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Are you looking for dividend shares to buy in October? If you are, then you may want to look at the two listed below.

Here’s why these ASX 200 dividend shares could be in the buy zone:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share to look at is BHP. This mining giant’s shares have come under significant pressure in recent weeks after the iron ore price tumbled.

And while the speed of the decline was unexpected, analysts had been warning for a long time that US$200 a tonne iron ore was unsustainable.

The good news is that the price of the steel making ingredient appears to have stabilised for the time being a little north of US$100. At this level BHP is still generating significant free cash flow from its iron ore operations. In addition, the company has a diverse collection of operations with exposure to a range of commodities.

The team at Macquarie remain very positive on BHP. Last week the broker retained its outperform rating and $56.00 price target on the Big Australian’s shares.

Macquarie is also forecasting fully franked dividends per share of ~$3.70 in FY 2022 and ~$2.90 in FY 2023. Based on the current BHP share price of $37.61, this implies yields 9.8% and 7.7%, respectively.

Coles Group Ltd (ASX: COL)

Another ASX 200 dividend share to consider for October is Coles. Especially after its shares pulled back by 8% in September.

This has left the Coles share price trading at an attractive level according to analysts at Morgans. The broker currently has an add rating and $19.80 price target on its shares. This suggests that there is upside of 17% for its shares over the next 12 months.

In addition, the share price weakness means that the yield on offer with the supermarket giant’s shares has widened.

Morgans is forecasting fully franked dividends per share of 61 cents in FY 2022 and 62 cents in FY 2023. Based on the current Coles share price of $16.99, this will mean yields of 3.6% and 3.65%, respectively.

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

More reading

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• Here are 3 ASX 200 shares topping the volume charts so far today
• ASX 200 (ASX:XJO) midday update: Zip shares rise on Microsoft deal, big four banks rebound
• Does the 11% BHP (ASX:BHP) dividend yield make it good value?
• The ASX 200 banks may be in danger as half of mortgage-stressed households have “borrowed to the hilt”

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

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The Telstra Corporation Ltd (ASX: TLS) share price could be one to think about as the telecommunications business reveals a number of new compelling reasons to consider the stock.

Telstra has been working on its T22 strategy for a few years. That involved cutting costs and becoming more efficient.

But it has recently revealed a T25 strategy that may be even more compelling for a few different reasons:

Return to profit growth

Telstra management outlined that the company is now expecting profit growth to return after a number of declines due to the switch to the NBN and a lot of competition in the mobile space from low-cost players.

The telco said it’s aiming for sustained growth and value by targeting a compound annual growth rate (CAGR) of mid-single digit underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and high-teen underlying earnings per share (EPS) between FY21 to FY25.

The T25 strategy is also looking to deliver another $500 million of net cost reductions, good cash conversion and generation, active portfolio management and shareholder value through an updated capital management framework. That $500 million is on top of the $2.7 billion it has already committed for T22, while at the same time investing for growth.

One of the key ways that investors may judge the Telstra share price is the profit it’s making and the growth expectations of that profit in the coming years.

Dividend growth

Under Telstra’s updated capital management framework, it has included the principle to maximise fully franked dividends and looks to grow them over time, to invest for growth and return excess cash to shareholders.

However, Telstra noted that it needs to grow its underlying earnings as well as its franking balance in order to grow its dividend.

The board are confident in maintaining a minimum annual payment of $0.16 per share. At the current Telstra share price, that translates to a grossed-up dividend yield of 5.8%.

Earnings diversification

Telstra is looking to diversify its earnings by expanding into different sectors.

It’s looking to launch energy services to go alongside its telecommunications offering. Telstra wants to establish a fully integrated channel experience so customers wanting a telco product or service, energy, tech equipment or integrated home solution, can use Telstra for it.

Another area that Telstra sees a big future is healthcare. One of the most recent moves in this area was an acquisition called MedicalDirector which it bought for $350 million. It provides software as a service (SaaS) across electronic health records, patient and practice management, billing, scheduling, care coordination, medicines information and clinical content. It currently supports around 23,000 medical practitioners and is used to deliver more than 80 million consultations a year.

Telstra wants to be a leading partner to the health and aged care sectors.

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

More reading

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• 2 ASX dividend shares with attractive 4%+ yields
• This analyst rates the Telstra (ASX:TLS) share price a buy
• How does the Telstra (ASX:TLS) dividend compare to ASX 200 shares?

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

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The Ramsay Health Care Limited (ASX: RHC) share price will be one to watch on Friday.

