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If you’re looking for a few new additions to your portfolio in December, then look no further.

Analysts at Morgans have picked out a number of ASX shares that they class as their best ideas for the month.

Below are two top ASX shares that the broker rates highly this month. They are as follows:

BHP Group Ltd (ASX: BHP)

Morgans is a big fan of this mining giant and has an add rating and $45.70 price target on its shares. The broker likes the Big Australian due to the diversity of its operations, which it notes makes it a lower risk option for investors in the resources sector. Morgans also highlights its resilient dividend profile, which it expects to underpin a ~$3.40 per share dividend in FY 2022. This equates to a fully franked 8.5% yield at current levels.

Morgans commented: “We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.”

Westpac Banking Corp (ASX: WBC)

Another giant that Morgans has on its best ideas list is Westpac. It believes Westpac is the best option for investors in the banking sector due to its compelling valuation. The broker also likes Westpac due to its cost reduction plans and risk profile. Morgans has an add rating and $30.50 price target on the bank’s shares.

Its analysts said: “WBC is our preferred major bank. We believe WBC offers the most compelling valuation of the major banks. In terms of quality of overall risk profile, we believe WBC is a close second to CBA. On credit risk, we believe WBC is positioned relatively defensively due to its loan book being more skewed to Australian home lending. […] we expect investors to increasingly warm up to WBC’s medium-term cost out story.”

The post Morgans names 2 of the best ASX share ideas for December appeared first on The Motley Fool Australia.

More reading

• The Fortescue (ASX:FMG) share price hit by broker downgrade
• Why did the BHP (ASX:BHP) share price move up by 8% in November?
• ASX shares to buy for the Omicron COVID outbreak
• What’s JP Morgan saying about ASX 200 bank shares?
• These were the 5 worst performing ASX 200 shares in November

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

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It’s the last month of 2021. There are some very compelling ASX shares that are now trading at good value.

Businesses that are expected to achieve strong growth in the coming years may be able to achieve pleasing results, particularly if they are able to positively surprise investors along the way.

This volatility could mean it’s a good time to buy the following ASX shares:

Airtasker Ltd (ASX: ART)

Airtasker is a leading ASX tech share that owns a marketplace. The idea is that it connects people who want work done with people willing to do that work. It’s rapidly gaining traction in Australia and it is making a promising start in the UK as well.

It is currently rated as a buy with a price target of $1.27 by Morgans. It highlighted that the business achieved growth in the first quarter of FY22 even though Melbourne and Sydney were in lockdown during that quarter.

First quarter gross marketplace volume (GMV) grew 6.2% year on year to $35 million. The company boasted that it is seeing a strong post-lockdown bounce back, with the latest weekly GMV of $3.6 million translating to an equivalent annualised run rate of $185 million.

A key part of the company’s growth plans is international expansion. Airtasker saw international GMV increase more than 100%, driven by “strong growth” year on year in the UK.

The US Zaarly integration and US expansion is progressing well according to management with city-level markets launching in Dallas, Kansas City and Miami.

The ASX share is also seeing “strong positive movement” in its average task value, with this trend expected to continue in the medium-term and the longer-term. Management also noted that as Airtasker becomes more trusted, more people are turning to the marketplace for more complex jobs and therefore higher value tasks.

Kogan.com Ltd (ASX: KGN)

The Kogan share price has fallen 18% over the last month. Some investors and analysts think that it’s an opportunity. One of those positive on the business is Credit Suisse, which has a price target of $13.88 on the company.

Kogan’s FY22 first quarter showed a good level of growth for sales and active customers, though profitability was lower than expected. The broker thinks that the Kogan share price looks good value.

The ASX share has had to deal with the fallout of having too much stock on hand, which led to higher inventory holding costs and an increased level of discounting to reduce stock levels back to the right level. However, Kogan says that it has resolved its excess inventory issues now.

As mentioned by the broker, Kogan revealed double digit top line growth in the first quarter of FY22 with gross sales rising 23.2% quarter on quarter to $330.5 million and gross profit increasing 31.6% quarter on quarter to $52.5 million. Active customers rose 30.7% year on year to 3.35 million for Kogan.com, whilst Mighty Ape ended with 748,000 customers.

