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The Australian share market is home to a number of quality companies with solid growth prospects.

Two that have been tipped to grow strongly over the long term are listed below. Here’s why analysts think investors should be buying their shares:

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is Australia’s leading online beauty retailer and has been growing strongly in FY 2021 thanks to the shift to online shopping.

And while the company’s growth is likely to moderate significantly in FY 2022 when trading conditions return to normal, it looks well-placed for growth in the years that follow. Particularly given the aforementioned shift online, which is still in its infancy for the beauty and personal care (BPC) market.

Management notes that the BPC market in Australia is worth $11.2 billion and is expected to grow at a 26% CAGR to 2024. Furthermore, online sales currently comprise 11.4% of the BPC market, which is a notably lower rate of penetration than in developed markets like the US, UK and China.

UBS is a fan of the company. Its analysts currently have a buy rating and $5.40 price target on the company’s shares. The broker believes Adore Beauty’s sales could double between FY 2021 and FY 2025.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a leading provider of international student placement and English language testing services, and the co-owner of the International English Language Testing System (IELTS). This is the English test that is trusted by more governments, universities and organisations than any other. It also operates English language teaching schools in South East Asia.

While demand for its services has unsurprisingly being hit hard by COVID-19, trading conditions have been improving. For example, at the end of the first half, the company reported that testing volumes were broadly in line with those experienced in the final month of 2019 before the pandemic. And although recent outbreaks since then may have stifled its recovery, it looks well-placed to continue it once things are under control again.

Morgan Stanley remains very positive on the company. It recently retained its outperform rating and $30.00 price target on its shares.

The post 2 outstanding ASX growth shares rated highly appeared first on The Motley Fool Australia.

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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 Idp Education Pty Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. 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 unhappy with the low interest rates on offer with savings accounts and term deposits, then you might want to take a look at the numerous dividend options on the Australian share market.

Two ASX dividend shares that could help you beat low rates are listed below. Here’s what you need to know about them:

Sonic Healthcare Limited (ASX: SHL)

The first ASX dividend share to look at is Sonic Healthcare. Over the last couple of decades, Sonic has grown to become one of the world’s leading healthcare providers, with operations in Australasia, Europe and North America. It currently employs more than 1,500 pathologists and radiologists, and more than 10,000 medical scientists, radiographers, sonographers, technicians and nurses.

Sonic has been a strong performer in FY 2021 thanks largely to increased demand for COVID-19 testing. This led to the company reporting a 33% increase in first half revenue to $4.4 billion and a massive 166% increase in first half net profit to $678 million.

Credit Suisse is a fan of the company. Its analysts currently have an overweight rating and $40.00 price target on its shares. The broker is forecasting dividends of 97 cents per share in FY 2021 and 98 cents per share in FY 2022. Based on the latest Sonic share price of $35.16, this will means yields of 2.5% and 2.6%.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to look at is Super Retail. It is the retail group behind the BCF, Macpac, Rebel, and Super Cheap Auto retail brands.

Super Retail has also been a strong performer in FY 2021. This has been driven by a favourable redirection in consumer spending during the pandemic. In the first half of FY 2021, Super Retail reported a 23% increase in sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million. And with international travel still some way off, it looks set to continue to benefit in the near term.

Goldman Sachs is positive on the company and is anticipating a strong full year result in August. It expects this to lead to Super Retail declaring a bumper full year dividend of 81 cents per share. Based on the latest Super Retail share price of $13.49, this will mean a fully franked 6% dividend yield.

The broker currently has a buy rating and $15.00 price target on its shares.

The post 2 excellent ASX dividend shares for income investors appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares 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 Super Retail Group Limited. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week with a solid gain. The benchmark index rose 0.5% to 7,295.4 points.

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

ASX 200 expected to rise

The Australian share market is expected to open the week slightly higher this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% higher. This follows a positive end to the week on Wall Street, which saw the Dow Jones rise 0.5%, the S&P 500 climb 0.9%, and the Nasdaq storm 1.5% higher.

