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• 2 stellar ASX growth shares rated as buys
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• ASX 200 drops, Nearmap plunges, Appen declines
• 2 explosive ASX growth shares rated as buys

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. 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 interested in adding some growth shares to your portfolio, then you may want to take a look at the ones listed below.

Here’s why they have been rated as buys:

Breville Group Ltd (ASX: BRG)

The first growth share to look at is this appliance manufacturer.

Breville has been growing at a consistently solid rate for a number of years. This has led to the company’s shares providing investors with market-beating returns over the last five years.

The good news is that its growth doesn’t look likely to be ending any time soon. Thanks to a combination of growing demand, acquisitions, and its international expansion, Breville has been tipped as a company that could continue growing its sales for some time to come.

That is certainly the view of analysts at UBS. They appear confident in its long term growth story thanks to product launches and its expansion into new markets. The broker currently has a buy rating and $35.70 price target on its shares.

REA Group Limited (ASX: REA)

Another ASX growth share to consider is REA Group. It is the dominant player in real estate listings in the Australian market.

Over the last few years, the company has been battling tough trading conditions. But thanks to the strength and resilience of its business model, the company came out on top.

The good news is that the tide is now turning and trading conditions are becoming very favourable. So, after cutting costs materially and introducing new revenue streams, the company looks set to reap the rewards as demand for listings increases due to the thriving housing market.

This should be supported by its international operations, which have large opportunities of their own.

Morgan Stanley is very positive on REA Group. Its analysts currently have an outperform rating and $172.00 price target on its shares.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA 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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If you’re wanting to beat low interest rates in 2021, then you might want to look at the dividend shares listed below.

They offer investors attractive yields that are vastly superior to term deposits and savings accounts. Here’s what you need to know about them:

BWP Trust (ASX: BWP)

The first ASX dividend share to look at is BWP Trust. It is a commercial property company with a focus on Bunnings Warehouse sites. At the last count, it owned a total of 68 properties that were leased to the home improvement giant, making it the largest Bunnings landlord.

Thanks to the strong demand for home improvement products due to a redirection in consumer spending and government stimulus, Bunnings has proven to a fantastic tenant for BWP. It has enjoyed high occupancy rates and been able to collect its rent as normal this year.

This led to BWP reporting a 6% increase in profit during the first half, allowing the BWP board to reaffirm its plans to pay a full year distribution of ~18.3 cents per share. Based on the current BWP share price, this equates to a 4.35% dividend yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share to consider is Rural Funds. It is an Australian agricultural property company with a portfolio of high quality assets.

These properties are leased to some of the biggest players in the agricultural sector on long term agreements. And with these leases including periodic rental increases, the company is well-positioned to deliver on its target of 4% growth in its distribution each year.

In FY 2022, Rural Funds intends to reward its shareholders with a distribution of 11.73 cents per share. This will be up 4% on FY 2021’s distribution. Based on the current Rural Funds share price of $2.42, this will mean a yield of 4.8%.

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• 2 ASX dividend shares with generous yields

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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 Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled lower. The benchmark index fell 0.5% to 7,061.7 points.

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

ASX 200 expected to rise

The Australian share market looks set to end the week on a better note. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% higher this morning. This follows a solid night on Wall Street, which saw the Dow Jones jump 0.9%, the S&P 500 climb 0.8%, and the Nasdaq rise 0.4%.

Oil prices fall

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could finish the week on a low note after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.2% to US$64.86 a barrel and the Brent crude oil price is down 1.05% to US$68.24 a barrel. Concerns about rising COVID-19 cases in India is weighing on prices.

Macquarie full year results

The Macquarie Group Ltd (ASX: MQG) share price will be one to watch today when it hands in its full year results. In February, the investment bank revealed that it expects to deliver a profit result that is approximately 5% to 10% higher than FY 2020. All eyes will be on its guidance for FY 2021, with experts suggesting that it will have no choice but to guide to a decline in earnings in FY 2022.

Gold price jumps

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could finish the week strongly after the gold price jumped higher. According to CNBC, the spot gold price is up 1.7% to US$1,814.90 an ounce. Weakness in the US dollar and bond yields gave the precious metal a lift.

