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December has been a good month so far for the BHP Group Ltd (ASX: BHP) share price. It has gained 4.95% since the end of November.

The iron ore giant’s stock has likely been driven by news of its unification plan, the planned sale of its petroleum assets, and an ongoing takeover battle.

Having ended November at $39.27, the BHP share price is now $41.32.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 2.26% this month.

Let’s take a closer look at what the company’s been up to lately.

What’s driven the BHP share price in December?

The first news to move the BHP share price this month was of the company’s intent to unify its corporate structure.

After the market closed on 2 December, BHP announced that it’s proceeding with its plan to converge with its London-listed, BHP Group Plc. Its share price gained 1.3% the following day.

After the unification – which requires shareholder approval – BHP will be primarily listed on the ASX.

The company released a prospectus for its proposed unification the following week.

That’s not the only exciting happening to have driven the BHP share price lately.

The long-awaited sale of the company’s petroleum assets to Woodside Petroleum Limited (ASX: WPL) was given the green light by Australia’s competition watchdog this month.

However, December has also seen BHP release seemingly unfortunate, non-price sensitive news.

The company’s ongoing acquisition offer for Canadian nickel miner, Noront Resources was recently outbid by Wyloo Metals.

Previously, BHP put in an offer to acquire the company, bidding 81 cents (C$0.75) per Noront share.

However, Wyloo Metals – owned by the private investment vehicle of Andrew Forrest, who is also chair of Fortescue Metals Group Limited (ASX: FMG) – put forward a bid of $1.19 (C$1.10) per share.

BHP vowed not to match Wyloo Metals’ bid on 22 December.

Finally, the price of iron ore has likely helped boost the BHP share price this month.

According to data from CNBC, the commodity’s price has increased 18% since the end of November.

A dry metric tonne of the metal is currently trading for US$112.99.

The post Why is the BHP (ASX:BHP) share price having such a good run in December? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Could 2022 be a good year for the BHP (ASX:BHP) share price?
• Got money to invest for income? Here are 2 ASX dividend shares that could be buys
• 5 things to watch on the ASX 200 on Thursday
• Top brokers name 3 ASX shares to buy 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 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 a business saw its shares plummet in one year but its operations are still sound, is it a fair recovery bet for the new year?

To test this “it can’t get any worse” theory, at the end of each year the team at Marcus Today puts together a mini-portfolio of half-a-dozen ASX shares that saw their values plummet the previous 12 months.

Last year’s picks — AMP Ltd (ASX: AMP), Boral Limited (ASX: BLD), Challenger Ltd (ASX: CGF), Insignia Financial Ltd (ASX: IFL), Treasury Wine Estates Ltd (ASX: TWE) and Unibail-Rodamco-Westfield CDI (ASX: URW) — turned out to have a pretty good 2021.

“In this model ‘Dog Basket’, we started with equal weightings of $10,000 in each, for a total of $60,000 around October 2020,” stated the Marcus Today team.

“Current valuation is around $81,000, up approximately 34%.”

If you’re interested in making a similar recovery punt for 2022, here are this year’s Dog Basket picks:

Guess who’s back… again

AMP has, unfortunately, been a mainstay on end-of-year “worst ASX shares” lists for a while now.

The stock price has lost 35.9% for the year so far and an eye-watering 80% over the past 5 years.

And it once again makes Marcus Today‘s Dog Basket.

“Maybe the renaissance of the AMP building dominating Circular Quay is a sign that things can only get better.”

Shooting themselves in the foot

A2 Milk Company Ltd (ASX: A2M) ran into trouble last year for a similar reason to Treasury Wines — a significant loss of its Chinese consumer market.

In response, one company redirected its sales and adjusted its marketing — and the other did not.

“Unlike Treasury Wines, which has pivoted away from China and driven the premiumisation of its brands, A2 Milk has failed to pivot,” the Marcus Today team wrote. 

“Failed on many fronts. Reflection and action are the mantra from the CEO. We shall see — but definitely one for the basket.”

A2 shares have lost more than 52% for the year.

Similarly, the AGL Energy Limited (ASX: AGL) share price struck trouble due to its management’s poor judgments.

“AGL has been under considerable pressure since a past CEO picked a fight with the government over the Liddell Power Station. He clearly did not learn from the Telstra experience under Sol,” the memo from Marcus Today read.

