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A number of ASX 200 shares are scheduled to trade ex-dividend on Wednesday.

This means that today is the final day for investors to buy these shares if they want to receive their upcoming dividend payments.

The following ASX 200 shares are going ex-dividend tomorrow:

Breville Group Ltd (ASX: BRG)

Last month, this appliance manufacturer released its half-year results and declared a 15 cents per share fully franked interim dividend. This will be paid to eligible shareholders later this month on 27 March. Interestingly, Breville’s chair, Lawrence Myers, just loaded up on the company’s shares prior to them trading ex-dividend. He snapped up 30,000 shares on-market for a total consideration of approximately $578,000.

Eagers Automotive Ltd (ASX: APE)

This auto retailer giant had another strong year in FY 2022. This allowed the company to declare a record fully franked final dividend of 49 cents per share last month. This is scheduled to be paid at the very end of the month on 31 March.

Inghams Group Ltd (ASX: ING)

Things haven’t been going as well for this poultry producer. Last month, it was forced to slash its fully franked interim dividend by 30% to 4.5 cents per share. This will be paid to eligible shareholders on 6 April.

TPG Telecom Ltd (ASX: TPG)

This telco giant was on form in FY 2022 and delivered a solid full-year result last month. This meant that TPG was able to increase its fully franked final dividend by almost 6% to 9 cents per share. This is scheduled to be paid to its shareholders next month on 13 April.

The post 4 ASX 200 shares trading ex-dividend on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Start your engines: Fund backs 2 ASX shares to finish line
• 7 ASX All Ordinaries shares smashing new 52-week highs today
• Was I dumb to sell my TPG shares?
• These ASX 200 shares smashed the market in February
• 4 ASX shares to grab now after boom results: expert

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 recommended Tpg Telecom. 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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Piedmont Lithium Inc (ASX: PLL) shares have dropped by 4.5% since Blue Orca commenced its short-sell attack last week.

Piedmont Lithium shares opened at 84 cents this morning, up 1.2% on yesterday’s closing price.

One broker says the ASX lithium share offers a 150% upside and will outperform over the next year.

Let’s take a look at what’s happening.

Why are Piedmont Lithium shares being shorted?

Piedmont shares went into a trading halt last Wednesday after Blue Orca released its short report.

Blue Orca alleges that Piedmont’s joint venture (JV) partner in Ghana, Atlantic Lithium Ltd (ASX: A11), will lose its mining licences. Consequently, it will be unable to supply Piedmont’s facility in Tennessee.

As my colleague James reported last week, Blue Orca alleges that Atlantic Lithium attained its licenses by making secret payments and promises of payment to the immediate family of a Ghana politician.

This is why Blue Orca has shorted Piedmont Lithium shares. It explained:

We are short Piedmont because without Atlantic’s Ghana supply, Piedmont and any promise of near-term revenue from its much-hyped Tennessee facility are dead on arrival.

Without Ghana, industry experts and even a former Piedmont senior executive have confirmed that Piedmont is unlikely to find a source of replacement spodumene.

How did Piedmont respond?

Piedmont Lithium responded by saying Atlantic Lithium “outrightly refutes” Blue Orca’s assertions and regardless, Piedmont could find alternative sources of spodumene for its facility if it had to do so.

Piedmont said:

Piedmont has the right to purchase 50% of Atlantic’s production of spodumene concentrate from its Ghana lithium project, at market prices on a life-of-mine basis, and to earn a 50% interest in the Ghanaian projects.

Piedmont currently contemplates utilizing spodumene concentrate from this offtake agreement as partial feed for its proposed Tennessee Lithium hydroxide plant.

However, if for any reason Piedmont does not exercise its right to this offtake supply, the Company is confident that alternative sources of spodumene concentrate would be available to feed the Tennessee facility, as current and future spodumene producers seek to feed the growing U.S. electric vehicle market and qualify for the benefits available under the Inflation Reduction Act of 2022.

What’s this about a 60% upside?

According to reporting in The Australian, Macquarie has commenced coverage of Piedmont Lithium shares. The broker has placed an outperform rating on the stock and a 12-month price target of $2.10.

This follows other news from Piedmont Lithium last week.

The company and another JV partner, Sayona Mining Ltd (ASX: SYA), announced that their North American Lithium Project has achieved first spodumene production.

Why is Macquarie backing Piedmont Lithium shares for growth?

Macquarie said:

Achieving first spodumene production at NAL is an important milestone, with improving the quality of the spodumene now a key focus for the project.

Piedmont Lithium and Sayona Mining are targeting Q3 2023 for the commencement of sales.

Macquarie notes Piedmont Lithium’s offtake agreement with NAL entitles it to 50% of spodumene production with a price cap of US$900 per tonne.

Piedmont plans to sell this product to Tesla Inc (NASDAQ: TSLA) and LG Chem Ltd (KRX: 051910) at spot prices over the next three years.

Broker Goldman Sachs forecasts spot prices for spodumene to fall to US$4,330 per tonne this year.

It expects a rapid descent to US$800 per tonne in 2024 and 2025 due to increasing supply.

Piedmont Lithium shares hit a new 52-week high of $1.09 in mid-February.

The post Piedmont Lithium shares: 150% upside or big short opportunity? appeared first on The Motley Fool Australia.

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More reading

• Why Atlantic Lithium, CBA, Piedmont Lithium, and Pilbara Minerals shares are dropping
• Piedmont Lithium share price sinks following short attack response
• Macquarie tips 3 ASX lithium shares to outperform, one with 150% upside
• Piedmont Lithium share price frozen amid short-seller attack
• Why are ASX lithium shares being hammered on Monday?