NAB rated as a buy

The National Australia Bank Ltd (ASX: NAB) share price is good value according to one leading broker. According to a note out of Goldman Sachs, its analysts have responded to NAB’s half year results by putting a conviction buy rating and $29.97 price target on its shares. This implies potential upside of ~13% over the next 12 months excluding dividends.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) dropped by around 0.5% today to 7,062 points.

Here are some of the highlights from today:

Nearmap Ltd (ASX: NEA)

The Nearmap share price fell by 23% after investors responded to the legal case relating to patent infringement.

Nearmap said that it was made aware on the morning of 5 May 2021 of a complaint filed against its subsidiary, Nearmap US Inc, in the United States District Court (District of Utah, Northern Division).

The complaint alleges patent infringement relating to the plaintiffs’ roof-estimation technology. The allegations do not affect Nearmap’s core proprietary technology and do not affect the surveying of imagery or the delivery of premium content. The business remains unaffected, according to management.

This complaint has been filed on behalf of Eagle View Technologies Inc and Pictometry International Corp. The plaintiffs are seeking unspecified monetary damages and the prevention of alleged further infringement in relation to the plaintiffs’ roof-estimation technology.

Dr Rob Newman, CEO and managing director of Nearmap, said:

Nearmap has always taken the subject of intellectual property rights and patent protections seriously and believes the allegations are without merit. We will vigorously defend against the complaint. The business remains unaffected by the complaint.

It was the worst performer in the ASX 200.

Appen Ltd (ASX: APX)

The Appen share price dropped 21.1% after giving investors an update about operating conditions.

Appen said there’s a lot going on in its market and the AI market in general. In most regards, things are unchanged according to management. However, there were a couple of things that had changed.

The tech business said that its customers are developing new AI products in response to COVID-19’s impact on online advertising last year and regulatory pressures such as anti-trust and data privacy. Appen said this dictates the data they need for product development and impacts their engineering resource allocations and the volumes and types of data they need from Appen. The company said that machine learning is an iterative process, and its customers are switching resources between development projects as they pursue new break-out products. This in turn has impacted a handful of its larger programs.

There was another main element that Appen pointed to. Its competitors outside of relevance are maturing. This is unsurprising, according to management. Appen says the presence and funding demonstrate that it’s an attractive market. Management believe that it is maintaining its leadership position and that it has to maintain its flow of new product features and fight harder to stay ahead.

It was the second worst performer in the ASX 200.

National Australia Bank Ltd (ASX: NAB)

NAB announced its FY21 half-year result.

The big ASX 200 bank reported that it generated $3.2 billion of statutory net profit. Cash earnings were up 94.8% to $3.3 billion. Cash profit was up 35.1% excluding large notable items.

NAB finished the half-year with a group common equity tier 1 (CET1) ratio of 12.37%. This helped the board declare a dividend of $0.60 per share, double what it was a year ago.

NAB CEO Ross McEwan said:

The rebound in the Australia and New Zealand economies from COVID-19 has been better than expected. This, along with the vaccine rollout and continued strong health outcomes, make us optimistic about the outlook.

But risks do remain. The recovery is not even, and some customers such as those in international travel and hospitality, particularly in CBD areas, still face significant challenges. Longer term outcomes for these customers depend on a number of factors expected to become clearer in coming months. These include the impact of jobkeeper ending, timing of the vaccine rollout and the reopening of international borders. Supporting customers and keeping the bank sake through this period remain our priorities.

More reading

• Australia’s trust in big banks up 19% in just 2 years: report
• Brokers say “buy” these 3 ASX shares even as they trade near 52-week highs
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• Here’s why the Appen (ASX:APX) share price is down 21% today
• Why Adore Beauty, Appen, Flight Centre, & Nearmap shares are sinking

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and Nearmap Ltd. The Motley Fool Australia has recommended 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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With so many growth shares to choose from on the Australian share market, it can be hard to decide which ones to buy over others.

To help narrow things down, I have picked out two ASX growth shares that could be top options for investors today. Here’s what you need to know about them:

NEXTDC Ltd (ASX: NXT)

The first ASX growth share to look at is NEXTDC.

