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The Zip Co Ltd (ASX: Z1P) share price has been drifting since this time last year. This comes despite the buy now, pay later (BNPL) company enjoying a transformational 12 months as a global player in the industry.

However, in the past 12 months, Zip shares have made little headway, registering an increase of just 4%. In comparison, the S&P/ASX All Technology Index (ASX: XTX), the index has risen 35% over the same time frame.

At yesterday’s market close, Zip shares finished the day down 2.48% to $6.69. They have not moved in early trade today.

What’s going on with Zip?

Late last month, Zip provided investors with its full-year results for the 2021 financial year, highlighting strong numbers. However, the Zip share price sunk on the results.

The company’s revenue jumped 150% over the prior corresponding period to $403.2 million. Transaction volumes surged 178.5% to $5.8 billion, while both active customers and active merchants accelerated 247.5% and 109.4%, respectively.

While the top-line results were a Herculean achievement, Zip posted a widening FY21 loss after tax of $652.5 million. In FY20, the BNPL company recorded just a $20.6 million loss.

Zip wrote off $74.5 million in bad debts during the financial year, up from $27.8 million in the previous financial year.

In addition, marketing expenses rocketed 649.5% to $71.2 million as the company launched into new locations.

But the biggest expense came from the group’s share-based payments, jumping 125.1% to $142.8 million. The decision to attract, reward and retain “Zipsters” through a combination of short and long-term incentives weighed on the bottom line.

In a further possible blow to the Zip share price, the BNPL competition is beginning to ramp up as more entrants come into the industry.

PayPal Holdings Inc (NASDAQ: PYPL) recently acquired Japanese BNPL company Paidy to fuel its own growth.

Unfortunately for Zip, a rush of new direct players aiming to win global market share could be a concern.

National Australia Bank Ltd (ASX: NAB) and Commonwealth Bank of Australia (ASX: CBA) have entered the BNPL space. And just this week, Suncorp Group Ltd (ASX: SUN) partnered with Visa Inc (NYSE: V) for a new BNPL solution.

This is on top of the direct competition that Zip is up against such as Afterpay Ltd (ASX: APT) and Sezzle Inc (ASX: SZL).

Zip share price summary

It has been a whirlwind year for Zip investors. The company’s shares rocketed to an all-time high of $14.53 in February, before quickly plummeting in the days after.

Ever since, the Zip share price has moved in circles, failing to gain traction despite achieving record revenue growth.

Zip commands a market capitalisation of around $3.7 billion, and has more than 562 million shares on its registry.

The post Here’s why the Zip (ASX:Z1P) share price is underperforming the tech sector over the past year appeared first on The Motley Fool Australia.

More reading

• 3 excellent ASX 200 (ASX:XJO) shares that could be buys
• Zip (ASX:Z1P) share price struggles as BNPL competition heats up
• How have ASX BNPL shares performed during the August 2021 earnings season?
• The Zip (ASX:Z1P) share price has plunged 30% in 5 months. Is it a buy?
• Leading broker reveals why these 10 big-name shares have been firing up its clients

Motley Fool contributor Aaron Teboneras 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 AFTERPAY T FPO, PayPal Holdings, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings. 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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With COVID-19‘s Delta variant raging and China reasserting its authority domestically and internationally, it’s an uncertain world at the moment.

Even among ASX shares, investors are debating whether stocks are nearing the top or whether they have more legs in them.

So it can be worth listening when an expert has a “high-conviction” ASX share pick. 

If they’re that sure about something in volatile conditions, then the company must have a lot going for it.

Lucky for The Motley Fool readers, Wilson Asset Management fund managers have offered up not just one high-conviction selection, but 3.

All 3 are held in one or more of Wilson’s listed investment companies WAM Capital Limited (ASX: WAM), WAM Microcap Ltd (ASX: WMI), WAM Research Limited (ASX: WAX) and WAM Active Limited (ASX: WAA). 

NBN competitor ready to bust out

Equity analyst Sam Koch told a Wilson webinar he liked the look of Swoop Holdings Ltd (ASX: SWP).

“Swoop competes with the NBN by offering greater speeds and service in under-served areas.”

Koch’s team is estimating organic revenue growth of 10% to 15% per annum, plus 1% to 2% margin expansion, over the next several years.

