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The Pilbara Minerals Ltd (ASX: PLS) share price could be a mover on Wednesday after the company released its third Battery Material Exchange (BMX) auction results.

Results of third BMX auction

Up for grabs was a cargo of 10,000 dry metric tonne (dmt) of spodumene concentrate at a target grade of 5.5% for a deferred delivery date of February 2022.

Pilbara Minerals received 25 bids online during the 45-minute auction window. They consider this very strong interest, despite the deferred delivery date.

The highest bid came in at US$2,350/dmt free on board (FOB), or US$2,629/dmt when costs, insurance and freight (CIF) are added.

The bidder is now required to enter into a sales contract. The contract will require them to pay a 10% deposit in the coming days, and be bound by an irrevocable letter of credit.

This could further drive the bullish performance of the Pilbara Minerals share price. On Tuesday the company announced an agreement with Korean giant POSCO to develop a lithium hydroxide monohydrate conversion facility. Following the announcement, Pilbara shares surged 8.1%.

It was 6 weeks ago that Pilbara Minerals released the results of its second spodumene concentrate BMX auction results.

The highest bidder came in at US$2,240/dmt FOB or US$2,500/dmt CIF. In comparison, the company’s inaugural BMX auction in July received bids ranging from US$700/dmt to US$1,250/dmt FOB.

Lithium prices balloon to record highs

The auction results might come as no surprise following the surge in domestic Chinese lithium carbonate and hydroxide prices.

According to S&P Global, battery-grade lithium carbonate prices rallied to 195,000 yuan (~US$3,050) per metric tonne last week. At the same time, battery-grade lithium hydroxide was trading at 190,000 yuan (~US$2,970).

“The [spodumene] auction next week is sending some nervous energy in the market,” a Chinese lithium dealer said. “People are desperate to secure materials in the market today before prices shoots [sic] up again.”

Pilbara Minerals share price

The Pilbara Minerals share price has been trading sideways since early August after surging more than 150% year to date.

Its been stalling around the low $2 level, with a brief sell-off to a two-and-a-half-month low of $1.78 on 5 October.

The post Pilbara Minerals (ASX:PLS) share price on watch after record lithium auction results appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Why Crown, Dicker Data, Neometals, and Pilbara Minerals are surging higher
• ASX 200 (ASX:XJO) midday update: Crown and Pilbara Minerals surge higher
• Pilbara Minerals (ASX:PLS) share price jumps 8% on POSCO joint venture news

Motley Fool contributor Kerry Sun 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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Is it possible that the Origin Energy Ltd (ASX: ORG) share price could rise to $6 by the end of 2021?

Brokers regularly like to update their thoughts on where they believe that Origin shares are going to be in 12 months. That’s what a price target is – where the broker believes a business will be in a year from now. So, not necessarily where the broker thinks a business will be in a couple of months.

What is the price target for the Origin Energy share price?

There are several brokers out there with different ratings. One of the most optimistic, and recent, price targets is from Morgans, at $5.96. That’s almost $6.

One of the main things that entered into Morgan’s thoughts was the recently-announced sale of part of its stake of Australia Pacific LNG for $2.12 billion.

Asset sell-down

Origin is selling a 10% stake to global energy investor EIG. After the sale, Origin will still own 27.5% of Australia Pacific LNG. This retained stake will allow Origin to keep its seats on the Australia Pacific LNG board. EIG will get one board seat.

The divestment will not change Origin’s role as upstream operator, responsible for the upstream exploration, development and production activities.

Net proceeds from this sale is expected to be approximately $2 billion after adjustments and transaction costs.

Origin’s guidance for cashflow from Australian Pacific LNG for FY22 is unchanged at greater than $1 billion, net of Origin oil hedging. The dilution of 10% in the second half is expected to be broadly offset by the improved commodity price outlook.

The Origin share price rose around 4% on the day of the announcement.

What is the company going to do with the money?

Origin expects the sales proceeds to be broadly in line with the carrying value. No tax is expected to be payable as a result of this transaction.

The company plans to pay down debt with this money.