It appears perfectly positioned to benefit from the cloud computing boom thanks to its position as one of the region’s leading data centre-as-a-service providers. From its 11 world class centres in key locations across Australia, NEXTDC provides colocation services to local and international organisations. 

Pleasingly, NEXTDC is now looking to expand into other potentially lucrative markets after opening up offices in Singapore and Tokyo. If the company makes a success of this, it could give it a long runway for growth over the 2020s.

UBS is a fan of the company. It currently has a buy rating and $15.40 price target on its shares. This compares to the latest NEXTDC share price of $11.05.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer.

It has been growing at a strong rate over the last few years and particularly during COVID-19. This was thanks to the shift to online shopping.

The good news is that this shift is still in its infancy for furniture and homewares. This gives the company a very long runway for growth, particularly given its leadership position.

Management is now investing heavily to take take advantage of the shift and cement its position as the market leader. While this will come at the expense of margins, the long term gains make it more than worthwhile.

Morgan Stanley certainly believes this will be the case. The broker currently has an overweight rating and $15.00 price target on its shares. This compares to the latest Temple & Webster share price of $10.06.

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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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster 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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Trust in Australia’s big banks, including Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Westpac Banking Corp (ASX: WBC) is up 19% among consumers in just 2 years. That’s according to the latest results of comparison website Finder’s Consumer Sentiment Tracker.

The report also analysed consumer saving habits and pay rise expectations. Let’s take a closer look at the findings.

Trust in big banks at record highs

The level of trust in big Australian banks has been rising steadily since the end of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Banking Royal Commission) in early 2019. 

In May of that year, the metric sat at just 43%. As of April 2021, it sits at 62%. The survey does not specify what a big or small bank is. Finder only asked respondents about their levels of trust in ‘big’ or ‘small’ banks generally.

Graham Cooke, head of consumer research at Finder, said it was interesting to see this metric change in such a consistent way. 

Mr Cooke said, “The initial lockdown seemed to spur fears that smaller banks might fail and may have resulted in a jump in trust of the big banks.”

“Whether it was the compassionate measures taken for those in financial strife or the changes in operating procedures since the Royal Commission, it’s clear that a significant number of Aussies are ready to trust big banks again,” he added.

Despite the large increase in trust for big banks, smaller banks, such as Bank of Queensland Limited (ASX: BOQ), have managed to outpace them.

Trust in small banks currently sits at 68% in April, down from 71% in March. According to Mr Cooke, “Aussies report trusting the smaller players more than the big four – which is a great sign for all the neobanks entering the market.”

Mr Cooke added that “smaller banks tend to be more popular with younger consumers than older ones.”

Other findings

In positive signs for the Australian economy, consumer savings are up nearly $200 a month on average. Additionally, most respondents are expecting a pay rise within the next two years.

Despite an early dip in savings brought about by the COVID-19 pandemic, average savings balances have been able to recover and exceed their pre-coronavirus levels. This figure hovered between $600–$700 per month before the pandemic.

Economic uncertainty and working from home encouraged many Australians to increase their savings. The average amount of savings reportedly shot up to $989 in June 2020. It has since fallen, however, this figure is still significantly above pre-pandemic levels. Currently, it is sitting at $889.

Mr Cooke said this was an encouraging trend. He added that “Rates are low, but some accounts in the market are offering 20-30 times the interest of others.”

Low interest rates may lead investors to move their money into other places, like the share market. When Finder asked economic experts, however, most (86%) believed the increased savings would continue.

Stephen Halmarick of Commonwealth Bank told Finder that a large part of the savings came from government income, which will now disappear. Tony Makin of Griffith University agreed, saying the savings boost was triggered by uncertainty.

As well, a record 56% of Australians believe they will be receiving a pay rise sometime in the next two years.

“Having seemingly weathered the storm and with job ads at a 12-year high, employees are expecting to be paid for their loyalty,” Mr Cooke said.

63% of experts asked by Finder agreed wage growth would exceed 1.0% over the specified period.

Share price performance of the ASX big 4 banks

The Commonwealth Bank share price is up 0.24% today to $92.94 a share. Over the last 12 months, it’s increased 56%.

