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Lots of ASX shares are given a rating by brokers that essentially say that stock is a ‘buy’, ‘hold’ or ‘sell’.

If multiple brokers believe that the same business is a buy then that may be an indicator of an opportunity.

These two ASX shares are rated as buys by multiple brokers:

Pinnacle Investment Management Group Ltd (ASX: PNI)

What is Pinnacle? The ASX share says that it holds equity interests in a number of specialist investment managers and provides them with a governance framework, working capital, seed funding, and a comprehensive range of institutional quality and cost effective distribution and other non-investment support services.

The idea is that Pinnacle’s setup allows the managers to focus on the investing and deliver superior investment performance. It only looks to invest in high quality, experienced, dedicated and passionate investment professionals.

Pinnacle is invested in a number of quality investment managers such as Antipodes, Firetrail, Coolabah Capital, Solaris, Spheria, Plato and Hyperion.

The ASX share investment management business has seen continued growth. Affiliate funds under management (FUM) as at 30 April 2021 was up 20.4% to $84.9 billion over the four months, and up 44.6% from 30 June 2020. Total inflows over four months amounted to $9.9 billion.

Most affiliates and strategies continue to deliver performance to expectations or better.

Pinnacle is currently rated as a buy by at least three brokers. One of those is Morgans which has a price target of $11.14. The broker thinks the Pinnacle share price is valued at 30x FY21’s estimated earnings.

Alliance Aviation Services Ltd (ASX: AQZ)

Alliance Aviation claims to be Australia’s leading air charter services operator. It now has dozens of aircraft serving a number of clients, particularly in the fly in, fly out space. It also offers its charter services for group travel with things like tourism, corporate, sporting, entertainment and media, educational or the government sectors.

Some examples include transporting a sports team and their support staff or school children on an educational tour to Canberra.

The company continues to see growth in contract and charter revenue despite COVID-19. The company is expecting growth into FY22.

Whilst revenue only increased 2.3% to $154.8 million in HY21, underlying profit before tax rose 72.3% to $26.7 million, statutory profit before tax rose 116.8% to $33.6 million and operating cashflow rose by 225.3% to $47.5 million.

Alliance believes that the robustness of its business model, the commitment of its staff and the relationships it has with clients ensures it will continue to grow the business in future years. It’s currently rated as a buy by at least three brokers. Morgans has a price target on Alliance of $5.25, it’s valued at 19x FY21’s estimated earnings according to the broker.

More reading

• Alliance (ASX:AQZ) share price edges lower despite positive update
• This ASX airline you never heard of could see 40% earnings boost

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As well as being home to countless blue chip shares, the Australian share market is home to a good number of promising small caps.

Three small cap shares that could be worth adding to your watchlist are listed below. Here’s what you need to know about them:

Damstra Holdings Ltd (ASX: DTC)

The first small cap to watch is Damstra. It is a growing integrated workplace management solutions provider. Its cloud-based workplace management platform is used by businesses globally to track, manage, and protect their workers and assets. Demand has been growing strongly in recent years and has continued in FY 2021. For example, during the first half of FY 2021, the company reported a 29.6% increase in revenue to $13.3 million. Given that management estimates that its total addressable market will be worth US$20 billion by 2022, it still has a very long runway for growth.

Nitro Software Ltd (ASX: NTO)

Another small cap to watch is Nitro Software. It is a growing software company driving digital transformation in businesses around the world across multiple industries. Nitro’s key solution is the Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers via a software-as-a-service and desktop-based software solution. Demand for its offering was stronger than expected in FY 2020, leading to Nitro reporting a 64% increase in annualised recurring revenue (ARR) to $27.7 million. Positively, similarly strong growth is expected in FY 2021. Management’s guidance for the year ahead is ARR in the range of $39 million to $42 million. This will mean year on year growth of 41% to 51.6%.

Universal Store Holdings Limited (ASX: UNI)

Another small cap to watch is Universal Store. It is a fashion retailer aiming to deliver a frequently changing and carefully curated selection of on-trend products. It has been a very strong performer during the pandemic. For example, during the first half of FY 2021, Universal Store reported a 23.3% increase in sales to $118 million and a 63.6% increase in underlying net profit after tax to $21.1 million. It then followed this up with an equally strong third quarter update. Looking ahead, the company appears well-positioned for growth thanks to the popularity of its stores, its growing online business, and its expansion plans. In respect to the latter, management sees opportunities to double in store footprint in the future.

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With interest rates at rock bottom levels and unlikely to improve in the near term, the share market looks set to remain the best place to generate a passive income.

Listed below are two popular ASX dividend shares that could be worth a closer look. Here’s what you need to know about them:

National Storage REIT (ASX: NSR)

The first ASX dividend share to look at is National Storage. It is one of the region’s largest self-storage providers. From its 200+ centres across Australia and New Zealand, the company tailors self-storage solutions to residential and commercial customers.