He likened Swoop to a “mini” version of Uniti Group Ltd (ASX: UWL) — but perhaps with more upside due to its far-smaller valuation.

“Uniti Group… has a market cap of over $3 billion, and Swoop’s only at $300 million at this stage,” said Koch.

“The catalyst is deploying their balance sheet into accretive acquisitions into a highly fragmented market.”

Swoop shares are up 64% for the year, trading at $2.05 on Thursday afternoon.

Operational recovery comes for free at current share price

Wilson portfolio manager Oscar Oberg singled out Event Hospitality and Entertainment Ltd (ASX: EVT) as his high-conviction pick.

He said the company has been around for over 100 years and owns hospitality assets like QT, Rydges, Thredbo ski resort and Event Cinemas. 

Wilson bought into it as a recovery stock in May 2020, but it dipped again the next month when Melbourne went through its second wave of coronavirus.

That’s when Oberg’s team found a nice catalyst.

“In particular, $2 billion of property on Event’s balance sheet at the time,” he said.

“The major catalyst we saw at the upcoming August result was the fact that the property was undervalued and it would have a revaluation.”

That catalyst then played out, and Wilson has since done well out of its Event holding. But Oberg reckons there’s more to come.

“We think this business will have a materially lower cost-base going forward. We think it’ll earn more money than what it did pre-COVID for its operating businesses,” he said.

“So we’re very bullish on this stock. We think it can get over $20 a share, which is a 30% upside.”

Event shares went for $14.58 on Thursday afternoon, up almost 52% for the year.

15% upside for this ASX share with a realistic catalyst

Intellectual property services group IPH Ltd (ASX: IPH) has a 15% upside on its current stock price, according to senior equity analyst Shaun Weick.

His team started monitoring the stock at around $6.50. IPH shares traded at $9.20 on Thursday afternoon.

“Our research [pointed] to a rebound in R&D spend, which we expected to support an uptick in patent filing trends.”

Easing of pressure on the US dollar and a plan to pursue expansive acquisitions were tailwinds for the business, Weick said.

“IPH’s management team is very well-regarded. They’ve got a proven track record of executing earnings-accretive acquisitions and extracting synergies.”

The post Experts reveal 3 high-conviction ASX shares appeared first on The Motley Fool Australia.

More reading

• Swoop (ASX:SWP) share price rockets 20% on revenue growth
• Here are the top 10 ASX 200 shares on Tuesday
• Event (ASX: EVT) share price soars 10% to a 52-week high
• Which ASX 300 shares are the biggest winners and losers on Tuesday?
• The Event (ASX: EVT) share price is gaining on FY21 earnings

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended IPH Ltd. The Motley Fool Australia has recommended IPH Ltd and Uniti 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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I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye are summarised below. Here’s what this fund manager has been buying:

Kogan.com Ltd (ASX: KGN)

According to a change of interests of substantial holder notice, UK based Hosking Partners has taken advantage of recent weakness in the Kogan share price to increase its stake in the online retailer. The notice reveals that the fund manager has lifted its stake to ~6.51 million shares, which is the equivalent of a 6.09% stake.

Hosking Partners’ most recent purchase came on 3 September when it picked up 315,553 Kogan shares for just under $3.5 million. This represents an average of $11.00 per share. Since then, the Kogan share price has pulled back to $10.50, giving investors an opportunity to buy at a decent discount to what this fund manager paid.

Credit Suisse appears to believe this is a buying opportunity. Late last month it put an outperform rating and $14.06 price target on Kogan’s shares.

Universal Store Holdings Ltd (ASX: UNI)

According to a notice of initial substantial holder, WAM Capital Limited (ASX: WAM) has become a substantial shareholder of this fashion retailer. The notice reveals that WAM and its affiliates now own a total of 3,852,539 shares. This gives the fund manager an interest of 5.26%.

WAM was buying shares as recently as earlier this week. On 7 September, it picked up 250,000 Universal Store shares for a total consideration of $1.82 million. This equates to an average of $7.31 per Universal Store share.

The good news for WAM is that one leading broker still sees plenty of upside for the Universal Store share price. Last month Macquarie put an outperform rating and $8.90 price target on the company’s shares.