National Australia Bank shares are down 2.96% after the release of the bank’s Q3 results. They closed the day at $26.56. Since this time last year, the company’s value has appreciated 63%.

The Westpac share price finished the day up 0.23% to $26.02 a share. ASIC opened an investigation into the big bank yesterday for possible insider trading. In 52-weeks, investors have seen a 66% return on investment (ROI) from Westpac shares.

More reading

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• ANZ Bank (ASX:ANZ) share price hit by broker downgrade post results
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Motley Fool contributor Marc Sidarous 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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It’s been 3 months now since the BikeExchange Ltd (ASX: BEX) initial public offering (IPO) on 9 February.

The company, which provides an online cycling market place, connecting brands, retailers and distributors to customers across the globe, has been around as a private entity far longer than 3 months. It was founded in Melbourne back in 2007 by Sam Salter and Jason Wyatt.

Today BikeExchange hosts more than 1,500 brands, 1,640 retailers and 900,000 products globally. The latest figures indicate it attracts 28 million customers annually.

According to BikeExchange’s Global CEO Mark Watkin, “Our purpose is to make it easy for customers to buy and sell all things bike.”

Earlier today the Motely Fool reached out to Watkin to get his take on how the company’s been tracking so far, and what he sees ahead.

Growth across all revenue sources

“We were very pleased to get to that quarterly set of results. That’s a milestone for us,” Watkin said, referring to BikeExchange’s first quarter results (Q3 FY21) as a listed company.

The company reported solid growth across all its sources of revenue, along with record look-through total transaction value, which increased 220% over the prior corresponding period.

Noting that BikeExchange maintained a net cash position of $18.9 million, as of 31 March, Watkin said:

The highlight there is we achieved that growth without having to deploy the capital raised in the IPO. We take a lot of confidence from that. We’re in a phase now of strategically planning ahead, particularly for FY22 – growing subscriptions, growing ecommerce transactions and so forth.

All markets are not created equal

Not every geographic market BikeExchange operates in has grown equally fast.

“Europe has been a standout,” Watkin told us.

Indeed, revenue in Q3 from its European operations grew by 134% over the prior corresponding period, with growth across all categories. E-commerce was particularly strong, reflecting strong demand for bikes in Europe. Revenue growth in Australia and New Zealand came in at 19%.

According to Watkin:

A lot of that relates to cultural aspects for Europe, where cycling is a mode of transport versus the performance end of the category and sports. There are a lot of insights in that. The use of e-bikes is growing alongside the infrastructure and environmental debates, which have become global debates.

The uptake in Australia has been slower, but the barriers are being broken down. I’m very excited about this next 10 years. Cycling is 100% part of the solution to many of these bigger debates around the environment, transportation, infrastructure, health and convenience.

While COVID lockdowns and social distancing ushered in a rapid uptake in online shopping Down Under, Australia still lags Europe in e-commerce.

Watkin told us:

In Europe 90% plus of transactions are happening online through the platform. And 40-50% of those transactions are e-bikes. Europe has up to 30% of e-commerce as a total of retail where in Australia it’s single digits still. But those barriers are being broken down, the online influence is there now.

As for Australia’s stringent bicycle helmet laws, Watkin said it remains a big debate. “For some people it can be a barrier.”

He added, “In Europe you can argue it’s safer because the infrastructure supports bikes. Infrastructure is a key component for the everyday use of a bike. Personally, I believe helmets are important.”

The bank account is full…what now?

Bringing the conversation back to BikeExchange’s $18.9 million in net cash, we asked what the company’s plans are to deploy the IPO capital.

Watkin said that sales and marketing were core focus areas.

“Marketing, particularly in some of the regions, will be very important. SEO [search engine optimisation] and SEM [search engine marketing] has always been an important part.”

The company is also looking to add key staff.

“We’ve been a very lean, capital light business. So, there’ll be some key hires that we’ll make in key function areas… not tied to any geography.”

BikeExchange will also look at enhancing its technology.

Our core platform is Marketplacer, a robust engine. But I think there are opportunities for us to enhance things, particularly on the front end… Personalisation for the consumer is a really important area. We’ve started that process now.

Watkin added that the company is interested in pursuing, “Anything that helps us enable the retailer and the brands to sell more products and reach more people, and for the consumer to find what they need.”