In its AGM year to date update to October 2021, Kogan said its gross sales growth was 19.2%, though gross profit was slightly down to $69.2 million. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was down over 60% to $12.4 million compared to the first four months of FY21.

However, Kogan notes that online retail is in its infancy in Australia and its market share is rising in a rapidly growing market. Its five-year goal for FY26 is gross sales of $3 billion.

Credit Suisse puts the Kogan share price at 20x FY23’s estimated earnings.

The post 2 top ASX shares for December appeared first on The Motley Fool Australia.

More reading

• The Kogan (ASX:KGN) share price has suffered 4 52-week lows in the past week. Here’s why
• Here’s why these 3 All Ordinaries shares just hit 52-week lows
• Why Domino’s, Healius, Kogan, and Vulcan shares are pushing higher
• These are the 10 most shorted ASX shares
• The Kogan (ASX:KGN) share price just hit another 52-week low, its fourth this week. Can it fall any further?

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 shares of and has recommended Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia owns shares of 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 Fortescue Metals Group Limited (ASX: FMG) share price could start to lag its peers after a leading broker downgraded its shares.

The downgrade came after the Fortescue share price rallied ahead of other ASX iron ore miners even though it has less reason to.

Sure, confidence in the outlook for the steel making commodity has markedly improved recently. But lower quality ore (58% Fe) is lagging the benchmark pricing (62% Fe), noted Citigroup.

Fortescue share price at premium as discounts widen

Fortescue’s ore is lower quality compared to what BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) produces. But someone forgot to mention that to Fortescue.

“In the last month FMG shares are up 21% in USD terms with peers flat to down and with benchmark iron ore down 7%,”.

“In broad terms, FMG has outperformed the benchmark iron ore price since early July 2021 with risk appetite rising strongly from earlier lows.

“There’s been a clear divergence whereby FMG has outperformed RIO despite a falling ratio of 58%/62% iron ore.”

The discount between the 58% Fe price and 62% Fe price has widened to around 74% compared to 91% just two months ago.

What is the Fortescue share price worth?

Even if you are an iron ore bull, the BHP share price and Rio Tinto share price could offer more bang for your investment buck.

This is the key reason behind Citi’s decision to downgrade the Fortescue share price to “neutral” from “buy”.

The broker left its 12-month price target unchanged at $18 a share. That leaves little room for Fortescue to run from Wednesday’s closing price.

Should you buy ASX iron ore shares?

Having said that, Citi believes that the iron ore price is poised for a recovery after the 2022 Chinese New Year (CNY) on 1 February.

“China steel production cuts may persist through to CNY (Oct down 23% on pcp) and we deduce a strong destock cycle is underway,” added the broker.

“However, with China now starting targeted monetary policy easing, we see the increasing likelihood of a strong post CNY recovery in iron ore demand.

“Furthermore, China mill margins are up with rebar producers now making a healthy US$150/t margin.”

Foolish takeaway

Chinese steel mills are the key customers for Australian iron ore. If they are making big margins, they are more willing to pay more for Australian iron ore.

Against this positive backdrop for the commodity, the Fortescue share price may be spared from a heavy sell-off. The only question is whether it can at least keep up with its bigger rivals.

The post The Fortescue (ASX:FMG) share price hit by broker downgrade appeared first on The Motley Fool Australia.

More reading

• Why did the BHP (ASX:BHP) share price move up by 8% in November?
• Why is the Rio Tinto (ASX:RIO) share price having such a great day?
• The Fortescue (ASX:FMG) share price jumped 22% in November
• These were the 5 best performing ASX 200 shares in November
• These are the ASX 200 shares that fundies have been snapping up

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Fortescue Metals Group Limited, and Rio Tinto Ltd. 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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It has been a very disappointing year for the PointsBet Holdings Ltd (ASX: PBH) share price.

Since the start of the year, the sports betting company’s shares have fallen 38% to $7.12.

