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The team at Morgans has been busy picking out its best ASX 200 share ideas for May.

These are the shares that its analysts think offer the highest risk-adjusted returns over a 12-month timeframe. They are also supported by a higher-than-average level of confidence.

The first two ASX 200 stocks we looked at can be found here. Read on for two more picks:

Seek Ltd (ASX: SEK)

Morgans is a big fan of this job listings giant and believes it is the top pick in the classifieds space. This is due to favourable tailwinds that it expects to support another strong result in FY 2023.

The broker explained why the ASX 200 stock made its best ideas list in May. It said:

Of the classifieds players, we continue to see SEEK as the one with the most relative upside, a view that’s based on the sustained listings growth we’ve seen over the period. The tailwinds that have driven elevated job ads (~210k currently, broadly flat on the robust pcp) and strong FY22 result appear to still remain in place, i.e. subdued migration, candidate scarcity and the drive for greater employee flexibility. With businesses looking to grow headcount in the coming months and job mobility at historically high levels according to the RBA, we see these favourable operating conditions driving increased reliance on SEEK’s products.

Morgans has an add rating and $28.40 price target on Seek’s shares.

Xero Limited (ASX: XRO)

Morgans remains very bullish on this cloud accounting platform provider. It highlights the company’s strong cash generation and sticky platform as reasons to be positive.

The broker also believes that recent share price weakness has created a rare buying opportunity for investors. Morgans commented:

XRO is a high quality cash generative business with impressive customer advocacy and duration. Over the last 12 months rising interest rates and competition have made things harder for Xero. However, we see the current short-term weakness as a rare opportunity to buy a high quality global growth company at a discount to the life time value of its current customer base.

The broker has an add rating and $97.00 price target on the ASX 200 stock.

The post Morgans names more of the best ASX 200 stocks to buy in May appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Nasdaq rebound! Brokers say these ASX 200 tech shares are buys
• 3 ASX 200 stocks brokers just upgraded to ‘buy’
• Top brokers name 3 ASX shares to buy today
• Pro Medicus shares: Bull vs. Bear

Motley Fool contributor James Mickleboro has positions in Seek and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Seek. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Block Inc (ASX: SQ2) share price is avoiding the market weakness and pushing higher on Friday.

In morning trade, the payments company’s shares are up 1.5% to $91.40.

Why is the Block share price rising?

Investors have been bidding the Block share price higher today after the payments company released its first-quarter update. Here’s how it performed:

• Gross payment volume of US$51.1 billion
• Gross profit up 32% to US$1.71 billion
• Adjusted operating income of US$51 million (up from US$42 million loss)
• Adjusted EBITDA up 89% to US$368 million
• Net loss improved to US$17 million (from US$201 million)
• April gross profit up 24%

What happened during the quarter?

For the three months ended 31 March, Block reported a 32% increase in gross profit to US$1.71 billion. This was driven by 49% increase in Cash App gross profit to US$931 million and a 16% lift in Square gross profit to US$770 million.

The former was underpinned by a 15% in Cash App monthly transacting actives to 53 million, with inflows per transacting active up 8%. Cash App also generated US$50 million in Bitcoin gross profit for the quarter.

As you might have guessed from the Block share price reaction, this result was ahead of the market’s expectations.

Outlook

Also giving the Block share price a boost has been news that management expects to deliver adjusted EBITDA of US$1.36 billion in FY 2023. This is up from its previous guidance of US$1.30 billion and is now ahead of the consensus estimate of US$1.32 billion.

Another positive is that Block is now expecting an adjusted operating loss of US$115 million for the year, which is down from its prior guidance for a loss of US$150 million.

The post Block share price charges higher on strong Q1 result and guidance appeared first on The Motley Fool Australia.

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More reading

• Down 37% in a year, fundie says Block shares offer ‘very attractive rate of return’
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why Block, Nanosonics, Pilbara Minerals, and Weebit Nano shares are racing higher
• Why is the Block share price tumbling 6% today?

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 positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Vulcan Energy Resources Ltd (ASX: VUL) share price has returned from its trading halt and sunk deep into the red.

In morning trade, the lithium developer’s shares are down 17% to $5.12

Why is the Vulcan Energy share price crashing?

Investors have been selling down the Vulcan Energy share price on Friday after the company completed an institutional placement.

According to the release, the company has raised 66 million euros (A$109 million) via a fully underwritten placement to sophisticated, experienced, professional, and institutional investors at $5.10 per new share.

This represents a sizeable 17.2% discount to the where the Vulcan Energy share price was trading prior to its halt.