This follows the release of an announcement by the private hospital operator after the market close.

Why is the Ramsay share price on watch?

The Ramsay share price will be on watch after providing an update on current operating conditions in Australia.

According to the release, positively, the NSW Ministry of Health has announced that it will now allow day surgery to take place at seven of Ramsay’s owned hospitals in Greater Sydney.

This could help offset elective surgery restrictions announced last week by the Victorian Department of Health and Human Services (DHHS). The DHHS has requested that all private hospital and day surgery centres in Metropolitan Melbourne reduce elective surgery lists by 50% per month from Friday.

Furthermore, cosmetic surgery and other procedures that are not addressing significant medical conditions will not be permitted.

In Queensland, Ramsay advised that its hospitals in South East Queensland have been impacted by COVID isolation orders. The Queensland/NSW border restrictions are also disrupting the movement of clinicians, team members, and patients in the area. This is causing the cancellation of some surgeries.

Earnings impact

As per previous comments by management, Ramsay has reiterated that these restrictions will have a material impact on its earnings in FY 2022.

For example, the company advised that the 90-day restriction on elective surgeries in Victoria in 2020 hit its earnings by $70 million.

However, its NSW operations are twice as large as its Victorian operations. And the seven hospitals that were restricted are approximately the size of Ramsay’s Victorian hospitals.

Despite these disruptions, the Ramsay share price is beating the market with an 11% gain this year. Investors appear to be looking at the bigger picture instead of focusing on these short term headwinds.

The post Ramsay (ASX:RHC) share price on watch on Friday after update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Ramsay Health (ASX:RHC) share price presents a reopening play: Fund manager
• The market’s having a good day, so why’s the Ramsay Health Care (ASX:RHC) share price struggling?
• 3 experts pick 3 ASX shares to rocket in next 12 months
• Top brokers name 3 ASX shares to buy next week

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 Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Smartgroup Corporation Ltd (ASX: SIQ) share price finished the day 2% higher and closed at $9.47 this afternoon.

That caps off a substantial jump this past 2 days for the administration-outsourcing company, whose share price has soared over 20% in this time.

Read on for more details.

What’s up with the Smartgroup share price lately?

Smartgroup’s share price has been on the move since the company announced it had received a non-binding conditional proposal to acquire all of its outstanding shares.

The offer came from a consortium of investors made up of US investment firm TPG Global LLC, pension fund Aware Super and Australian private equity firm Potential Capital.

As it stands, the $10.35 per share all cash offer represented an 11.5% premium to Smartgroup’s closing price on Wednesday and a 9.8% premium to its current market price.

Smargroup’s board unanimously recommended shareholders vote in favour of the proposal, which still has to make its way through due diligence and final approvals.

As such the investor group has 4 weeks handed to them by the company to conduct its due diligence.

If successfully acquired, Smartgroup would delist from the ASX and form a private entity, under the consortium’s control.

What do the experts have to say?

One leading broker has weighed in on the debate and offered its insights into the deal.

Investment research and brokerage firm Morgans believes the takeover proposal represents good bang for buck to Smartgroup shareholders.

It believes the $10.35 proposal may be substantial enough to ward off any competitive bids, especially when comparing to other players in the salary packaging industry.

The broker also added that Smargroup’s FY21 earnings positions the company well for growth over the coming periods.

It raised its price target on the Smartgroup share price by 24% to match the consortium’s offer at $10.35.

However, in the same move, Morgans also downgraded its recommendation from add to hold.

Other brokers are weighing in too, however with differing opinions.

Smartgroup shares were cut to Neutral at Credit Suisse, and trimmed to accumulate from buy at Ord Minnett’s analyst desk.

Despite the downgrade, Ord Minnett also raised its price target by 23% to $9.85 per share, stating that whilst the deal looks like it will go ahead, “given the jump in share price” it made the decision to trim its price target and rating.

There will surely be plenty more to come as more information unfolds in the coming weeks.

The post What this leading broker is saying about the Smartgroup (ASX:SIQ) share price appeared first on The Motley Fool Australia.

More reading

• Why Sigma, Smartgroup, St Barbara, & Touch Ventures are pushing higher
• Smartgroup (ASX:SIQ) share price soars 17% on TPG Global takeover bid
• Top ASX shares to buy in September 2021

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 owns shares of and has recommended SMARTGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Investors may be on the lookout for ASX dividend shares that are paying big yields.

