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The AGL Energy Ltd (ASX: AGL) share price has reversed its declining trend this month. This comes after the energy company’s shares fell to a near multi-decade low of $5.10 during mid-November.

Fast-forward to today, investors have bought up AGL shares leading to a 14% gain in December.

At yesterday’s market close, AGL shares edged slightly lower by 0.32% to $6.16 apiece.

What’s driving AGL shares higher?

It’s been a relatively quiet couple of months for the company with its last market sensitive news being its full-year results.

However, AGL shares have soared upwards as it appears investors have found the bottom. A report from the Australian Securities & Investments Commission (ASIC) last week, advised that just 1.47% of the company’s shares are being shorted.

In contrast, when AGL shares were trading at near record lows last month, 4.52% of its shares were held by short sellers.

In addition, management believes that 2022 will be a much more positive year compared to 2021. The company previously noted that a sharp decline in wholesale prices for electricity and renewable energy certificates affected its financial performance. AGL regarded the 2021 financial year as one of the most difficult energy markets on record.

As such, management has focused on reducing operating costs by $150 million by the end of FY22. Also, the sale of non-core assets for $400 million by the end of FY22 is expected to provide ample firepower to the company’s balance sheet.

Plans to turn around the company’s fortunes in becoming a more agile business towards renewable energy are progressing. AGL is aiming to split into two separate businesses by June 2022. They are bulk power generator, AGL Australia, and a carbon-neutral energy retailer, Accel Energy.

About the AGL share price

In 2021, the AGL share price has continued to plummet in value, losing more almost 50% for investors.

Based on valuation metrics, AGL presides a market capitalisation of approximately $4.06 billion, with approximately 658.38 million shares outstanding.

The post Why December has been such a stellar month for AGL (ASX:AGL) shares appeared first on The Motley Fool Australia.

More reading

• In the ‘dog basket’: 6 ASX shares that could rebound in 2022
• The stories that rocked the ASX 200 in 2021 revisited
• The AGL (ASX:AGL) share price is up 16% in a month. Here’s why:
• Could 2022 be a good year for the AGL (ASX:AGL) share price?
• Could the worst be over for the AGL (ASX:AGL) share price?

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 CSL Ltd (ASX: CSL) share price has gone on a mini rollercoaster ride since the start of December.

Over the past month, the global biotech’s shares have lost around 4.5%. By compassion, the S&P/ASX 200 Index (ASX: XJO) has gained almost 4% during the same timeframe.

At Thursday’s market close, CSL shares edged 0.19% lower to $292.50 apiece.

What’s weighing down CSL shares?

A couple of factors have had a negative impact on the CSL share price, sending investors to hit the sell button.

Firstly, the rapid spread of the COVID-19 omicron variant could spell a sluggish economic recovery for Australia. There are record cases being detected around the country, particularly in New South Wales and Victoria.

New restrictions have been introduced across the southern states, which are the main drivers of the Australian economy. This could potentially lead to reduced foot traffic in CSL’s plasma collection centres.

In addition, the company recently announced an institutional placement to raise $6.3 billon to purchase Vifor Pharma. To put this in prospective, this was Australia’s second largest equity raise, behind Telstra Corp Ltd(ASX: TLS), and the world’s seventh-largest for 2021.

The listing price of $273.00 per share sees about 23.1 million new CSL shares brought onto its registry. The company also launched a $750 million share purchase plan, offering the same terms to retail investors.

However, when the company’s shares came out of a trading halt on 16 December, investors dumped the CSL share price by 8.16%. This was the company’s biggest one-day decline since the beginning of the pandemic in March 2020.

With more shares being added on the company’s books, this has inevitably diluted shareholder value.

The CSL share price could be an attractive buy for the medium-term. Analysts at Morgans raised their price target by 3.2% to $334.70 on Thursday.

Based on CSL’s last closing price, this represents an upside of almost 15%.

