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The Vulcan Energy Resources Ltd (ASX: VUL) share price will be one to watch on Monday.

This follows the release of an announcement by the Europe based lithium developer this morning.

Why is the Vulcan share price on watch?

The Vulcan share price will be on watch today after it announced a binding lithium hydroxide offtake agreement with European car giant Renault.

According to the release, in line with Renault’s ambition to offer Made in Europe cars and the launch of its new ElectriCity electric vehicle production unit, the auto manufacturer has agreed to purchase between 26,000 to 32,000 metric tonnes of battery grade lithium chemicals over a six-year period.

The agreement will see commercial delivery begin in 2026, with pricing to be based on market price on a take or pay basis.

While this is a positive, it could prove to be far less than the market was expecting. In August, the two parties signed a term sheet for 6,000 and 17,000 metric tonnes per year of battery grade lithium chemicals for five years. This implied a total purchase of 30,000 to 85,000 metric tonnes over the five years.

Nevertheless, Vulcan’s Managing Director, Dr. Francis Wedin, appeared to be pleased with the deal.

He commented: “The completion of this definitive offtake agreement means Vulcan’s Zero Carbon Lithium business will be directly enabling Renault to meet its commitment of producing carbonfree EV batteries and becoming carbon neutral, as part of its “Carbon neutrality – Green as a business” strategy. For Vulcan, the agreement is consistent with our strategy to enter into long term, stable supply agreements with companies that share our ethos on sustainability and decarbonisation ambitions. We look forward to a long and productive relationship between Vulcan and Renault Group going forward.”

The post Vulcan (ASX:VUL) share price on watch following Renault agreement appeared first on The Motley Fool Australia.

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• Vulcan (ASX:VUL) share price falls despite acquisition update
• Vulcan Energy (ASX:VUL) share price lifts 6% to defy wider market selloff. Here’s why
• Why Afterpay, Immutep, Pushpay, and Vulcan shares are falling
• Why the Vulcan (ASX:VUL) share price is rising on Wednesday
• Don’t get short with me! Vulcan Energy (ASX:VUL) share price continues dive amid lawsuit

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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Are you wanting to gain exposure to the banking sector? If you are, then you may be wondering which of the big four banks to buy over the others.

To help narrow things down, Goldman Sachs has run the rule over the sector following recent result releases.

Which big four banks should you buy?

According to the note, Goldman thinks investors should be buying banks with a focus on commercial banking instead of retail banking. This is due largely to aggressive competition for home loans which has been weighing on margins.

It is for this reason that the broker prefers National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking GrpLtd (ASX: ANZ) ahead of Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC).

Goldman commented: “We highlight a strong preference for the commercially-focused banks (NAB and ANZ), over the retail-focused banks (CBA and WBC) and margins is where we see the largest divergence, in particular: i) competition for mortgages is currently more aggressive than it is for SME, ii) management commentary suggests high quality, rate inert retail deposit bases (CBA, WBC) have very little room for further repricing in FY22E, while ANZ, NAB suggest there is more room (albeit less than in FY21), and iii) CBA and WBC management talk to further headwinds from the replicating portfolio in FY22E, while ANZ and NAB talk to a more neutral outcome.”

NAB remains the top pick 

The NAB share price remains Goldman’s top pick in the sector. The broker has reiterated its conviction buy rating and $31.15 price target on the bank’s shares.

Based on the current NAB share price of $28.57, this implies potential upside of 9% or ~14% including dividends.

Goldman explained: “Given NAB’s position as the largest business bank, we believe it will benefit more from the continued economic recovery (management is seeing all segments in its Business & Private Bank exhibiting solid growth without sacrificing margin, and asset quality remains strong).”

What about the others?

ANZ’s shares are the broker’s next favourite. Goldman has a buy rating and $31.82 price target on its shares. This compares favourably to the latest ANZ share price of $27.30.

Elsewhere, its analysts have a neutral rating and $25.60 price target on Westpac’s shares and a sell rating and $81.74 price target on CBA’s shares.

In respect to the latter, Goldman commented: “While CBA remains the preeminent retail banking franchise in Australia, its 1Q22 trading update highlighted that even it is not immune from the profitability pressures that are currently particularly evident in mortgages (competition and mix).”

Food for thought for ASX investors.

The post Are ANZ (ASX:ANZ) and NAB (ASX:NAB) the best ASX bank shares to buy? appeared first on The Motley Fool Australia.