Businesses that have relatively low price/earnings ratios (p/e ratio) and higher dividend payout ratios can combine nicely, resulting in a high dividend yield.

Keep in mind that just because a business pays a dividend doesn’t automatically make it worth owning for income. However, at the right price, ASX dividend shares can make sound investments.

Here are two to consider:

Nick Scali Limited (ASX: NCK)

Nick Scali says it sources its furniture products from around the world and imports directly from some of the largest and most respected manufacturers globally.

The ASX dividend share has benefited from the strong retail environment and the spending on homes.

Management say the company’s future growth will primarily be driven by the rollout of new stores and increasing online penetration. It’s going to accelerate initiatives to capture these opportunities. It has a total of 61 outlets and is aiming for 85 over the long-term.

FY22 saw a significant improvement for the business where sales revenue rose 42.1% to $373 million and underlying net profit after tax (NPAT) grew by 100% to $84.2 million. Numerous improvements across the business saw the earnings before interest and tax (EBIT) margin increase by 940 points to 32.7%.

Nick Scali reported that it saw written online sales orders of $18.3 million in FY21, with $5.5 million in the fourth quarter of FY21. The FY21 fourth quarter was an 84% increase on the fourth quarter of FY20. Full year revenue was $15.3 million, with an EBIT contribution of $8.8 million.

In FY21, Nick Scali paid an annual dividend of $0.65 per share, which translates to a grossed-up dividend yield of 8.2%.

The ASX dividend share is currently rated as a buy by the broker Citi, with a price target of $13.80.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price has fallen by around 25% since the end of July 2021.

Some analysts see an opportunity, such as Macquarie Group Ltd (ASX: MQG), which rates Rio Tinto as a buy.

Looking at the FY22 forecast, Macquarie thinks the Rio Tinto share price is valued at 5x the estimated earnings for the next financial year. FY22 could also come with a grossed-up dividend yield of 15.7%.

The FY21 result came with a total dividend of US$5.61 per share, which included an ordinary dividend of US$3.76 per share (up 143%) and a special dividend of US$1.85. This came after a very large increase in profit and cashflow. HY21 free cashflow increased 262% to US$10.2 billion and underlying earnings rose 156% to US$12.2 billion.

Compared to plenty of other miners, this ASX dividend share is diversified and not totally reliant on one commodity. Rio Tinto explains:

We produce iron ore for steel, aluminium for cars and smart phones, copper for wind turbines, diamonds that set the standard for “responsible”, titanium for household products and borates for crops that feed the world.

It also has a long-term lithium project in Europe called Jadar on the cards. It could supply enough lithium to power over one million electric vehicles per year.

The post 2 ASX dividend shares with BIG yields appeared first on The Motley Fool Australia.

More reading

• Rio Tinto (ASX:RIO) share price lifts as CEO eyes critical minerals expansion
• How China’s energy crisis could be good for BHP (ASX:BHP) and Rio Tinto (ASX:RIO)
• ASX 200 (ASX:XJO) midday update: Fortescue jumps, Wesfarmers dealt takeover blow
• Here’s why the Rio Tinto (ASX:RIO) share price is down 20% in 3 months
• These 5 ASX shares are going ex-dividend this 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. 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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The Northern Star Resources Ltd (ASX: NST) is not having a great time of it right now. Shares in the Aussie gold miner fell lower on Thursday and are now down 11% in the past fortnight.

Here’s what’s weighing on the company’s valuation in September.

Why the Northern Star share price is down 11% in 2 weeks

The latest share price moves don’t appear to be driven by any big company news. In fact, Northern Star hasn’t provided any price-sensitive news since September 16 when it completed its Central Tanami Project joint venture.

Perhaps the bigger factor at play is gold prices. Whenever ASX resources shares like Northern Star are under pressure, it can pay to see what the broader market is doing as well as underlying commodities.

It’s true the last 2 weeks haven’t been great for the S&P/ASX 200 Index (ASX: XJO). The broad market index has edged 0.8% lower in the past fortnight weighed down by tech and resources shares.

Chief among those falling resources shares are ASX gold shares like Northern Star and Newcrest Mining Ltd (ASX: NCM). Much of those movements can be traced back to falling global gold prices.

Gold has historically been viewed as a safe haven asset. That means it has tended to be in demand, and therefore perform strongly when shares are underperforming. It’s also often seen as a good hedge against inflation, which is what many investors expected we’d see a lot of in 2021.

