Tag: Motley Fool

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

The two largest cryptocurrencies by market cap, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), were also dominant in trading late Wednesday afternoon. As of roughly 4:30 p.m. ET, both were rising by over 4% across the preceding 24 hours. 

So what

There were two big engines driving the prices of Bitcoin and Ethereum higher. The first was a resurgent stock market. Although cryptocurrencies are considered by many to be defensive investments against equity market downturns, in fact, the prices of digital coins frequently correlate tightly with the market’s swings. As bellwether tokens, both Bitcoin and Ethereum can (and frequently do) perform well during bull markets. 

Driver No. 2 was everybody’s current macroeconomic worry, inflation. Yesterday, we learned that the U.S. Consumer Price Index — an important, closely watched inflation gauge — rose by 8.5% year over year in March.

This was the highest rate in over four decades, and followed a similarly concerning 7.9% jump for February. The March number is rattling investors who were looking for some, any improvement in the situation.

Inflation affects cryptocurrencies because, rightly or wrongly, they are seen as a hedge against it. As alternative currencies to the U.S. dollar, they should therefore do well as the value of the greenback erodes. This thinking was clearly in play Wednesday, as the prices of a great many altcoins besides Ethereum were up, in some instances rather notably. 

Now what

Personally, while I’m a holder of Bitcoin and Ethereum, I think only the latter genuinely deserves its current upward push. That’s because Bitcoin still doesn’t have enough practical utility; Ethereum, at least, is the native currency of what continues to be the top smart-contract blockchain on the scene.

Still, I believe both should more or less hold their current values, at least, as long as inflation remains a major worry. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Bitcoin and Ethereum were rising on Wednesday appeared first on The Motley Fool Australia.

More reading

• How Bitcoin will hit $100,000 by the end of the year: expert
• Why crypto investors are watching this key Bitcoin price level
• Bitcoin could be worth $1,000,000 in 2030
• Here’s why the Bitcoin price is falling hard today
• Why Ethereum and Dogecoin are down today

Eric Volkman owns Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/a5zBNhl

The Fortescue Metals Group Limited (ASX: FMG) share price has been moving in circles since the start of 2022. This comes as the company has been battling lower iron ore prices amid China’s COVID-19 lockdowns.

Nonetheless, investors appear to have mixed feelings about the value of Fortescue shares in the current climate.

At Wednesday’s market close, the mining giant’s shares finished 0.80% higher to $21.34.

How do you value Fortescue shares?

The most common way to value an ASX share is to calculate the company’s price-to-earnings (P/E) ratio. Traditionally, this metric is used to provide more clarity if a company is overvalued or undervalued.

A P/E ratio can be broken down as the relationship between a company’s share price and its earnings per share (EPS).

Currently, Fortescue has a P/E ratio of 7.33. The formula to work out the P/E ratio is the current share price divided by EPS.

Essentially, this means that the company can be viewed as cheap when compared to its peers. The world’s largest miner, BHP Group Ltd (ASX: BHP) holds a P/E ratio of 15.56, while Rio Tinto Limited (ASX: RIO) is around 9.31.

Fortescue released its half year results in mid-February, highlighting a fall across key financial metrics.

Nonetheless, management noted that it has continued to reinvest in the business and in growth.

For instance, the company’s major project, Iron Bridge has been progressing well with first production scheduled in December 2022.

Late last month, the team at UBS raised its 12-month price target on Fortescue shares by 4.9% to $17.10. This implies a potential downside of around 20%.

In addition, Morgans analysts also lifted their outlook on the miner’s share price by 2.9% to $19.10. While not as bearish as UBS’ assessment, this implies a downside of 10% based on the current Fortescue share price.

Fortescue share price summary

It’s been a rollercoaster ride for Fortescue shares, having moved unpredictably over the past 12 months. Its shares are up almost 5% since this time last year.

Based on valuation metrics, Fortescue has a market capitalisation of around $65.71 billion, with approximately 3.08 billion shares on issue.

The post How do you value the Fortescue share price in April 2022? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX mining companies by market cap
• Fortescue share price jumps despite Shell exec ‘not convinced’ on Twiggy’s green hydrogen plans
• Up 20% in a month: Is the Fortescue share price a buy?
• ASX 200 midday update: Magellan jumps, tech shares tumble
• Fortescue share price lifts amid $2b cap raise

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/AeWk4av

The Allkem Ltd (ASX: AKE) share price will be one to watch on Thursday.

This follows the release of the lithium miner’s quarterly update this morning.