The post Fund managers are buying Kogan (ASX:KGN) and this ASX share appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares

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

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ASX uranium shares have boomed to multi-year highs following a boom in uranium prices.

Uranium spot prices have been in a prolonged bear market, plunging from around US$136/lb in 2008 to below US$30/lb between mid-2016 and early-2020.

It wasn’t until last week that uranium prices jumped to a six-year high of US$35/lb, largely thanks to one fund aggressively buying out the physical uranium market, tightening the market.

“A new bull market” for uranium

The bullish performance of the underlying commodity has helped ASX uranium shares surge in the past few weeks.

The jump in uranium prices has been fueled by the aggressive buying from investment firm, Sprott Inc.

Sprott launched its Physical Uranium Trust (SPUT) in July this year and emerged as the world’s largest actively managed uranium fund.

According to Bloomberg, Sprott has amassed over 24 million pounds of uranium.

To add some perspective, uranium investment firm Yellow Cake PLC reported total spot volume for 2020 of 92.2 million pounds.

In a Kitco News interview with Sprott’s CEO Peter Grosskopf, he said the fund was a “game-changer” for the uranium market.

“We think uranium is entering a new bull market as the world looks for a mix of clean energy in the new green energy revolution.”

“If you want a low carbon grid, you can achieve it by spending an enormous amount of money and having a highly inefficient grid, which is inherently unstable, or you include nuclear as a core part of the power base. We think uranium has been underplayed for the last 15 years,” he added.

The recent developments have helped ASX uranium shares jump to multi-year highs. However, it isn’t uncommon to see share prices down more than 90% from 2007-2008 highs.

Uranium demand on the rise

Uranium demand has dwindled following Japan’s Fukushima nuclear power plant disaster in 2011.

The energy metal has re-entered the spotlight given its ‘green’ nature and recent global focus on climate change.

Sprott Asset Management CEO John Ciampaglia told Barron’s that “Demand from nuclear reactors is expected to increase by a few percentage points per year as new reactors come online.”

“There’s also strong demand from non-utility buyers, with some uranium developers recently raising equity capital and “parking the proceeds into physical uranium.”

This has been the case for ASX uranium shares such as Peninsula Energy Ltd (ASX: PEN), which opted to raise $15 million in May to fund the purchase of 300,000 lb of uranium.

Similarly, Paladin Energy Ltd (ASX: PDN) raised $192.5 million in March to strengthen its balance sheet in preparation for the restart of its uranium operations.

In the case of recently listed 92 Energy Ltd (ASX: 92E), the company became the first pure-play uranium company to list on the ASX in more than a decade.

Any other notable ASX uranium shares?

Paladin Energy is the largest ASX-listed uranium player with a market capitalisation of $2.1 billion.

Besides Paladin, there are a number of early-to-late stage explorers including  Boss Energy Ltd (ASX: BOE), Deep Yellow Limited (ASX: DYL), Vimy Resources Ltd (ASX: VMY) and Energy Resources of Australia Limited (ASX: ERA).

The post ASX uranium shares are booming: What’s all the hype about? appeared first on The Motley Fool Australia.

More reading

• Survey reveals big shift in Australians investing in Bitcoin and Ethereum
• This ASX share doubled this year but has 40% more to go: expert
• Analysts name Westpac (ASX:WBC) and this dividend share as buys
• 3 excellent ASX 200 (ASX:XJO) shares that could be buys
• Top broker says Coles (ASX:COL) share price is a buy

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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The Bitcoin (CRYPTO: BTC) price has stabilised following yesterday’s 11% crash.

One Bitcoin is currently worth US$46,290 (AU$62,554). That’s down slightly less than 1% over the past 24 hours.

Ethereum (CRYTPO: ETH), the world’s number 2 crypto by market valuation, is up just under 1% at time of writing, after losing more than 12% yesterday.

One Ether is currently worth US$3,500.

But don’t let the calm waters of the past 24 hours fool you.

Bitcoin remains notoriously volatile

Sticking with the world’s largest crypto, Bitcoin fell 58% from its 16 April 2021 record highs until it began to rebound on 20 July.

Since 20 July it’s gained 56%, leaving it some 29% below its all-time highs. (If an asset falls by 50%, it needs to gain 100% to get back to even.)