Origin CEO Frank Calabria said:

Divesting a 10% interest allows Origin to crystalise some of the significant value we have created in Australia Pacific LNG, while retaining upside to further value creation through a continuing substantial shareholding.

A diverse asset portfolio, combined with strategic investments over the past 18 months, have put Origin in a strong position to lead the energy transition. The material cash injection from this investment provides further flexibility to deliver returns to shareholders and pay down debt, while allowing Origin to accelerate investment in growth opportunities.

Other comments on the Origin share price

Morgans noted that the price paid for the EIG purchase suggests that there are projections of a stronger oil price for longer than what some investors are expecting.

Using the broker’s projections, Origin is valued at 28x FY22’s estimated earnings and 23x FY23’s estimated earnings. The broker is currently expecting Origin to pay a dividend of $0.21 per share in FY23, which translates to a yield of 4%.

The post Could the Origin (ASX:ORG) share price hit $6 by the end of 2021? appeared first on The Motley Fool Australia.

More reading

• Latest ASX 200 shares to make it on top brokers’ buy list
• Why Beach, Mineral Resources, Origin, and Telstra are storming higher
• Origin Energy (ASX:ORG) share price on watch following $2b deal
• Origin (ASX:ORG) share price lifts amid improved FY22 guidance
• Why has the Origin (ASX:ORG) share price rallied 17% in 3 weeks?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Woodside Petroleum Ltd (ASX: WPL) share price closed in the red on Tuesday, down 0.25% to $24.07.

Woodside shares started this week in the green. This came after last Friday’s release of the company’s Q3 2021 earnings report saw shares sliding 8.5%.

Here we take a look at what’s behind this price action and what leading investment analysts are saying on the outlook for the Woodside share price.

What tailwinds are behind the Woodside share price?

Zooming out, we see Woodside shares have been mobilising northwards since mid-September.

This upward trajectory appears to be supported by strengths in the oil spot and futures markets. The liquid black gold has ticked 11% higher since coming off a low on 29 September.

Woodside shares rallied in corresponding fashion, before peaking at $25.46 on 11 October. That was a 6-month high for the company.

The Woodside share price then made a sharp nosedive last week. This came after the company released an update for the quarter ended 30 September 2021.

In its report, Woodside recognised a 19% sequential growth in revenue from the previous quarter to $1.53 billion.

This came on a 2% reduction in total delivered production of 22.2 million barrels of oil equivalent (MMboe) from the previous quarter.

The company also decreased its estimated reserves at Wheatstone, based on reservoir studies from 4D seismic, well drilling, and well performance results.

The down-step in production was undoubtedly offset by hot-running oil prices. Oil realised an average price of $59 per barrel in Q3 – a 28% increase from Q2 2021.

In addition, Woodside confirmed it was “on track” for its final investment decision on the Scarborough and Pluto Train 2 developments before the end of the year.

The company advised that all primary environmental approvals were in place to support the decision. Meantime, commercial agreements are “approaching finalisation” regarding the development.

Perhaps one of the key takeouts from the report was Woodside’s intention to merge with mining behemoth BHP Group Ltd (ASX: BHP). The company is proposing to merge the pair’s oil and gas portfolio into one consolidated portfolio.

What did the analysts say?

Analysts from leading brokers Citi and Macquarie Group Ltd (ASX: MQG) are treading with extra caution in their analysis of the Woodside share price.

Macquarie appeared to be somewhat startled by the petroleum giant’s decision to downgrade reserves at Wheatstone by 27%. This represents around 20% of the total reserves at the project.

The broker believes the downgrade will also shorten the life of the Julimar-Brunello field. It now estimates the field to be depleted in 2032, around 4 years ahead of previous expectations.

Analysts at Macquarie believe the “Wheatstone reserve downgrades were a material negative surprise” to the company’s growth outlook.

Meanwhile, fellow investment banking giant Citi has chimed in on Woodside’s Scarborough saga.

It noted language used by Woodside throughout its Q3 report may suggest it could expand the Pluto LNG facility and make the final investment decision (FID) on its Scarborough site before it actually sells its stake in Scarborough.