“Never take on the government. They will win. They have more money.”

AGL has, however, proposed to split itself into two: one green business and one polluting business.

“2022 could see the company split into 2, and with the arrival of Shell into the energy retail game in Australia, maybe we will see the interest in AGL pick up. Corporate activity would certainly be easier without the fossil fuel power station exposure.”

AGL shares have also lost around 50% over 2021.

One COVID beneficiary, one COVID casualty

While many technology companies saw their stocks soar after the pandemic forced people to stay at home, one exception is Appen Ltd (ASX: APX).

The machine learning services provider truly was a COVID-19 loser, losing 58% of value this year and 73% since August 2020.

“EBITDA down 14%, revenue down 2%. It has been a COVID-19 casualty. Data annotation and collection for AI has been lumpy in revenue terms.”

Appen has big plans to expand into China, but given Australia’s political issues with that nation, it’s a long shot.

“It has a strong balance sheet (+$66m) and maybe as the world reopens in 2022 and the Metaverse becomes a reality, we could see some buyers emerge,” the Marcus Today team wrote.

“Still a stretch to get back on track.”

On the opposite side is Ansell Limited (ASX: ANN), which was definitely a COVID beneficiary with its disposable medical products.

But according to the Marcus Today team, the demand has fallen off a cliff far earlier than expected, so the company needs to rally over the remaining financial year.

“It had better be a good second half. Chip shortages and supply chain issues have been a hindrance,” stated the team.

“Earnings per share [EPS] is expected to be more weighted to 2H relative to prior years. EPS guidance of 175 to 195 US cents per share was reiterated. But [that] looks a stretch — and second half is crucial.”

Ansell shares have lost 8.5% this year.

Do you remember buy now, pay later?

The market has really cooled on buy now, pay later stocks since Afterpay Ltd (ASX: APT)’s blockbuster sale to Block Inc (NYSE: SQ) was revealed earlier this year.

Zip Co Ltd (ASX: Z1P) now seems to be the forgotten ASX share that used to be everyone’s tip.

For its investors, the 52-week high of $14.53 seems like a distant memory with Zip going into Christmas at $4.39.

The Marcus Today team reckons size really matters as the BNPL industry consolidates. And Block-Afterpay will be a huge gorilla.

“Zip may just end up in the mist. Missed could be the operative word as it fails to fire, and costs continue to weigh,” their memo stated.

“Merchants do not want a myriad of terminal possibilities for customers to dither over at the checkout.”

The post 6 awful ASX shares that could rebound in 2022 appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy
• Leading brokers name 3 ASX shares to sell
• These are the 10 most shorted ASX shares
• The stories that rocked the ASX 200 in 2021 revisited
• Bell Potter names 3 of the best ASX 200 shares to buy in 2022

Motley Fool contributor Tony Yoo owns A2 Milk, Appen Ltd, Block, Inc., and IOOF Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited, Appen Ltd, Block, Inc., and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Afterpay Limited and Appen Ltd. The Motley Fool Australia has recommended A2 Milk, Ansell Ltd., Challenger Limited, and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Kogan.com Ltd (ASX: KGN) share price could be a smart idea to look at right now for a few different reasons.

Kogan is one of the largest online-only retailers in Australia. It sells a wide array of products through its Kogan.com website such as TVs, phones, clothes, shoes, garden supplies and appliances. It also acquired the Mighty Ape e-commerce business in New Zealand not too long ago.

However, the Kogan share price has dropped by 58% over 2021. After this decline, there are a few reasons why it could be an investment with potential, not just for being cheaper:

Continuing to scale

Kogan says that online retail is in its infancy in Australia. Its market share has grown over many years, while the market itself continues to rapidly increase in size. In FY19 it had a 2.1% market share, in FY20 that market share had increased to 2.4% and in FY21 the market share had risen again to 2.7%.

In the first four months of FY22, it has seen a “strong performance” from Kogan Marketplace and Kogan First.

Looking at the first four months of FY22, total gross sales (including Mighty Ape) were up 19.2% to $432.7 million. Just looking at Kogan.com sales alone, there was growth of 4.8% despite all of the impacts of COVID-19 and the large level of e-commerce sales in the prior year.

In the first quarter of FY22, active customers had increased by 30.7% year on year to 3.35 million. Kogan First members had increased 171.1% year on year and 64.4% quarter on quarter to 197,000.