More reading

• Top brokers weigh in on the CBA (ASX:CBA) share price
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to sell next week
• 2 ASX 200 dividend shares to buy
• Top broker says forget CBA (ASX:CBA) and buy Westpac (ASX:WBC) shares

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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Are you searching for new shares to buy? If you are, you may want to consider the two listed below.

Both of these shares are growing quickly and have been tipped as buys by leading brokers. Here’s what you need to know about them:

REA Group Limited (ASX: REA)

REA Group is the company behind the realestate.com.au website, several international equivalents, and a collection of complementary businesses such as Mortgage Choice.

In FY 2021, the company continued to dominate the ANZ market with a massive average of 121.9 million monthly visits to its website. This was an increase of 35% year on year and is 3.3 times greater than its nearest competitor.

Pleasingly, REA has carried over this momentum into FY 2022. The company recently reported a 35% increase in first quarter revenue to $264 million and a 25% lift in EBITDA to $158 million. This was driven by growth across all Australian segments, underpinned by an increase in national listings.

Macquarie is very positive on REA Group and has an outperform rating and $192.00 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is Australia’s leading online furniture and homewares retailer. It has been growing rapidly over the last few years thanks to its strong market position and the shift to online shopping. 

Positively, this shift is only really getting started in the furniture and homewares category. Management notes that just 7% to 9% of category sales were made online in 2020. This is significantly lower than the percentages being observed in other Western markets. So, if Australia follows suit, Temple & Webster will be a major beneficiary. This could support strong sales growth over the remainder of the 2020s.

Morgan Stanley is very positive on the company’s future. So much so, it has an overweight rating and $16.00 price target on Temple & Webster’s shares.

The post Analysts have slapped buy ratings on these 2 growing ASX shares 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 shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended REA Group Limited and Temple & Webster 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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S&P/ASX 200 Index (ASX: XJO) shares are usually some of the biggest and strongest businesses in their respective sectors.

COVID-19 has been a disruptive time for plenty of companies, but some have managed to take advantage of changes in customer demand.

With some pandemic impacts now subsiding, are the below businesses worth buying?

Xero Limited (ASX: XRO)

Xero is a world leader when it comes to cloud accounting software.

It is currently rated as a buy by the broker Citi, with a price target of $160 on the tech company. Whilst the broker used the competitor Sage (from the UK) as a barometer for the ASX share, Xero itself is reporting good growth.

Less than two weeks ago, Xero reported its HY22 full year result. It said that its UK revenue increased by 24% to $132.8 million with 65,000 net subscriber additions, taking the total to 785,000.

There were various other regions that saw a high level of net subscriber additions for the ASX 200 share. Australia saw 124,000 net subscriber additions, to reach 1.24 million subscribers. Total subscribers grew 23% to 3 million, with net subscriber additions rising 62% to 272,000 for the half.

The segment that saw the fastest growth was the ‘rest of the world’, which includes growth regions like South Africa and Singapore, which saw revenue increase by 72% to $45.9 million, helped by the acquisition of Planday.

Xero continues to invest heavily for growth, which is why the HY22 free cashflow fell by 88% to $6.35 million. However, the gross profit margin increased by a further 1.4 percentage points to 87.1%.

Management are preferring to re-invest cash generated to drive long-term growth and shareholder value.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the leading electronics and home appliance retailers in Australia and New Zealand.

It is currently rated as a buy by the broker Credit Suisse, with a price target of $55.86. That implies the broker believes the share price could go up by more than 10% over the following 12 months.

The broker thought JB Hi-Fi’s first quarter sales were very good considering how many of its stores were closed during the lockdowns.

As a reminder, the ASX 200 share said that compared to FY21, the sales in the first quarter of FY22 for JB Hi-Fi Australia and The Good Guys were only down by 7.5% and 5.6% respectively. Compared to FY20, those sales were actually up 17.3% and 23.6% respectively.

In October, JB Hi-Fi said its sales momentum was continuing and was benefiting from the re-opening of stores in NSW and changes to the timing of key product releases. Management are feeling confident as the company enters the important Christmas trading period.

Based on Credit Suisse’s numbers, the JB Hi-Fi share price is valued at 14x FY22’s estimated earnings with a projected grossed-up dividend yield of 6.8%.

The post Are these 2 strong ASX 200 shares buy rated? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to sell next week
• These were the best performing ASX 200 shares last week
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• Here are the top 10 ASX shares today

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 Xero. The Motley Fool Australia owns shares of and has recommended Xero. 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 Commonwealth Bank of Australia Ltd (ASX: CBA) share price fell off the cliff-face last week, losing 9.5% across the five days. That comes despite it edging 0.36% higher on Friday to end the week at $97.81.