The broker also notes that while Woodside acknowledged both assets in its report, it only mentioned that the Pluto T2 stake is aligned with the FID later this year.

Citi even questions if this is tactical from the company. It sees “a likely scenario where Woodside creates leverage over their shareholders to vote yes on the BHP transaction, by taking FID on Scarborough to Pluto T2 before selling down interests in Scarborough”.

So, what’s the verdict?

Both teams of analysts decided to trim their targets on the Woodside share price.

Macquarie gave its price target a 5% haircut to $25.90, whereas Citi also downsized its price target by 4% to $22.59.

The Woodside share price is up by more than 30% over the past 12 months. It has climbed just 6% since the start of the year.

The post What these brokers are saying about the Woodside (ASX:WPL) share price appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
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• Woodside share price (ASX:WPL) lifts amid plans for major WA hydrogen project
• Big banks’ forecast could mean extended tailwinds for ASX 200 energy shares
• 5 things to watch on the ASX 200 on Monday

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

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The S&P/ASX 200 Index (ASX: XJO) has risen more than 50% since the dark days of the COVID-19 crash in March last year.

So it’s no wonder investors are now having trouble finding stocks that are decent value for money.

To add to that dilemma, many experts are also warning retail investors to stay away from high-growth ASX shares because of rising inflation.

“I think that means taking a little bit of money off the table when it comes to big tech companies like Afterpay Ltd (ASX: APT),” Burman Invest chief investment officer Julia Lee told Switzer TV Investing. 

“And instead looking at some of the cyclical companies — and looking at companies that look like value, where the market has probably punished them too far.”

Lee named 2 such ASX shares that her fund is currently attracted to:

ASX share that’s ‘turned a corner’

The last few years have been punishing for IOOF Holdings Limited (ASX: IFL) shareholders, as they’ve witnessed the horrors from the finance industry Royal Commission and the coronavirus pandemic.

In 2018, the shares were trading above $10. In the past 52 weeks, the price has been as low as $2.86.

But in the last 6 months, it has steadily recovered to climb 28.5%. And Lee expects this upward trend to continue.

“One company we find interesting at the moment, just because it looks so cheap, is IOOF. It’s the only pure wealth manager on the market,” she said.

“And if you have a look at the other wealth platforms like Netwealth Group Ltd (ASX: NWL) and Hub24 Ltd (ASX: HUB), they’re up about 10% over the past month.”

According to Lee, IOOF has “turned a corner” after several terrible years.

“In the last quarter, we did see investment management flows turning positive, so I think it’s looking pretty interesting at these prices.”

Flying will only ramp up in the next few years

Lee’s fund already holds Qantas Airways Limited (ASX: QAN) shares, but remains interested in buying more.

“There’s still a bit of volatility in terms of that travel space,” she said.

“We’re still accumulating Qantas whenever we do see weakness. Today we saw the price down around about 2%, so we took that as an opportunity to keep on topping up in little bits.”

Lee is not the only expert bullish on the Flying Kangaroo.

The team at Ord Minnett earlier this month thought Qantas shares could hit $6.50 by the end of the year.

On Tuesday morning the stock was going for $5.54, implying a 17.3% upside on top of the 12.8% price rise so far this year.

“The broker also expects rational pricing from domestic carriers as borders between states reopen following the easing of COVID-related restrictions,” The Motley Fool’s James Mickleboro reported.

“And with Virgin Australia downsizing, its analysts expect Qantas to win market share and see opportunities for it to achieve a 70% share in the future.”

The post I’m buying these 2 cheap ASX shares right now: expert appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price soars to 52-week high on international travel update
• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
• Qantas (ASX:QAN) share price on watch after ramping up international travel plans
• Qantas (ASX:QAN) share price on watch as New Zealand travel returns
• Could the Qantas (ASX:QAN) share price soar to $6.50 by the end of 2021?

Motley Fool contributor Tony Yoo owns shares of IOOF Holdings Limited and Qantas Airways Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Hub24 Ltd, and Netwealth. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Netwealth. The Motley Fool Australia has recommended Hub24 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 A2 Milk Company Ltd (ASX: A2M) share price will be one to watch on Wednesday.

