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With growth shares struggling in 2022, readers may be looking for value options instead.

With that in mind, listed below are two top ASX shares which could be candidates for the value-focused investor. They are as follows:

Accent Group Ltd (ASX: AX1)

This footwear focused retailer’s shares could be a great option for value investors. Especially with the Accent share price trading 27% below its 52-week high. This weakness has been driven by concerns over the company’s performance in FY 2022 due to the impact of lockdowns and COVID on its operations.

According to the team at Bell Potter, its analysts have a buy rating and $3.05 price target on the company’s shares. This compares favourably to the latest Accent share price of $2.26.

As for its valuation, the broker is expecting the aforementioned headwinds to have a big impact on Accent’s earnings in FY 2022 before an even bigger rebound in FY 2023. In light of this, it estimates that the company’s shares are changing hands for 21x FY 2022 earnings but just 13.5x FY 2023 earnings. Another positive is Bell Potter’s expectation for a 4% dividend yield this year and then a 6% yield next year.

South32 Ltd (ASX: S32)

Another value share for investors to consider is this mining giant. Although the South32 share price has charged 58% higher over the last 12 months, analysts at Goldman Sachs believe it is still great value. As a result, it has put a conviction buy rating and $4.60 price target on the company’s shares.

Goldman notes that South32’s shares are trading at ~4x its forward EV/EBITDA estimate excluding the yet to complete acquisition of a 45% stake in the Sierra Gorda copper mine in Chile.

It feels this is great value, especially given its expectation for the more than doubling of its EBITDA in FY 2022 and compelling free cash flow yield of ~18% in FY 2022 and ~17% in FY 2023. This is being driven mostly by its exposure to base metals such as aluminium and alumina.

The post These ASX shares could be buys for value investors appeared first on The Motley Fool Australia.

More reading

• Leading fund manager says these blue-chip ASX shares are buys right now
• 5 things to watch on the ASX 200 on Tuesday
• Why Beforepay, Firefinch, Kogan, and South32 shares are dropping
• ASX 200 (ASX:XJO) midday update: Wesfarmers’ update, energy shares rise
• South32 (ASX:S32) share price lower despite ‘next generation mine’ update

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

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The last few years haven’t been easy for the Telstra Corporation Ltd (ASX: TLS) share price and its shareholders.

But that all changed in 2021, with the telco giant’s shares among the best performers on the illustrious ASX 50 index.

During the 12 months, the Telstra share price raced a whopping 43% higher.

Why did the Telstra share price shoot higher in 2021?

There were a number of catalysts for the rise in the Telstra share price in 2021. These include its solid result in FY 2021, the announcement of asset sales, the acquisition of Digicel Pacific, and the unveiling of its T25 strategy.

It was arguably the latter that got investors most excited. After years of earnings declines and dividend cuts, the telco giant believes its T25 strategy will drive growth over the coming years.

Telstra’s CEO, Andy Penn, explained that T22 was based on transforming the company, whereas T25 will be about driving growth.

Mr Penn commented: “T25 marks our transition from transformation to growth, from a strategy we had to do, to a strategy we want to do to focus on growth. It is a strategy that builds on the strong foundations we have built over the last three years and remains focussed on what matters most – our customers, our people, our shareholders and on supporting the creation of a vibrant digital economy for Australia.”

According to the update, Telstra is aiming to deliver sustained growth and value by targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share (EPS) compound annual growth rates between FY 2021 and FY 2025.

Supporting this growth will be the company’s cost reduction plans and its 5G network. In respect to the former, Telstra is aiming to make $500 million of net fixed cost outs between FY 2023 and FY 2025 while still investing in its growth. Whereas for the latter, the telco expects to provide ~95% of the Australian population with 5G coverage by FY 2025. Combined with its superior network, management expects this to underpin mobile services revenue growth.

Can Telstra beat the market again in 2022?

The good news for investors is that one leading broker still sees a lot of value in the Telstra share price.

A note out of Ord Minnett from last week reveals that its analysts have a buy rating and $4.85 price target on its shares. With Telstra’s shares currently changing hands for $4.26, this implies potential upside of 14% over the next 12 months.