Shares in the banking giant tanked from a closing high of $107.68 on Tuesday to finish as low as $98.99 on Wednesday after the company released its quarterly trading update.

In light of this, several leading investment firms have weighed in on the investment debate for CBA shares. Here’s what the experts from each broker had to say.

Is the CBA share price a buy?

Analysts at Goldman Sachs don’t reckon so. The firm is heavily bearish and cut its price target by another 3% to $81.74 in a recent update.

Goldman notes that CBA isn’t immune to losing market share in its mortgage business, as competition mounts up from other Aussie banks in the space.

It says “while CBA’s commitment to investment is the right thing for the franchise in the medium term, it provides it with less flexibility to offset the revenue headwinds”.

The team at Macquarie Group Ltd (ASX: MQG) doesn’t think CBA is a buy right now either. The investment bank likens Commonwealth’s increased spending and worsening margins to that of Westpac’s, which doesn’t bode well.

It also notes mortgage competition and record low interest rates hurt CBA’s margins further. It expects CBA to deliver a deficit of 3% in pre-provision earnings growth in FY22.

Macquarie thinks the CBA share price could fall by up to 15% to $87.50 and maintains an underperform rating.

Morgan Stanley agrees with its colleagues and slaps an $87.50 price target as well while staying underweight on the company.

It states that investors should reassess CBA’s position within the market, and its ability to maintain above-average growth.

The firm also believes CBA won’t be able to restore its dividend to its FY19 glory for at least another 2–3 years. Further, it notes CBA’s buyback program is only likely to dilute the share count by around 1%, subsequently questioning its value.

What other ratings are there?

Ord Minnett also jumped into the debate and anticipates further earnings estimate downgrades following CBA’s trading update.

It noted Commonwealth’s revenue was 1% down from its quarterly average over the last 6 months and that it delivered worst-than-expected results.

Ord also has an underperform rating and believes further challenges will result in downgrades to margins, lower non-interest income, and higher costs to growing the business.

Adding to the sell list is Citi, with a sell rating and $94.50 valuation on the CBA share price.

Citi notes CBA’s result was 3% lower than its internal estimates, and that CBA’s net interest margin (NIM) faced pressure.

This makes its premium to peers hard to justify, according to Citi. It said, “trading at 2.4x book value and having strongly outperformed peers over the last month, we see little to justify the premium in this result”.

What’s the overall sentiment on the CBA share price?

Out of the 16 analysts covering the CBA, 11 have a sell rating or are bearish on the direction of its share price. Three firms, Jefferies, Bell Potter, and Jarden Securities, have buy ratings on the share and reckon it could be worth the purchase.

Each of these firms values CBA shares at $112, $111, and $101 per share respectively.

The spread between the highest and lowest valuation in the group is $39/share or 53%, with Morgans taking out the bottom spot with its reduced rating and $73 price target.

On average, the group values the CBA share price at $93.05, implying a downside potential of almost 5% on Friday’s closing price.

The post Top brokers weigh in on the CBA (ASX:CBA) share price appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Top broker says forget CBA (ASX:CBA) and buy Westpac (ASX:WBC) shares
• These were the worst performing ASX 200 shares last week
• What’s happening with the CBA (ASX:CBA) share price this week?
• Own CBA (ASX:CBA) shares? Here’s the bank’s latest foray into crypto

The author Zach Bristow 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 shares of and has recommended Macquarie 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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If you’re interested in buying some dividend shares in the near future, then you may want to look at the two listed below.

These dividend shares have been tipped both as buys and as generous dividend payers by analysts. Here’s what they are saying about them:

Centuria Industrial Reit (ASX: CIP)

Centuria Industrial could be a top option for income investors. It is the largest domestic pure play industrial REIT, with a portfolio of high-quality assets situated in key metropolitan locations throughout Australia.

The company also recently added to this portfolio with the acquisition of eight freehold urban infill industrial assets for $351.3 million. Management was very positive on the transaction, noting that it expands Centuria Industrial’s exposure across attractive industrial sub-sectors. These include distribution centres, cold storage, and transport logistics.

Macquarie is very positive on the company and has an outperform rating and $4.22 price target on its shares. The broker is also forecasting a 17.3 cents per share distribution in FY 2022 and an 18.4 cents per share distribution in FY 2023. 

Based on the current Centuria Industrial share price of $3.73, this will mean yields of 4.6% and 4.9%, respectively

Charter Hall Social Infrastructure REIT (ASX: CQE)

Charter Hall Social Infrastructure REIT could be another ASX dividend share to buy. This real estate investment trust focuses on investing in social infrastructure properties such as childcare centres, government sites, and healthcare buildings. 

