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Looking for growth shares to buy in April? Well, here’s some good news!

Listed below are two growth shares that have recently been named as buys. Here’s what you need to know about them:

Allkem Limited (ASX: AKE)

Allkem could be an ASX growth share to buy in April. It is the top five global lithium mining company that was formed when Galaxy Resources and Orocobre merged last year.

The company owns a collection of high-quality assets including Olaroz, Mt Cattlin, and the Sal de Vida brine project.

Importantly, Allkem is already producing lithium in large quantities. This means that it is benefiting greatly from the record lithium prices being underpinned by the clean energy transition and the adoption of electric vehicles.

Morgans is very positive on Allkem and is forecasting strong earnings growth in the coming years as its production ramps up. It has an add rating and $14.83 price target on its shares.

Pro Medicus Limited (ASX: PME)

Another ASX growth share that is highly rated is Pro Medicus. It provides industry-leading software that facilitates the clinical assessment of medical images.

Pro Medicus has been growing at a rapid clip over the last decade thanks to increasing demand for solutions that can process, transfer and store medical images and associated data efficiently. This is particularly the case given that speed and accuracy is fundamentally linked to both treatment success and commercial incentives.

Pleasingly, the company’s strong form has continued in FY 2022. During the first half, Pro Medicus reported a 40.3% increase in revenue to $44.33 million and a 52.7% jump in net profit after tax to $20.68 million.

Analysts at Bell Potter were impressed and appear confident this strong form can continue. The broker is forecasting full year revenue growth of 36% in FY 2022, 19% in FY 2023, and then 33% in FY 2024.

Bell Potter has a buy rating and $55.00 price target on the company’s shares.

The post 2 stellar ASX growth shares analysts rate as buys appeared first on The Motley Fool Australia.

More reading

• Growth will be back! Expert picks 7 ASX shares to buy now
• Buying ASX shares to cash in on the EV and battery metals craze? Read this
• Leading brokers name 3 ASX shares to buy today
• Why Allkem, Firefinch, JB Hi-Fi, and Piedmont Lithium are charging higher
• Experts name 3 of the best ASX lithium stocks to buy now

Motley Fool contributor James Mickleboro owns Allkem Limited. 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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The Webjet Ltd (ASX: WEB) share price has been climbing in the last month, but could it ascend further?

Webjet shares fell 2.61% today and finished trading at $5.60. It wasn’t the only ASX travel share to suffer, with the Qantas Airways Limited (ASX: QAN) share price slipping 0.95% and Flight Centre Travel Group Ltd (ASX: FLT) dropping 2.04%.

However, overall March proved a good month for Webjet, with its shares jumping 5.26% since closing at $5.32 on February 28.

Let’s take a look at the outlook for this digital travel business.

What does the future look like for Webjet?

The team at Goldman Sachs sees Webjet as a “growth share” that could come out stronger on the other side of COVID-19.

Analysts are optimistic on the company’s future, my Foolish colleague James recently reported. Goldman sees growth potential for the travel company in the B2B and B2C spaces, along with being positive on the company’s balance sheet.

Goldman has placed a $6.90 price target on the Webjet share price, 23% more than the current price.

Webjet could also benefit from upcoming border relaxation in Australia and New Zealand in April. Health Minister Greg Hunt recently announced Australia’s biosecurity emergency will lapse on 17 April.

In practical terms, this means the end of restrictions on cruise vessels into and within Australian territory. Negative pre-departure tests for travellers entering Australia will also no longer be required.

Further, the New Zealand Government will be opening the borders to vaccinated arrivals from Australia from 12 April.

Commenting on easing restrictions internationally in a recent blog, Montgomery Small Companies Fund portfolio manager Dominic Rose said:

Both the UK and the European Union have scrapped COVID-19 testing requirements for fully vaccinated travellers.

While recent commentary from numerous US airlines suggests that North American leisure activity is back at or near pre-pandemic levels with corporate improving to 25% to 30% behind.

Webjet may be an Australian and New Zealand company, but it has customers across the globe.