CSL share price summary

Over the course of the past 12 months, CSL shares have failed to take off, posting a gain of just 1%. The company’s shares are currently sitting just below the mid-range of $242.00 to $319.78 achieved over the year’s timeframe.

On valuation grounds, CSL is the second largest company on the ASX with a market capitalisation of roughly $140.03 billion.

The post Why did the CSL (ASX:CSL) share price go backwards in December? appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy
• Analysts name 3 ‘must have’ ASX shares for buy and hold investors
• 3 ASX biotech shares rated as buys in 2022
• Top broker tips CSL (ASX:CSL) share price to climb to $340
• 3 five-star ASX shares to buy 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. owns and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re looking to bolster your portfolio with some new ASX 200 shares, then you may want to consider the two listed below. Both have recently been named as buys by the team at Morgans.

Here’s what the broker has to say about these ASX shares:

Treasury Wine Estates (ASX: TWE)

The first ASX 200 share to consider is Treasury Wine. Morgans believes the wine giant’s shares are undervalued, particularly given its recent restructuring.

And while it acknowledges that it will take time to recover its lost earnings in China, the broker remains positive on the future.

It commented: “TWE has the China reallocation risk and it will take 2-3 years to recover these earnings in new markets. However, outside of China, its key markets, particularly the US, are recovering faster than expected from COVID.”

In respect to its restructure and valuation, the broker said: “The new business units centred around the brands, are now fully in place and we are excited to see what they can earn with TWE effectively creating the benefits of a demerger without the extra costs. It also demonstrates that the SOTP is worth materially more than the whole. It shines a light on Penfolds and its best-in-class margins and may ultimately lead to corporate activity in some form in the future. We rate this management team highly.”

Morgans has an add rating and $14.06 price target on the company’s shares.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 share that Morgans is bullish on is Westpac. It believes the shares of Australia’s oldest bank are severely undervalued and offer significant upside over the next 12 months. Particularly given its belief that things are nowhere near as bad as the recent Westpac share price weakness would indicate.

The broker explained: “WBC shares have been sold off heavily following the FY21 result announcement, such that out of the major banks, WBC is now trading on the lowest FY22F P/NTA multiple, the lowest FY22F P/E multiple and the highest FY22F dividend yield. Such multiples or yields could only be justified if WBC is a value trap, which we think it is not. We believe the challenges facing WBC are not severe enough for WBC to be thought of as a value trap.”

Morgans suspects that the market assumes “that WBC only manages to reduce its annual cost base to $9.5bn by FY24F (compared with an underlying cost base of $10.2bn in FY20), experiences NIM contraction of 50bps from 2H21 to 2H24F and conducts no further capital management.”

However, the broker expects “WBC to do notably better than this and we consequently believe that the extent of pessimism being reflected in WBC’s current share price is overdone.”

Morgans has an add rating and $29.50 price target on the banking giant’s shares.

The post Morgans names 2 blue chip ASX 200 shares to buy appeared first on The Motley Fool Australia.

More reading

• How has the Westpac (ASX:WBC) share price performed in December?
• How does Westpac stack up against the CBA (ASX:CBA) share price?
• ASX 200 (ASX:XJO) midday update: CBA and Westpac rise, Afterpay tumbles again
• Leading brokers name 3 ASX shares to buy
• 3 excellent ASX 200 blue chip shares to buy in 2022

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 Treasury Wine Estates Limited and 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 has been an exceptional performer in 2021.

With the lithium developer’s shares currently trading at $10.24, this means they have gained 270% since the start of the year.

Where next for the Vulcan share price?

Incredibly, despite its impressive rise in 2021, one leading broker believes the Vulcan share price could double in 2022.

According to a recent note out of Canaccord Genuity, its analysts have retained their speculative buy rating and $21.00 price target on the company’s shares.

This implies staggering potential upside of 105% over the next 12 months.

What did the broker say?