Though, that is telling only half of the story. The PointsBet share price was up as much as 53% year to date in February.

This means that since peaking at a record high of $17.60 earlier this year, the company’s shares have lost approximately 60% of their value.

Is the PointsBet share price in the buy zone?

Following a meeting with management, the team at Goldman Sachs remains positive on the PointsBet share price.

This morning the broker retained its buy rating and $12.79 price target on its shares. This implies potential upside of almost 80% over the next 12 months.

What did the broker say?

Goldman revealed that it viewed the meeting with management as a positive read for the entire US sports betting industry, which it notes has corrected sharply (not just the PointsBet share price) amidst ramping promotions and mounting EBITDA losses.

In light of this, the broker believes it is worth sticking with PointsBet, especially given the upside potential.

Goldman commented: “Overall we remain positive on PBH, with our thesis underpinned by i) PBH’s leverage to the burgeoning US Sports Betting and iGaming market, which we forecast to be a >US$50 bn TAM opportunity at maturity, ii) our view that PBH remains well-placed to capitalise given its in-house tech stack, iii) upside risk to long-run sustainable margins in Aus and the US, and iv) scalability benefits ahead from NBCUniversal leads and broader coverage from state roll outs.”

“We continue to see significant asymmetric risks ahead for PBH given the entire sector’s recent sell-off, and we note the significant upside opportunity ahead in what will likely be a transformational CY22 year as it expands its North American footprint as well as ongoing M&A attractiveness to peers,” it concluded.

The post Goldman sees “significant upside opportunity” for the PointsBet (ASX:PBH) share price appeared first on The Motley Fool Australia.

More reading

• Why the PointsBet (ASX:PBH) share price is racing higher today
• Leading broker thinks Pointsbet (ASX:PBH) share price offers 60% upside
• These were the worst performing ASX 200 shares last week
• 3 fantastic ASX shares to buy this month
• PointsBet (ASX:PBH) share price tipped to surge 44% 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. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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At the current EML Payments Ltd (ASX: EML) share price, one leading broker thinks it’s still got a lot more upside.

Since the middle of last week, EML shares have risen 26%. Before getting to the broker’s thoughts and price target on the business, let’s look at what may have caused the rocketing share price.

EML Payments share price has risen after CBI update

There has been a cloud over the payments business for a number of months regarding issues relating to the Central Bank of Ireland (CBI) and its focus on EML’s PFS Card Services (Ireland) Limited (PCSIL) business.

Whilst there is plenty of payments volume outside of the PCSIL business (such as in Australia), PCSIL is responsible for a substantial portion of EML’s overall volume and also one of the expected growth areas for the EML business.

Last week, EML made an announcement about the CBI.

There were three areas that EML announced what the CBI had said:

• The CBI will permit PCSIL to sign new customers and launch new programs whilst staying within the material growth restrictions. PCSIL is confident that it can meet these obligations
• Next, broad-based reductions in limit controls on the programs will not be imposed. The CBI is satisfied to continue to engage with PCSIL with a view to agreeing appropriate limits under its risk management and controls framework.
• The CBI intends a material growth limitation over PCSIL’s total payment volumes will be imposed for 12 months or rescinded earlier following third party verification to confirm PCSIL’s remediation plan has been effectively implemented.

The CBI had invited PCSIL to provide it with submissions in relation to growth limits, which PCSIL intends to do by 30 November 2021.

PCSIL has been removing higher volume lower yielding programs to enable it to comply with a material growth restriction and is confident it can meet these obligations. EML also said its remediation plan is on track.

It may be important for investors to know about the above news, which could have been influencing the market’s thoughts on EML’s underlying value.

Broker view on the EML share price

UBS is one of the brokers that currently likes EML after the CBI update because the risks are now seemingly lower when it comes to the CBI and intended growth. The broker now thinks that EML will be able to win over new clients more easily.

The broker is expecting that EML Payments shares are going to continue rising. It currently has a price target on the business of $4.40, which is 27% higher than where it is today.

UBS is expecting rapid profit growth over the next couple of years from EML. Based on the broker’s profit estimates, the EML Payments share price is now valued at 29x FY23’s estimated earnings.

