack of analyst coverage in the smaller end of the market an issue for you?

MB: We’re very numbers-driven and know the financial statements for our companies inside and out. And we have great access to management that allows us to overlay a view on their capabilities. It’s nearly impossible to get this type of management access in the large cap space.

Also, the impact of large cap managers tends to be less pronounced given the size of the companies they’re running. For example, a great manager of a small cap ASX share is always going to have more shareholder impact than a new CEO running, say, Telstra Corp Ltd (ASX: TLS).

MF: You mentioned your risk management protocols earlier. What’s the biggest risk for investors buying smaller ASX shares?

MB: The biggest risk is getting caught up in the exuberance that often makes its way into the small cap universe. There are many businesses that trade on high multiples simply because they tell a good story. But investors shouldn’t buy stories, they should buy fundamentals.

Buying narratives is a great way to see your capital evaporate in the small cap sector, in the long run.

MF: What are the two best small cap ASX shares to buy right now? 

MB: InvoCare Ltd (ASX: IVC) and Blackmores Ltd (ASX: BKL).

MF: Why do you like Blackmores?

MB: Blackmores is on the cusp of a return to greatness. We were ecstatic that the market sold it off after the last result as we believe the company has never been in better shape. Growth is exploding in its key markets in Asia, with Thailand and Indonesia growing at sales of 50% plus from a large base with overall group sales growing 15% in the half-year.

More than half the group’s sales now come from the Asia region, which is massively underpenetrated.

We also believe there’s a huge shift underway to natural therapies and supplements with awareness of the role these can play in improving general health and, more specifically, boosting the immune system. The Blackmore’s brand and reputation will see it harness this extraordinary growth in its key markets, which will invariably find its way to significant profit growth for the company in the short and long term.

MF: And why is InvoCare a top buy for your fund?

MB: InvoCare is the largest funeral and memorial services operator across Australia, New Zealand, and Singapore. The company is most of its way through a significant refurbishment program that will enable it to sustain or even increase market share.

Counterintuitively, excess deaths in Australia, relative to the average, have trended negatively for the last two years despite the pandemic. Unfortunately, as the economy returns to normal, we believe death levels will return to average. But this will benefit industry participants, including IVC.

Trends in excess death rates overseas lend support to this thesis.

MF: Atop recommending they acquire professional advice, what other guidance do you have for investors looking into small cap ASX shares?

MB: You need to swallow the fact that, when investing in the small cap sector, you are going to make mistakes and lose money on positions. You cannot get everything right, and that’s why you have a portfolio and risk controls. The key is recognising when the facts have irrevocably changed for a holding and then moving it on at a loss. This requires a high emotional intellect and experience.

MF: Has Russia’s invasion of Ukraine changed your investment approach? 

MB: No, we don’t get caught up in the latest news and current affairs.

We have companies that are benefiting from higher commodity prices due, in part, to the conflict. And we have other ASX shares that are adversely impacted through, for example, higher oil prices raising transport costs.

Whether these are short- or long-term impacts will depend on the duration of the conflict, which no one can accurately predict. We’re confident our portfolio of businesses will ride this out.

The market is constantly throwing up new drama fuelled narratives. The key is to focus on the sustainability of a company’s cash flows through the cycle and its valuation.

***

(You can find out more about the Spheria Australian Smaller Companies Fund here.)

The post These are the 2 best small cap ASX shares to buy right now: fund manager appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Top brokers name 3 ASX shares to sell next week
• Why is the Blackmores (ASX:BKL) share price sliding today?
• 5 things to watch on the ASX 200 on Tuesday
• Own Blackmores (ASX:BKL) shares? Here’s how the company is aiming for 1 billion consumers

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 Telstra Corporation Limited. The Motley Fool Australia has recommended Blackmores 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) finished the shortened week in style. The benchmark index rose 0.6% to 7,523.4 points.

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

ASX 200 expected to edge higher

The Australian share market looks set to start the week with a small gain. According to the latest SPI futures, the ASX 200 is poised to open the day 10 points or 0.1% higher. On Wall Street on Monday night, the Dow Jones fell 0.1%, the S&P 500 was flat, and the Nasdaq dropped 0.15%.

Allkem shares rated a buy

The Allkem Ltd (ASX: AKE) share price could be good value according to the team at Bell Potter. In response to the lithium miner’s third quarter update, the broker has retained its buy rating but trimmed its price target slightly to $17.53. Bell Potter said: “We expect AKE’s near term cash generation to lift substantially into 2023 as strength in lithium commodity indices flows through to lagged realised prices.”