Canaccord was pleased to see Vulcan recently acquire the Insheim geothermal plant in Germany for 31.5 million euros. It sees this as a significant derisking event and expects it to accelerate Vulcan’s development plans as it now has a brine source for an early stage DLE plant.

Another recent positive that Canaccord highlights is the company’s offtake agreement with the Landau geothermal plant for access to brine from the operation. It expects this to boost volumes.

All in all, based on recent developments, the broker suspects that Vulcan could be producing more lithium than expected and sooner than first anticipated.

The broker explained: “Given the announced acquisition and offtake agreement, Vulcan aims to deliver an updated DFS in the second half of 2022. This will likely entail an up-scaled plant with possible early production from the newly acquired facilities, in our view.”

“We had previously forecasted first production in 2025, reaching its full 40ktpa production rate in 2028 and this now may prove to be conservative. Vulcan has signed offtake agreements which if delivered at the top end of estimates would exceed 40ktpa. Vulcan now has a history of moving the Zero Carbon Lithium project forward and has now significantly derisked its profile as it has moved from zero wells under its control to effectively controlling four. On our estimates, the current plants would be pumping 4-6ktpa of lithium back underground,” it concluded.

Based on the above, the Vulcan share price could be one to watch closely again in 2022.

The post Broker tips Vulcan (ASX:VUL) share price to double in 2022 appeared first on The Motley Fool Australia.

More reading

• The Vulcan Energy (ASX:VUL) share price is down 12% this week. What’s happening?
• Vulcan (ASX:VUL) share price storms higher after receiving short seller apology
• Why Blackmores, Mesoblast, Vulcan, and Zip shares are sinking
• Why the Vulcan (ASX:VUL) share price is jumping again on Friday
• Why Hipages, IGO, Talga, and Vulcan shares are storming higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Insurance Australia Group Ltd (ASX: IAG) share price has performed poorly over the course of 2021.

Since the start of the year, the insurance giant’s shares have lost almost 10% in value.

At yesterday’s market close, IAG shares finished the day down a further 0.46% to $4.31. This is not far off its decade low of $4.19 reached last week.

In comparison, the S&P/ASX 200 Index (ASX: XJO) tracked 14% over the same timeframe. The benchmark index reached a record high of 7,632 points in mid-August, before going on a mini-rollercoaster ride.

With the year almost done, investors may be wondering what’s ahead for Australia’s premier insurance provider in 2022.

Below we take a glance at some of the key dates to watch out for.

What’s ahead for IAG in 2022?

Recently, IAG released its calendar for the 2022 financial year.

The biggest date around the corner will be 11 February, when IAG plans to deliver its half-year results. Along with its six-month performance review, the interim dividend is also to be announced.

The ex-dividend date for the interim dividend is scheduled to fall a few days later on 15 February. This is when investors must have purchased IAG shares to be eligible for the upcoming interim dividend payment.

In addition, eligible shareholders can elect to participate in the dividend reinvestment plan (DRP) with the deadline being 17 February. For those who participate, a discount will be applied to the volume-weighted average price of receiving IAG shares.

The payment date for the interim dividend is set for 24 March, when investors will collect a portion of the company’s profits.

In contrast, IAG handed shareholders a fully franked interim dividend of 7 cents per share for the first half of FY21.

The above process will again repeat itself with IAG releasing its full-year results on 12 August.

The board will declare the final dividend for FY22 with the ex-dividend on 18 August. This will be followed by the record day on 19 August, and the last election date for shareholders to opt-in to the DRP on 22 August.

The final dividend payment in which shareholders can expect to be rewarded will be on 22 September. Previously, the company paid out a fully franked final dividend of 13 cents per share in FY21.

Lastly, IAG will hold its 2022 annual general meeting on 21 October. This will likely recap the events over the last 12 months, as well as the near-term outlook for the insurance group.

IAG share price snapshot

Based on today’s price, IAG presides a market capitalisation of roughly $10.67 billion, with approximately 2.47 billion shares on issue.