Recovery of margins expected

The company (and analysts) have been focused on the significant drop in profitability of the business over 2021 as issues relating to excess inventory affected various expense categories, with impacts like increased inventory costs and higher spending on advertising required. This may have impacted the Kogan share price heavily.

The company said that a couple of months ago it had resolved the previous inventory pressures and closed a number of inefficient overflow warehouses. Kogan noted that operating costs have been a key focus for the business in the first four months of FY22.

This reduction in inventory levels led to the company significantly reducing its warehousing costs, delivering an average variable cost saving of $0.8 million per month in the first quarter of FY22 compared to the fourth quarter of FY21.

Long-term plans

Management have set goals for the next five years ahead. The company is focused on the long-term.

It is aiming to achieve $3 billion of annual gross sales and 1 million Kogan First subscribers by FY26. In FY21, it achieved around $1.2 billion of annual gross sales. Therefore, the company is looking to generate a compound annual growth rate (CAGR) of at least 20% over this five-year period to reach that goal.

Management say that the company can do this by re-investing in its customers, ensuring they get the best deals on a wide range of products, delivered quickly and efficiently.

A key strategy for the business is to get customers, particularly Kogan First members, to come back and re-purchase again and again. These customers will generate more gross sales for the company and Kogan may not need to spend as much on advertising with them.

Kogan share price valuation

According to Credit Suisse, Kogan shares are a buy, with a price target of $13.88 – that’s around 70% higher than where it is today.

Credit Suisse puts Kogan shares at 20x FY23’s estimated earnings.

The post 3 reasons why the Kogan (ASX:KGN) share price could be a smart buy appeared first on The Motley Fool Australia.

More reading

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• Forget Christmas! Could these ASX retail shares be set for a Boxing Day bonanza?
• These are the 10 most shorted ASX shares
• Own Kogan (ASX:KGN) shares? This $5m under-the-radar deal could signal a crypto play
• These are the 10 most shorted ASX shares

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. owns and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com 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 new year is often a time for renewal. Fresh ideas, a different approach, and all that.

So perhaps that can also apply to your ASX share portfolio. A time to consider companies you haven’t before?

If you need some ideas about how to make your money work for you in 2022, one expert has named 2 ASX shares that he reckons could go ballistic.

At this time of the year, Capital H Management managing director Harley Grosser usually posts one stock that could rocket in the new year on Livewire — but not this time around.

“This year I thought I’d diversify a little and rather than place all my eggs in one basket, I’d give you 2 stocks that we think are genuine candidates to be multi-baggers in 2022, both of which we’ve been buying recently.”

And they’re tickers that are not necessarily household names on the ASX:

Merger shareholders are selling off for no good reason

Grosser first mentioned Webcentral Ltd (ASX: WCG) as a bolter in March. While the share price is actually down almost 25% since then, he’s still unambiguously bullish on the digital services provider.

“Webcentral recently merged with 5G Networks and is now an integrated IT, hosting, data centre and managed services company, as well as the third-largest domain provider in Australia,” Grosser said.

“The complexity of that merger now hides what is, in our view, the cheapest IT services company on the ASX.”

He explained that while his team was supportive of the merger, many other shareholders were not.

“Based on the share register and broker data, most of the selling since then has been retail shareholders who previously owned 5G Networks and were issued Webcentral scrip,” he said. 

“We think that selling is a significant opportunity.”

Webcentral shares closed for Christmas at 40 cents apiece.

Grosser has declared for a while now that the Webcentral share price should hit $1. Despite a tough 2021, his view has not changed.

“We continue to believe this is the case and have been adding to our position as a result.”

ASX share at heart of ‘the most exciting investment thematic of our time’

Environmental Group Ltd (ASX: EGL) is faithful to its label, providing environmental solutions for industrial processes.

Grosser’s colleague, portfolio manager Joshua Baker, explained that the company has 5 different businesses with one acting as the “core” moneymaker.

“The core business is profitable and growing with tailwinds,” he posted on Livewire.

“Success in the new business units, now substantially de-risked due to the successful PFAS [perfluoroalkyl and polyfluoroalkyl substances] trial results, which would open new and potentially highly profitable growth opportunities over the longer term.”