Allkem share price on watch amid record revenue

For the three months ended 31 March, the company revealed that Mt Cattlin produced 48,562 dry metric tonnes (dmt) of spodumene concentrate and shipped 66,011 tonnes. And thanks to average pricing of US$2,178 per dmt, this led to the Mt Cattlin operation generating record revenue of US$143.8 million for the three months.

Though, that record is unlikely to stand for long. Management is expecting the Mt Cattlin operation to average a price of US$5,000 per dmt on sales of 50,000 dmt during the fourth quarter.

It is a similar story for Allkem’s Olaroz Lithium Facility. It produced 2,972 tonnes of lithium carbonate with sales of 3,157 tonnes during the quarter. And with Allkem commanding US$27,236 per tonne for its lithium carbonate, this led to record revenue of ~US$86 million from Olaroz.

Once again, with management forecasting an average second half lithium carbonate price of US$35,000 per tonne, this record looks unlikely to stand for very long.

Another positive which could boost the Allkem share price today is the company’s cash margin. It reported a cash margin of 84% at Mt Cattlin and 86% at Olaroz, which means these operations are generating significant cash based on current prices.

In fact, management revealed that group revenue for the quarter was approximately US$235 million with a group gross operating cash margin of approximately US$189 million.

This left Allem with a cash balance of US$421.3 million at the end of March, with a further $73.4 million collected in early April from a March shipment. Management believes this and its future cashflow will fund the delivery of its growth strategy.

The post Allkem share price on watch following record-breaking third quarter appeared first on The Motley Fool Australia.

More reading

• Why is the Allkem share price having such a stellar day?
• 3 highly rated ASX growth shares analysts are tipping as buys
• Here’s why Allkem shares are getting multiple broker upgrades
• Top brokers name 3 ASX shares to buy next week
• Here’s why the lithium price is in the spotlight today

Motley Fool contributor James Mickleboro owns Allkem 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.

from The Motley Fool Australia https://ift.tt/OV8G1Qe

Although the outlook for interest rates is becoming increasingly positive, it is still likely to be some time before rates are at a sufficient level for income investors. In light of this, ASX dividend shares could remain very important for income investors in the near term.

But which dividend shares could be top options? Two strong shares to consider are listed below. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first ASX dividend share for investors to consider is retail giant, Coles.

Thanks to its huge network of supermarkets, liquor stores, and express stores and long track record of delivering same store sales growth, Coles has been tipped to grow its dividend at a solid rate in the coming years.

For example, analysts at Citi are forecasting fully franked dividends of 65 cents per share in FY 2022 and then 72 cents per share in FY 2023. Based on the current Coles share price of $18.29, this will mean yields of 3.6% and 3.9% respectively.

Citi has a buy rating and $19.30 price target on its shares.

South32 Ltd (ASX: S32)

Another ASX dividend share that has been named as a buy is this mining giant.

Thanks to strong demand for commodities such as aluminium and the recent acquisition of a stake in the Sierra Gorda copper mine in Chile, South32 has been tipped to generate strong free cash flow and pay big dividends in the coming years.

Goldman Sachs expects South32 to pay fully franked dividends per share of 30 US cents in FY 2022 and 49 US cents in FY 2023. Based on the current South32 share price of $5.12 and the latest exchange rates, this will mean very attractive yields of 7.9% and 12.8%.

Goldman has a conviction buy rating and $5.80 price target on the miner’s shares.

The post 2 strong ASX 200 dividend shares analysts love appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX mining companies by market cap
• Why is the Coles share price slipping today?
• Top ASX dividend shares to buy in April 2022
• ASX market beater? Here’s how Coles shares performed during March
• Why is the South32 share price edging higher today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/PmT1IgV

The Bank of Queensland Limited (ASX: BOQ) share price will be one to watch this morning.

This follows the release of the regional bank’s half year results.

Bank of Queensland share price on watch after earnings beat

• Total income up 1% to $831 million
• Housing loan growth up 9% to $2.6 billion
• Business loan growth up 8% to $600 million
• Statutory net profit up 38% to $212 million
• Cash earnings after tax up 14% to $268 million
• Fully franked interim dividend per share of 22 cents
• CET1 ratio of 9.68%

What happened during the first half?

For the six months ended February 28, Bank of Queensland delivered a 14% increase in cash earnings to $268 million. This appears to have beaten the market’s expectations, which could bode well for the Bank of Queensland share price today. Goldman Sachs, for example, was forecasting cash earnings of $222 million for the period.