The bank account is full but we need to deploy it appropriately. In this, core areas are the key ones. The EU and the US are the big markets where we’ve got significant runways, so we have a big focus on those regions.

How quality can drive growth

BikeExchange’s growth figures for Q3 FY21 were impressive. The Motley Fool wanted to know if that level of growth is sustainable.

According to Watkin, “We’re confident we can keep up the growth rates. Whether that’s a mirror of the growth we had in the past quarter is hard to say.”

We think the growth patterns are sustainable, but it’s going to come in a slightly different way as we scale out the businesses. A lot of market places get 80% of their volume from 20% of their customer base. That comes down to quality product, quality retailers, etc.

We find that very much. The quality product retailer that we’re working with, the availability of that product, drives good demand and awareness. This has definitely been part of our strategy.

He pointed to the US and the EU as being the primary drivers for growth in the medium term.

If you take America, there are probably 4,500 to 5,000 [cycling] retailers in the country. The objective is not to get all of them. The objective is 1,500-2,000 quality retailers that are good operators with good products on the platform, which makes the destination compelling for the consumer.

We’re [currently] at single digit penetration in the EU and the US. With capital growth coming into the business, we hope we’re going to see good growth rates going on quarter on quarter.

Risks and opportunities in the year ahead

The uncertainty that continues to be thrown up by COVID-19 is the only real risk Watkin foresees over the coming year. “But we worked through that whole pandemic and we’re still going strong. Productivity went up, the team bonded even more around the world. We’ve taken a lot of comfort from that,” he said.

Aside from the unpredictable nature of the virus, Watkin doesn’t foresee any major risks for the company over the coming months.

“We’re in a pretty sustainable category,” he told us. “We believe cycling is part of the solution to the big macro trends that are happening. Electric cars aren’t the sole answer.”

Watkin is focusing on the company’s existing growth markets before branching into new turf.

We’ve got first mover advantage, we’ve got good foundations, and we’ve got a good runway.

The temptation is to keep expanding into new countries in the short term. But I want us to be 100% focused on what we’ve got. Two huge regions in the US and EU. Latin America is equally big. Let’s just focus on those, and prove the model out.

At the same time, we can get our operational model absolutely solid so we can replicate it more easily into those new markets.

Watkin also said the company will work to further aid consumers with their purchasing decisions.

The average person on the street doesn’t know a lot about bikes. Like utility bikes – the cargo bikes where you can carry your children – there’s a huge opportunity there. And it’s a technical purchase, which can be a little intimidating. If we can be a destination that helps them, that’s a great opportunity.

Coupled with that, a category where bikes can be seen as transportation. In Australia this definitely needs a bit of reframing. Getting equality on the roads is a big topic area. Our big opportunity is helping countries across the world establish that even further.

It’s a fragmented industry, and we’re trying to bring that together.

More reading

• The BikeExchange (ASX:BEX) share price is surging. Here’s why.

Motley Fool contributor Bernd Struben 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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Shares in Coronado Global Resources Inc (ASX: CRN) were plummeting today as they resumed trading following an institutional entitlement offer. By close of trade, the Coronado share price had fallen 14.29% to 51 cents. 

The coal producer announced the equity offer on Tuesday. Today was the first day the company’s shares were eligible for trading following the news, and the market’s reaction wasn’t kind.

Let’s take a closer look.

$114 million entitlement offer

On 4 May, Coronado advised that it planned to perform an equity offering, with the aim of raising $100 million.

Coronado reported today that it raised $114 million in its institutional entitlement offer, at an offer price of 45 cents per new CHESS Depository Interest (CDI). Each CDI represented a beneficial interest in one-tenth of a share in the company.

Coronado advised that Energy & Minerals Group, through its affiliate Coronado Group LLC, purchased approximately 72 million CDIs to maintain a hold of at least 50.1% of the CDIs on issue.

Coronado now plans to conduct a retail entitlement offer, which will open on 11 May.

When Coronado reported its plans to perform an equity offer, The Motley Fool Australia reported this was due to its operations being impacted by Australia’s shift to renewable energy and China’s ban on Australian coal exports.