Recent growth update

Despite all of the disruption caused to EML by the CBI matter with PCSIL, the overall EML Payments business continues to grow at a fast rate.

In the first quarter of FY22, gross debit volume (GDV) went up 14% to $5.5 billion, which helped revenue increase 29% to $52.4 million and gross profit rose 20% to $34.4 million. Underlying net profit (NPATA) surged 41% to $4.6 million.

The post Top broker tips 27% upside for the EML (ASX:EML) share price appeared first on The Motley Fool Australia.

More reading

• 4 best-performing ASX tech shares in November
• 2 ASX shares rated as strong buys by top brokers
• These were the 5 best performing ASX 200 shares in November
• Why EML Payments, Pact, Senex, and Webjet shares are dropping
• These were the best performing ASX 200 shares last week

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 shares of and has recommended EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. 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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Technology shares have had a wild ride this year on the back of the post-COVID reopening, then the Delta lockdowns — then reopening again.

All throughout, the debate about inflation and interest rates has raged on, making for a volatile experience for ASX tech shares.

November was no different, with the COVID-19 Omicron variant sneaking in at the end of the month to add another twist to the tale.

According to The Motley Fool analysis, 4 tech shares among those in the S&P/ASX All Technology Index (ASX: XTX) stood out for double-digit percentage gains last month:

ASX share	November price change
EML Payments Ltd (ASX: EML)	19.32%
Megaport Ltd (ASX: MP1)	16.92%
Altium Limited (ASX: ALU)	14.11%
Link Administration Holdings Ltd (ASX: LNK)	12.41%

That’s a great effort considering the All Tech index itself was down 0.9% for the month.

Let’s take a quick look at each:

The luck of the Irish

There is no guesswork in working out how EML rose so spectacularly in November. 

The morning of 25 November saw it announce that the Central Bank of Ireland (CBI) had dialled down regulatory concerns over EML’s PFS Card Services subsidiary, and would allow it to sign new customers.

Shares in the payments provider rocketed more than 30% that day.

Fund managers are loving the look of EML at the moment. UBS, for example, has a target of $4.40, compared to the Wednesday afternoon price of $3.48.

Seven out of 9 analysts rate the stock as a strong buy, according to CMC Markets.

Meanwhile, software firm Altium made more steady progress upwards over the past month.

On 18 November, the company held its annual general meeting. The information provided there was received warmly by investors, sending the stock up more than 5% that day.

Despite this, professional investors are unsure about where the former market darling is headed.

According to CMC Markets, 6 of 10 analysts rate Altium shares as a hold, while the buy and sell camps hold 2 votes each.

Takeover-a-thon for Link shares

Link Administration’s big catalyst was on 5 November, when its shares shot up more than 8.5% after a private takeover approach was disclosed.

A smaller jump came on 12 November as its Banking and Credit Management business received an acquisition offer from a European consortium. That pushed the shares 3.5% up for the day.

Professional investors are generally in favour of Link’s direction, as CMC Markets shows 6 of 8 analysts rate its shares as a strong or moderate buy.

Software-defined network services provider Megaport has rewarded its backer handsomely in recent times. Specifically, 54% over the past 12 months and almost 800% over the last 5 years.

And November was another stellar month for the technology stock, repeatedly breaking its 52-week highs.

The share price sat at $20.78 at the close on Wednesday afternoon, while Macquarie analysts last month thought it could eventually hit $24.

The post 4 best-performing ASX tech shares in November appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares rated as strong buys by top brokers
• These were the 5 best performing ASX 200 shares in November
• Is Altium (ASX:ALU) still a takeover target at the current share price?
• Why EML Payments, Pact, Senex, and Webjet shares are dropping
• These were the best performing ASX 200 shares last week

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. owns shares of and has recommended Altium, EML Payments, Link Administration Holdings Ltd, and MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool Australia has recommended MEGAPORT FPO. 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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Despite turbulent times with the COVID-19 Omicron variant emerging, there is one particular ASX technology stock that numerous experts have their money on currently.