The post Why the Telstra (ASX:TLS) share price zoomed 43% higher in 2021 appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Tuesday
• 2 big-name ASX shares to buy right now
• These 3 ASX 200 shares are topping the volume charts on Monday
• 2 top ASX dividend shares to buy next week
• Top brokers name 3 ASX shares to buy next 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. 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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Today, the S&P/ASX 200 Index (ASX: XJO) slipped to the downside after starting off in the green. At the end of the session, the benchmark index finished 0.11% lower at 7,408.8 points.

Investors were split on how to view the Aussie share market today as a handful of companies posted their quarterly and half-year results. Healthcare and industrial shares were the worst culprits today, with both sectors firmly in the red. In contrast, the materials sector lifted with gains across lithium shares. However, it wasn’t enough to prevent a negative day on the market.

The question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Imugene Ltd (ASX: IMU) was the biggest gainer today. Shares in the immuno-oncology company jumped 7.04% despite there being a lack of news from the company. Find out more about Imugene here.

The next biggest gaining ASX share today was JB Hi-Fi Limited (ASX: JBH). The retailer enjoyed a 6.86% rally after reporting its second-quarter results for FY22. It appears the market wasn’t too worried about the numbers reflecting a fall in sales and earnings compared to the previous corresponding period. Uncover the latest JB Hi-Fi details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Imugene Ltd (ASX: IMU)	$0.38	7.04%
JB Hi-Fi Limited (ASX: JBH)	$49.84	6.86%
Liontown Resources Ltd (ASX: LTR)	$1.765	6.33%
Novonix Ltd (ASX: NVX)	$10.21	6.02%
Dicker Data Ltd (ASX: DDR)	$14.02	5.89%
Paladin Energy Ltd (ASX: PDN)	$0.89	5.33%
Zimplats Holdings Ltd (ASX: ZIM)	$24.88	4.54%
Netwealth Group Ltd (ASX: NWL)	$16.42	3.73%
Credit Corp Group Ltd (ASX: CCP)	$35.20	3.32%
Mirvac Group (ASX: MGR)	$2.88	2.86%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Tuesday
• Why Allkem, BrainChip, Data#3, and JB Hi-Fi shares are charging higher
• ASX 200 (ASX:XJO) midday update: Rio Tinto’s Q4 update, JB Hi-Fi rockets, Kogan sinks
• This is how much the average Aussie needs to feel ‘rich’
• JB Hi-Fi (ASX:JBH) share price shoots 7% higher on ‘strong sales’

Motley Fool contributor Mitchell Lawler 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 Netwealth. The Motley Fool Australia owns and has recommended Dicker Data Limited and Netwealth. 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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Key points

• Santos is 12% in the green sine January 1
• With energy prices soaring, Santos is poised to deliver a period of high free cash flow
• Morgan Stanley reckons this can be redistributed to investors via a healthy dividend, if Santos chooses
• The broker tips Santos as a buy and values the company at $10.40 per share.

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The Santos Ltd (ASX: STO) share price finished Tuesday in the green, up 0.14% on the day to close at $7.07.

Investors have rewarded Santos since late December amid renewed strength in oil and natural gas markets.

These strengths saw Santos realise high free cash flow and boost cash reserves on its balance sheet into 2022 — points that haven’t gone unnoticed by Morgan Stanley.

The broker is bullish on Santos and reckons the oil and gas giant could potentially increase its dividends as a result. Let’s take a look.

Can Santos pay higher dividends?

The team at Morgan Stanley reckons Santos should re-evaluate its dividend policy this year, particularly given forward estimates in global energy markets for natural gas and oil.

It reckons the next few years “could see materially higher energy prices”. As such, the brokers says any strategy that “rewards investors during such a period could be more attractive to investors”.

Morgan Stanley notes that if Santos were to adopt the strategy, it would signify a meaningful drift away from the company’s current push to grow material production after 2025.

In its own modelling, Morgan Stanley submits that Santos’ gearing would slide in under 20% if Brent crude were to average US$70/bbl and if it were to sell off assets in its Alaska operations.