Management advised that this was driven by lending momentum, higher non-interest income, carefully managed costs, and a loan impairment expense credit in the half.

One thing that weighed on its performance was its net interest income. It decreased 2% to $741 million due to a 12 basis points decline in its net interest margin (NIM) to 1.74% and the impact of an ME Bank decline in average interest earning asset balances prior to ownership.

Management advised that its NIM weakness reflects industry dynamics including ongoing competition, higher fixed rate lending volumes, and volatile swap rates.

Management commentary

Bank of Queensland’s Managing Director and CEO, George Frazis, was pleased with the half. He said:

“Today’s result demonstrates our disciplined execution of the ME integration and digital transformation program and represents our fifth consecutive half of improved underlying performance.

This has been achieved during a period of ongoing economic uncertainty from COVID, and at a time of notable change as we bed down the integration of ME and upgrade our digital capability for customers and our people.”

Pleasingly, Mr Frazis is positive on the bank’s outlook. The CEO commented:

“We are a step closer to realising our bold strategy of building a truly multi-brand, cloud-based, digital retail bank with the launch of myBOQ joining VMA on the common core banking platform which enhances the customer experience.

We remain firmly focussed on executing on our strategy to transform BOQ into a digital bank with a personal touch to create a compelling proposition for our shareholders, customers, people and the community.”

The bank also suggested that margin pressures could be easing.

The release states that management expects “to see NIM headwinds reducing and the continued benefits from our integration and productivity programs driving a cost reduction of at least 1%.”

The post Bank of Queensland shares in focus amid strong first half profit growth appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Brokers name 2 ASX dividend shares to buy
• Own Bank of Queensland shares? Here’s what to watch when the company reports this week
• Here are the 5 best performing ASX 200 bank shares of the March quarter
• What’s the outlook for the Bank of Queensland share price 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. 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.

from The Motley Fool Australia https://ift.tt/2XBKqsL

ASX dividend shares can offer attractive opportunities, according to experts.

They reckon it’s possible for a business to grow its profit and/or underlying value over the long term while also paying attractive dividends to investors.

Experts have made projections on two businesses expected to pay large dividend yields in the coming years. Let’s check them out.

Nick Scali Limited (ASX: NCK)

Nick Scali is one of the larger furniture retailing businesses on the ASX. It operates through two different brands – Nick Scali and Plush-Think Sofas.

Broker Citi currently rates Nick Scali as a buy with a price target of $17.60. That implies a possible rise of around 60%.

Citi thinks that Nick Scali will pay a grossed-up dividend yield of 9.9% in FY22 and 10% in FY23.

One reason for Citi’s positivity is the ASX retail share’s healthy-looking order book.

Since the start of the year, the Nick Scali share price has fallen by around 30%, which increases the prospective dividend yield.

Nick Scali is working on its online sales, which come with an elevated earnings before interest, tax, depreciation and amortisation (EBITDA) margin. In the first six months of FY22, Nick Scali generated $13.7 million of online revenue, with an incremental earnings before interest and tax (EBIT) contribution of $8 million.

The company also wants to grow its store network over the long term, from 108 in December 2021 to between 176 and 186 stores.

Management also sees opportunities in the Plush acquisition with supply chain synergies and the store rollout.

Charter Hall Long WALE REIT (ASX: CLW)

This is real estate investment trust (REIT) owns a diversified portfolio across a number of real estate sectors. The thing that links them all together is that the properties have long-term rental contracts, which helps the weighted average lease expiry (WALE).

Those properties are spread across sectors like office, industrial, retail, agri-logistics and telecommunication exchanges. Charter Hall says that the focus is on key defensive tenant industries that are resilient to economic shocks.

The ASX dividend share has several major tenants, including Endeavour Group Ltd (ASX: EDV), federal and state government agencies, Telstra Corporation Ltd (ASX: TLS), BP, Inghams Group Ltd (ASX: ING), Coles Group Ltd (ASX: COL), David Jones, Metcash Limited (ASX: MTS) and Arnott’s Group.

In the FY22 half-year result, it finished with a WALE of 12.2 years, providing “long-term income security”.

For FY22, it’s expecting to achieve operating earnings per share (EPS) of no less than 30.5 cents, reflecting growth of at least 4.5%. This would be a distribution of at least 5.75%.

Charter Hall REIT is currently rated as a buy by the broker Citi, with a price target of $5.71. The broker thinks that the REIT could pay a distribution of 5.8% in FY23.

The post 2 ASX dividend shares to buy this month: expert appeared first on The Motley Fool Australia.