It also recently added some new properties to its portfolio. The REIT acquired two premium childcare assets in Queensland and a healthcare property owned by Healius Ltd (ASX: HLS) for a total of $58.4 million.

In response to the deal, Goldman Sachs retained its conviction buy rating, increased its price target to $3.91, and lifted its FY 2022 dividend estimate to 16.9 cents per share. Goldman then expects the latter to grow to ~17.7 cents per share in FY 2023.

Based on the current Charter Hall Social Infrastructure REIT share price of $3.68, this implies dividend yields of 4.6% and 4.8%, respectively, for investors.

The post 2 high quality ASX dividend shares with attractive yields 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. 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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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a difficult week on a positive note. The benchmark index rose 0.2% to 7,396.5 points.

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

ASX 200 expected to sink

The Australian share market looks set to start the week deep in the red. According to the latest SPI futures, the ASX 200 is expected to open the day 45 points or 0.6% lower this morning. This follows a mixed end to the week on Wall Street, which saw the Dow Jones fall 0.75%, the S&P 500 drop 0.15%, but the Nasdaq buck the trend by pushing 0.4% higher.

NAB shares rated as a buy

The National Australia Bank Ltd (ASX: NAB) share price remains good value according to the team at Goldman Sachs. This morning the broker has reiterated its conviction buy rating and $31.15 price target on the bank’s shares. Goldman believes commercial banks are better positioned for the current environment tan retail-focused banks. This is due to the latter being impacted by aggressive competition for mortgages.

Oil prices tumble

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a tough start to the week after oil prices sank on Friday night. According to Bloomberg, the WTI crude oil price is down 3.15% to US$75.94 a barrel and the Brent crude oil price has fallen 2.9% to US$78.89 a barrel. Oil prices fell to six-week lows amid demand concerns following the announcement of lockdowns in Europe.

Gold price falls

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could start the week in the red after the gold price dropped on Friday night. According to CNBC, the spot gold price fell 0.8% to US$1,846.80 an ounce. This follows the strengthening of the US dollar after US Federal Reserve Governor Christopher Waller called for the early tapering of economic support.

WiseTech shares fully valued

Last week WiseTech Global Ltd (ASX: WTC) held its annual general meeting and reiterated its FY 2022 guidance for EBITDA growth of 26% to 38%. While this and its positive outlook led to Bell Potter lifting its valuation on the WiseTech share price by 18% to $56.25, it isn’t enough for a change of recommendation. Bell Potter has retained its hold rating on valuation grounds

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

More reading

• 2 ASX 200 dividend shares to buy
• These were the best performing ASX 200 shares last week
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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 shares of and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. 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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Exchange traded funds (ETFs) can be great additions to a balanced portfolio. This is because they give investors easy access to a large and diverse number of different shares that you wouldn’t ordinarily have access to.

Due to their growing popularity, there are an increasing number of ETFs for investors to choose from.

In order to narrow things down, I have picked out three ETFs that are popular with investors right now:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF tracks the performance of the 50 largest technology and ecommerce companies that have their main area of business in Asia (excluding Japan). Among the ETFs holdings are Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent Holdings. As these and the other companies in the ETF are among the fastest growing in the region and revolutionising the lives of billions of people, they have been tipped to generate strong returns in the future.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The BetaShares NASDAQ 100 ETF gives investors exposure to 100 of the largest non-financial companies on the famous Nasdaq index. This includes some of the most iconic companies in the world such as Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla. Given the quality of these companies and their very positive outlooks, the Nasdaq 100 ETF has been tipped to generate strong returns for investors over the next decade.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF is one of the most popular ETFs on the Australian share market. And it isn’t hard to see why. This ETF provides investors with exposure to over 1,500 of the world’s largest listed companies. This means through just a single investment, you can own a slice of companies such as Apple, Johnson & Johnson, Nestle, Procter & Gamble, and Visa. This could make it a good option if your portfolio lacks international exposure.

The post 3 ETFs for ASX investors to buy now 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 shares of and has recommended BETANASDAQ ETF UNITS and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS and BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares 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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One of the leading brokers that evaluates ASX shares thinks that the Pointsbet Holdings Ltd (ASX: PBH) share price could give investors upside of 60% over the next year.

Pointsbet is an ASX-listed corporate bookmaker that has operations in both Australia and the US. It offers sports wagering and iGaming.

Which broker thinks that the Pointsbet share price is an opportunity?