National Storage has been growing at a solid rate over the last decade thanks to a combination of organic and inorganic growth. This continued during the first half of FY 2021 when the company reported underlying earnings growth of 14% to $39.2 million.

This allowed the company to increase its FY 2021 earnings guidance to 8.1 cents to 8.5 cents per share, with 90% to 100% of this being paid out as distributions.

Based on this guidance and the current National Storage share price, this will mean a ~3.9% dividend yield in FY 2021.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

The second ASX dividend share to look at is Sydney Airport. Although the airport operator is having a tough time because of the pandemic, traffic numbers continue to improve. And with vaccines rolling out across Australia and the globe, this trend looks set to continue.

One leading broker that believes it is worth being patient with Sydney Airport is Goldman Sachs. It currently has a buy rating and $6.73 price target on its shares.

In addition to this, the broker is forecasting a meaningful recovery in dividends in the near future. Goldman estimates that the company will pay 8.8 cents per share in FY 2021 and then 27.1 cents per share in FY 2022.

Based on the current Sydney Airport share price of $5.77, this will mean yields of 1.5% and 4.7%, respectively.

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On Thursday the S&P/ASX 200 Index (ASX: XJO) was back on form and charged notably higher. The benchmark index rose 1.3% to 7,019.6 points.

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

ASX 200 expected to rise again

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.5% higher this morning. This follows a solid night on Wall Street, which saw the Dow Jones rise 0.55%, the S&P 500 climb 1.1%, and the Nasdaq storm 1.8% higher.

Oil prices fall

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could finish the week in the red after oil prices dropped again. According to Bloomberg, the WTI crude oil price is down 2.1% to US$62.05 a barrel and the Brent crude oil price is down 2.6% to US$64.96 a barrel. Traders were selling oil amid news that Iranian sanctions could be lifted and supply could soon return.

Tech shares on watch

It could be a good day for tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) on Friday after their US counterparts stormed higher overnight. As the local tech sector tends to follow the lead of the Nasdaq index, its 1.8% gain on Thursday night bodes well for today’s session.

Webjet still a buy

According to a note out of Goldman Sachs, its analysts continue to believe the Webjet Limited (ASX: WEB) share price is in the buy zone. This is despite Qantas Airways Limited (ASX: QAN) announcing plans to cut travel agent commissions for international flights to 1% from 5%. It commented: “Overall, we view this announcement as a flag of a key risk factor in the Travel Agency revenue model but one that is partially anticipated in our forecasts. We are Buy rated on WEB with a 12m Target Price of A$6.40.”

Gold price softens

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch today after the gold price softened. According to CNBC, the spot gold price is down 0.2% to US$1,877.60 an ounce. The precious metal was under pressure from a strengthening US dollar.

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You’re certainly not alone if you’re fed up with the low interest rates on offer with savings accounts and term deposits. The good news is that you can overcome these low rates by investing in ASX shares that pay dividends.

But which ASX dividend shares should you buy? Two that brokers love right now are listed below. Here’s what you need to know:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is this mining giant. The Big Australian has been a strong performer over the last 12 months thanks to its solid production performance and favourable commodity prices.

In respect to the latter, the iron ore price has been a particularly positive performer. In fact, it recently broke through the US$200 a tonne level in recent weeks. This is materially higher than BHP’s cost of production, which means its iron ore operations are generating bumper free cash flows right now.

The good thing about this is that due to its strong balance sheet and generous dividend policy, the majority of this free cash flow is likely to end up in shareholders’ pockets.

One bullish broker is Macquarie. It currently has an outperform rating and $57.00 price target on its shares. It is also forecasting dividends per share of ~$3.46 and ~$2.93 over the next two years. Based on the current BHP share price of $48.27, this equates to fully franked yields of 7.3% and 6.2%, respectively.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to consider buying is Super Retail. It is a diversified retail company with a collection of popular brands – Super Cheap Auto, BCF, Macpac, and Rebel. 

Like BHP, it is also on form in FY 2021. For example, during the first half of FY 2021, the company reported a 23% increase in sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million.  Underpinning this growth was solid like for like sales across the company, a favourable shift in consumer spending, and strong online sales. The latter increased 87% over the prior corresponding period to $237.4 million.

Pleasingly, its strong form has continued in the third quarter, setting the company up to deliver a stellar full year result in August.

Goldman Sachs is a fan of Super Retail. It has been impressed with its performance and recently reaffirmed its buy rating and $15.00 price target on its shares. The broker is also forecasting an 84 cents per share fully franked dividend in FY 2021 (including a special dividend). Based on the current Super Retail share price of $12.37, this represents a 6.8% yield.