Management advised that the placement was strongly supported by existing and new shareholders, including a number of global ESG-focused institutions.

Why did Vulcan raise funds?

Vulcan Energy revealed that the proceeds from the placement, together with its existing cash, will be used to progress its integrated renewable energy and lithium project execution strategy, as well as phase two project development activities.

Proceeds will be applied to the ordering of long lead capital expenditure items for the phase one lithium plant and renewable energy plant. This includes the ion exchange system, direct lithium sorption package, and the organic rankine cycle (ORC) type geothermal renewable energy plant.

Vulcan Energy’s managing director & CEO, Dr. Francis Wedin, was pleased with the placement. He said:

The ~300-strong Vulcan team remains focused on the execution of Phase One of our industry-leading Zero Carbon Lithium Project, providing the European market with critically-needed secure supply of sustainable, battery-grade lithium hydroxide for the electric vehicle market, as well as increased renewable energy supply for energy and climate security. The Placement positions us to continue delivering our integrated renewable energy and lithium project execution strategy, in line with the recently published DFS development plan.

Dr Wedin also revealed that he expects the next 12 months will be transformative for the company. He adds:

It is shaping up to be an exciting, transformative year for Vulcan, with planned start-up of optimisation plants towards training for commercial operational readiness, production well development to increase current brine flow, completion of bridging engineering, award of key contracts and ordering of commercial long lead items for our Phase One commercial plants.

The post Why is the Vulcan Energy share price crashing 17% today? appeared first on The Motley Fool Australia.

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More reading

• ASX 300 lithium stock Vulcan Energy halted amid cap raise

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 Scott Phillips.

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The S&P/ASX 200 Materials Index (ASX: XMJ) has returned 2% in the last year, but this ASX mining share has soared far higher.

The WA1 Resources Ltd (ASX: WA1) share price has risen 1,100% in the last year and is currently fetching $2.40. In Thursday’s trade alone, this ASX share soared almost 14%.

For perspective, a $10,000 investment in this share a year ago would now be worth $120,000.

Let’s take a look at what is going on with this ASX mining share.

What’s been going on?

WA1 Resources shares soared 1529% between market close on 21 October and 18 November amid some announcements.

On 26 October, WA1 Resources released drill results from the West Arunta Project in Western Australia.

The explorer revealed it had intersected with a mineralised carbonate system with highly elevated niobium, anomalous rare earth elements (REE), and phosphorous.

At the time, the company’s managing director Paul Savich said:

The discovery of a mineralised carbonatite system in the West Arunta is the first of its kind in the region and is a significant finding from our maiden drilling program

Then on 15 November, WA1 advised it had started an airborne electromagnetic (EM) survey at the Hidden Valley Project. This survey is testing for bedrock conductive anomalies.

The next day, WA1 announced the discovery of a second niobium and REE mineralised carbonatite system at Luni, within the West Arunta project.

Savich described this announcement as an “incredible outcome”.

In late April, WA1 presented a quarterly report advising of a cash balance of $10.4 million at 31 March.

In more recent news, on 1 May, WA1 Resources announced high-grade niobium mineralisation is continuing to extend at Luni.

Mineralisation extends at least 400m to the east and 200m south of drill hole LURC003 and is open in all directions.

Share price snapshot

The WA1 Resources share price has lifted 72% in the year to date and nearly 78% in the last month.

This ASX mining share has a market capitalisation of about $85 billion based on the last closing price.

The post 1000% return in a year! What’s with this ASX mining share? appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX mining share is surging 30% on a potentially ‘globally significant deposit’

Motley Fool contributor Monica O’Shea 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 Scott Phillips.

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If you’re a fan of S&P/ASX 200 Index (ASX: XJO) banks, you’re likely aware the Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has struggled over the last five years.  

The stock has fallen 22% in that time. That’s compared to the ASX 200’s 18% gain and the S&P/ASX 200 Financials Index (ASX: XFJ)’s 1% slump.  

An investor who bought $6,000 worth of shares in the regional bank in May 2018 likely would have walked away with 558 securities, paying $10.74 apiece.

Today, that parcel would be worth $4,687.20. The Bendigo Bank share price last traded at $8.40.

But Bendigo Bank has been a relatively consistent dividend payer in that time. Could the passive income provided by the banking stock have made up for its sluggish performance?