The equity offer is just one part of the company’s proposed US$550 million refinancing package.

Commentary from management

Coronado managing director and CEO Gerry Spindler commented on the institutional entitlement offer, saying:

The institutional entitlement offer was well received and with the broader refinancing package, including US$350 million of senior secured notes and the asset-based-loan (in an initial aggregate principal amount of US$100 million), we have created a capital structure that has increased our financial flexibility, extended our debt maturity profile and diversified our funding sources.

Coronado Global Resources share price snapshot

Unfortunately for shareholders, the poor reaction to today’s news by Coronado shares represents just their latest dip.

Currently, the Coronado share price is down 55% year to date. It’s also down 51% over the last 12 months.

The company has a market capitalisation of around $823 million, with approximately 1.5 billion shares outstanding.

More reading

• Coronado (ASX:CRN) share price freeze on $100m refinancing news

Motley Fool contributor Brooke Cooper 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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Investors may be getting concerned about valuations, but leading brokers are urging you to buy three ASX shares even as they are trading at or near their 52-week highs.

The  S&P/ASX 200 Index (Index:^AXJO) may be backing away from record highs on Thursday. But with the index up more than 30% over the past year amid resurging worries about COVID-19, investors are right to ask if ASX shares have overshot their fundamentals.

While these worries are justified for some parts of our market, brokers see more upside for a handful of outperforming ASX shares.

Upgrade reinforces buy recommendation

One such example is the Medibank Private Ltd (ASX: MPL) share price, which is trading at its highest point in the last year.

Morgan Stanley reckons the private health insurer is still worth buying at these levels after management upgraded its guidance.

“MPL now expect FY21 policyholder growth between 3.5%-4% including 1.2-1.4% growth in MPL brand,” said the broker.

“This compares to previous guidance of >3%. MSe +3.2%. MPLsaid despite the 1 April premium increase, customer retention is significantly better than in the prior corresponding period.”

Further, claims are coming in below Medibank’s expectations and Morgan Stanley has reiterated its “overweight” recommendation and price target of $3.20 a share.

More upside for this outperforming ASX share

Another that’s within striking distance of its 52-week high is the QBE Insurance Group Ltd (ASX: QBE) share price.

The QBE share price jumped nearly 4% today to $10.85, and that’s close to its $10.98 high it hit in August last year.

While the rate of insurance premium increases has slowed from 2020, this has not deterred UBS from repeating its “buy” call on the general insurer.

Volume offsets slowdown

“The slowdown in premium rate increases from the peak in 2020 is line with our expectations,” said UBS.

“However, volume growth appears ahead of what we are expecting and crop also tracking ahead of our forecasts. Note we expect a 5-6% currency benefit for QBE in FY21 reported numbers.”

UBS increased its 12-month price target on the stock to $11.50 from $10.25 a share.

Scaling new peaks

Meanwhile, it may only be a matter of time before the OZ Minerals Limited (ASX: OZL) share price sets a new multi-year high.

The OZ Minerals share price is currently trading at $24.77 and is only a tat below last month’s 13-year peak of $25.24.

Despite that, Macquarie Group Ltd (ASX: MQG) thinks there’s a lot more room for the copper miner to run.

ASX share with good copper exposure

This is in part due to OZ Minerals expansion plan for its two key assets, Prominent Hill and Carrapateena.

“OZL is benefitting from growth targets at both core assets; has upside optionality from the development of West Musgrave; and has material upside to earnings driven by buoyant copper prices,” explained Macquarie.

“In a spot price scenario, earnings increase by 25% in CY21 and by 75% in CY22.”

The broker is recommending the OZ Mineral share price as “outperform” with a 12-month price target of $29.50 a share.

More reading

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• 2 reliable ASX 200 shares offering good income
• Why the Afterpay (ASX:APT) share price is sliding 5%
• ASX 200 down 0.35%; NAB half year results, Nearmap crashes on legal threat
• Broker sees upside for these ASX 200 mining shares

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited and OZ Minerals Limited. Connect with me on Twitter @brenlau.

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

The post Brokers say “buy” these 3 ASX shares even as they trade near 52-week highs appeared first on The Motley Fool Australia.

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