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.9% to US$107.92 a barrel and the Brent crude oil price has risen 1.2% to US$113.06.94 a barrel. A Libyan outage added to supply concerns.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price rose overnight. According to CNBC, the spot gold price is up 0.3% to US$1,981.20 an ounce. The precious metal hit a one-month high amid concerns over rising inflation.

Bank of Queensland rated as a buy

Investors may have responded negatively to the Bank of Queensland Limited (ASX: BOQ) half year results, but one leading broker is keeping the faith. According to a note out of Goldman Sachs, its analysts have retained their buy rating but trimmed their price target to $9.34. The broker highlights that “BOQ’s 12-month forward PER (ex-dividend adjusted) is trading at a 30% discount to the sector versus a 15-year average discount of 2%.”

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
• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week
• Brokers name 3 ASX shares to buy today
• Here are the top 10 ASX shares today

Motley Fool contributor James Mickleboro owns Orocobre Limited. 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 boost your income with some dividend shares, then you might want to consider the ones listed below.

Both dividend shares are expected to provide investors with great yields in the near term. This could potentially help offset the inflationary pressures that Australia is currently experiencing.

Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share for income investors is Accent. It is the owner of a seemingly ever-increasing portfolio of footwear focused store brands. Among its biggest are HYPEDC, Pivot, Platypus, Sneaker Lab, and The Athlete’s Foot.

Accent was severely impacted by COVID related disruptions and lockdowns during the first half. This led to the retailer reporting a 72% decline in net profit after tax to $14.8 million. And with management warning that COVID uncertainty remains in the second half, its shares have unsurprisingly come under significant pressure.

While this is disappointing, it could be a buying opportunity for patient income investors. For example, analysts at UBS are forecasting a big rebound in Accent’s profits and dividends in FY 2023.

UBS has pencilled in a fully franked dividend 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 $1.56, this will mean yields of 4.5% and 8.3%, respectively.

The broker has a buy rating and $2.50 price target on the company’s shares.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that income investors might want to look closer at is this agricultural real estate investment trust (REIT).

Rural Funds owns a portfolio of high quality Australian agricultural assets that are leased to many of the largest industry players. These include JBS Australia, Select Harvests Limited (ASX: SHV), and Treasury Wine Estates Ltd (ASX: TWE).

These leases are on long term agreements and have fixed rental increases built into them. As a result, management has great visibility on its future earnings. This allows it to confidently target an inflation-busting 4% increase in its dividend each year.

In FY 2022, the company intends to increase its dividend by its annual target rate to 11.73 cents per share. It has also announced plans to pay a 12.2 cents per share dividend in FY 2023. Based on the current Rural Funds share price of $3.05, this will mean yields of 3.85% and 4%, respectively.

The post 2 ASX dividend shares with great yields to beat inflation appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with attractive yields
• Opportunity knocking? 3 ASX All Ords shares trading at 52-week lows today
• 2 ASX dividend shares expected to pay mega income yields
• 2 fully franked ASX dividend shares experts rate as buys
• 2 defensive ASX dividend shares offering reliable income

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 RURALFUNDS STAPLED. The Motley Fool Australia has recommended Accent Group and Treasury Wine Estates 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 a fan of growth shares, then you may want to look closely at the two shares listed below.

Here’s why these growth shares have been rated as buys:

Adore Beauty Group Limited (ASX: ABY)

The first ASX growth share to look at is Adore Beauty. It is a leading online retailer in the ~$11 billion Australian beauty and personal care (BPC) market.

Adore Beauty has almost 1 million active customers and generated revenue of $113.1 million from them during the first half of FY 2022. This was up 18% over the prior corresponding period, which is no easy feat given the COVID boost it received during the prior period.

However, despite this solid growth and its positive outlook from the shift to online shopping, the company’s shares continue to trend lower and lower and recently hit a new low. And while they could yet fall further, one leading broker is tipping its shares to more than double over the next 12 months.

That broker is UBS, which currently has a buy rating and $4.70 price target on its shares. This compares to the latest Adore Beauty share price of $1.80.

Nitro Software Ltd (ASX: NTO)

Another ASX growth share to look at is Nitro Software. It is a global document productivity software company behind the Nitro Productivity Suite. It provides integrated PDF productivity and eSignature tools to customers through a horizontal, software as a service and desktop-based software suite.