All dividends paid to owners of Bendigo Bank shares since 2018

Here is all the dividend income provided to those holding Bendigo Bank shares since May 2018:

Bendigo Bank dividends’ pay date	Type	Dividend amount
March 2023	Interim	29 cents
September 2022	Final	26.5 cents
March 2022	Interim	26.5 cents
September 2021	Final	26.5 cents
March 2021	Interim	28 cents
March 2020	Interim	31 cents
September 2019	Final	35 cents
March 2019	Interim	35 cents
September 2018	Final	35 cents
Total:		$2.725

As the chart above shows, each Bendigo Bank share has yielded $2.725 of dividend income since May 2018.

That means our figurative parcel has likely provided $1,520.55 of passive income.

Considering both the stock’s tumble and the dividends provided to investors over the last five years, our imagined investor has realised a total return on investment (ROI) of 3.6%.

While that’s certainly not mind-blowing, I’d argue it’s better than a loss!

It’s also worth considering the fact that all the dividends paid by the bank in that time have been fully franked. Thus, they might have brought about additional benefits for some investors come tax time.

Right now, Bendigo Bank shares offer a notable 6.6% dividend yield.

The post Did you buy $6,000 of Bendigo Bank shares 5 years ago? If so, here’s how much dividend income you’ve realised appeared first on The Motley Fool Australia.

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More reading

• Lowest ASX bank yield: Are CBA shares still worth it?
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• Are these ASX All Ords shares ready to buy at fundamentally fire sale prices?

Motley Fool contributor Brooke Cooper 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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Was the Vanguard MSCI Index International Shares ETF (ASX: VGS) worth owning in April? Good question.

April was a fairly solid month for ASX shares. Over the month just passed, the S&P/ASX 200 Index (ASX: XJO) rose by 1.8%. But the VGS ETF isn’t an ASX index fund. Rather, it’s a truly massive exchange-traded fund (ETF) that covers more than 1,500 different companies, hailing from more than 20 different advanced economies from around the world.

Those include Canada, the United Kingdom, France, Japan, Singapore, Switzerland, and Israel.

But by far the most dominant market in this ETF is the United States. A whopping 69.4% of this ETF’s portfolio is weighted towards US shares. That includes every share of this ETF’s top 10 holdings, which are dominated by the US tech giants like Apple, Microsoft, Amazon, and Tesla.

Thus, it doesn’t really matter what the ASX did in April when we discuss this ETF.

Let’s get into it.

How did VGS units fare on the ASX over April?

VGS units began April at a price of $98.70 each. But by the end of the month, those units were going for $101.86 each – a rise worth a healthy 3.2%. Somewhat ironically, the very next trading day (1 May) saw this fund clock a new 52-week high of $102.55:

3.2% is a solid monthly return for any investment. But the fact that the ASX 200 ‘only’ gave investors a 1.8% gain means the VGS ETF shone especially bright in April. So yes, we can conclude that it was definitely worth owning the Vanguard MSCI International Shares ETF last month.

Vanguard International Shares ETF snapshot

The VGS ETF has a long and productive history on the ASX, being one of the most popular ETFs on the market that covers international shares. As of 30 April, this fund has returned an average of 12.78% per annum over the past three years, and 11.2% per annum over the past five.

Since its inception in late 2014, it has averaged 11.78% per annum. This ETF charges a management fee of 0.18% per annum (or $18 a year for every $10,000 invested).

The post Was the Vanguard MSCI Index International Shares ETF (VGS) worth owning in April? appeared first on The Motley Fool Australia.

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More reading

• 2 of the best ASX ETFs for global investing
• 3 top ASX ETFs hitting new 52-week highs on Friday
• I think this underrated reason is key to why ETFs can be great investments
• 3 reasons why the Vanguard MSCI Index International Shares ETF (VGS) could be an excellent investment for beginners
• 3 quality ASX ETFs for investors to buy for the long term

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Amazon.com, Apple, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Apple, Microsoft, Tesla, and Vanguard Msci Index International Shares ETF. The Motley Fool Australia has recommended Amazon.com, Apple, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Bank of Queensland Ltd (ASX: BOQ) share price didn’t have a good time in April 2023, falling by 10.6%. This was significantly worse than the performance of the S&P/ASX 200 Index (ASX: XJO) which climbed by 1.8%.

It was an eventful month for the ASX bank share which reported its FY23 half-year result for the six months to 28 February 2023.

Let’s look at some of the numbers, which didn’t impress investors.

Earnings recap

It said that cash earnings after tax declined by 4% to $256 million, while cash earnings per share (EPS) declined 5% to 39 cents.

The net interest margin (NIM) only saw a 4 basis point (0.04%) increase compared to the second half of FY22, despite all of the increases in the central bank interest rates.