My Foolish colleague Aaron recently reported Webjet shares have more than doubled in the past decade despite the COVID-19 turbulence.

Webjet share price snapshot

The Webjet share price has ascended 8% year to date, while it has climbed 0.36% in the past year.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has gained nearly 11% in the past year.

Webjet has a market capitalisation of about $2.1 billion based on the current share price.

The post Is the Webjet share price set to take off in April? appeared first on The Motley Fool Australia.

More reading

• Finally! 4 travel ASX shares ready to take off: expert
• Despite the COVID crash, here’s what $10,000 invested in Webjet (ASX:WEB) shares 10 years ago would be worth now
• These are the 10 most shorted ASX shares
• Analysts name 2 excellent ASX growth shares to buy and hold
• Why has March been such a lousy month for the Webjet (ASX:WEB) share price?

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 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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The Australian mining industry got some big news this week. The Australian trade minister Dan Tehan met with the US Commerce Secretary Gina Raimondo in Washington D.C. This was for the inaugural Australia-US Strategic Commercial Dialogue. According to the minister’s press release, Mr Tehan was joined by CEOs from “the critical minerals and rare earths sector to take part in a Critical Minerals Roundtable”.

In a joint statement, Mr Tehan and Secretary Raimondo said the following:

[We] highlighted the commercial potential for both Australian and U.S. industries and underscored the need to strengthen capabilities across all segments of the supply chain, including extraction and downstream processing. Australia and the United States will look at how their respective financing mechanisms could be better coordinated and leveraged to support private investment in supply chains.

So this indicates that the US and Australian governments are intending to work together to expand Australian production and processing of ‘critical minerals and rare earths’.

Critical minerals refer to the US Government’s list of minerals that have been identified to “play a significant role in our national security, economy, renewable energy development and infrastructure”. The list now totals 50 different elements and minerals. These include cobalt, graphite, magnesium, nickel, lithium, neodymium, vanadium and zinc.

Which ASX mining shares could benefit from focus on critical minerals?

So the government of both the US and Australia are now focusing on developing domestic mining and processing facilities for as many of these minerals as possible. That’s partly because many global supply chains presently run through China. This situation is increasingly being viewed as a strategic problem. This could have huge consequences for Australian mining shares.

Lithium shares are an obvious beneficiary. The ASX is home to many of these. The most prominent of which is Pilbara Minerals Ltd (ASX: PLS). But we also have Mineral Resources Limited (ASX: MIN) and AVZ Minerals Ltd (ASX: AVZ). 

The ASX is also home to some cobalt miners. Cobalt Blue Holdings Ltd (ASX: COB) has been in the news recently after it was granted ‘major project status’ by the government earlier this month. 

Earlier today, we looked at some ASX vanadium miners. One such share is Neometals Ltd (ASX: NMT).

Nickel shares like Nickel Mines Ltd (ASX: NIC) have also recently been drawing attention.

And then there is rare earths company Lynas Rare Earths Ltd (ASX: LYC). Lynas is one of the only significant producers of rare earths elements like neodymium outside China. 

So all of these ASX resources shares have the potential to benefit over the medium-to-long term from the news out of the trade minister’s office this week. Many have already received assistance from governments. And many more might join them in the future. Critical mineral security is certianly a hot topic right now, given the current geopolitical climate. Thus, this is a space well worth keeping an eye on.

The post The US is backing Aussie critical minerals projects, and these ASX mining shares could be set to reap the rewards appeared first on The Motley Fool Australia.

More reading

• The ASX 200 just had its longest winning streak since 2017. What’s doing?
• Here are the 3 most heavily traded ASX 200 shares this Thursday
• What’s driving the Mineral Resources (ASX:MIN) share price higher today?
• What exactly is vanadium and which ASX shares have exposure?
• Here’s why the Pilbara Minerals (ASX:PLS) share price is spiking today

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

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Believe it or not, the S&P/ASX 200 Index (ASX: XJO) just enjoyed its longest winning period in five years.

According to Saxo Markets Australian market strategist Jessica Amir, on Thursday afternoon the index charged upwards for eight consecutive days.