Environmental Group is a “high conviction investment” heading into 2022, said Grosser.

“EGL is a highly profitable, well managed and growing business that finds itself right in the heart of what is probably the most exciting investment thematic of our time in decarbonisation and green investing.”

The post 2 potential multi-bagger ASX shares for 2022 appeared first on The Motley Fool Australia.

More reading

• Up 700% this year, what’s sending the Environmental Group (ASX:EGL) share price 38% higher today?

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Webcentral Limited. 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 been out of form again in 2021.

Since the start of the year, the insurance giant’s shares have fallen approximately 10%.

This means the IAG share price is now down 45% over the last two years.

Is the IAG share price cheap?

While the IAG share price performance over the last couple of years has been disappointing for shareholders, it could be a buying opportunity for non-shareholders.

According to analysts at Morgans, its analysts have recently retained their add rating but trimmed their price target slightly to $5.31.

Based on the current IAG share price of $4.27, this implies potential upside of 24% over the next 12 months.

In addition, the broker expects an 18.2 cents per share dividend in FY 2022. If we add this into the equation, the total return stretches to approximately 18.5%.

What did the broker say?

Morgans notes that IAG recently held a business update focusing on its five-year strategy.

It highlights that the company’s medium term targets remain unchanged. It continues to target a cash return on equity of 12% to 13%, an insurance margin of 15% to 17%, and a growth profile. The broker also notes that IAG’s FY 2022 guidance for a 10% to 12% reported insurance margin and low single-digit gross written premium (GWP) growth was also re-affirmed.

Morgans commented: “IAG’s overall strategy sounds logical, although history shows it is one thing improving margins in IIA [Intermediated Insurance Australia] and another thing being able to maintain them. We are probably most sceptical on whether IAG can grow customer numbers by 1m over 5 years as planned, noting IAG has been losing share in personal lines in recent times. However, positively, it does appear that IAG has already made a significant start on executing its plans in FY22.”

Its analysts also believe the IAG share price is cheap at the current level and expects patient investors to be rewarded.

The broker concluded: “We leave our earnings/valuation unchanged. IAG had a difficult FY21 and FY22 is set to be a weather affected year. However, we believe for the patient investor the stock is cheap trading on ~13x FY23F earnings, and we expect continuing insurance price increases, combined with management’s strategy to improve performance, to drive improved profitability over time. ADD maintained.”

The post Is the IAG (ASX:IAG) share price too cheap to ignore? appeared first on The Motley Fool Australia.

More reading

• Why is the IAG (ASX:IAG) share price underperforming QBE in 2021?
• Why is the IAG (ASX:IAG) share price heading south today?
• What are experts saying to expect for the IAG (ASX:IAG) share price in 2022?
• It’s trading at around 9-year lows, could the IAG (ASX:IAG) share price be a takeover target?
• IAG (ASX:IAG) share price lifts despite NRMA suffering its worst spring ever

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 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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The CSL Limited (ASX: CSL) share price has been an underperforming in 2021.

Since the start of the year, the biotherapeutics giant’s shares have gained just under 3%.

This compares to an 11% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Is the CSL share price underperformance a buying opportunity?

One leading broker that appears to see the underperformance in the CSL share price this year as a buying opportunity is Citi.

According to a recent note, the broker has upgraded the company’s shares to a buy rating with a $340.00 price target.

Based on the current CSL share price of $292.85, this implies potential upside of 16.1% over the next 12 months. Citi also expects a dividend yield of ~1.2% in FY 2022, bringing the total return on offer to almost 17.5%.

What did Citi say?

Citi has been looking at the company’s acquisition of Vifor Pharma for US$11.7 billion.

While it notes that the transaction value appears reasonably full, it highlights that the Swiss-based biotech giant’s revenues have been subdued because of the pandemic. Furthermore, a number of new products have the potential to boost its revenues in the near future.

All in all, Citi believes the Vifor acquisition is likely to be ~9% earnings per share accretive (pre-amortisation) in FY 2023.

It commented: “CSL has announced that the acquisition of Vifor Pharma – it is acquiring the company at CHF165.5 (US$179.25), a ~65% premium to where the stock was trading pre bid discussion and a ~37% premium to the three-month VWAP. We calculate the acquisition to be ~9% accretive to NPATA per share (NPAT before acquisition-related amortization) – a proxy for cash flow. Including amortization, the transaction is expected to be “modestly accretive” to EPS.”