However, according to a new survey by Australian cryptocurrency exchange CoinSpot and market research agency Ruby Cha Cha, that kind of volatility isn’t likely to dissuade the majority of Australian investors from buying Bitcoin or other cryptos.

What did CoinSpot’s survey reveal about Bitcoin volatility?

CoinSpot surveyed 607 Aussie investors to look at their behaviours and broader trends during the 2021 crypto boom.

As for Bitcoin and Ether’s volatility, 71% of respondents said they’re “willing to accept moderate to high risk when investing in crypto”.

CoinSpot reported that Aussie investors’ increased interest in cryptocurrencies is driven by factors including, “a declining appetite for credit cards and traditional financial institutions, concerns around inflation and interest rates, as well as a positive outlook on the Australian economy as it returns to pre-pandemic levels”.

As you might expect, younger investors are more likely to invest in cryptocurrencies than older investors. The survey showed a doubling of crypto investing among Generation Z, Millennials and Generation X since November 2020.

The younger generations also have more faith in Bitcoin and altcoins. 42% of Generation Z investors and 35% of Millennial investors surveyed said they “have a strong trust in crypto”.

Across all age groups, almost 20% of Australian bought, sold, swapped or traded cryptos in the past 4 years.

Additionally, 36% of respondents said “it’s likely they will own crypto in the next five years”.

Some other key findings from the survey showed significant changes in the way Aussies invest in Bitcoin, Ether and other cryptos over the past 4 years include:

• Rather than going in blind, 76% of Australian crypto investors say they have “a fair amount of knowledge” of crypto.
• 1 in 2 Australians understand that crypto means a “digital asset” or “currency”.
• 75% of Australian investors use an app to invest in crypto.
• 34% of Australian investors trade crypto for fun.
• Female crypto investors have increased from 27% to 33%.

A word from CoinSpot’s management

Tim Wilks is the marketing executive at CoinSpot.

Addressing the survey results he said:

These survey findings have indicated a real shift in attitudes towards crypto, especially if we compare attitudes between the 2017 and the 2021 crypto bull markets.

As well-known cryptocurrencies like Bitcoin and Ethereum, plus high-interest altcoins create waves in the crypto market, we’re excited to see more everyday Aussies getting involved.

Whether you’re a veteran crypto investor yourself or still sitting on the sidelines, don’t lose sight of the fact that Bitcoin and other cryptos can lose value just as fast, or faster, than they gain it.

The post Survey reveals big shift in Australians investing in Bitcoin and Ethereum appeared first on The Motley Fool Australia.

More reading

• Bitcoin just crashed 11%. Here’s why…
• Bitcoin cracks above US$50,000 as more altcoins soar… now what?
• These 2 altcoins are leaving Bitcoin in the dust this week
• Billionaire investor: Bitcoin going to zero but this ASX share should shine
• Bitcoin vs Ethereum: Which is better for me?

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

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If you’re wanting to add some ASX dividend shares to your portfolio, then the two listed below could be ones to consider.

Here’s what you need to know about these dividend shares:

Telstra Corporation Ltd (ASX: TLS)

The first ASX dividend share for income investors to look at is this telco giant.

Telstra’s outlook has improved greatly in recent years. So much so, management is forecasting a long-awaited return to growth in FY 2022. It has provided underlying EBITDA growth guidance of 4.5% to 9%.

The good news is that this isn’t expected to be a one off. Management appears confident in can deliver further underlying EBITDA growth in FY 2023.

All in all, if the company delivers on this, its dividend cuts are likely to be a thing of the past and dividend increases could become a possibility.

Goldman Sachs is positive on the company. It has a buy rating and $4.30 price target on its shares. The broker is also forecasting fully franked dividends per share of 16 cents through to FY 2023 and then the long-awaited increase to 18 cents in FY 2024.

Based on the current Telstra share price of $3.88, this will mean yields of 4.1% through to FY 2023 and then 4.6% in FY 2024.

Westpac Banking Corp (ASX: WBC)

Another dividend share that could be a top option for income investors is Westpac.

This is thanks to its improving outlook, which is being underpinned by Australia’s strong economic recovery from the pandemic, a booming housing market, and its cost reduction plans.

The latter is aiming to reduce its cost base materially, which has the potential to boost profitability and support generous dividend payments.