The company currently has a trailing dividend yield of 4.5%.

The post Own IAG (ASX:IAG) shares? Here are the key dates to pencil in for 2022 appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to sell
• Why is the IAG (ASX:IAG) share price diving in December?
• Is the IAG (ASX:IAG) share price too cheap to ignore?
• Why is the IAG (ASX:IAG) share price underperforming QBE in 2021?
• Why is the IAG (ASX:IAG) share price heading south today?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended 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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This week I’ve been looking at which ASX shares have experienced meaningful insider buying. (You can read about the first two shares here.)

Listed below are two more ASX shares that have reported insider buying this month. Here’s what you need to know about these transactions:

Collins Foods Ltd (ASX: CKF)

A change of director’s interest notice reveals that this KFC-focused quick service restaurant operator’s new board member has been quick to buy shares. According to the notice, less than a week after joining the company on 23 December, independent non-executive director Mark Hawthorne picked up 3,000 shares through an on-market trade. He paid a total consideration of $39,899.44, which equates to an average of $13.30 per share.

Mr Hawthorne joined the company last week and brings more than 25 years of retail and franchising experience with him. He was most recently the CEO and Executive Director of Guzman y Gomez and has previously led McDonalds in a number of markets including the United Kingdom, New Zealand, and the Middle East and Africa.

G8 Education Ltd (ASX: GEM)

A number of directors have taken advantage of the underperformance in the G8 Education share price this year to add to their holdings. A total of three change of director’s interest notices have been filed this month since the release of the company’s trading update.

This includes the childcare operator’s managing director and CEO, David Foster. He picked up 13,866 shares for a total consideration of $14,831.07 on Christmas Eve. This increased the CEO’s holding to a total of 78,763 shares.

Also buying shares were independent non-executive directors Debra Singh and Toni Thornton. Singh bought 50,000 shares through an on-market trade the same day for $52,993.75, whereas Thornton picked up 23,150 shares for $25,002 on 29 December.

Judging by the purchases, these directors appear confident the company is heading in the right direction once again.

The post Insiders have been buying these ASX shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why did the G8 Education (ASX:GEM) share price lift today?
• 4 ASX shares tipped for buybacks in 2022: expert
• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week

Motley Fool contributor James Mickleboro owns Collins Foods 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 recommended Collins Foods Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’d like to make some investments but aren’t sure which shares to buy, you could look at exchange traded funds (ETFs) instead.

But which ETFs could be buys? Two that are very popular for a reason are listed below. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF gives investors exposure to the leading companies in the cybersecurity sector.

This is an area of the share market which has been tipped to grow strongly over the long term thanks to the increasing importance of cybersecurity now that more and more infrastructure and services are in the cloud.

Among the companies you’ll be owning a slice of are Accenture, Cisco, Cloudflare, Crowdstrike, Okta, Palo Alto Networks, and Splunk.

In respect to CrowdStrike, it is a provider of incident response and forensic analysis services via its Falcon platform. This platform allows businesses to understand whether a breach has occurred and to respond and recover with speed and precision to remediate the threat.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Vectors Morningstar Wide Moat ETF is another one for investors to consider in 2022. Especially if they are a fan of the legendary Warren Buffett and his investment style.

That’s because this ETF aims to invest in a group of companies that are deemed to be fairly valued and have sustainable competitive advantages or moats. The latter is something that Mr Buffett looks for when he makes his investments. And given his track record, it is hard to argue against doing this.

At present there are a total of 46 shares included in the fund. This includes companies from a range of sectors such as Amazon, Campbell Soup, Constellation Brands, Lockheed Martin, Walt Disney, and Wells Fargo.

The post Here are 2 fantastic ETFs for ASX investors in 2022 appeared first on The Motley Fool Australia.