Statutory net profit after tax (NPAT) fell 98% to $4 million after two large one-off items – a $60 million provision for its integrated risk program and a $200 million impairment of goodwill.

One of the main things that could have affected the Bank of Queensland share price was that it said the benefit of margin tailwinds was “materially reduced” over the last two months of the half, with “heightened mortgage and deposit competition”.

There was also a 7% increase in operating expenses year over year, but the bank has a ‘simplification program’ which is intended to address the expense growth.

With the fall in profit, the business decided to cut the interim dividend per share by 9% to 20 cents per share.

Is the future looking positive for the BOQ share price?

The ASX bank share provided a number of interesting comments about the outlook.

BOQ said that the Australian economy ended the half “reasonably well placed, with low unemployment, stable growth in order books and strong terms of trade.”

But, the bank also said that economic growth is moderating due to elevated inflation and higher interest rates. Further slowing is expected in the second half.

Bank of Queensland is expecting to see heightened mortgage competition continuing, as well as escalated deposit competition, with margin compression “anticipated”. In other words, margins could suffer in the second half of the financial year.

The bank said that it’s looking to optimise revenue, portfolio quality and returns.

Bank of Queensland share price valuation

Using the estimates on Commsec, the BOQ share price is priced at less than 9 times FY23’s projected earnings.

The post The Bank of Queensland share price crumbled 11% in April. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Bank of Queensland share price dips following more losses for US regional banks
• Why did the Bank of Queensland share price just hit a new 52-week low?
• Bought $2,000 of Bank of Queensland shares five years ago? If so, here’s how much dividend income you’ve earned
• Lowest ASX bank yield: Are CBA shares still worth it?
• Are Bank of Queensland shares a buy following the latest results?

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 Scott Phillips.

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ASX rare earths share Arafura Rare Earths Ltd (ASX: ARU) has fallen in the last month, so is now the time to pounce?

Arafura shares have slid 18% in a month and closed on Thursday at 40 cents apiece. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has dropped 3% in the past month.

Let’s check the outlook for this ASX rare earths share.

What’s ahead for this ASX rare earths share?

Arafura Rare Earths is developing the Nolans neodymium and praseodymium (NdPr) project in the Northern Territory, 135km from Alice Springs.

Analysts at Bell Potter in April retained a “speculative buy” rating on Arafura with a 72 cents price target. This implies an upside of about 78% based on the latest share price.

This followed news Arafura had signed a binding offtake agreement with Siemens Gamesa Renewable Energy for its Nolans production.

Bell Potter analysts believe “this is a milestone” and supports the company’s final investment decision on the project.

Under the agreement, Arafura would supply up to 400 tonnes per annum (tpa) of neodymium and praseodymium (NdPr) metal.

Offtake volumes would start at 200 tpa in 2026 and then lift to 360tpa in 2027 and 400 tpa in the remaining three years.  

Commenting on the news, Arafura managing director Gavin Lockyer said:

We are delighted to have concluded negotiations for our second offtake agreement. Siemens Gamesa is the world’s leading manufacturer of offshore wind turbines, and this agreement compliments our strategy to create supply diversification into the renewable & E-mobility sectors.

In late April, Arafura presented quarterly results to the market. The company had $153.4 million of cash reserves as of 31 March 2023.

However, the market price of NdPr oxide fell 26% to US$76 per kg during the quarter due to “demand weakness for magnets in China”. At the time, the company said:

China remains the largest user of sintered magnets for applications such as electric vehicles (EVs), wind generation technology, consumer electronics and appliances, and demand in these sectors is experiencing lower manufacturing output since the beginning of the COVID-19 pandemic in 2020.

Share price snapshot

Arafura shares have lifted 14% in the past 12 months.

This ASX rare earths share has a market capitalisation of about $856 million based on the latest share price.

The post Down 18% in a month, is ASX rare earths share Arafura now a bargain buy? appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• Why Arafura, Core Lithium, Mayne Pharma, and Newcrest shares are storming higher
• Here’s why the Arafura share price is racing 11% higher
• Why has the Arafura share price just been halted?

Motley Fool contributor Monica O’Shea 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 Scott Phillips.

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Well, it’s been another month, and another ASX notice confirming fund outflows for Magellan Financial Group Ltd (ASX: MFG). 

Yesterday, we got the news that Magellan’s funds under management (FUM) continued to fall over April. The embattled fund manager reported a total FUM of $42.7 billion as of 28 April. That was down by $500 million from the $43.2 billion that the company recorded on 31 March.