Oil prices push higher

It could be a positive start to the week for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price rose 1.2% to US$69.62 a barrel and the Brent crude oil price rose 0.8% to US$71.89 a barrel. Oil prices recorded strong weekly gains thanks to OPEC’s promise to be disciplined with its production.

Tech shares on watch

Australian tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) could push higher today after their US counterparts ended the week strongly. The tech-heavy Nasdaq index jumped a sizeable 1.5% on Friday night. This followed the release of a US jobs report that showed solid gains, boosting confidence in the country’s economic comeback. As the local tech sector tends to follow the Nasdaq’s lead, this bodes well for today’s trade.

Gold price rebounds

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price rebounded on Friday night. According to CNBC, the spot gold price rose 1% to US$1,892.00 an ounce. This appears to have been driven by softening bond yields. This wasn’t enough to stop the gold price from recording a small weekly decline.

ASX Ltd rated as a sell

The ASX Ltd (ASX: ASX) share price may be overvalued according to analysts at Goldman Sachs. This morning the broker responded to the stock exchange operator’s May update by reiterating its sell rating and $67.46 price target on its shares. Goldman believes its earnings risks are skewed to the downside, particularly in futures.

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

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James Mickleboro doesn’t own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are plenty of options out there for growth investors on the Australian share market.

Two that are highly rated are listed below. Here’s what you need to know about them:

Dubber Corp Ltd (ASX: DUB)

The first ASX growth share to look at is Dubber. It is a software company that provides businesses with a scalable call recording service.

The company’s cloud-based technology allows businesses to record, manage, and analyse their phone calls and communications.

Demand for Dubber’s offering has been growing strongly over the last couple of years, leading to a significant increase in active customers and revenue.

And with the company just announcing an agreement with global giant Cisco, its growth prospects look even more positive. That agreement will see Cisco Webex Calling and Cisco Unified Communications Manager Cloud (UCM) now include Dubber call recording as part of all Cisco Webex and UCM services at no additional cost to users.

After which, if a user or business requires additional features, such as extended storage, video recording, transcription, sentiment analysis or AI-enriched insights, they can then upgrade their Dubber plan from within Cisco’s Control Hub with immediate access and effect.

Shaw and Partners currently has a buy rating and $3.03 price target on the company’s shares.

Nearmap Ltd (ASX: NEA)

Another ASX growth share to consider is Nearmap. It is a leading aerial imagery technology and location data company’s platform provider.

Like Dubber, demand for its offering has been growing strongly in recent years. Pleasingly, management appears confident that this will continue. So much so, it is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term.

And while a patent infringement notice is likely to weigh on sentiment in the near term, Morgan Stanley remains positive on the company. It also notes that just 25% of its North American revenue is subject to the patent dispute. 

Morgan Stanley has an overweight rating and $3.20 price target on the company’s shares.

The post 2 top ASX shares for growth investors appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dubber Corporation and Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Dubber Corporation and Nearmap 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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There are some ASX shares that plenty of brokers like at the moment.

Everyone has a different opinion about each business. But if multiple analysts like the same company then it could be an opportunity:

Steadfast Group Ltd (ASX: SDF)

Steadfast Group says it’s the largest general insurance broker network and the largest group of insurance underwriting agencies in Australasia, with growing operations in Asia and Europe.

It has a broker network that get better market access, exclusive products and services through the Steadfast Group. Steadfast has underwriting agencies that designs, develops and provides specialised insurance products and services to brokers inside and outside of Steadfast. Steadfast also has a number of complementary and supporting businesses for insurance like technology, risk, life insurance, reinsurance and lawyers.

Steadfast is currently rated as a buy by at least four brokers, including Credit Suisse which has a price target on Steadfast of $4.60. It noted the recent profit upgrade.

In that upgrade, the ASX share increased its earnings expectations after a “strong” first nine months of FY21 with revenue growth of 7.2% and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 20.5%.