The team at Citi are very positive on the bank. Citi currently has a buy rating and $30.00 price target on the bank’s shares.

It has also pencilled in dividends per share of $1.16 in FY 2021 and then $1.30 in FY 2022. Based on the current Westpac share price of $25.60, this will mean fully franked yields of 4.5% and 5.1%, respectively.

The post Analysts name Westpac (ASX:WBC) and this dividend share as buys appeared first on The Motley Fool Australia.

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• Is the Telstra (ASX:TLS) share price undervalued right now?
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• Leading broker says Telstra (ASX:TLS) share price is a buy
• Here are the 3 heaviest trading ASX 200 shares today

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 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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One ASX share surged more than 52% last month, but a bullish fund manager still reckons it has another 40% movement in it yet.

Wilson Asset Management portfolio manager Tobias Yao told a company webinar that Ardent Leisure Group Ltd (ASX: ALG) had a sensational reporting season.

In fact, it was the third-best performing ASX stock over the month of August.

“We still believe there is further upside … driven by continued momentum in the US with its Main Event entertainment centres,” he said.

According to Yao, the business is doing more than 25% same-store growth compared to pre-COVID 2019 numbers.

Major beneficiary as Australia opens up

Ardent stocks are up 104.9% already this year on the back of the booming US post-pandemic trade. The closing price Thursday was $1.445.

But Yao sees the company now cashing in similarly in Australia.

“Over the next 6 months … we believe domestic tourism will flourish, which will benefit Ardent’s Australian assets.”

The company owns venues such as Dreamworld and Skypoint on the Gold Coast in Queensland.

This reopening trade in its home country will push the stock higher, according to Yao, despite its recent golden run.

“In terms of catalysts, we think this business can continue to eke out earnings upgrades over time. We think the sum of the parts continues to be very appealing,” he said.

“I think there’s another 40% upside to the current share price.”

He tried to tell you earlier

As a credit to Yao, he also told investors to buy Ardent back in June, when the ASX share was almost 30% cheaper.

“Our view is that at the current share price, you’re not paying anything for the theme parks division, which is over $100 million on the balance sheet,” he said at the time.

Solely on the morning that Ardent’s bumper results were released, the share rocketed up 25%.

Yao is not the only analyst bullish on Ardent. At the start of this month, JP Morgan upgraded its rating to overweight, slapping on a $1.75 price target.

The post This ASX share doubled this year but has 40% more to go: expert appeared first on The Motley Fool Australia.

More reading

• These were the best ASX All Ordinaries performers in August
• Here’s what a top broker thinks of the Ardent Leisure Group (ASX:ALG) share price
• Why Ardent Leisure, Blackmores, Clinuvel, & Qube shares are surging higher
• Ardent Leisure (ASX:ALG) share price rockets 25% on FY21 earnings surge

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

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If you are looking to bolster your portfolio with some S&P/ASX 200 Index (ASX: XJO) shares, you may want to look at the three listed below.

Here’s why these ASX 200 shares are highly rated right now:

Bapcor Ltd (ASX: BAP)

The first ASX 200 share to look at is Bapcor. It is the Asia Pacific region’s leading provider of vehicle parts, accessories, equipment, service and solutions. Last month Bapcor released its full year results and revealed a 20.4% increase in revenue to $1,761.7 million and a 46.5% jump in pro forma net profit after tax to $130.1 million. This was driven by growth across the business.

The team at Credit Suisse remain positive on its long term growth potential. The broker currently has an outperform rating and $9.20 price target on its shares.

SEEK Limited (ASX: SEK)

Another ASX 200 share to look at is this leading job listings company. It was also on form in FY 2021 thanks to its domination of the ANZ market. This led to SEEK reporting a 1% increase in revenue to $1,591 million and a 58% jump in net profit after tax excluding significant items to $141 million.

Macquarie is a big fan of the company. It currently has an outperform rating and $37.00 price target on SEEK’s shares. It expects SEEK to benefit from increasing job ad volumes as the Australian economy recovers from the pandemic.

Zip Co Ltd (ASX: Z1P)

A final ASX 200 share to consider is this buy now pay later (BNPL) provider. It was arguably the strongest performer of the three during FY 2021, delivering a 178.5% jump in transaction volume to $5.8 billion and a 150% increase in revenue to $403.2 million. This was underpinned by increased repeat use and a 248% lift in active customers to 7.3 million.