In fact, if current trends in the energy markets such as LNG persist, “free cash yields would approximate 10-15% and potentially near 20%”.

If the energy market delivers, the broker reckons “this would give Santos the capacity to pay higher dividends”. It notes the company could even double its current 15 cents per share trailing dividend should it return 50% of free cash flow to investors.

If it were to return 50% as a payout ratio, this would be a substantial jump from the 20%-30% payout ratio that Santos currently incorporates in its dividend program.

Fellow broker Morgans is also bullish on Santos, valuing the company at $8.65 a share with an add rating to investors.

Santos share price summary

The Santos share price has had a challenging year, slipping 4% into the red these past 12 months.

Things are looking up this year to date, however, with the Santos share price charging 12% higher since January 1.

The post Own Santos (ASX:STO) shares? Top broker thinks it ‘can pay higher dividends’ appeared first on The Motley Fool Australia.

More reading

• Is this driving Santos (ASX:STO) and Woodside (ASX:WPL) shares higher on Monday?
• 5 things to watch on the ASX 200 on Monday
• Santos (ASX:STO) accused in court of ‘cavalier attitude’. Here’s why
• 5 things to watch on the ASX 200 on Friday
• Is the ‘moment of truth’ coming for gas shares like Santos (ASX:STO)?

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

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If you’re wanting to invest in the small side of the Australian share market, then the small caps listed below could be worth a closer look.

Both of these shares have been named as buys and tipped for big things in the future. Here’s why these small cap ASX shares could be worth adding to your watchlist:

Catapult Group International Ltd (ASX: CAT)

The first small cap to look at is Catapult. It is a global sports analytics company that provides elite sporting organisations and athletes with real time data and analytics to monitor and measure athletes.

The company’s technology is used by many of the biggest and most successful sports teams and organisations across the world. And while demand softened at the height of the pandemic, it has rebounded strongly since then.

For example, Catapult reported a 13% increase in revenue to $37.5 million during the first half of FY 2022. This was driven by 29% growth in subscription revenue, which management notes reflects Catapult’s strategic shift to a focus on high quality recurring revenue SaaS deals.

Jefferies is a fan. It currently has a buy rating and $3.00 price target on the company’s shares.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap to look at is Volpara. It is a growing MedTech software as a service company and the provider of breast imaging analytics and analysis products.

Its products improve clinical decision-making and support the early detection of breast cancer. Demand has been growing strongly in recent years and has continued in FY 2022. During the second quarter, the company reported a 63% increase in subscription based revenue. This took its annualised recurring revenue to US$20.4 million at the end of the period.

The good news for investors is that this is still only a fraction of its US$750 million addressable market in just breast cancer screening. It also has its eyes on other markets such as lung cancer screening.

Morgans currently has an add rating and $1.87 price target on the company’s shares.

The post 2 exciting small cap ASX shares named as buys appeared first on The Motley Fool Australia.

More reading

• An ASX XI to take on the world
• Are these 2 ASX tech shares good buys in January?
• 3 exciting small cap ASX shares rated as buys
• Experts rate these 2 ASX healthcare shares as buys in 2022

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 Catapult Group International Ltd and VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended Catapult Group International Ltd and VOLPARA FPO NZ. 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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Key points

• IAG is coming off a troublesome year in 2021 both in operations and on the charts
• Despite the turbulence, the team at Citi are bullish on the stock
• The broker retains its buy rating and values the company at $5.60 per share today.

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Shares in insurance giant Insurance Australia Group Ltd (ASX: IAG) are trading down today and are now less than 1% in the red at $4.47.

IAG shareholders endured a challenging year in 2021, with shares collapsing from a top of $5.45 in September to close out the year at $4.26.

A suite of fresh scandals and a number of catastrophic weather events put IAG’s margins and income potential under pressure last year, not to mention the impacts of COVID-19.

Despite the calamity-causing events last year, the team at investment bank Citi are bullish on IAG and reckon it could be a buy in 2022. Let’s take a look.

Is IAG a buy in 2022?