This latest fall is just another notch down the ratchet for Magellan. It was only three years ago that this company was flying high, with more than $100 billion in FUM under its belt. But a devastating series of events has led to a massive loss in confidence from both investors and shareholders since 2020.

What went wrong with Magellan shares?

There was the issue of performance to start with. Magellan, as a fund manager, needs to show that it is a safe and lucrative place for clients to house their investments. But Magellan’s flagship funds have failed to consistently deliver market-beating returns for a long period of time now (more on that later).

This started before 2020, to be sure. But a series of unfortunate investments over the COVID period saw investors rapidly lose confidence in what used to be Magellan’s star stock picker Hamish Douglass.

Speaking of Douglass, and we have the second problem Magellan has had to deal with in recent years. Douglass co-founded Magellan, and for many years was the company’s investing talisman.

But Douglass dramatically walked away from the company in 2022 amid revelations regarding his personal life. He promised not to sell any of his large stake in the company, before promptly offloading large volumes of shares.   

At the same time, Magellan suffered the loss of several sizeable investing mandates from institutional clients.

All of these events culminated in Magellan sliding from more than $65 a share back in early 2020 to a low of $7.52 last month. At yesterday’s closing share price of $8.30, the company has bounced back a little. But Magellan is still a long, long way from its glory days:

So this begs the question: can Magellan ever stem the seemingly ceaseless month-on-month FUM losses?

Can this ASX 200 fund manager get its FUM back?

That’s a hard question to answer since there were so many issues that led to the company’s present predicament to start with.

But arguably, the best thing Magellan can do to stop the bleeding would be to boost the performance its investors currently enjoy.

Magellan’s flagship Global Fund has seen something of a turnaround over the past 12 months. As of 30 April, its unlisted iteration had returned 11.75% over the preceding year, outperforming its benchmark by 0.8%. But its longer-term performance still remains patchy.

Over three years, it has averaged 4.87% per annum, an underperformance of 7.88%. Over five years, it is sitting at 9.76% per annum, again undershooting the benchmark by 1.29%. And over the past decade, the returns are sitting at 12.8% per annum, missing the benchmark by 0.93%.

Investors typically like to see significant market-beating returns when they are asked to pay 1.35% per annum in management fees.

So if Magellan can keep its more recent performance up, it might just have a shot at clawing back some FUM over time. And perhaps some of the Magellan share price. But we’ll have to wait and see how it fares.

 

The post Can Magellan ever stem the FUM outflows? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why CogState, Jumbo, Magellan, and St Barbara shares are rising today
• 12 ASX dividend shares with yields over 10%. Are they too good to be true?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen 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 Scott Phillips.

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There are a lot of growth shares for investors to choose from on the ASX.

To narrow things down, I have picked out three ASX growth shares that have recently been tipped as buys with major upside potential.

Here’s what you need to know:

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals shares could be a top option for growth investors. This is because the lithium giant has been tipped to generate big returns from current levels by analysts at Macquarie. This is due to its belief that the miner is well-placed to generate huge free cash flow from its expanding operations in the coming years.

Macquarie currently has an outperform rating and $7.70 price target on Pilbara Minerals’ shares. This implies potential upside of 82% for investors.

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth share to buy could be Readytech. It is a leading provider of mission-critical solutions to the education, employment services, workforce management, government and justice sectors. Goldman Sachs is bullish on the company and believes its shares are cheap considering its growth potential. It highlights that “RDY is now trading at ~17x FY24 P/E while delivering ~20% FY23-25E EBITDA CAGR.” The latter is expected to be “supported by its defensive public sector end-markets (~3/4 of earnings) and mission-critical software systems.”

Goldman has a buy rating and $4.40 price target on its shares. This suggests potential upside of 42% from current levels.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share that could be a buy is Temple & Webster. It is Australia’s leading pureplay online furniture and homewares retailer. Goldman Sachs is also very positive on the company and believes it is well-placed for strong growth over the next decade. This is due to its belief that the company “is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry.”

Goldman has a buy rating and $6.10 price target on its shares. This would mean a return of almost 60% over the next 12 months.

The post Buy Pilbara Minerals and these ASX growth shares for 40%+ returns: analysts appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• What’s the outlook for the Pilbara Minerals share price in May?
• 2 ASX 200 lithium shares to buy for $100 monthly passive income each
• 2 ASX growth shares I’d buy today before it’s too late
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended ReadyTech and Temple & Webster Group. The Motley Fool Australia has recommended ReadyTech and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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