“CSL is acquiring Vifor Pharma at roughly ~14x FY23 EBITDA (including the full run rate of US$75m in cost synergies). Time will tell if CSL has paid a full price given that the revenue is currently subdued because of the pandemic, and several new products are yet to launch, but the transaction should be ROIC dilutive in FY23. CSL’s management team presented the transaction as being strategically aligned with the existing business,” Citi concluded.

The post Top broker tips CSL (ASX:CSL) share price to climb to $340 appeared first on The Motley Fool Australia.

More reading

• 3 five-star ASX shares to buy in 2022
• Where are CSL (ASX:CSL) shares headed in 2022?
• 2 high quality ASX 200 shares with huge upside potential
• Here are the top 10 ASX shares today
• Interested in the $750m CSL (ASX:CSL) share purchase plan? Here are the details

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 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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2021 has been nothing if not eventful. And now, some may say gleefully, it is finally drawing to a close. To celebrate the approaching new year, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to buy in 2022. Here’s what the team came up with…

James Mickleboro: Life360 Inc (ASX: 360)

Life360 operates in the digital consumer-subscription services market with a focus on products and services for digitally native families. Its core offering is the Life360 app, which was developed for families and includes features such as messaging, driving safety, and location sharing.

At the last count, the company had over 33 million users of its app. This is generating significant recurring revenue, but management isn’t resting on its laurels. Life360 recently acquired wearables company Jiobit and items-tracking company Tile. These acquisitions provide it with material cross and up-selling opportunities in 2022.

Bell Potter is very bullish on Life360. It recently named the company as one of its top tech picks of 2022. The broker’s analysts have a buy rating and $16.25 price target on Life360 shares. On Friday, the Life360 share price closed at $9.50.

Motley Fool contributor James Mickleboro owns shares of Life360 Inc.

Aaron Teboneras: Coles Group Ltd (ASX: COL)

Coles is a leading Australian retailer with over 2,500 retail outlets nationally, servicing more than 20 million customers each week.

The supermarket giant’s share price has struggled to gain traction in 2021, falling roughly 2% for the period. This comes despite Coles executing its strategy to respond to the changes in consumer demand and behaviour since the onset of COVID-19.

Initiatives have included further investment in Coles Online, such as adding around 250 delivery stores and upgrading more than 100 click-and-collect locations. The company achieved a strong first quarter for FY22, with e-commerce revenue growth of 48% for its supermarkets division.

Coles remains optimistic on the outlook for 2022 as vaccination rates continue to rise across the country. Last month, analysts at Citi raised their rating on Coles shares to ‘buy’ from ‘neutral’. In addition, the broker also lifted its 12-month target for the Coles share price by 4% to $19.60. Based on Friday’s closing price of $17.68, this implies an upside of around 11%.

Motley Fool contributor Aaron Teboneras does not own shares of Coles Group Ltd.

Sebastian Bowen: South32 Ltd (ASX: S32)

Diversified miner South32 could be worth a look in 2022. This mining company gives investors exposure to a wide range of commodities, including silver, aluminium, lead, and nickel.

Broker Goldman Sachs has currently rated South32 shares as a ‘conviction buy’, with a 12-month share price target of $4.40. That implies a potential upside of roughly 10% not including dividends.

Speaking of dividends, Goldman also reckons South32 will be able to fund payouts in FY22 and FY23 that would equate to yields of between 11% and 12%. If this proves to be the case, South32 shares could prove to be an underappreciated income stalwart in 2022 and beyond.

Motley Fool contributor Sebastian Bowen does not own shares of South32 Ltd.

Mitchell Lawler: Alcidion Group Ltd (ASX: ALC)

Alcidion provides a range of technology solutions to the healthcare industry. These include Miya Precision, Smartpage, Patientrack, and ExtraMed. These offerings are currently distributed in the United Kingdom, Australia, and New Zealand, servicing more than 300 hospitals and 60 healthcare organisations.

The company is currently in the process of raising $55 million to fund the acquisition of UK-based Silverlink – which is one of the world’s most widely-used patient administration systems in the National Health Service (NHS). Post-acquisition, Alcidion will boast a 26% share of the NHS provider market in the United Kingdom.