After good organic growth and accretive acquisitions, Steadfast said that it’s expecting underlying net profit after tax (NPAT) to come in a range of $127 million to $132 million – that guidance was increased from a range of $120 million to $127 million. Underlying earnings per share (EPS) is expected to grow by 15% to 20%.   

Steadfast said that strategic partners continue to implement moderate premium price increases.

FINEOS Corporation Holdings PLC (ASX: FCL)

FINEOS is an ASX software share that provides software to the employee benefits and life, accident and health industry. It says that it helps customers upgrade from outdated legacy administration systems to a modern purpose-built, customer-centric product-suite. It enables improved operational efficiency, increased effectiveness and excellent customer care.

It’s currently rated as a buy by at least three brokers, including the ones at Macquarie Group Ltd (ASX: MQG) that have a price target of $4.63 on FINEOS. That suggests a possible upside of over 20% over the next 12 months. Macquarie thinks that FINEOS can claim more wins which could help.

In the quarter ending 31 March 2021, it revealed that FY21 total revenue is on track to hit the upper end of its guidance range of $102 million to $105 million and achieve the targeted 30% growth in subscription revenue (before the contribution from the Limelight acquisition).

Since that quarterly update, the ASX share announced the acquisition of Spraoi for an upfront US$4 million and an earnout of up to US$6.6 million. Spraoi is a leading provider of machine learning capabilities for the employee benefits and life industry. It currently has eight clients and achieved US$6 million of revenue in the year to 31 December 2020 and is expected to be earnings accretive to FINEOS, excluding transaction costs, after its first full year.

FINEOS is excited by this acquisition because it gives it immediate opportunities to leverage from its existing client base and product capabilities.

The post 2 ASX shares that multiple brokers really like appeared first on The Motley Fool Australia.

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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 recommended FINEOS Corporation Holdings plc. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended FINEOS Corporation Holdings plc and Steadfast Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Our market is set to deliver to best returns in years if it holds on to its gains till June 30 and experts are rushing to upgrade their forecasts for ASX shares.

The S&P/ASX 200 Index (Index:^AXJO) jumped by nearly 24% (before dividend and franking) since the start of FY21. What’s more, futures pricing is predicting a positive start to trade tomorrow.

The experts have largely underestimated the rebound for our economy from the  COVID-19 disaster and have also undercooked their expectations for ASX shares.

Best performing ASX shares in FY21

From the way things are going, resource shares will dominate the leader board for this financial year. The Pilbara Minerals Ltd (ASX: PLS) share price, Lynas Rare Earths Ltd (ASX: LYC) share price and OZ Minerals Limited (ASX: OZL) share price are among those leading the charge.

Outside of resources, the ARB Corporation Limited (ASX: ARB) share price and Reece Ltd (ASX: REH) share price have also more than doubled.

Despite the ASX 200 breaking a new record high, several experts believe our market is heading higher before Christmas comes around.

Can ASX 200 shares deliver an extra 10% return in 2021?

Strategists from several leading financial institutions have upgraded their forecasts for the top 200 share benchmark, reported the Australian Financial Review.

The most bullish is Exchange Traded Funds (ETF) provider VanEck. It believes the ASX 200 will crack 8,000 points this calendar year. That represents around an additional 10% price upside for the index.

If its experts are right, the calendar return for the index would hit 21.4%. The AFR reckons this would be the best gain since 2009 after ASX shares rebounded strongly from the GFC.

VanEck’s bullish view was triggered by the better-than-expected GDP data for our economy. Australia expanded 1.8% in the March quarter and VanEck is forecasting GDP growth of 5% for 2021. That makes the RBA’s 4.75% prediction look conservative!

Experts rushing to upgrade forecasts for the ASX 200

Meanwhile, Commonwealth Bank of Australia (ASX: CBA) upgraded its estimates for the ASX 200 by 150 points to 7,350. That’s below JPMorgan’s 500-point upgrade in May for the benchmark to close at 7,500 for the calendar year.