This follows the release of the infant formula (IMF) company’s 162-page investor update this morning.

Below is a summary of some of the key highlights from the presentation.

Revised growth strategy

One of the key highlights from the presentation is the company’s decision to revise its growth strategy.

Management has stated that its new strategy is focused on rebuilding the company into an exciting, innovative and sustainable growth company, and has named five strategic priorities that it believes will help it achieve its ambitions.

The first one is investing in people and planet leadership. The company intends to invest in its people to help them thrive. It also wants to get on the green bandwagon by taking direct action to lead the industry in GHG emissions reduction and farming practices. A2 Milk is aiming to reduce its scope one and two greenhouse gas emissions to net zero by 2030 and scope three emissions to net zero by 2040.

Another strategic priority is capturing the full potential of the China IMF market. This will see the company aim to gain more control over its Chinese label (CL) and English label (EL) distribution and get closer to the consumer. It also intends to increase its investment in the A2 Brand, digital markets, and ecommerce.

A2 Milk intends to ramp-up product innovation. This will see the company expand its CL and EL IMF product portfolios and enter adjacent product categories to drive growth.

Another focus will be the transformation of its supply chain. It intends to expand CL registered market access, utilise its Mataura Valley Milk (MVM) capability, and develop a China supply capability.

A final priority will be accelerating its path to profitability. Management notes that it will take action to realise potential in the US and expedite insourcing and third party volume to significantly increase MVM utilisation.

NZ$2 billion sales target

The sum of the above, is the company setting itself a medium term (≥ 5 years) target of growing its sales to NZ$2 billion. This compares favourably to FY 2021’s sales of NZ$1.2 billion but only modestly to FY 2020’s pre-COVID sales of NZ$1.73 billion.

In respect to margins, A2 Milk will be targeting EBITDA margins “probably” in the teens in the medium term due to expected market conditions, investment, and innovation. This compares to its pre-COVID EBITDA margin of 31.7%.

These targets appear broadly in line with what analysts at Bell Potter were forecasting. The broker recently pencilled in an EBITDA margin of ~17.5% on revenue of NZ$1,472 million in FY 2023 and revenue of NZ$1,584 in FY 2024.

Management commentary

A2 Milk Company’s Managing Director and CEO, David Bortolussi, commented: “The China infant milk formula market has experienced unprecedented change over the past 12 months which has required us to adapt our growth strategy. Our ambition is to rebuild The a2 Milk Company into an exciting, innovative and sustainable growth company.”

“We will innovate and expand our infant milk formula product portfolio to appeal to a broader set of consumers and to maximise our distribution potential. Outside our core business, we are considering opportunities for adjacent category growth in China, ANZ and the USA as well as assessing opportunities in new emerging markets.”

The A2 Milk share price is down 6% in early trade on the New Zealand stock exchange.

The post A2 Milk (ASX:A2M) share price on watch following investor update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Top brokers name 3 ASX shares to sell next week
• Why A2 Milk, Eroad, Flight Centre, and Webjet shares are sinking
• Top brokers name 3 ASX shares to sell today
• A2 Milk (ASX:A2M) share price drops amid reported second class action

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 A2 Milk. 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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Is it possible that the Polynovo Ltd (ASX: PNV) share price could rise to $3 by Christmas?

One broker thinks that the healthcare business could rise by more than 50%.

But how quickly could that return come? An early Christmas present?

Brokers have price targets on a wide array of businesses. That’s where the analysts believe that the shares prices could be in 12 months from now. Whilst it’s possible that shares can move in shorter-term timeframes, the broker’s latest price target on Polynovo is referring to where it will be in the latter stages of 2022.

What is the price target on the Polynovo share price?

The brokers at Macquarie Group Ltd (ASX: MQG) have a price target on Polynovo of $2.85, which is not far off $3. Macquarie rates Polynovo shares as a buy.

Macquarie thinks that the business has a good future with hopes of pleasing growth in the coming years, though FY22 may not be as good because of the ongoing impact of the COVID-19 pandemic on the company. It was the FY22 first quarter update that gave the broker food for thought.