Morgans is very positive on Zip. It has an add rating and $8.87 price target on its shares. The broker continues to see longer term upside if Zip can execute on its ambition of becoming a global payments player.

The post 3 excellent ASX 200 (ASX:XJO) shares that could be buys appeared first on The Motley Fool Australia.

More reading

• Zip (ASX:Z1P) share price struggles as BNPL competition heats up
• Why the Bapcor (ASX:BAP) share price could be a top buy
• How have ASX BNPL shares performed during the August 2021 earnings season?
• The Zip (ASX:Z1P) share price has plunged 30% in 5 months. Is it a buy?
• Leading broker reveals why these 10 big-name shares have been firing up its clients

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia has recommended SEEK 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 Coles Group Ltd (ASX: COL) share price has been out of form in 2021.

Since the start of the year, the supermarket giant’s shares have fallen 6.4%.

This compares to a gain of 10.25% by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Is the Coles share price good value?

One leading broker that believes the underperformance in the Coles shares price is a buying opportunity is Morgans.

According to a recent note, the broker has retained its add rating and $19.80 price target on the company’s shares.

Based on the latest Coles share price of $17.32, this implies potential upside of 14% over the next 12 months.

And with Morgans forecasting a fully franked dividend of 61 cents per share in FY 2022, this potential return stretches to almost 18% including dividends.

Why is the broker positive on Coles?

Morgans believes that Coles is well-placed to benefit from people working from home and eating more at home due to COVID-19.

It also thinks the Coles share price is trading at a very attractive level at present. This is particularly the case in comparison to its rival Woolworths Group Ltd (ASX: WOW).

And finally, the broker likes Coles due to the attractive dividend yield that its shares offer.

Morgans explained: “While vaccines are being rolled out across Australia, we think people will continue to spend more time at home due to the ongoing risk of COVID flare-ups with the working-from-home trend also likely to stay for some time (eg, Sydney and Melbourne remain in lockdown indefinitely). This will be beneficial for the major supermarket operators. We continue to see COL (~24x FY22F PE and ~3.5% yield) as offering better value than WOW (32x FY22F PE and 2.5% yield).”

The post Top broker says Coles (ASX:COL) share price is a buy appeared first on The Motley Fool Australia.

More reading

• What does the future look like for the Coles (ASX:COL) share price?
• 2 buy-rated ASX dividend shares with attractive yields
• Is the Coles (ASX:COL) share price a buy for dividends?
• 2 blue chip ASX dividend shares to buy
• ASX 200 company bosses lobby for reopening plan

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP 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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Are you wanting to diversify your portfolio? If you are, then you might may to look at adding a little exposure to the resources sector.

But which ASX 200 mining shares should you consider? Two that could be worth considering are listed below. Here’s why they are highly rated:

IGO Ltd (ASX: IGO)

The first ASX 200 mining share to look at is IGO. It is focused on discovering, developing, and delivering products critical to clean energy.

The company owns and operates the Nova nickel-copper-cobalt operation in Western Australia and is invested in a lithium focused joint venture with Tianqi Lithium Corporation. The latter comprises a 51% stake in the Greenbushes Lithium Mine and 100% interest in a downstream processing refinery at Kwinana which is producing battery grade lithium hydroxide.

Goldman Sachs is very positive on IGO. It currently has a buy rating and $10.00 price target on the company’s shares. Goldman believes its shares are trading at a very attractive level. Particularly in comparison to other lithium miners.

South32 Ltd (ASX: S32)

Another ASX 200 mining share that is highly rated is South32. It is a diversified mining company with exposure to a range of commodities. These include alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc.

Goldman Sachs is also very positive on South32. This is due largely to the company’s exposure to aluminium through its operations in Australia, South Africa, and South America.

The broker believes that aluminium is in the early stages of a multi-year bull market and expects South32 to benefit greatly from higher prices.

As a result, Goldman has a conviction buy rating and $3.60 price target on the company’s shares. It is also forecasting very generous dividend yields in the coming years. This includes double digit yields from FY 2023 through to FY 2026.

The post 2 excellent ASX 200 (ASX:XJO) mining shares that could be buys 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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