JPMorgan believes that ASX mining shares will continue to power the market higher, but they will be supported by ASX banks.

The operating outlook for ASX banking shares has brightened significantly alongside our rapidly expanding GDP.

While ASX banks, like the CBA share price, have outperformed recently, these shares could still rally further due to dividend upgrades.

ASX 200 share valuations starting to look overstretched

Morgan Stanley also joined its peers and lifted its forecast for the top 200 index by 100 points last month to 7,200. But it warned that valuations are looking stretched as share prices are increasing faster than expected profits.

“We do see some price upside on a 12-month time horizon,” the AFR quoted Chris Nicol, Morgan Stanley’s Australian equity strategist.

“However, the bulk of expected total return will fall to income as dividend profiles continue to be rebuilt post COVID.”

The post Best returns in a decade leaves experts scrambling to upgrade ASX shares appeared first on The Motley Fool Australia.

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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 ARB 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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If you’re looking for some top ASX dividend shares to add to your income portfolio, then you might want to look at the ones listed below.

Here’s what income investors need to know about them:

Accent Group Ltd (ASX: AX1)

The first dividend share to consider is Accent. It is a retail group with a collection of popular footwear-focused store brands.

These include stores such as HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete’s Foot.

Accent also recently launched a new brand called 4 Workers. This brand is targeting the niche but lucrative workwear market. This includes clothing and footwear for tradies.

In addition to this, the company has just bolstered its offering with the acquisition of Glue Store. This opens up Accent to the growing street fashion market, complementing its existing businesses.

Bell Potter currently has a buy rating and $3.30 price target on its shares. The broker is forecasting dividends of 11.7 cents per share in FY 2021 and 12.3 cents per share in FY 2022.

Based on the latest Accent share price of $2.83, this represents fully franked yields of 4.1% and 4.3%, respectively.

National Storage REIT (ASX: NSR)

National Storage is one of Australasia’s largest self-storage providers. From over 200 locations across Australia and New Zealand, it tailors self-storage solutions to residential and commercial customers.

National Storage has been growing at a solid clip over the last few years thanks to a combination of organic growth and growth through acquisitions.

The good news is that management sees plenty of opportunities to continue growing in this way in the future. This bodes well for income and dividends over the 2020s.

For now, management expects the company to report underlying earnings per share of 7.7 cents to 8.3 cents in FY 2021. From this, it plans to pay out 90% to 100% to shareholders.

Based on the current National Storage share price, this represents a ~3.7% yield.

The post 2 ASX dividend shares with attractive yields for next week appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Origin Energy Ltd (ASX: ORG)

According to a note out of Ord Minnett, its analysts have retained their buy rating and increased their price target on this energy company’s shares to $5.75. The broker made the move on the belief that electricity prices are improving after a recent downturn. In addition to this, the broker is expecting the APLNG business to generate strong free cash flow. The Origin share price ended the week at $4.72. Ord Minnett’s price target implies potential upside of 22% over the next 12 months.

Sonic Healthcare Limited (ASX: SHL)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating and $40.00 price target on this healthcare company’s shares. According to the note, although vaccines are being rolled out globally, testing for COVID-19 remains strong. This bodes well for Sonic, which has been benefiting greatly from high testing volumes. As a result, the broker has increased its earnings estimates to reflect this. The Sonic share price was fetching $35.16 at Friday’s close. Credit Suisse’s price target represents potential upside of almost 14%.

Telstra Corporation Ltd (ASX: TLS)

Another note out of Ord Minnett reveals that its analysts have retained their buy rating and $4.10 price target on this telco giant’s shares. According to the note, although rival Vodafone has extended its discounts for another month at least, the broker continues to believe that Telstra’s superior 5G network is underpinning mobile subscriber growth. This may be supportive of ARPU growth in the mobile business in the near term. The Telstra share price ended the week at $3.58. Ord Minnett’s price target implies upside of 14.5%.

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

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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 Telstra Corporation Limited. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Rural Funds Group (ASX: RFF) is a real estate investment trust (REIT) that could be a good option to think about for income.