San Francisco outfit Life360 Inc (ASX: 360) makes software that allows parents to track teenagers, although through new products and acquisitions it is quickly diversifying from that use-case.

After listing on the ASX in May 2019, it was a tough couple of years for shareholders as the business struggled to capture the market’s attention.

But that’s all changed this year, with the Life360 shares soaring by more than 210%.

Even with Monday’s Omicron-triggered sell-off, the Life360 stock price managed to gain 1.7% to trade for $12 in the afternoon.

Despite the ballooning valuation, why is this stock still so attractive?

Users are hooked, and so is Zuckerberg

Wilson Asset Management portfolio manager Tobias Yao is impressed by how hooked Life360 users are to the software.

“Despite having over 30 million active customer users, its user engagement is really high,” he said in a Wilson video.

“The users love the utility and love the product. That’s very important for a freemium model like Life360.”

According to Yao, his fund was initially prompted to buy Life360 shares earlier this year when a famous name was appointed to its board.

“It was on the back of the appointment of Randi Zuckerberg, sister to Mark Zuckerberg and one of the early Meta Platforms Inc (NASDAQ: FB) employees,” he said.

“Given her profile, and the amount of opportunities that would come across her desk, we thought it was a huge vote of confidence that she decided to choose Life360.”

And despite the spectacular rise this year, Yao reckons Life360 shares are still pretty cheap.

“The valuation is actually undemanding relative to many of its international peers,” he said.

“We think the share price still has material upside driven by continued top-line growth — as well as multiple expansion on the back of people getting more comfortable with the growth story.”

Life360 shares are still cheaper than peers

Another bull for Life360 is Tribeca Investment Partners portfolio manager Simon Brown.

He told The Motley Fool’s ‘Ask A Fund Manager’ earlier this month that it was among the 2 biggest holdings for his Smaller Companies fund.

“It’s done incredibly well for us and it remains our largest stock and we remain really supportive and are very confident that it continues to present plenty of upside from here.”

Bell Potter analysts are also fans, this month setting a target price of $14.75 for Life360 shares with a “buy” rating.

As The Motley Fool reported, Bell Potter compared it with a similar company in the US that recently listed — and found Life360’s valuation much more palatable.

“Nextdoor Holdings Inc (NYSE: KIND) stock is now trading on an EV/revenue multiple of circa 23x based on the mid-point of the upgraded 2021 guidance and this compares to a multiple of circa 13x for Life360 based on our 2021 revenue forecast of US$111 million,” the memo read.

“The multiple of Nextdoor is therefore significantly higher than that of Life360 even though, in our view, Life360 is a higher quality company given it generates most of its revenue through subscription whereas Nextdoor generates most of its revenue through advertising.”

The post Why multiple experts are HOT on this ASX tech share right now appeared first on The Motley Fool Australia.

More reading

• Why is the Life360 (ASX:360) share price climbing today?
• Morgan Stanley rates these 3 ASX growth shares as buys
• Why Creso Pharma, Hansen, Life360, and Serko shares are falling
• Why the Life360 (ASX:360) share price is sinking 9% today
• Top brokers name 3 ASX shares to buy today

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns shares of Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Life360, Inc. and Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. 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 Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.3% to 7,235.9 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.35% lower this morning. This follows a mixed night on Wall Street, which in late trade sees the Dow Jones up 0.1%, the S&P 500 up 0.3%, and the Nasdaq down 0.2%. US markets were up materially until a case of Omicron was confirmed in the US.

Oil prices edge lower

Energy shares including Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could have a subdued day after oil prices edged lower overnight. According to Bloomberg, the WTI crude oil price is down 0.4% to US$65.90 a barrel and the Brent crude oil price has fallen 0.25% to US$69.06 a barrel. Concerns over a looming supply glut weighed on prices.

Cleanaway ACCC delays

The Cleanaway Waste Management Ltd (ASX: CWY) share price will be on watch today after it revealed that the ACCC has deferred its decision date for the clearance of the company’s acquisition of a portfolio of strategic post-collection assets in Sydney from Suez. However, management remains confident the deal will be approved despite the delay.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher. According to CNBC, the spot gold price is up 0.4% to US$1,783 an ounce. The gold price rose due to increased demand for safe haven assets amid omicron-induced volatility.