“This is the longest win streak since 2017,” she said.

“The materials sector is up the most, up 2%, while tech stocks are down 1.4%.”

The bullish turn is happening all while the war in Ukraine tragically continues and fears of interest rates have turned into actual higher rates.

Remember the panic selling in January? 

That seems like two years ago now, not two months.

It’s an important lesson for long-term investors that the market can do anything in the short term but will eventually trend upwards.

Resources leading the charge for ASX 200

According to Amir, the current hot streak has been triggered by a few different factors.

“It’s end of quarter, so professional investors are taking profits [off] the table, rebalancing portfolios,” she said.

“Secondly, the iron miners are charging — like Champion Iron Ltd (ASX: CIA) which we’ve mentioned many times now, including yesterday, it’s one of today’s best performers, up 4.5%. Followed by the iron ore heavy weights: Fortescue Metals Group Limited (ASX: FMG), BHP Group Ltd (ASX: BHP), and Rio Tinto Limited (ASX: RIO) after the iron ore price (SCOA) rose 4.5% in two days on optimism Chinese demand will pick up.”

Another driver is US president Joe Biden announcing this week a production boost for “critical minerals”.

This has triggered a price surge for lithium-related ASX shares.

“This has fuelled US battery tech company… Novonix Ltd (ASX: NVX) [to head] up 6%, and ASX 200 African lithium company AVZ Minerals Ltd (ASX: AVZ) up 4%.

‘Dangerous game for equity investors’

During the current part of the market cycle, Amir recommends investors take shelter in sectors like logistics, cybersecurity, commodities, defence, and activities related to “green transformation” such as hydrogen production.

“​​Our head of equity strategy says that without commodity exposure, it’s a dangerous game for equity investors in 2022.”

Amir noted that lithium producers have been the best performers on the ASX so far in 2022, citing the 61% gain for AVZ and 88% for Lake Resources NL (ASX: LKE).

But mining stocks are notoriously fickle. So if investors were nervous about picking individual companies, but still wanted to back the rise of the battery and electric vehicle industries, she had a suggestion.

“You could invest or trade in Global X Lithium & Battery Tech ETF (NYSEARCA: LIT) or ETFS Battery Tech & Lithium ETF (ASX: ACDC) that invests in about 30 of the biggest EV and battery technology companies in the world.”

The ASX 200 ended its winning streak after market close on Thursday. It ended 0.2% down after post-trade processing.

The post The ASX 200 just had its longest winning streak since 2017. What’s doing? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Thursday
• What’s dragging on ASX 200 energy shares today?
• Why BHP, Core Lithium, Tabcorp, and Talga shares are racing higher
• Novonix (ASX:NVX) share price shoots up 20% this month amid tech snapback
• What exactly is vanadium and which ASX shares have exposure?

Motley Fool contributor Tony Yoo owns ETFS Battery Tech & Lithium ETF. 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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Are you looking for dividend shares to add to your income portfolio next month? If you are, then the two listed below could be worth considering.

These dividend shares have been rated as buys and tipped to provide income investors with attractive fully franked yields in the coming years. Here’s what you need to know about them:

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is Adairs. It is the leading homewares and furniture retailer behind the eponymous Adairs brand, its online-only brand Mocka, and the newly acquired Focus on Furniture brand.

Unfortunately, trading conditions have been tough in FY 2022 due to lockdowns, this has put significant pressure on its shares. However, the team at Morgans thinks investors should stick with the company and see this as a buying opportunity.

Its analysts have an add rating and $3.50 price target on its shares. Morgans is also forecasting fully franked dividends of 19 cents per share in FY 2022 and 26 cents per share in FY 2023. Based on the current Adairs share price of $3.02, this will mean yields of 6.3% and 8.6%, respectively.

Coles Group Ltd (ASX: COL)

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

It is of course one of the big two supermarket chains with over 800 supermarkets across the country. This strong network, its defensive qualities, and long track record of same store sales growth has analysts forecasting growing dividends in the coming years. Especially in the current inflationary environment and the supportive federal budget.