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The Cleanaway Waste Management Ltd (ASX: CWY) share price finished the day slightly higher after the High Court dismissed a challenge to its Melbourne regional landfill works approval.

By market close, the Cleanaway share price was trading 0.36% higher at $2.78, adding to a 50% yearly return.

The company has been under fire by the Brimbank Council and Ravenhall residents over contaminated soil and garbage odour stemming from its waste plant.

It has been a long legal stoush for Cleanaway. Let’s look at what the decision means for the waste management and recycling station company.

Cleanaway’s court case

Australia’s High Court today dismissed a legal challenge against approval for Cleanaway to extend its waste management station, Melbourne Regional Landfill, in Ravenhall, Victoria.

In June 2017, the Planning Minister for Victoria issued planning approval for the extension that would continue Cleanaway’s licence to operate the facility until 2046. The company also required works approvals to expand the facility.

Cleanaway has now faced and won legal challenges in the High Court, Court of Appeal and Supreme Court. Today’s decision was the last of these court cases.

The company also faced a higher-profile legal battle over its planned acquisition of French waste company Suez’s Australian operations. That deal eventually collapsed.

Cleanaway management comments

Chief operating officer Brendan Gill welcomed the decision:

Cleanaway welcomes the High Court decision today, confirming that the Melbourne Regional Landfill can continue to provide an essential waste service for the community well into the future.

Securing the continued long‐term operations at the site supports our Footprint 2025 Strategy. The site is a waste management hub of state importance that provides critical waste management services, including for
residual waste streams that cannot be recycled.

Cleanaway share price snapshot

The Cleanaway share price has been subject to a balancing act from investors over the past 12 months. Despite rocky news reports, the company’s record results have largely led market sentiment.

Cleanaway shares are up 19% this year-to-date and 12.9% this month. It has also beaten the industrials sector by 45% over the past year.

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Can the Commonwealth Bank of Australia (ASX: CBA) share price crack $100 a share? That question has vexed ASX investors for years now. The first time CBA shares approached the $100 a share mark was in March 2015. Back then, CBA had just enjoyed 12 months of solid share price appreciation. The ASX bank put on around 30% from March 2014 to March 2015.

At the time, many commentators wondered which ASX blue chip would get to $100 first: CBA or CSL Limited (ASX: CSL). Well, CommBank got to a high of approximately $94 in March, and that was the highest it ever reached. Until this month at least. Meanwhile, CSL went on to comprehensively beat out Commonwealth Bank, rising past $100 to $200 and even $300 a share eventually. But that’s a story for another day.

Last week, CBA finally beat its 2015 all-time high and rose to a new high watermark. Just today, CBA has built on these gains and reached a new high of $98.84 a share. So with the big ‘triple-digits’ now firmly in CBA’s sights, can it finally break the $100 mark?

Breaking $100 a share? CommBank, er, CAN?

An article in The Australian today reckons it’s not a case of ‘if’, but a case of ‘when’ and ‘by how much’. That’s because, uniquely amongst the ASX banks, CommBank has a pantry full of capital that puts it at the front of the banking pack when it comes to returning cash to shareholders. The report asserts CBA has “a large and growing capital surplus and a healthy franking balance of $2.3 billion”. This can be deployed in the near future to return around $22 billion to shareholders.

The report also reckons “the odds favour” CBA unveiling a $6 billion off-market share buyback when it delivers its annual results in August. All of these possibilities won’t be lost on ASX bank investors, which probably explains why CBA is the only big four bank to be trading anywhere near its all-time high right now, not to mention making new ones.

The report predicts CBA will “sail through $100” in the next few weeks, barring unforeseen events of course. We’ll have to wait and see if CommBank can finally break $100 a share. But the odds look in its favour, if this report is to be believed. At the current share price, Commonwealth Bank of Australia has a market capitalisation of $174.62 billion, a price-to-earnings (P/E) ratio of 21.9 and a trailing dividend yield of 1.52%.

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The Victorian state government handed down its budget today with billions in new taxes and cuts that will create winners and losers among ASX shares.

Victorian Treasurer Tim Pallas has gone in the opposite direction of his federal counterpart Josh Frydenberg!

While Frydenberg was all about spending and stimulus, Pallas unveiled $6 billion in new taxes plus $3.6 billion in cuts to public service.

This is despite the fact that the budget deficit for the state in the current financial year is nearly $6 billion better off at $17.4 billion than previously projected.

The ASX shares in better health

But there are some sectors that will be left smiling. Healthcare is one with the Australian Financial Review reporting $7.1 billion for hospitals and the healthcare system including $3.8 billion for mental health.