However, that hasn’t necessarily been the case. With yields rising on expectations of a sooner than expected US Federal Market Open Committee (FOMC) rate hike, gold prices are falling.

In fact, more investors have been flocking towards the US dollar for safety in recent weeks and away from gold. That has reduced demand and sent prices of the precious metal tumbling.

We’ve seen that reflected in the Northern Star share price of late. Shares in the Aussie gold miner are down 11% in the last 2 weeks and 36.2% for the year.

Foolish takeaway

The Northern Star share price is under pressure in 2021 and September has not been a month that investors will want to remember.

Shares in the Aussie gold miner are trading at a price to earnings (P/E) ratio of 7.4 with a 2.2% dividend yield on Thursday afternoon.

The post Here’s why the Northern Star (ASX:NST) share price has lost 11% in 2 weeks appeared first on The Motley Fool Australia.

More reading

• Why the Metalstech (ASX:MTC) share price hit a record high today
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• ASX 200 rebounds into positive territory led by energy and materials shares

Motley Fool contributor Ken Hall 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 JB Hi-Fi Limited (ASX: JBH) share price was a strong performer on Thursday.

The retail giant’s shares ended the day with a gain of 3% to $45.52.

Why did the JB Hi-Fi share price charge higher?

As well as benefiting from a strong day by the S&P/ASX 200 Index (ASX: XJO), JB Hi-Fi’s shares were given a boost by a bullish broker note.

According to the note out of Citi, its analysts have upgraded the retailer’s shares to a buy rating from neutral.

And while the broker has trimmed its price target slightly from $55.00 to $53.00, this still implies material upside of 16% for the JB Hi-Fi share price over the next 12 months.

And that doesn’t include the generous dividend the broker is forecasting in FY 2022. Citi has pencilled in a fully franked dividend per share of $2.28.

Based on the current JB Hi-Fi share price, this will mean a 4.3% yield, which extends the total potential return to over 20%.

What did the broker say?

Citi made the move on valuation grounds. It believes the recent pullback by JB Hi-Fi’s shares has been overdone and created a buying opportunity.

The broker points out that the company’s shares are changing hands at a discount of 40% to the ASX 200 index excluding resources shares. This is significantly greater than historical multiples.

Citi isn’t alone with this view. The team at Credit Suisse also believe the company’s shares are trading at an attractive level.

According to a note from earlier this month, the broker has an outperform rating and $53.66. This suggests there’s almost 18% upside for the JB Hi-Fi share price from here.

This could make it one to consider if you’re looking for options in the retail sector.

The post JB Hi-Fi (ASX:JBH) share price charges higher on broker upgrade appeared first on The Motley Fool Australia.

More reading

• 2 high-yielding ASX 200 dividend shares
• Woolworths (ASX:WOW) and Coles (ASX:COL) could face a margin shock
• Here’s what this broker thinks of the JB Hi-Fi (ASX:JBH) share price
• JB Hi-Fi (ASX:JBH) share price up amid ‘confident’ outlook for FY22
• The JB Hi-Fi (ASX:JBH) share price is down 9% in a month. Is it a buy?

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

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The Renergen Ltd (ASX: RLT) share price has had a positive afternoon in the green today, trading up 3.7% at $1.96 per share near the market close.

That’s a good bit better than the 1.3% gain posted by the All Ordinaries Index (ASX: XAO) at this same time.

Below we look at the quarterly activities report from the alternative and renewable energy company.

What results did Renergen report for the quarter?

The Renergen share price is on the rise after the company reported a 13% boost in revenues from the previous quarter.

While revenues were up, operating costs decreased 19% quarter on quarter, which the company partly attributed to the reversal of bonus provisions in place the prior year.

Along with other cost reductions, this resulted in a 15% decrease in losses for the quarter and in an improved cash position.

The company highlighted its position as a low-cost helium producer, saying it was “nearing positive earnings generation”.

Over the quarter, Renergen drew the final tranche of its United States International Development Finance Corporation (DFC) loan. This added US$7.5 million (AUD$10.4 million) to its cash reserves.

The company is entering the final stages of construction and commissioning for its plant, reporting that gas gathering was completed. It also said that temporary power generators and a permanent substation were installed and connected during the final week of August.

Renergen expects commissioning to start in December 202. It is forecasting a turn-on date “before the end of 2023, with full production during 2024”.

Renergen share price snapshot

The Renergen share price is up an impressive 90% over the past 12 months, compared to a gain of 27% posted by the All Ords.