First quarter update

The managing director of Polynovo, Paul Brennan, said:

A strong start to the first quarter of FY22 follows the strong fourth quarter finish in FY21 despite continuing COVID restriction in the southern States of the US. Our teams are expanding and signing new accounts and as patient access improves, we expect this will translate into strong sales.

The business reported a COVID-impacted performance in Australia, New Zealand and the US.

Here in the ANZ market, it said that Australia and New Zealand results were impacted by the extended hard lockdowns in New South Wales and Victoria. It’s expecting sales to improve in the second quarter as COVID restrictions reduce. The company said that new accounts in its direct markets (excluding distributor markets) in the first quarter of FY22 were up 56% year on year.

The company had the most positive comments about the European section of the business.

It noted that face to face meetings are back, conferences are being attended and hospital access has returned to near normal levels. It’s expecting to sign new distributors in the second quarter of FY22, including Cyprus and the Czech Republic. Other jurisdictions such as France and Portugal are in negotiation.

Polynovo said that the EU performed well with growth of 204% in the first quarter.

A new third-party distribution centre in Belgium is operational and filling sales orders with deliveries to Germany, Finland and an order from Italy being filled this week. The company also said that there are indications that orders will commence soon to other distributors in Poland, Turkey and Greece.

Finally, Polynovo said that the relaxation of COVID restrictions in the UK and Irish hospitals has been positive for the business, whilst also being helped by some clinical trials. First quarter sales were up 327% on the same quarter last year.

What is the Polynovo share price valuation?

Macquarie thinks that Polynovo could generate 2.5 cents of earnings per share (EPS) in FY23, translating to a price/earnings ratio of 73 for FY23.

The post Can the Polynovo (ASX:PNV) share price hit $3 by Christmas? appeared first on The Motley Fool Australia.

More reading

• Polynovo (ASX:PNV) share price rises after “positive” FY22 quarterly update
• Why is the Polynovo (ASX:PNV) share price having such a tough time of late?
• 3 ASX 200 shares down more than 50% in 2021
• Why these 3 ASX shares all hit 52-week lows today
• Why has the Polynovo (ASX:PNV) share price tanked 15% in 3 weeks?

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 POLYNOVO FPO. 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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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Leithner & Co joint managing director Chris Leithner tells how if the investments make no money, his management team doesn’t eat.

The Motley Fool: You manage an investment company, rather than a fund. How would you describe it to a potential client?

Chris Leithner: As you’ve said, it’s a corporation. It’s not even a trust, it’s not a managed fund. 

We’re unlisted. We think we’ve got some advantages in that respect compared to listed investment companies (LICs). There’s a share buyback mechanism in place. Shares are redeemed [on] their after-tax NTA (net tangible assets) — people can do them in one fell swoop, no brokerage. 

We have shareholders rather than clients. And it’s sort of a [Warren] Buffet and Berkshire Hathaway Inc (NYSE: BRK.A) sort of arrangement, in the sense that… we share the risks and rewards. 

Except for the chairman who gets a small stipend, none of the directors get a salary — no directors’ fees. Our returns come from our ownership of the ordinary shares so that if there’s no banquet, we don’t get a feed either. 

In other words, our own incentives are not just aligned with shareholders but, it seems to us, both of them [have] very long-term sorts of incentives.

The company has two classes of shares: investors own the redeemable preference shares (RPSs) and management holds the ordinary shares (as well as a large number of RPSs). Leithner & Co charges no administration, management or other fees.

These arrangements, which we think are unique in Australia, attract shareholders who appreciate our conservative-contrarian, low-cost and long-term nature. Once they invest with us, they seldom leave. 

Our conservative approach hasn’t diminished our results. Since formation in 1999, RPS returns have generally matched the All Ordinaries Accumulation Index (ASX: AXJOA) — and, over extended stretches, have outperformed it. 

Over that 22-year period, we’ve never failed to pay a half-yearly franked dividend. Very importantly in our view, we’ve produced returns in a much steadier (and we think safer) manner than the index. 