Premier Investments’ annual general meetings

Premier Investments Limited (ASX: PMV) shares will be in focus on Thursday. The retail conglomerate is holding its annual general meeting later today and could provide investors with an update on the performance of its brands so far in FY 2022.

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

More reading

• Here are the top 10 ASX shares today
• Why did the Woolworths (ASX:WOW) share price tumble today?
• Woodside (ASX:WPL) share price ends higher on Wednesday after energy giant vows to fight Pluto legal challenge
• ASX shares to buy for the Omicron COVID outbreak
• Why is the Rio Tinto (ASX:RIO) share price having such a great day?

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 Premier Investments 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’re a fan of growth shares, then you may want to look closely at the three shares listed below.

Here’s why these could be growth shares to buy:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. It is one of the world’s leading appliance manufacturers and has been growing at a consistently solid rate for the last decade. The good news is that Breville has been tipped to continue this positive form in the future. This is thanks to the popularity of its brands, its international expansion, acquisitions, favourable consumer trends, and its continued investment in R&D.

Macquarie is very positive on the company. Last week the broker retained its outperform rating and $34.37 price target.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX growth share to look at is this pizza chain operator. As with Breville, Domino’s has been growing at a consistently solid rate for over a decade. This has been underpinned by the popularity of its offering and the expansion of its footprint. Pleasingly, these trends aren’t changing any time soon. Domino’s pizzas remain as popular as ever and management sees significant room to grow its store network. In fact, it is aiming to more than double its footprint to 6,650 stores in existing markets by 2033.

Goldman Sachs is a fan of the company. It currently has a buy rating and $147.00 price target on Domino’s shares.

Hipages Group Holdings Ltd (ASX: HPG)

A final ASX growth share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies. At the last count, there were over 31,000 tradies using the platform. This is underpinning strong growth across all its key metrics. And while it is generating meaningful revenue at present, it is still only scratching at the surface of its huge market opportunity. This provides Hipages with a very long runway for growth.

Goldman Sachs is also very bullish on Hipages. It currently has a buy rating and $4.95 price target on its shares.

The post 3 top ASX growth shares to get bullish on appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy in December 2021
• Here are the top 10 ASX shares today
• Own Domino’s (ASX:DMP) shares? Here’s how Pizza Hut is coming for a bigger slice of the pie
• Why Domino’s, Healius, Kogan, and Vulcan shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps

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 shares of and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Hipages Group Holdings 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 Adairs Ltd (ASX: ADH) share price ended up in the green today after finalising its acquisition of Focus on Furniture.

Despite a dismal start to the day, Adairs shares were up 0.28% trading at $3.60 at the close of Wednesday’s session. This compared favourably to the S&P/ASX 200 Index (ASX: XJO), which finished 0.28% lower.

Why is the Adairs share price holding up?

Adairs announced the $80 million dollar deal to acquire Focus on Furniture last week. Investors appeared to welcome the acquisition news, with shares in the ASX home furnishings company up 4.1% on 25 November compared to the previous close.

The debt-free acquisition will see Adairs pay $74 million in cash alongside a $6 million share placement to Focus CEO, Rob Santalucia, who will remain at the helm of Focus.

Adairs noted it now owned and operated 3 vertically integrated brands in the home retail category — Adairs, Mocka and Focus on Furniture.

Focus brings to the mix 23 stores in Australia with a revenue of more than $150 million in FY 2021. The company boasted revenue of more than $150 million in FY2021.

Adairs already has 160 stores across Australia and New Zealand and added some 950,000 customers to its loyalty program Linen Lovers as of the end of the 2021 financial year.

Adairs share price snapsot

The Adairs share price has climbed 12.85% over the past 12 months, despite ongoing COVID-19 lockdowns which have impacted some companies in the retail sector. Adairs shares are up 5.57% year to date.

The post What happened with the Adairs (ASX:ADH) share price today? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. 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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