More reading

• 2 compelling ASX shares that could be buys in 2022
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• 3 ETFs for ASX investors 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 BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. 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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Could the Westpac Banking Corp (ASX: WBC) share price be worth a buy for the expected dividend income over the next couple of years?

Westpac is one of the largest banks on the ASX along with Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Macquarie Group Ltd (ASX: MQG).

The Westpac share price has recovered strongly since the bottom of the COVID-19 crash. However, at the time of writing, the Westpac share price gain of 11% over the last year is less than the return of the S&P/ASX 200 Index (ASX: XJO) which has gone up 14%.

However, plenty of investors aren’t looking at the big four banks just for the share price movement. The dividend also can be an important factor.

What dividend might be paid in FY22?

During the last financial year, the board of the big four bank decided to pay a dividend of $1.18 per share. At the current Westpac share price, that translates to a grossed-up dividend yield of 7.8%.

It also released more capital to shareholders in the form of an off-market share buy-back of up to $3.5 billion. In making that decision, the board looked at the improved economic outlook, higher earnings and progress on its strategic priorities, particularly the completion of a number of divestments, which contributed to a “strong” capital position.

Westpac said that after the buy-back, it would continue to have a strong capital position to respond to uncertainties, support growth and its customers. The capital position, together with surplus franking credits and the potential for further asset sales, creates flexibility for the board in its ongoing considerations of capital management.

In terms of the upcoming dividends, every analyst has their own view on how big the dividend could be.

According to Commsec, Westpac could pay an annual dividend of $1.22 per share in FY22 and $1.30 in FY23. At the latest Westpac share price, that translates to forward grossed-up dividend yields of 8.1% and 8.6% respectively.

However, there are also other estimates too.

The brokers at Citi think that Westpac could pay an annual dividend of $1.40 per share in FY22 and $1.55 in FY23. That would translate into forward grossed-up dividend yields of 9.3% and 10.3% respectively.

Then there is another set of dividend of estimates from Macquarie. The estimate for the annual dividend in FY22 is $1.20 per share and in FY23 it’s $1.25 per share. That turns into a grossed-up dividend yield of 8% and 8.3% respectively.

Is the Westpac share price a buy?

Of the two brokers mentioned, one thinks it’s a buy, whilst the other is ‘neutral’ on the bank.

Citi thinks that Westpac shares are a buy, with a price target of $27.50. That’s almost 30% higher than where it is right now.

Macquarie is the broker that is neutral on the business. However, the price target is $25.50, which is still almost 20% higher than the current level.

The post Is the Westpac (ASX:WBC) share price a buy for dividends? appeared first on The Motley Fool Australia.

More reading

• Christmas highs: 3 ASX 200 shares hitting record highs today
• Is the ANZ (ASX:ANZ) share price a buy with its 8% dividend yield?
• Could 2022 be a good year for the BHP (ASX:BHP) share price?
• The ASX share I’d hold onto no matter what: expert
• ASX 200 (ASX:XJO) midday update: Rio Tinto’s lithium acquisition, Pilbara Minerals jumps

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 has recommended Macquarie Group Limited and 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 Flight Centre Travel Group Ltd (ASX: FLT) share price has struggled over the final month of 2021.

The difficult period came as short interest in the company’s shares remains high. In fact, it’s continued to hold the title of the most shorted stock on the ASX throughout this month.

As of Thursday’s close, Flight Centre shares were trading at $17.73. That’s 0.1% lower than at the start of December.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 3.5% over the same period.

Let’s take a closer look at what might have weighed on the travel agency’s shares this month.

An acquisition fails to excite

Flight Centre shares have slumped this month despite the company announcing non-price sensitive news of an acquisition.

The company purchased technology company, Compli.ai for its browser extension, Shep. It plans to integrate Shep into its flagship business travel division, FCM travel management.

According to Flight Centre, Shep will see FCM place its own content on third party websites used by corporate customers. Doing so is expected to enhance consistency and deliver better control, duty of care, sustainability, and communication to its customers.