The broker in question is Credit Suisse. It has a price target on Pointsbet on $12.80 – that’s where analysts think that the business will be trading in 12 months from now. In other words, Credit Suisse thinks Pointsbet shares could rise by approximately 60% in a year.

Credit Suisse referenced the recent New York licence with its latest note, with this outcome showing that Pointsbet can be a real player in the US market. But the company will be spending more on marketing to capture that opportunity.

New York win

A couple of weeks ago, Pointsbet said that the New York State Gaming Commission has recommended that Pointsbet’s New York business be awarded a platform provider licence to operate mobile sports wagering in New York.

Pointsbet was only one of nine operators to be recommended by the New York State Gaming Commission, including BetMGM, Caesars and WynnBet.

Official approval procedures will follow, with the recommended operators to undertake independent system testing ahead of the official launch, expected in early 2022.

Pointsbet US CEO Johnny Aitken said:

Having the potential to secure market access to New York state – expected to be one of the largest and most important markets in the United States – represents another major milestone for our company, our brand, and our technology. We are thankful to the Gaming Commission for this recommendation and believe it speaks volumes to PointsBet’s reputation and ability to deliver an unrivalled, world-class experience. We eagerly await the official opportunity to leverage our exclusive sports betting partnership with NBC Sports and introduce the nation’s premier sports betting product to the countless passionate, sports-loving New Yorkers.

Rapid growth

Pointsbet continues to see the business growing quickly.

In the first quarter of FY22, its total turnover increased 42% to $979.9 million, with a 112% increase in the US to $348.6 million.

Pointsbet’s total gross win increased 66% to $117.1 million, with 197% growth in the US to $29.2 million.

The total net win grew by 76% to $67.3 million, whilst the US net win soared by 307% to $12.5 million.

The company also told investors that its cash active clients continue to scale significantly. Year on year, Australian clients jumped 78% to 222,662 and US clients soared 367% to 185,880.

What is the Pointsbet share price valuation?

Credit Suisse isn’t expecting Pointsbet to make a profit in FY22, so there isn’t a profit multiple valuation for this financial year.

The ASX currently puts the Pointsbet market capitalisation at $2.15 billion.

The post Leading broker thinks Pointsbet (ASX:PBH) share price offers 60% upside appeared first on The Motley Fool Australia.

More reading

• 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
• Why Brainchip, Chalice, Life360, and PointsBet shares are surging higher
• ASX 200 (ASX:XJO) midday update: NAB result disappoints, PointsBet surges

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 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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As I mentioned here yesterday, it is possible for investors to generate significant wealth by making long term investments in quality companies.

But which shares could be top buy and hold options right now? Here are two that analysts rate highly:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

When looking for buy and hold shares, it always helps if you understand what a company’s long term plans are.

The good thing with this pizza chain operator is that management lays out its plans for all to see. This means investors have a clear understanding of where the company is heading over the next decade.

For example, at the end of FY 2021, Domino’s store network comprised 2,949 stores across the ANZ, European, and Asian markets. Whereas by 2033, management is aiming to more than double this to 6,650 stores by FY 2033.

In addition, the company’s strong balance sheet means that management is on the lookout for acquisitions. This could see Domino’s enter new markets in the future, giving it an opportunity to increase its network even further.

Goldman Sachs is a fan of Domino’s. Its analysts currently have a buy rating and $147.00 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Another ASX share that could be a quality buy and hold option is Hipages. It is an Australia-based online platform and software as a service (SaaS) provider with a focus on connecting tradies with residential and commercial customers.

At present, the company captures around 5% of total industry advertising spend. However, Goldman sees scope for this to grow materially in the future as its ecosystem builds out.

Goldman Sachs recently explained: “We see HPG as an attractive medium-term growth stock – HPG currently captures c.5% of the total industry advertising spend; by contrast REA/CAR capture c.40-60% of spending in their respective categories. As HPG builds out its ecosystem (including the imminent launch of the new “TradieCore” field service software solution), we see scope for HPG to increase its share towards these levels over the long term as the marketplace leader.”

The broker has a buy rating and $4.90 price target on Hipages’ shares.

The post 2 top ASX shares to buy and hold for a decade appeared first on The Motley Fool Australia.

More reading

• 2 excellent ASX growth shares to buy
• Analysts name 2 hot small cap ASX shares to buy
• Down 22% in 2 months, is the Domino’s (ASX:DMP) share price a very tasty buy?
• Brokers name 3 ASX shares to buy today
• Domino’s (ASX:DMP) biggest shareholder dropped $600 million last Thursday. Here’s why he’s not worried

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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