As with Adore Beauty, Nitro’s shares have fallen heavily from their highs. Goldman Sachs sees this as a buying opportunity. It is bullish on the company due to its growth potential as a challenger in a US$34 billion total addressable market across PDF productivity, e-signing and workflows.

It commented: “Nitro is down ~50% [now 62%] since November with the market currently pricing in long-term growth and margin assumptions that understate Nitro’s potential, in our view. We are positive on Nitro’s structural growth opportunity, reflected in our DCF scenario analysis implying an attractive asymmetric risk/reward skew.”

Goldman Sachs has a buy rating and $2.60 price target on its shares. This compares to the latest Nitro share price of $1.31.

The post 2 buy-rated ASX growth shares that analysts say can double appeared first on The Motley Fool Australia.

More reading

• 3 top ASX growth shares that experts say are buys
• 3 factors that could make the Adore Beauty share price too good to miss
• Why is the Adore Beauty share price tumbling 9% to an all-time low?
• Broker names 2 exciting ASX shares to buy with 80% upside potential
• Here are 3 growth shares analysts are tipping to rocket higher

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 recommended Adore Beauty Group Limited. 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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If you’re on the lookout for new investment ideas, then listed below are two shares to consider from very different sides of the market.

Here’s why experts think these two ASX 200 shares are buys:

Life360 Inc (ASX: 360)

The first ASX 200 share to look at is technology company Life360. Through its eponymous Life360 app, the company operates in the digital consumer subscription services market. It has a focus on products and services for digitally native families, where all members of the household are connected by smartphones.

A whopping 33.8 million monthly active users are using its app, which is underpinning stellar recurring revenue growth. The company also has significant cross- and up-selling opportunities to monetise its user base further in the future.

Unfortunately, as Life360 is still operating at a loss, its shares have been hammered this year during the tech selloff. However, the team at Bell Potter believe this is a real buying opportunity for investors, especially given its belief that the company has enough cash to see it through to profitability.

The broker is also expecting the core business to report very strong growth during the first quarter.

It said: “We expect the strong growth in the core business of Life360 (i.e. ex Jiobit and Tile) shown in Q3 and Q4 of last year to continue into Q1 this year. Specifically, we expect the year-on-year growth in AMR (annualised monthly revenue) – excluding Jiobit and Tile – to be c.50% in March 2022 which is similar to the reported y-o-y growth of 48% in September and 51% in December 2021.”

Its analysts currently have a buy rating and $10.00 price target on Life360’s shares.

South32 Ltd (ASX: S32)

Another ASX 200 share to consider is mining giant South32.

It is a diversified mining and metals company producing bauxite, alumina, aluminium, coal, copper, manganese, nickel, silver, lead, and zinc.

With the prices of many of these commodities trading at high prices currently, South32 has been tipped to generate significant profits and cash flow. The latter has Goldman Sachs forecasting fully franked dividend yields in or around 10% over the next three years.

Goldman said: “We are Buy rated on S32.AX (on CL) with strong FCF (17% base case for FY23), exposure to base metals (75% EBITDA; aluminium & alumina c. 50% of FY23 EBITDA, copper c.10 %, zinc/nickel c. 20%), and with 7%/3% Cu Eq production growth in FY22/FY23 driven by; ~30% or c. 280ktpa increase in aluminium production from the Alumar restart & c. 17% increase in Mozal stake, creep in nickel from Cerro Matoso and lead/zinc/silver from Cannington, and the Sierra Gorda copper acquisition.”

The broker has a conviction buy rating and a $5.80 price target on its shares.

The post Mining and tech: Experts name 2 ASX 200 shares to buy now appeared first on The Motley Fool Australia.

More reading

• Goldman Sachs names 3 ASX 200 mining shares to buy today
• The South32 share price is closing in on its all-time high. Here’s why
• 2 strong ASX 200 dividend shares analysts love
• Here are the top 10 ASX mining companies by market cap
• Why is the South32 share price edging higher today?

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. 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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Construction materials companies are admittedly not glamorous to ASX investors.

They’re not full of future optimism like the technology stocks, nor are they cyclically exciting like mining.

But people and businesses always need housing and buildings, and existing ones always need maintenance and repair. Demand is never lacking.

As such, Ord Minnett senior investment advisor Tony Paterno picked out a couple of ASX shares that he would snap up right now:

269% profit boost? Yes, please

Paterno noted that Brickworks Limited (ASX: BKW) recently posted a stunning improvement in its profit.

“Brickworks reported first half 2022 underlying net profit after tax of $330 million, up 269% on the prior corresponding period,” he told The Bull.