Citi reckons it is right now, noting the insurance giant’s share price should perform better this year than it did in 2021.

The broker likes Citi’s new growth and diversification strategy, however acknowledges some short-term headwinds present in the form of inflation.

Not only that, the likelihood of a shifting rates regime instigated by the Reserve Bank of Australia (RBA) could be a net positive for IAG as well, whereas the current rates environment is study, Citi says.

In its analysis, Citi also notes that price increases on the company’s catastrophe program is likely to remain bound within the low to mid-single digits, and reckons that there could be some positive news regarding its business interruption cases argued by plaintiffs against IAG in the courts last year.

With these macro-economic drivers in place, analysts at the firm believe IAG is poised to deliver a period of upside this year, especially coming off such a low base in 2022.

In its view, “these factors coupled with some likely benefit from rising interest rates should be enough to drive the stock price higher in 2022”, per the note released to clients today.

The broker retained its buy call and values IAG at $5.60 per share, alongside Credit Suisse and Macquarie, who value the company at $5.94 and $5.10 respectively.

Despite the positive sentiment, analysts at Morgan Stanley are more reserved on IAG for 2022. It rates IAG as a sell, noting substantial downside risk from the company’s recent perils activity, as well from catastrophe risk.

It notes this because IAG has pivoted its business into more short-tail lines of revenue, which also provides less of an earnings shield to the company.

IAG share price rating summary

Inspecting a list of analysts provided by Bloomberg Intelligence, 8 have IAG as a buy, whereas 2 have it as a hold and sell respectively.

Most of the price targets for IAG are concentrated around the $5-$6 mark, however, Morgan Stanley’s valuation is well below the pack and is 58% from the highest valuation set by Credit Suisse.

The consensus price target based on this list is $5.17 per share, implying a 16% margin of safety at the time of writing.

IAG shares are down 11% in the last 12 months, even after climbing 5% since January 1.

The post Why this broker tips IAG (ASX:IAG) shares are a buy in 2022 appeared first on The Motley Fool Australia.

More reading

• Why is the IAG (ASX:IAG) share price having a rollercoaster start to the year?
• Leading brokers name 3 ASX shares to sell today
• What happened to the Insurance Australia (ASX:IAG) share price in 2021?
• What’s happening with the IAG (ASX:IAG) share price today?
• Leading brokers name 3 ASX shares to sell today

The author has no positions 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 Insurance Australia Group 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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Key points

• ASX lithium shares have provided market-beating returns in recent history due to outstripped supply
• Joe Wright of Airlie Funds is wary of the volatile pricing dynamics at play, but can see the potential for further upside
• Elevated lithium prices could stay for longer than expected in order to address supply shortage

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It is hard to argue that ASX lithium shares haven’t been some of the most lucrative investments in recent years. Though, for investors, what really matters is what lies ahead for the industry from here.

An investment in any company operating in commodities can be hard to predict. In short, the margins of such businesses are dependent on the favorability of the supply and demand factors at play.

One fund manager has recently published their insights into the accelerating sector. Importantly, the in-depth analysis covers the fundamentals that could possibly drive prices even higher.

The fundamental case for ASX lithium shares

Yesterday, Airlie Funds Management equity analyst Joe Wright published the fund’s research into the lithium industry. This followed Airlie’s coverage of mining giant Mineral Resources Ltd (ASX: MIN) and its lithium operations.

At the beginning, Wright highlighted the remarkable returns being produced by listed lithium developers and explorers. These companies included the likes of Liontown Resources Ltd (ASX: LTR), Firefinch Ltd (ASX: FFX), and Core Lithium Ltd (ASX: CXO) — amassing gains of 318%, 380%, and 270% respectively in the last 12 months.

The outlandish share price performances trigger a sceptical side of Wright, mindful of the greater fool theory. However, the analyst references the very real chance of there being a significant deficit in lithium supply during the next decade.

As the proliferation of electric transportation and ‘green’ infrastructure continues, demand appears to be outstripped according to estimates. In turn, ASX lithium shares capable of producing battery-grade lithium are enjoying hefty margins.