Renergen’s shares hit all-time highs of $2.75 on 12 April. That was likely driven by news that its Cryo-Vacc system could be used to transport temperature sensitive COVID-19 vaccines, keeping them at ultra-cold temperatures for up to 30 days without the need for outside power sources.

The post Why the Renergen (ASX:RLT) share price has charged higher today appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Top brokers name 3 ASX small cap shares to buy
• Here’s why the Field Solutions (ASX:FSG) share price is roaring 9% today
• QMines (ASX:QML) share price jumps 14%, up 30% in 6 days
• Forrestania Resources (ASX:FRS) share price rockets 45% on IPO

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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Today, the S&P/ASX 200 Index (ASX: XJO) delivered a much-needed dose of green. The benchmark index surged 1.88% to 7,332.2 points.

In a change of scenery, all of the ASX’s sectors finished higher on Thursday. The strongest performers appeared among consumer staples, industrials, and banks.

The question is: which shares delivered the biggest returns to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Orica Ltd (ASX: ORI) was the biggest gainer today. Shares in the explosives and chemicals manufacturer surged 14.2% following the release of a broker note from Morgans. Find out more about Orica here.

The next biggest gaining ASX share today was Beach Energy Ltd (ASX: BPT). The oil and gas company experienced a jump of 7.48% in its share price. This follows continued strength in the price of oil overnight. Uncover the latest Beach Energy details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Orica Ltd (ASX: ORI)	$13.75	14.20%
Beach Energy Ltd (ASX: BPT)	$1.4725	7.48%
Codan Ltd (ASX: CDA)	$12.675	5.71%
Reece Ltd (ASX: REH)	$18.98	4.29%
Treasury Wine Estates Ltd (ASX: TWE)	$12.395	4.16%
Domino’s Pizza Enterprises Ltd (ASX: DMP)	$160.18	3.81%
Iluka Resources Ltd (ASX: ILU)	$9.07	3.78%
Pro Medicus Ltd (ASX: PME)	$54.54	3.75%
Mineral Resources Ltd (ASX: MIN)	$44.90	3.62%
South32 Ltd (ASX: S32)	$3.51	3.54%

Our top 10 ASX shares countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Why Damstra, EML, Orica, & South32 shares are storming higher
• Here are 3 ASX 200 shares topping the volume charts so far today
• Up 7%, the Beach Energy (ASX:BPT) share price is surging. Here’s why
• Which ASX 300 shares are leading the way on Thursday?
• Orica (ASX:ORI) share price jumps 15% on broker upgrade

Motley Fool contributor Mitchell Lawler owns shares of Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. and Treasury Wine Estates Limited. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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As well as covering large caps, many brokers also cover smaller companies.

In light of this, I thought I would scour through a range of recent notes to see which small cap ASX shares are in favour with brokers at present.

Three that have been given buy ratings are listed below. Here’s why brokers like them:

Genmin Ltd (ASX: GEN)

According to a note out of Bell Potter, its analysts have initiated coverage on this iron ore exploration company’s shares with a speculative buy rating and 44 cents price target. The broker has been looking over Genmin’s pipeline of projects in Gabon, Africa. It believes there is the potential to support an iron ore production hub initially of 5-10Mtpa. Overall, the broker likes the company due to it offering exposure to future high margin iron ore production and the strategic theme of the development of ex-Australian iron ore supply. The Genmin share price is fetching 19.5 cents on Thursday.

Micro-X Ltd (ASX: MX1)

A note out of Morgans reveals that its analysts have retained their speculative add rating and 58 cents price target on this x-ray technology company’s shares. Morgans notes that the company has signed a number of key contracts this month. This includes with the US Department of Homeland Security and Australian Stroke Alliance. The latter is worth $8 million to the company and is for the development of lightweight stroke diagnostic imaging technology. The Micro-X share price is trading at 33 cents today.

Readytech Holdings Ltd (ASX: RDY)

Analysts at Macquarie have retained their outperform rating and lifted their price target on this mission critical software company’s shares to $3.98. This follows news that the company has signed an agreement to acquire Avaxa for $2.2 million. Avaxa is a specialist enterprise student management software company. Macquarie expects it to support ReadyTech’s JobReady Plus platform. The Readytech share price is trading at $3.49 today.

The post Top brokers name 3 ASX small cap shares to buy appeared first on The Motley Fool Australia.

More reading

• ReadyTech (ASX:RDY) share price jumps on new acquisition
• Readytech (ASX:RDY) share price reaches 52-week high

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 Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech 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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