“The company declared an interim dividend of 22 cents, up a cent on a year ago.”

All business units, except for building products in North America, reported “strong earnings growth”, Paterno said.

“In the medium term, we expect company earnings to continue growing on the back of a strong pipeline of work from housing activity in Australia and improving non-residential construction activity in the US.”

Brickworks shares are down more than 5% for the year thus far. The stock dipped last week after going ex-dividend, bringing the price-to-earnings ratio down to less than 5.

Brickworks is handing out a significant 2.61% dividend yield, according to The Motley Fool website.

When the market drives up the price of the product you’re selling

BlueScope Steel Limited (ASX: BSL) is another ASX share Paterno would buy at the moment.

“Steel prices in Europe and the US have moved higher.”

The business is set to enjoy a perfect storm in the steel market, according to Paterno.

“Despite declining from recent highs, spot spreads are still generating an attractive 18% free cash flow yield for BlueScope from fiscal year 2023 and beyond,” he said.

“This highlights that BlueScope remains a high generator of free cash flow despite strong cost inflation.” 

It seems Paterno is not alone in his bullishness.

According to CMC Markets, eight out of 11 analysts surveyed rate Bluescope shares as a “strong buy”, with one other rating it as “moderate buy”.

Bluescope shares have remained flat so far in 2022.

The post Bricks and steel: expert reveals 2 ASX shares ready to skyrocket appeared first on The Motley Fool Australia.

More reading

• Is it time to buy these 2 quality ASX shares?
• Why is the Brickworks share price sliding on Monday?
• ASX 200 midday update: IGO increases Western Areas offer, BlueScope makes US acquisition
• BlueScope share price jumps on $671m acquisition news
• 5 things to watch on the ASX 200 on Monday

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. owns and has recommended Brickworks. The Motley Fool Australia owns and has recommended Brickworks. 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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There are a lot of shares to choose from on the Australian share market.

To narrow things down, listed below are two ASX shares that are highly rated by analysts.

Here’s what they are saying about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator’s shares have been having a tough year. Weakness in Japan and concerns over inflationary pressures have been weighing on investor sentiment.

The team at Morgans remains positive on the company and believes recent share price weakness is a buying opportunity.

It said: “We upgraded to ADD after the result and, although inflationary pressures have worsened since then, we continue to believe there is meaningful upside to the current share price over the next 12 months.”

Morgans has an add rating and $100 price target on the company’s shares.

Lifestyle Communities Limited (ASX: LIC)

Goldman Sachs is a fan of this retirement communities company.

The broker believes Lifestyle Communities is well-placed to benefit from Australia’s ageing population and the structural growth in land lease living.

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

Goldman has a conviction buy rating and $21.60 price target on its shares.

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

More reading

• Brokers name 3 ASX shares to buy today
• Why Allkem, Domino’s, Qantas, and Uniti shares are racing higher
• 2 stellar ASX growth shares brokers say have huge upside potential
• Top ASX shares to buy in April 2022
• 3 ASX growth shares brokers rate as buys for 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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Citi, its analysts have retained their sell rating and $90.75 price target on this banking giant’s shares. Citi has been reviewing the banking sector ahead of potential rate hikes by the Reserve Bank. While the broker believes cash rate increases could support stronger than expected net interest margins in the near future, it isn’t enough for a more positive rating on CBA. Citi continues to see its shares as expensive at the current level and believes there are better options in the sector. The CBA share price was trading at $106.50 on Thursday.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted their price target on this mining giant’s shares to $15.20. The broker believes Fortescue’s shares are overvalued compared to its peers. Goldman also has concerns with capex and execution risks for the Iron Bridge and Fortescue Future Industries businesses. The Fortescue share price was fetching $21.61 at Thursday’s close.

Pro Medicus Limited (ASX: PME)

Another note out of Goldman Sachs reveals that its analysts have retained their sell rating and $44.80 price target on this health imaging technology company’s shares. This follows news that Pro Medicus has signed a major $32 million eight-year deal with Inova Health System. Although Goldman was pleased with the deal and is a fan of the company, it believes its shares are expensive at over 50x earnings. This is especially the case given that the company does not have sufficient visibility to know if recent win-rates can be sustained. The Pro Medicus share price ended the week at $48.63.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• The CBA share price has leapt 14% since February. Too late to buy?
• How do you value the Fortescue share price in April 2022?
• Here are the top 10 ASX mining companies by market cap
• Do CBA shares offer the highest big bank dividend yield?

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 Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus 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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