Medical facilities operators like the Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC) share price and Sonic Healthcare Limited (ASX: SHL) share price could share in the Pallas love.

Victorian-based medical equipment supplier Paragon Care Ltd. (ASX: PGC) are also likely to be pleased with the news.

Infrastructure gets another leg-up

ASX shares that are exposed to infrastructure construction are another group in the winner’s circle. The Andrews government is upping its investments in this area to $22.5 billion for FY22 to FY25. This compares to the previous average $15.5 billion over FY16 to FY25.

This will suit engineering groups like Downer EDI Limited (ASX: DOW) and steel maker BlueScope Steel Limited (ASX: BSL) just fine.

Bearing the tax burden

On the flipside, property develops are seething at the Victorian government as a good chunk of the new taxes are aimed at the sector.

The state is looking to claw $2.5 billion extra through higher stamp duty and land taxes. Property developers that reap the benefits of rezoning will be slugged with a 50% windfall gain tax.

I can’t imagine the likes of Mirvac Group (ASX: MGR) and Stockland Corporation Ltd (ASX: SGP) being particularly happy.

The concession to allow developers to get a stamp duty hall pass to sell unsold CBD apartments sitting on their books for a year or more is unlikely to make up for the pain.

Rolling the dice on ASX gaming shares

Pallas is also going after gamblers. Wagering and betting tax is going up to 10% on 1 July this year from 8%.

To the extent that it dissuades punters, the Tabcorp Holdings Limited (ASX: TAH) share price and Crown Resorts Ltd (ASX: CWN) share price could be dealt a losing hand.

On the other hand, it will likely take more than a 2% tax increase to change bad habits.

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• The ASX healthcare giant ready to explode: fundie

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The S&P/ASX 200 Index (ASX: XJO) went up around 1.3% to 7,020 points.

Here are some of the highlights from the ASX today:

Qantas Airways Limited (ASX: QAN)

The Qantas share price went up around 4% after the company gave a trading update to investors.

Qantas said there is a sustained rebound in domestic travel demand. Combined with the performance of its freight and loyalty divisions, this is continuing to drive its recovery from the impacts of COVID-19.

Based on the current trading conditions, the group expects to be statutory free cash flow positive for the second half of FY21. Net debt levels peaked in February at $6.4 billion and are expected to be lower than they were in December ($6.05 billion) by the end of the financial year.

Qantas has total liquidity available of $4 billion, that is split between $2.4 billion and $1.6 billion of undrawn debt facilities at 30 April 2021.

Assuming no further lockdowns or significant domestic travel restrictions, Qantas is expecting to generate $400 million to $450 million of underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for FY21.

However, the ASX 200 airline still expecting to report a statutory loss of more than $2 billion in FY21 due to redundancies, aircraft write-downs and depreciation charges.

Qantas said it’s on track to reach 95% of its pre-COVID domestic capacity for the fourth quarter of FY21. Qantas and Jetstar expect to average 107% and 120% respectively of their pre-COVID domestic capacity in FY22.

However, in a warning for travel agents, Qantas said it’s going to reduce costs by lowering front-end commissions on international tickets from 5% to 1%. The change won’t happen until July 2022.

It’s also offering voluntary redundancy for Qantas international cabin crew.

Nufarm Ltd (ASX: NUF)

The Nufarm share price rose by more than 3% today after reporting its result for half-year to 31 March 2021.

Revenue increased by 20% to $1.65 billion, underlying EBITDA rose 118% to $233.6 million and underlying earnings before interest and tax (EBIT) grew 1,590% to $130.4 million. Its operating profit improved to a profit of $128.8 million.

The ASX 200 share reported that there was growth in all regions and ‘seed technologies’, with particularly strong growth in the Asia Pacific and European regions.

The Nufarm managing director and CEO Greg Hunt said:

Strong early demand and channel restocking in key markets has delivered a very strong first half result. We are realising benefits from the leverage of our APAC business to improved seasonal conditions and the earnings recovery in our European business is on track.

Iluka Resources Limited (ASX: ILU)

The Iluka Resources share price fell 4.4% today, making it one of the worst performers in the ASX 200.

It said that Sierra Rutile continues to face acute business challenges, particularly since the onset of the COVID-19 pandemic. Its operational performance has been below expectations resulting in a financial performance that is unsustainable.

On 19 May 2021, Sierra provided the Government of Sierra Leone six months’ notice of its intention to temporarily suspend operations at Sierra Rutile.

During these six months, it’s going to evaluate the feasibility of mining operations there and continue trying to find third parties willing to invest. If the cost base can be reduced so that it can return to profitability and attract new investors then it will withdraw the suspension notice and mining operations will continue. A suspension of operations like this cannot exceed two years.

More reading

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• 2 excellent ASX 200 blue chip shares to buy

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