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 $17.96, this will mean yields of 3.6% and 4% respectively.

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

The post Analysts name 2 ASX dividend shares with fully franked yields to buy appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares expected to have BIG yields in 2022
• The Coles (ASX:COL) dividend is being paid today. Here’s what you need to know
• Top brokers name 3 ASX shares to buy today
• Budget fuel excise cut: Which ASX shares could benefit?
• ‘Popping the champagne’: ASX retail shares leap following budget consumer handouts

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 ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO and COLESGROUP DEF SET. 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 Australian Foundation Investment Co Ltd (ASX: AFI) share price has continued to ascend over the past decade.

It is widely regarded that such blue-chip companies safely deliver reasonable returns over the long term.

So, let’s take a look and see how much an investor would have made if they had invested $10,000 in this listed investment company (LIC) a decade ago.

How much would your initial investment be worth now?

If you spent $10,000 on AFIC shares exactly 10 years ago, you would have picked them up for $4.21 each. The purchase would deliver approximately 2,375 shares without topping up during any down periods.

At the closing bell today, the AFIC share price is $8.30, flat for the day. This means that those 2,375 shares would be worth $19,712 – almost double your initial investment.

In percentage terms, this implies a return of about 97% or an average return of 7% per year.

In contrast, the S&P/ASX 200 Index has given back a yearly average of 5.65% over a 10-year time frame.

Have AFIC’s dividends paid off in the long run?

AFIC has made a total of 21 bi-annual dividend payments from 2012 to 2022.

It’s worth noting that, even with COVID-19 in the background, the company has managed to maintain its dividend distribution amounts.

Adding those 21 dividend payments gives us an amount of $2.50 per share. Calculating the number of shares owned and the total dividend payment gives us a figure of $5,937.50.

When putting both the initial investment gains and dividend distribution, an investor would have a total of $25,649.50.

This means the investor would have been better off having invested in AFIC shares 10 years ago than the benchmark index.

The ASX 200 would have generated a return of $17,391.95 from the same $10,000 investment.

In addition, AFIC dividends include the franking credits that offset any future tax to be paid. So, in hindsight, shareholders would have made the right choice in keeping their AFIC shares for the long term.

AFIC share price summary

Glancing at a shorter time frame, the AFIC share price has travelled upwards in the past 12 months, gaining about 12%. However, when looking at 2022, the company’s shares are in the red by 2%.

AFIC commands a market capitalisation of roughly $10.18 billion, with almost 1.23 billion shares on hand.

The post If you’d bought $10,000 of AFIC (ASX:AFI) shares 10 years ago, here’s how much you’d have now appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 shares is AFIC (ASX:AFI) betting on to make money?
• Does the AFIC (ASX:AFI) dividend beat the ASX 200?
• Index beater! How has the AFIC (ASX:AFI) share price outperformed the ASX 200 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 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 Westpac Banking Corp (ASX: WBC) share price was out of form on Thursday.

Australia’s oldest bank’s shares ended the day 1% lower at $24.24.

But that couldn’t take the shine off what was a very positive month for the Westpac share price.

How did the Westpac share price perform in March?

Despite its end of month blip, the Westpac share price climbed 6% over the month of March.

This has stretched its year to date gain to a sizeable 12%, which compares very favourably to the ASX 200 index and its 1.2% decline in 2022.

Investors were bidding the big four banks higher last month after it became apparent that the Reserve Bank of Australia would be lifting rates much sooner than expected.

This would be good news for the banks as it would be a big boost to their interest income, which has been under significant pressure with rates close to zero.

What’s the outlook on rates?

According to the most recent Westpac Weekly economic report, its team are forecasting the central bank to make its first cash rate increase in August, followed by a second hike in October. It explained:

“Our forecast, prior to this update, was for the RBA to raise the cash rate by 15 basis points in August; to be followed by 25 basis points in October; and 25 in February; May; August; and December in 2023; with the final 25 in February 2024.