More COVID-19 outbreaks

The acquisition didn’t appear to excite the market. Perhaps investor enthusiasm for Flight Centre shares might be being curbed by grounded flights and Omicron outbreaks.

While Prime Minister Scott Morrison last week declared Australia wasn’t going back to “shutting down people’s lives” by implementing lockdowns, outbreaks of the COVID-19 variant caused New Zealand to delay reopening its borders and other countries to reinstate COVID-19 restrictions.

Additionally, as The Motley Fool Australia reported earlier this week, airlines around the world are struggling to staff flights as flight crews are forced to isolate after encountering people infected by COVID-19.  

Such an instance was echoed in Australia over the Christmas period. The Australian reported some airlines were forced to cancel multiple domestic flights on Christmas Eve after staff were identified as close contacts.

Flight Centre share price ups and downs

On top of that, some experts have recently expressed concerns that Flight Centre – and its share price – will struggle to break even in the future.

Whether all this has, or has not, weighed on Flight Centre shares is impossible to say.

Still, the dip hasn’t been enough to plunge it into the long-term red. Right now, the company’s stock is trading for 10.5% more than it was at the start of 2021.

The post Why didn’t Flight Centre (ASX:FLT) shares enjoy any Christmas cheer in December? appeared first on The Motley Fool Australia.

More reading

• How are ASX 200 travel shares faring over the holiday season?
• ASX travel shares in focus on global flight cancellations
• These are the 10 most shorted ASX shares
• What’s the outlook for the Flight Centre (ASX:FLT) share price in 2022?
• Here’s what’s happening to the Flight Centre (ASX:FLT) share price today

Motley Fool contributor Brooke Cooper 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 Flight Centre Travel 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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The Australian share market is home to a number of quality companies with solid growth prospects.

Two that have been tipped to grow strongly over the long term are listed below. Here’s why analysts think investors should be buying their shares:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first growth share to look at is this pizza chain operator. It could be a top option due to its strong brand, investment in technology, and bold expansion plans. The latter sees the company aiming to more than double its network from 2,949 stores in FY 2021 to 6,650 stores by FY 2033.

It is worth noting that the above target relates only to the existing markets it operates in. Management also revealed that it is actively looking for acquisitions that could increase its store target even further.

All in all, this has many analysts predicting strong earnings growth in the future. One of those is Goldman Sachs, which is forecasting an operating earnings compound annual growth rate (CAGR) of 14.6% for the next three years.

In light of this, the broker has put a buy rating and $147.00 price target on the company’s shares.

Life360 Inc (ASX: 360)

Another ASX growth share that could be in the buy zone is Life360. It is the technology company behind the popular Life360 mobile app for families.

And when I say popular, I mean popular! For example, during the third quarter of FY 2021, Life360 added a further 1.5 million monthly active users (MAU), bringing the total to 33.8 million. This underpinned a 48% year on year increase in Annualised Monthly Revenue (AMR) (excluding acquisitions) to US$120.1 million.

Looking ahead, management sees significant opportunities to monetise its massive user base through cross-selling and upselling. This will be supported by its recent acquisitions of items tracking company Tile and wearables company Jiobit.

The latter sees the company take control of the discreet wearable Jiobit Location Monitor. This provides location monitoring and smart notification services for younger children, pets, seniors, and any loved one prone to wander. Management expects the acquisition of Jiobit to allow Life360 to tap into two fast growing markets: the multi-billion pet supplies and services and elder care markets.

The team at Bell Potter is very positive on Life360. It currently has a buy rating and $15.25 price target on its shares.

The post Analysts name 2 exciting ASX growth shares to buy in 2022 appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy in 2022
• Bell Potter names 3 of the best ASX 200 shares to buy in 2022
• 3 five-star ASX shares to buy in 2022
• 3 fantastic ASX shares to buy for Christmas
• 2 exciting ASX 200 tech shares to buy

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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