More reading

• Be as overweight ‘as you can possibly stomach’ in ASX shares right now: fundie
• 2 ASX dividend shares for long-term income potential: Experts
• Analysts expect big yields from these ASX dividend shares
• 2 retailer ASX shares ready to make you rich: experts

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/xKf2Wbr

Bitcoin (CRYPTO: BTC) is experiencing yet another correction, only a couple of weeks after the market thought it might have headed upwards.

It’s the latest twist in a frustrating year for cryptocurrency owners.

DeVere Group chief Nigel Green noted that after an 11% loss last week, the total crypto market is down to US$1.89 trillion.

“Bitcoin briefly dipped below US$40,000, tracking losses in global equities,” he said.

“The correlation with stock markets is currently especially pronounced with the tech-heavy NASDAQ-100 (NASDAQ: NDX) index, which is in tandem more than ever.”

Green’s analysis is that inflation and slowing economic growth from higher interest rates are weighing heavily on minds and wallets.

“It seems investors are reducing their exposure to risk-on assets, including stocks and crypto,” he said.

“There’s a growing sense that central banks – including the US Federal Reserve, the Bank of England and European Central Bank — will be unable to achieve a ‘soft landing’… curbing inflation without precipitating a recession.”

Bitcoin is not a risk asset, and the world will wake up to this

Although the market seems to be classifying Bitcoin as a risk asset, Green reckons this will change as its underlying characteristics haven’t actually changed.

“Bitcoin is regarded as a credible hedge against inflation for three key reasons,” he said.

“First, its scarcity – a limited supply of 21 million — means that higher demand will push prices up. Second, its accessibility – as an asset it has value and is accepted by the market. And third, its durability – Bitcoin will continue to attract more demand over time.”

This has Green licking his lips about what Bitcoin might be worth by the end of the year.

“We expect Bitcoin will recover from the current crypto crash to hit a fresh all-time high of US$75,000 ($100,620) by the end of 2022,” he said.

“If anything, the case for Bitcoin and cryptocurrencies is becoming stronger.”

Bitcoin is currently hovering around the $53,000 mark, meaning Green is thinking it will double in less than eight months.

Whales get fatter

According to Green, all that the current sell-off is doing is allowing large crypto investors — called ‘whales’ — to buy up more to become even richer later.

“Panic-sellers are feeding the whales who are viewing the current Bitcoin price dips as discounts.”

Green again emphasised how the war in Ukraine has fast-tracked a real-life demonstration of the “decentralised, tamper-proof, unconfiscatable” utility of cryptos such as Bitcoin.

“As inflation continues to run hot in the coming months, the price of Bitcoin will be supported as investors look to protect their purchasing power by moving out of cash and into store of value investments.”

The post How Bitcoin will hit $100,000 by the end of the year: expert appeared first on The Motley Fool Australia.

More reading

• Why crypto investors are watching this key Bitcoin price level
• Bitcoin could be worth $1,000,000 in 2030
• Here’s why the Bitcoin price is falling hard today
• Why Ethereum and Dogecoin are down today
• Fancy buying a Porsche with Bitcoin or Ethereum? Here’s how you can

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

from The Motley Fool Australia https://ift.tt/pYUBXyd

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) returned to form and pushed higher. The benchmark index rose 0.35% to 7,479 points.

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

ASX 200 expected to rise

The Australian share market looks set end the shortened week in a positive fashion after Wall Street rebounded overnight. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.25% higher this morning. On Wall Street, the Dow Jones rose 1%, the S&P 500 climbed 1.1%, and the Nasdaq jumped 2%.

Bank of Queensland results

All eyes will be on the Bank of Queensland Limited (ASX: BOQ) share price this morning when it releases its half year results. According to a note out of Goldman Sachs, for the six months ended February 28, its analysts are expecting Bank of Queensland to report cash earnings of $222 million. This will be a 16.5% decline from the $266 million reported for the prior corresponding period.

Oil prices jump again

It could be another positive day for energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices jumped again overnight. According to Bloomberg, the WTI crude oil price is up 3.7% to US$104.32 a barrel and the Brent crude oil price is up 4% to US$108.79 a barrel. Oil prices climbed despite the US revealing a large increase in crude inventories.

New Hope goes ex-dividend

The New Hope Corporation Limited (ASX: NHC) share price is going ex-dividend this morning for its monster dividend and is likely to trade sharply lower. Eligible shareholders can look forward to receiving the coal miner’s fully franked 30 cents per share interim dividend at the beginning of next month on 4 May. This dividend equates to a yield of 8% based on New Hope’s current share price.