Analysts at Bell Potter currently hold a ‘buy’ rating on the stock with a price target of 45 cents per share. Based on the Alcidion share price at Friday’s close, this represents an upside of around 70%.

Motley Fool contributor Mitchell Lawler does not own shares of Alcidion Group Ltd.

Tristan Harrison: Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is a leading e-commerce beauty business.

It is currently ‘buy’-rated by Morgan Stanley with a price target of $6. That compares to the current Adore Beauty share price of $4.10.

According to Adore, the beauty and personal care market in Australia is worth $11.2 billion, with compound annual growth expectations of 26% per annum to 2024.

The company is investing to grow its brand awareness, win new customers and increase customer retention. In the first quarter of FY22, revenue grew 25% to $63.8 million and returning customers grew 63% to 418,000. Higher margins are expected as Adore scales in the upcoming years.

Motley Fool contributor Tristan Harrison does not own shares of Adore Beauty Group Ltd.

Zach Bristow: IGO Ltd (ASX: IGO)

Analysts believe resources giant IGO remains well positioned to continue benefitting from the commodities super-cycle that’s been occurring since 2020.

JP Morgan recently noted this, explaining that IGO has commodity exposure to nickel, copper, and cobalt through its 100%-owned Nova asset. The broker highlighted that its stakes in the world-class Greenbushes spodumene mine and Kwinana hydroxide plant makes IGO a one-stop stock for electric vehicle raw materials.

IGO’s strong portfolio positioning has it rated as a ‘buy’ from 9 out of 15 analysts provided by Bloomberg Intelligence.

Barrenjoey, Jefferies and JP Morgan each value the IGO share price at well over $12. With metals markets showing continued strength, the brokers believe IGO is well poised to head towards these upside targets. IGO shares closed Friday’s session at $11.35.

Motley Fool contributor Zach Bristow does not own shares of IGO Ltd.

Brendon Lau: Nearmap Ltd (ASX: NEA)

It’s a controversial call as tech stocks are deeply out of favour, but some analysts believe the Nearmap share price could surprise on the upside in 2022. Morgan Stanley has grown more confident on the mapping technology company since its trading update last month.

The broker believes the group’s first-half annual contract value will be at least US$108 million (around AU$143 million) That is around AU$15 million above the same time last year. And if Nearmap can deliver a similar increment in the FY22 second half, it shouldn’t have too much trouble meeting consensus estimates.

In other words, too much bad news may be priced into the Nearmap share price, considering its crash of more than 30% this year to $1.53 as of Friday’s close. Morgan Stanley maintains an overweight rating on Nearmap shares with a 12-month price target of $3.20.

Motley Fool contributor Brendon Lau owns shares of Nearmap Ltd.

The post Top ASX shares to buy in 2022 appeared first on The Motley Fool Australia.

More reading

• 3 ASX growth shares could be strong buys
• Bell Potter names 3 of the best ASX 200 shares to buy in 2022
• 2 quality ASX dividend shares to buy
• 3 fantastic ASX shares to buy for Christmas
• The ASX share market coverage that captivated readers in 2021

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alcidion Group Ltd, Life360, Inc., and Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET and Nearmap Ltd. The Motley Fool Australia has recommended Adore Beauty Group Limited and Alcidion Group 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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Investors that are interested in boosting their income portfolio with some dividend shares might want to look at the two listed below.

Here’s what you need to know about these highly rated ASX 200 dividend shares:

Commonwealth Bank of Australia (ASX: CBA)

The first ASX 200 dividend share to look at is Australia’s largest bank, Commonwealth Bank. It could be a good option for income investors following a sizeable pullback by its shares over the last couple of months.

This has left the CBA share price trading at an attractive level according to the team at Bell Potter. The broker currently has a buy rating and $111.00 price target on its shares.

Bell Potter likes CBA due to its strong position as the leader in home lending and retail deposits, its strong balance sheet, and significant surplus capital. It feels the latter could bode well for share buybacks in the future.

Bell Potter also expects attractive yields in the near term. The broker is forecasting fully franked dividends per share of $3.94 in FY 2022 and $4.15 in FY 2023. Based on the current CBA share price of $100.63, this will mean yields of 3.9% and 4.1%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 dividend share that could be a top option for income investors is Telstra.