What does Rural Funds own?

Its property portfolio is focused on agricultural properties around Australia.

At the moment it’s invested in five different farming sectors. Those are: cattle, vineyards, almonds, macadamias and cropping (cotton and sugar).

The agricultural sectors it’s invested in are not fixed. A few years ago it didn’t own any cattle properties. Now, cattle is one of the biggest allocations. Rural Funds used to own poultry assets, but it has divested those properties.

Here are three reasons why Rural Funds could be an interesting ASX dividend share:

Diversification

Its farms are located in multiple states. They are also spread across different climactic conditions. This can help reduce the risks of the portfolio as a whole when looking at the potential downsides of each individual farm. It has at least one farm across most of the Australian states.

Rural Funds doesn’t rely on just one or two tenants. It has a number of large, quality tenants including Select Harvests Limited (ASX: SHV), Treasury Wine Estates Ltd (ASX: TWE), JBS, Australian Agricultural Company Ltd (ASX: AAC), Stone Axe, Olam and Queensland Cotton.

The agricultural REIT has a long weighted-average lease expiry (WALE) of around 11 years. That means that tenants are contracted to stick around for a long time.

Growth

Rural Funds aims to increase its distribution growth of 4% per annum for shareholders. It has been doing this for several years in a row since it listed.

How does it achieve this growth? The income growth is achieved through lease indexation (contracted rental growth), productivity improvements and with the conversion of assets to higher and better use.

Some of the contracted rental growth experiences a fixed 2.5% annual increase, with other farms having rental increases linked to CPI annual inflation growth.

The ASX dividend share has provided a distribution forecast increase of 4% for FY22.

Yield

Rural Funds pays out a fairly high percentage of its rental profit each year to shareholders. That means the Rural Funds distribution yield is relatively high compared to a typical ASX share.

Using the distribution forecast of 11.73 cents per unit in FY22, that puts the forward distribution yield on 4.6%.

The post 3 reasons why Rural Funds (ASX:RFF) could be a really good ASX dividend share appeared first on The Motley Fool Australia.

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• These were the best performing ASX 200 shares in May

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. 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 RURALFUNDS STAPLED and Treasury Wine Estates 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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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $89.50 price target on this banking giant’s shares. The broker has been looking at the capital positions of the big four banks. It believes they all have significant excess capital and suspects that this could mean share buybacks in the near future. Morgan Stanley estimates that Commonwealth Bank could return $5 billion to shareholders with its FY 2021 results. However, while this is positive, it isn’t enough for a change of rating. The broker continues to believe its shares are overvalued. The Commonwealth Bank share price ended the week at $102.52.

St Barbara Ltd (ASX: SBM)

A note out of Macquarie reveals that its analysts have retained their underperform rating and cut the price target on this gold miner’s shares to $1.70. The broker made the move after St Barbara withdrew its guidance for its Simberi operation. Macquarie has downgraded its production estimates for FY 2021 and suspects that its FY 2022 production could be impacted. The St Barbara share price was trading at $1.83 at the end of the week.

Wesfarmers Ltd (ASX: WES)

Analysts at Citi have retained their sell rating and $45.00 price target on this conglomerate’s shares. This follows the release of Wesfarmers’ strategy day event last week. The broker believes that Wesfarmers will need to invest heavily in its retail businesses to position them for medium to long term growth. And while it sees opportunities for Wesfarmers to make value accretive acquisitions, it isn’t pricing these in until they have been made. So for now, the broker believes its share overvalued. The Wesfarmers share price was fetching $55.24 on Friday.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares tipped to pay higher dividends: fund manager
• Why the CBA (ASX:CBA) share price is at record highs
• Is the Wesfarmers (ASX:WES) share price in the buy zone after its update?
• 5 things to watch on the ASX 200 on Friday
• ASX 200 hits another record, Sezzle flies, Wesfarmers falls

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 Wesfarmers 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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