In particular, although it’s varied considerably, on average we’ve held approximately 50% cash over the years (which we’ve used to collateralise the ETOs [exchange-traded options] we write, etc.). As a result, during the latter stages of booms, we’ve tended to underperform. However, and much more significantly for long-term returns, we lost much less than most others during the dot-com bust, global financial crisis and global virus crash (GVC). 

And because we put cash to use during those crises, we recouped these small losses relatively quickly.

Arguably our returns could’ve been higher if we’d been more fully invested. Equally, as management, we receive no salary or directors’ fees, we would’ve benefited as well by reducing cash holdings. But we’ve always been mindful that our shareholders trust us to not lose their money. If that means our returns are a little lower than they could be – in order to avoid being a lot lower than they should be – then our shareholders are paying a small price to sleep well at night.

MF: So originally was the incentive for that company structure that the investment managers’ skin is very much in the game?

CL: Yes, very much so. This is going back 20 odd years, back in 1999, when we set things up. The basic ethos was to set up something, given Australian [tax] law, akin to Berkshire Hathaway.

Obviously given tax laws, corporations law, and so on, we can’t do a carbon copy. But I think we’ve done a reasonable facsimile. 

The notion of skin in the game, it seems to me, was a critical cut-through concept.

The post $0 salary: How the ‘Aussie Berkshire Hathaway’ pays its investment managers appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 growth shares that could be buys
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• 5 things to watch on the ASX 200 on Wednesday
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• ASX magnesium shares are going gangbusters. What’s happening?

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 Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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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There are some S&P/ASX 200 Index (ASX: XJO) growth shares that could be options to consider for potential long-term capital appreciation.

Not every business is known for growth. Some of the biggest blue chips have a reputation for dividends instead such as Commonwealth Bank of Australia (ASX: CBA) and Telstra Corporation Ltd (ASX: TLS).

However, there are also a number of businesses that are growing revenue and/or profit at a fast pace that may be worth considering:

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is one of the larger healthcare businesses on the ASX with a market capitalisation of $19 billion according to the ASX.

It has large pathology operations and laboratories around the world in Europe, Australia, New Zealand and North America.

COVID-19 testing has led to an increased level of earnings for the business, whilst continuing to provide its usual essential healthcare services. At the time of its FY21 result, approximately 30 million COVID-19 PCR tests had been performed in around 60 laboratories globally. It is also Australia’s largest non-government COVID vaccination provider.

The ASX 200 growth share is able to leverage its existing infrastructure and people to perform all of the tests.

In FY21, total revenue grew 28% to $8.8 billion. After excluding COVID testing, revenue was up 6% on FY20 and 4% compared to FY19. However, the net profit rose much quicker, growing by 149% to $1.3 billion.

Not only is the company growing organically, but it has also been putting some its earned profit to work by making acquisitions. It has moved to majority ownership of the Epworth Medical Imaging business as well as the acquisition of Canberra Imaging Group.

At the current Sonic Healthcare share price, it is valued at 19x FY22’s estimated earnings.

Netwealth Group Ltd (ASX: NWL)

Netwealth is another ASX 200 growth share that is seeing a rapid increase of its revenue.

The fintech business is seeing a high level of adoption as the financial industry continues to move towards Netwealth and a couple of its peers.

FY21 saw the business grow its total income by 16.9% to $144.9 million, whilst net profit jumped 23.9% to $54.1 million.

The FY22 first quarter was another example of the double digit growth that the fintech is creating.

Funds under administration (FUA) was $52 billion at 30 September 2021. That was an increase of 10.2% quarter on quarter and a 52.7% rise year on year.

Looking at the net inflows, the three months to 30 September 2021 saw net inflows of $4 billion, which was an increase of 111% compared to a year ago.

Funds under management (FUM) at 30 September 2021 was $12.6 billion, an increase of 7.7% quarter on quarter and an increase of 56.9% year on year.

In terms of the outlook, Netwealth said that the ongoing structural changes within the financial services industry continues to support and increase Netwealth’s addressable market and growth opportunities. It said its pipeline for new business remains “very strong” across all market segments.

It increased its FY22 FUA net inflow guidance for FY22 from $10 billion to approximately $12.5 billion.