We now expect the RBA to bring forward the third hike from February, 2023 to December 2022, and follow the same pattern throughout 2023 with the cycle ending in November 2023 rather than February 2024.

This would mean that the RBA would end 2022 having restored the 65 basis points of emergency cuts which it implemented during Covid.”

Though, Westpac acknowledges that its forecasts are “significantly more modest” than what the market is expecting. This is on the belief that the FOMC and RBA will make “more progress in settling inflation and tempering demand than is expected by the market.”

Nevertheless, there’s no denying that the outlook for Westpac and the rest of the banks has improved meaningfully since this time last month.

The post How did the Westpac share price perform in March? appeared first on The Motley Fool Australia.

More reading

• How did ASX 200 bank shares perform today?
• What’s the outlook for the Westpac share price in April?
• Why analysts rate Westpac and this ASX dividend share as buys
• Why are ASX 200 bank shares underperforming on Thursday?
• NAB, ANZ and CBA shares in focus as top broker tips extra $5b share buyback

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Westpac Banking Corporation. 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 Vulcan Energy Resources Ltd ­(ASX: VUL) share price surged higher in March as the company dropped a barrage of news.

Over the course of the last 31 days, the renewable energy-focused lithium developer’s stock has gained 17.8%.

As of the final close of the month, the Vulcan Energy share price is $10.12.

For context, the S&P/ASX 200 Index (ASX: XJO) gained 6.7% over the same period while the All Ordinaries Index (ASX: XAO) rose 6.6%.

So, what’s been boosting Vulcan Energy’s shares into the green lately? Let’s take a look.

Vulcan Energy’s stock surges 18% in March

The Vulcan Energy share price took off this month amid news of the company’s maiden revenue from operations and its Zero Carbon Lithium Project.

The first time the market heard from Vulcan Energy this month was on 10 March. Then, it released its report for the first half of financial year 2022 in a non-price sensitive announcement.

Within the release, Vulcan Energy announced it had brought in nearly 690,000 euros from continuing operations over the 6 months ended 31 December 2021.

The maiden revenue was driven from the company’s recently acquired Insheim Plant, a geothermal energy power plant.

It also reported an increase in its net assets and a net loss after tax of around 6.2 million euros for the period.

The Vulcan Energy share price gained just 1.2% on the day it release its half-year report.

The following week, the company released good news about its Zero Carbon Lithium Project.

Vulcan Energy announced it had begun re-fabrication work on the project’s direct lithium extraction demonstration plant.

That means it’s on track to commission the plant in mid-2022.

The news comes after the company recorded nearly 12 successful months of operations at its direct lithium extraction pilot plant. The pilot plant has been operating at levels above those predicted in its pre-feasibility study.

The update saw the Vulcan Energy share price launch 5.5% higher.

Finally, in other non-price sensitive news, the company welcomed Dr Günter Hilken to its board last week.

Hilken has worked in Germany’s chemicals, renewables. and infrastructure investment sectors for the past 35 years.

Vulcan Energy chair Gaven Rezos noted Hilken’s skills will help the company supply German geothermal energy to replace Russian gas used in heating.  

Vulcan Energy share price snapshot

Sadly, this month’s gains weren’t enough to boost the Vulcan Energy share price back into the long-term green.

It is still 6.6% lower than it was at the start of 2022. Though, it has gained 69% since this time last year.

The post March was a stellar month for the Vulcan Energy (ASX:VUL) share price. Here’s why appeared first on The Motley Fool Australia.

More reading

• Vulcan (ASX:VUL) share price lifts amid company quest to replace Russian gas
• Experts name 3 of the best ASX lithium stocks to buy now
• Here’s why the Vulcan (ASX:VUL) share price is charging higher today
• Why Ampol, EML, Vulcan, and Zip shares are zooming higher
• Renewable energy shift ‘is about to accelerate’ making Vulcan (ASX:VUL) shares a buy: Broker

Motley Fool contributor Brooke Cooper owns Vulcan Energy Resources 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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The Telstra Corporation Ltd (ASX: TLS) share price finished in the green today amid the company securing a new government deal.