This is due to its much-improved outlook, which is being underpinned by both its T22 and T25 strategies. The T22 strategy was about transforming the telco giant whereas the T25 is focused on driving growth.

Telstra’s CEO, Andrew Penn, revealed that the company is targeting a “high-teens” underlying earnings per share compound annual growth rate from FY 2021 to FY 2025.

This has many analysts believing that a dividend increase could be coming in the near future should it deliver on its targets. For now, though, the team at Morgans expects fully franked dividends per share of 16 cents in FY 2022 and FY 2023.

Based on the current Telstra share price of $4.15, this will mean yields of 3.9% for the next couple of years. Morgans also sees decent upside for Telstra’s shares and has an add rating and $4.55 price target on them.

The post 2 ASX 200 dividend shares named as buys appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell
• 3 excellent ASX 200 blue chip shares to buy in 2022
• The stories that rocked the ASX 200 in 2021 revisited
• Telstra (ASX:TLS) share price hits yet another 52-week high. What’s going on?
• The ASX share market coverage that captivated readers in 2021

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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The Afterpay Ltd (ASX: APT) share price is having a month to forget in December.

Since the start of the month, the payments company’s shares have lost 20% of their value and are currently fetching $86.65.

This compares very unfavourably to the 52-week high of the Afterpay share price of $160.05.

Why is the Afterpay share price tanking in December?

The weakness in the Afterpay share price this month has been driven by a couple of things.

One is that shareholders have voted overwhelmingly in favour of the Block (previously named Square) takeover. That transaction will see shareholders receive a fixed exchange ratio of 0.375 shares of Block for each Afterpay share they hold on the record date.

This transaction means the Afterpay share price is intrinsically linked to the Block share price, which is the second reason for the December weakness.

The Block share price has been sold off in December and is down 21% month to date, which has negatively impacted the value of the takeover. This appears to have been driven by weakness in tech stocks, concerns over regulatory risks in the US buy now pay later market, and a sharp pullback in cryptocurrency prices. Block has made significant investments in Bitcoin over the last 18 months.

Where next for Afterpay’s shares?

As mentioned above, where the Afterpay share price goes next will depend entirely on where the Block share price goes.

Unfortunately, Block’s poor form has continued during overnight trade, leading to its shares falling 3% to US$163.27. This means its shares are now trading within touching distance of their 52-week low.

Afterpay shareholders will no doubt be hoping 2022 is far more positive for both sets of shares and particularly after the latter absorbs the former early next year when the takeover completes.

The post Why the Afterpay (ASX:APT) share price has tanked 20% in December appeared first on The Motley Fool Australia.

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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 Afterpay Limited and Block, Inc. The Motley Fool Australia owns and has recommended Afterpay Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Friday, the S&P/ASX 200 Index (ASX: XJO) was back on form and recorded a strong gain. The benchmark index rose 0.45% to 7,420.3 points.

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

ASX 200 futures flat

The Australian share market is set to return to trade again this morning in a subdued fashion. According to the latest SPI futures, the ASX 200 is expected to open the day flat this morning. This follows a mixed night of trade on Wall Street, which in late trade sees the Dow Jones up 0.3% but the S&P 500 down 0.1% and the Nasdaq trading 0.6% lower.

Final day to qualify for dividends

A number of popular ASX dividend shares will be trading ex-dividend tomorrow, which means that today is the final day to invest to be able to receive them when they are paid. Going ex-dividend tomorrow are the likes of Charter Hall Group (ASX: CHC), Goodman Group (ASX: GMG), Mirvac Group (ASX: MGR), and Transurban Group (ASX: TCL).

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good start to the week after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.65% to US$76.07 a barrel and the Brent crude oil price has risen 0.6% to US$79.03 a barrel. Oil prices have now risen 3% since the morning of Christmas Eve.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could start the week in a subdued fashion after the gold price edged lower. According to CNBC, the spot gold price is down 0.1% to US$1,806.7 an ounce. The gold price had hit a one-month high before pulling back on US dollar weakness.

Iron ore price falls

Weakness in the iron ore price could weigh on BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares on Wednesday. According to Metal Bulletin, the spot benchmark iron ore price has fallen 3% to US$119.44 a tonne.

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

More reading

• Top brokers name 3 ASX shares to buy next week
• Bell Potter names 3 of the best ASX 200 shares to buy in 2022
• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares today

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