Wright highlights how lithium has come to be a sought after material, stating:

Today, due to the superior energy-to-weight characteristics of lithium, lithium chemical products have become an important component of the rechargeable battery cells that can be found in most modern electric vehicles.  As the world looks to transition away from fossil fuels, the demand for electric vehicles, and subsequently lithium chemical products, is robust.

While lithium itself isn’t particularly scarce, the complex supply chain — involving extraction and processing — makes the end product harder to obtain. Simultaneously, increases in demand are asking for a supply chain quality that is seemingly constantly out of reach.

What needs to happen for increased supply?

The immaturity of the lithium market has created an underdeveloped pricing model, says Wright. To address the predicted supply-demand imbalance, the analyst suggests new lithium production needs to be incentivised. The market appears to be of the same mind — lithium carbonate prices are up ~25% since the beginning of the new year.

Additionally, Wright notes that the elevated prices could hang around for longer than people expect. However, the Airlie Funds’ analyst admits there are no crystal balls to tell the exact future for ASX lithium shares. But, given the combination of factors, the fund remains open to the potential of more upside in the sector.

At present, Mineral Resources remains the fund’s preferred pick for dabbling in the space. The Mineral Resources share price is currently fetching $64.35, up 68% in the last year.

The post Where this fundie sees ASX lithium shares heading from here appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares could send heads spinning this earnings season
• These were the best performing ASX 200 shares last week
• Why is the Mineral Resources (ASX:MIN) share price having such a cracking start to 2022?
• What is JP Morgan saying about ASX lithium shares?
• 6 ASX shares involved with green metals

Motley Fool contributor Mitchell Lawler 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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Yesterday we looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Cochlear Limited (ASX: COH)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and cut their price target on this hearing solutions company’s shares to $180.00. The broker has been looking at the healthcare sector and suggests investors avoid Cochlear due to the multiples its shares trade on. It believes investors should focus on better value options in the sector. The Cochlear share price was trading at $200.83 on Tuesday.

OZ Minerals Limited (ASX: OZL)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating but lifted their price target on this copper miner’s shares to $22.80. The broker has increased its earnings estimates for OZ Minerals to reflect stronger near term copper prices. However, it isn’t enough for a change of rating. Credit Suisse believes the company’s shares are expensive in comparison to global peers. The OZ Minerals share price was fetching $28.39 this afternoon.

Wesfarmers Ltd (ASX: WES)

Analysts at Citi have retained their sell rating and $50.00 price target on this conglomerate’s shares. This follows the release of a trading update from the conglomerate which revealed a first half performance that was in line with consensus estimates. Citi highlights that industry feedback indicates that consumer spending hasn’t been strong since late December, which could weigh on its short term performance. And while this is only expected to be temporary, it expects increased COVID costs to stick around for longer. The Wesfarmers share price was trading at $55.18 on Tuesday.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• Morgans upgrades Wesfarmers (ASX:WES) shares to buy rating
• ASX 200 (ASX:XJO) midday update: Rio Tinto’s Q4 update, JB Hi-Fi rockets, Kogan sinks
• Own Wesfarmers (ASX:WES) shares? Jefferies just lowered FY22 earnings forecasts
• Leading fund manager says these blue-chip ASX shares are buys right now
• Is Wesfarmers (ASX:WES) about to buy Greencross?

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 Cochlear Ltd. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Cochlear 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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Key points

• One ASX lithium share has skyrocketed today
• Critical Resources Ltd has acquired a new lithium project
• Lithium is in high global demand due to its use in electric vehicles

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The Critical Resources Ltd (ASX: CRR) share price surged today amid news on the acquisition of a lithium project.

Shares in the company finished 20.88% higher, closing the day at 11 cents apiece after reaching an intraday high of 12 cents each.

Let’s take a look at what this lithium miner is exploring.

New lithium project

Investors are reacting to news Critical Resources will take over the Graphic Lake lithium project in Ontario, Canada. This is subject to Canadian Investment Review Board approval.

The news today follows the company acquiring the Mavis Lake lithium project, just 180km away. The company said “synergies” between the two projects shows the company is serious about the Canadian lithium sector.