The Telstra share price closed at $3.96, a 1.54% gain. For perspective, the S&P/ASX 200 Communication Services Index (ASX: XTJ) climbed 0.7% today.

Let’s take a look at what is going on at Telstra.

New government deal

Telstra has secured a new $187 million contract to upgrade internet speeds in Queensland schools.

The company has signed a five-year contract to provide faster internet at 1,258 state schools.

Telstra Enterprise chief customer officer John Ieraci said:

Over the next 18 months we’ll be rolling out a significant amount of infrastructure across every corner of the state, including connecting around 40 schools to fibre for the first time.

It’s one of several recent education projects that we’ve undertaken with state governments.

The Queensland Government described the deal as a “game changer” in a media statement today. Education Minister Grace Grace said the project would increase average internet speeds by 40 times.

Grace added:

Telstra’s upgrades to hundreds of exchanges also means the flow on benefits for communities and businesses will be huge.

This partnership will also see Telstra invest $110 million to upgrade hundreds of exchanges across Queensland. Around 350 have already been identified and there will be more added as the work progresses.

What else is happening with Telstra?

Telstra has been in the headlines recently. Yesterday, the company appointed a new CEO, Vicki Brady. Brady was promoted after serving as the chief financial officer from 2015. Brady takes over from outgoing CEO Andrew Penn. He will retire on 31 August after more than seven years in the role.

Telstra share price snapshot

The Telstra share price is up 16.47% over the past 12 months. For perspective, the benchmark S&P/ASX 200 Index has returned 9.8% over the past year.

Telstra has a market capitalisation of $45.81 billion based on its closing share price today.

The post What helped boost the Telstra share price on Thursday? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Thursday
• ASX 200 (ASX:XJO) midday update: Telstra CEO steps down, Fortescue confirms E.ON deal
• What you need to know about the new Telstra CEO
• Telstra share price on watch amid shock CEO exit
• 2 ASX dividend shares analysts rate as buys for April

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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Ramsay Health Care Limited (ASX: RHC) share price was a positive performer on Thursday.

The private hospital operator’s shares rose 0.6% to $65.15.

Though, despite this gain, the Ramsay Health Care share price remains down almost 10% in 2022.

Is the Ramsay Health Care share price in the buy zone?

While the weakness in the Ramsay Health Care share price in 2022 has been disappointing for shareholders, it could be a buying opportunity for others.

That’s the view of the team at Goldman Sachs, which this morning reiterated its buy rating on the company’s shares.

And with Goldman holding firm with its $74.00 price target, this suggests there’s potential upside of almost 14% for the Ramsay Health Care share price from current levels.

What did the broker say?

This week Goldman hosted Ramsay Health Care’s CEO Craig McNally and CFO Martyn Roberts for an operational update and broader strategic discussion.

Following the meeting, Goldman commented: “With restrictions continuing to ease across all major markets, RHC is seeing a stronger, albeit uneven, volume development through 2H22 to date. As in previous post-restriction periods, there is a short-term dilutive skew to case-mix, which RHC confidently expects to normalise through coming quarters. Whilst staffing availability/cost remains a primary challenge across all hospital operators, RHC appears more favourably positioned than most global peers.”

The broker also spoke to Ramsay Health Care about acquisitions. Management appeared to indicate that the focus would be on smaller bolt-on acquisitions rather than anything material.

It explained: “Per management, any further M&A efforts in the near-term are likely to focus on bolt-ons for Elysium (i.e. mental health facilities in the UK), and smaller primary care centers/specialists in Scandinavia. We did not sense appetite for larger, strategic assets any time soon.”

Overall, Goldman appears to have come away from the meeting feeling confident about its rating on the Ramsay Health Care share price and has reiterated its buy rating.

The post Top broker tips Ramsay Health Care (ASX:RHC) share price to rise 14% appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Ramsay (ASX:RHC) share price pushes higher on US$1.35bn proposal for Asian JV
• Top brokers name 3 ASX shares to buy next week
• 4 ASX healthcare shares at 52-week lows

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 Ramsay Health Care 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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