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.2% to US$1,980.5 an ounce. Inflation concerns took the precious metal to a one-month high.

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

More reading

• Here are the top 10 ASX shares today
• 3 ASX All Ordinaries shares scaling new multi-year peaks today
• This lithium miner is set to list on the ASX next month following its IPO, and counts a Tesla supplier among its key investors.
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is the A2 Milk share price outperforming today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/v8KlrDc

The S&P/ASX 200 Materials Index (ASX: XMJ) might have lifted 0.64%, but three ASX lithium shares practically shot into orbit today, easily outperforming the index.

So which three ASX lithium shares are they, and why did they have such a stellar trading day?

Scorpion Minerals Ltd (ASX: SCN)

The Scorpion Minerals share price soared nearly 24% today. Scorpion raised $3.18 million to explore lithium and other metals at the Pharos Project in Western Australia. The company has already identified multiple lithium targets and plans to start drilling in the June quarter. Scorpion will take advice from renowned WA lithium expert Michael Fotios.

Core Lithium Ltd (ASX: CXO)

Core Lithium surged 12% despite no fresh news from the company today. The Core Lithium share price has exploded a massive 435% in a year. The company is exploring the Finniss Lithium Project in the Northern Territory. Lithium is a critical component of batteries for electric vehicles (EVs). Demand for lithium is surpassing new supplies. On Monday, Core Lithium entered an agreement to acquire a new lithium project.

Lake Resources (ASX: LKE)

Lake Resources shares surged nearly 10% today. The company’s shares have risen 541% in a year. The strong lithium market could also be helping Lake. In news today, CBS reported Honda would invest 5 trillion yen in electric vehicle technology. Honda aims to produce more than 2 million EVs per year by 2030. Also, Bell Potter has recently lifted the price target on the Lake share price by 55% to $2.83. Lake is exploring lithium at the Kachi project in Argentina.

The post 3 ASX lithium shares that rocketed between 10% and 24% today appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Up 427% in a year, Core Lithium share price surges 11% again today
• This ASX miner just raised $3m for new lithium projects, and its shares are soaring 24%
• The Lake Resources share price has surged 56% in a month. What’s happening?
• Why is the Lake Resources share price powering down by 8% today?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned.  The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

from The Motley Fool Australia https://www.fool.com.au/2022/04/13/3-asx-lithium-shares-that-rocketed-between-10-and-24-today/

If you’re a growth investor with room for some new portfolio additions, then it could be worth considering the three ASX growth shares listed below.

Here’s what you need to know about these buy-rated ASX shares:

Dicker Data Ltd (ASX: DDR)

The first growth share to look at is Dicker Data. It is a leading technology hardware, software, and cloud distributor, which distributes a growing portfolio of products from the world’s leading technology vendors from its new state of the art distribution centre.

It has been growing at a consistently solid rate for years and the team at Morgan Stanley appear confident this trend can continue thanks to ongoing industry tailwinds. The broker has an overweight rating and $16.00 price target on its shares.

Nitro Software Ltd (ASX: NTO)

Another ASX growth share to look at is document productivity software company Nitro Software. It is the company behind the popular Nitro Productivity Suite, which provides businesses of all sizes with an integrated PDF productivity and electronic signature tools. At the end of FY 2021, the company had over 1 million active subscriptions and reported over 22 million eSignature requests across its platforms.

Goldman Sachs is bullish on Nitro and has a buy rating and $2.60 price target on its shares. It recently commented: “We estimate Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro’s current revenue base.”

Xero Limited (ASX: XRO)

A final ASX growth share to consider buying is Xero. Over the last few years, the Xero platform has evolved from a simple cloud-based accounting solution into a full service small business solution. This has led to millions of small to medium sized businesses globally subscribing and running their businesses through its platform.

The good news is the company still has a very long growth runway, which Goldman Sachs believes has the potential to underpin multi-decade strong top line growth. Goldman has a buy rating and $135.00 price target on the company’s shares.

The post 3 top ASX growth shares that experts say are buys appeared first on The Motley Fool Australia.

More reading

• Why are brokers talking about the Xero share price? Let’s take a look
• 5 things to watch on the ASX 200 on Tuesday
• Cloud zero: Xero share price is down 5% in 2 days
• 3 ASX 200 shares with impressive management teams
• ASX 200 (ASX:XJO) midday update: Block and Zip sink, Paladin Energy raises $200m

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

from The Motley Fool Australia https://ift.tt/70mI5LB