According to Commsec, the Netwealth share price is valued at 60x FY23’s estimated earnings.

The post 2 ASX 200 growth shares that could be buys appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Latest ASX 200 shares to make it on top brokers’ buy list
• Here are the top 10 ASX shares today
• Here are 10 years of ASX 200 historical returns
• These 3 ASX 200 shares are topping the volume charts this Tuesday

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 Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth and Telstra Corporation Limited. The Motley Fool Australia has recommended Sonic Healthcare 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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Are you looking for income options for your portfolio? If you are, then you might want to consider the ASX shares listed below.

Here’s why they could top options for income investors:

Accent Group Ltd (ASX: AX1)

Accent could be a dividend share to buy. It is a retail group that owns a collection of popular footwear-focused store brands including HYPEDC, Platypus, and The Athlete’s Foot.

These brands have carved out a very strong position in the leisure footwear market for Accent, which, together with its expanding store network, has underpinned strong earnings growth in recent years.

The team at Bell Potter appear confident this strong form will continue over the long term. Though, it acknowledges that lockdowns will weigh on its performance in FY 2022. Bell Potter currently has a buy rating and $2.90 price target on its shares.

It is also forecasting fully franked dividends per share of 9.3 cents in FY 2022 and 13.3 cents in FY 2023. Based on the latest Accent share price of $2.46, this represents yields of 3.8% and 5.4%, respectively.

Commonwealth Bank of Australia (ASX: CBA)

Another ASX dividend share that Bell Potter is a fan of is Australia’s largest bank. Its analysts currently have a buy rating and $118.00 price target on its shares.

Bell Potter likes CBA due to its strong position as the leader in home lending and retail deposits. It also notes that it has a very strong balance sheet with significant surplus capital. In addition, the broker sees opportunities to add value via SME banking, wealth management, and selective Asian expansion.

Its team are forecasting fully franked dividends per share of $4.06 in FY 2022 and $4.27 in FY 2023. Based on the current CBA share price of $105.10, this will mean yields of 3.9% and 4.2%, respectively.

The post Analysts name 2 ASX dividend shares to buy appeared first on The Motley Fool Australia.

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• Here’s why the 90-year old CBA (ASX:CBA) school banking program is no longer
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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 recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) gave back the majority of its intraday gains and ended the day marginally higher. The benchmark index rose slightly to 7,443.4 points.

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

ASX 200 poised to rise

The Australian share market looks set to edge higher on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points higher this morning. This follows a solid night on Wall Street, which in late trade sees the Dow Jones up 0.3%, the S&P 500 up 0.4%, and the Nasdaq trading 0.2% higher.

A2 Milk investor update

The A2 Milk Company Ltd (ASX: A2M) share price will be one to watch closely on Wednesday. This morning the embattled infant formula company will be releasing an investor update and is expected to provide details on a renewed strategy in China, product development, and marketing. It’s also possible that the company will release a first quarter update at the event.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could rise today after a solid night for oil prices. According to Bloomberg, the WTI crude oil price is up 1% to US$84.62 a barrel and the Brent crude oil price has risen 0.5% to US$86.41 a barrel. Oil prices have hit multi-year highs due to supply shortages.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could fall today after the gold price dropped. According to CNBC, the spot gold price is down 0.65% to US$1,794.9 an ounce. A stronger US dollar and improving risk sentiment weighed on gold.

ASX 200 AGMs

There are a number of ASX 200 companies holding their annual general meetings today. The likes of health supplements company Blackmores Limited (ASX: BKL), investment platform provider Netwealth Group Ltd (ASX: NWL), and retail giant Woolworths Group Ltd (ASX: WOW) are holding their events virtually and could provide trading updates.

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

More reading

• Latest ASX 200 shares to make it on top brokers’ buy list
• Could the Beach Energy (ASX:BPT) share price hit $1.70 by Christmas?
• Here are the top 10 ASX shares today
• Here are 10 years of ASX 200 historical returns
• These 3 ASX 200 shares are topping the volume charts this Tuesday

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 Netwealth. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Netwealth. The Motley Fool Australia has recommended A2 Milk. 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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