Managing director Alex Biggs said:

The company is committed to making quality acquisitions and expanding its access to lithium raw materials to provide the Company’s shareholders with exposure across a range of battery and critical minerals.

An early-stage project such as Graphic Lake allows us to add significant value from the ground floor, in a commodity that we anticipate will be in high demand for the foreseeable future.

The acquisition will involve an $80,000 cash payment, $120,000 worth of fully paid ordinary shares in Critical Resources Ltd, and a 1.5% net smelter royalty capped at $500,000 Canadian dollars.

The company sees the project delivering both lithium and rare earth elements. These materials are essential components in electric vehicles, which are currently in high global demand.

Share price snap shot

The Critical Resources share price has exploded 358% in the past year and 182% in the past month.

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

The company has a market capitalisation of nearly $144 million based on the current share price.

The post Why has this one ASX lithium share soared 21% today? appeared first on The Motley Fool Australia.

More reading

• Why has the Critical Resources (ASX:CRR) share price surged 39% this week?
• Here’s why the Critical Resources (ASX:CRR) share price is rocketing 20%

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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Like most shares on the S&P/ASX 200 Index (ASX: XJO), the National Australia Bank Ltd. (ASX: NAB) share price had a fairly successful year in 2021. While the ASX 200 managed to put on around 13% over the year that was, NAB shares went that extra mile.

Rising from $22.60 at the start of the year to $28.84 by New Year’s Eve, NAB managed to clock a very healthy 27.61% return for 2021. Throw in NAB’s dual-set of fully franked dividends and we have a return exceeding 30%. For the less mathematically-minded readers out there, that’s more than twice the returns of the broader ASX 200 market.

But putting things in some perspective, this ASX big four bank is still down by 2.6% over the past 5 years. It’s also down close to 40% from the all-time high of more than $40 a share that we saw way back in 2007.

But since all of that is now in the bag for shareholders, let’s turn our attention to what 2022 might have in store for the NAB share price.

NAB share price: buy, hold or sell in 2022?

So one expert investor who is bullish on NAB going into this year is investment bank and broker Goldman Sachs. Goldman currently rates the NAB share price as a ‘buy’. That comes with a 12-month share price target of $31.15, implying a future potential capital growth upside of just over 6% from where NAB shares are currently at.

This broker actually picks NAB out of any of the big four at the moment as its “preferred sector exposure”. It notes the bank’s cost management programs, as well as its focus on the commercial side of the banking industry compared to its peers.

But Goldman isn’t the only broker currently eyeing NAB off. As my Fool colleague James covered just today, Bell Potter is also anticipating some upside from NAB shares. Not to be outdone by Goldman, Bell Potter currently rates NAB as a buy, with a price target of $32 (close to a 9% upside). This broker likes NAB’s recent additions of ‘neobank’ 86 400, as well as the proposed acquisition of Citigroup’s local consumer business.

Bell Potter is also pencilling in higher dividends in both FY2022 and FY2023, with the broker expecting to see $1.345 in dividends per share in the latter. That would equate to a forward yield of 4.58% on current pricing.

So there you have it, two ASX brokers who are calling NAB shares a buy today. Only time will tell who ends up being right with their share price targets. But if either is to be believed, it looks as though 2022 will be another robust (if not quite as successful as 2021) year for this big four share.

At the current NAB share price, this ASX 200 bank has a market capitalisation of $95.82 billion, with a trailing dividend yield of 4.32%. 

The post Is the NAB (ASX:NAB) share price an ASX buy or sell for 2022? appeared first on The Motley Fool Australia.

More reading

• Brokers name 2 ASX 200 dividend shares to buy
• Is Westpac (ASX:WBC) going to be the best big 4 bank for dividends in 2022?
• NAB (ASX:NAB) share price gains following digital health claim acquisition
• Could this impact the performance of ASX 200 banks more than interest rates in 2022?
• What made the NAB (ASX:NAB) share price so appealing in 2021?

Motley Fool contributor Sebastian Bowen owns National Australia Bank 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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