Motley Fool contributor Bronwyn Allen has positions in Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Tesla. The Motley Fool Australia has positions in and has recommended Macquarie 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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S&P/ASX 200 Index (ASX: XJO) tech shares could be leading opportunities to buy at their current prices, according to the broker Morgans.

Since November 2021, there has been plenty of volatility on the ASX for the tech sector. Interest rates and inflation are having a significant impact on valuations. Interest rates pull down on asset prices like gravity – the higher the interest rate, the lower the asset price is expected to be.

The Reserve Bank of Australia (RBA) recently implemented its tenth consecutive interest rate increase to 3.6%, with further tightening flagged. But Morgans said the interest rate is getting closer to its top. Once that is reached, the broker expects “quality technology and classified names to once again shine”.

Hence, with some businesses trading at lower prices, experts at Morgans have identified three of their tech favourites.

High-quality ASX 200 tech share choices

Morgans explained that its current preference right now is for the high-quality names of Xero Limited (ASX: XRO), REA Group Limited (ASX: REA), and SEEK Limited (ASX: SEK).

In the recent reporting season, both SEEK and REA Group announced their results. Let’s start with SEEK.

Morgans noted that SEEK beat the expectations of analysts. The broker pointed out that SEEK grew revenue by 21% year over year, while earnings before interest, tax, depreciation and amortisation (EBITDA) went up 13% year over year.

The broker said that SEEK benefited from “strong volume growth”, with underlying structural tailwinds continuing. However, Morgans is expecting “normalisation” in the second half of FY23.

Yield growth helped again to offset costs, with recent price rises rolling through. Platform ‘unification’ spending is impacting margins in the short term.

Morgans also said that SEEK Asia “performed well” with the company “beginning to extrapolate early benefits from the unified platform”.

Looking at REA Group, Morgans called the result “resilient” with 5% revenue growth, though EBITDA was “marginally down” by 2%. Group EBITDA margin fell by around 100 basis points (1%).

The broker commented that yield growth of 11% year over year was a “key driver” of the ASX 200 tech share’s revenue growth, while depth penetration remains “strong”. However, there is a “cautious outlook” for new listings growth over the rest of the year. It’s expecting volatility to continue, with a possible decline of around 10% in the second half of FY23.

Morgans said that expenses are in focus, with the EBITDA margin impacted by higher costs, such as the investment in REA India.

Xero has a different reporting schedule. But, the company has just revealed that it’s going to cut 700 to 800 roles globally and streamline its business.

The ASX 200 tech share is now balancing growth and profitability, while “taking a robust approach to capital allocation that supports long-term value creation”.

Xero’s management is now targeting an operating expense ratio in FY24 of around 75%, with an improvement from between 80% to 85% in FY23.

In other words, the business is expecting to significantly increase its profit margins in the next 12 to 18 months.

The post Top ASX 200 tech shares to buy right now: Morgans appeared first on The Motley Fool Australia.

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More reading

• ‘Top quality’: Expert picks 2 ASX 200 shares to buy at a nice discount
• 5 things to watch on the ASX 200 on Tuesday
• 3 ASX 200 shares trading ex-dividend on Tuesday
• Why are ASX 200 gold stocks like Northern Star having such a stellar run today?
• Here are the 3 most heavily traded ASX 200 shares on Monday

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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended REA Group and 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 Sezzle Inc (ASX: SZL) share price is having a very strong start to the session on Tuesday morning.

At the time of writing, the buy now pay later (BNPL) provider’s shares are up a sizeable 10% to 58.5 cents.

Why is the Sezzle share price racing higher?

Investors have been bidding this ASX All Ords share higher today after the company announced plans to list on the Nasdaq Global Market.

According to the release, Sezzle shares will continue to trade on the ASX All Ords concurrently despite this change.

However, one thing that will have to change is the Sezzle share price. Given the Nasdaq’s minimum US$4.00 bid price, the company will undertake a reverse split if shareholders approve.

Sezzle hasn’t revealed what its reverse split would be. But if it were a 20-1 reverse split, investors would see every 20 Sezzle shares they owned reduced to a single share and the price per share increased 20 times. There would be no change to the overall value of your holding.

In this example, it would mean the Sezzle share price increases to $11.70 from 58.5 cents.

The company also stressed that it isn’t seeking to raise capital by listing on the Nasdaq. It does, however, hope that the move expands its investor base.

Sezzle’s Chairman and CEO, Charlie Youakim, commented:

A listing on the Nasdaq is a natural evolution for Sezzle given the Company is already filing the necessary reports with the SEC. Although we are not seeking to raise capital as part of the Nasdaq listing, we are excited to expand the universe of potential investors to the United States.

The company intends to provide guidance to investors on the timing of the stockholder meeting, but anticipates completing everything no later than 30 September.

The post Guess which ASX All Ords share is planning a Nasdaq listing appeared first on The Motley Fool Australia.

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More reading

• These ASX tech shares have exposure to the Silicon Valley Bank collapse
• ASX BNPL shares deep in the red as ASIC turns up the regulatory heat

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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Discovery Fund portfolio managers Chris Bainbridge and Mark Devcich explain how they pick ASX shares to include in their exclusive high-conviction portfolio.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

Chris Bainbridge: We’re a high-conviction active manager who seeks outstanding performance and we do that by having one fund, the Founders’ Fund, which invests in up to 20 of the best listed companies on the ASX and NZX.

MF: What’s the investment philosophy? 

CB: At a really high level and keeping it super simple, we’ve called it the Founders’ Fund for a reason. We aim to invest in founder-led businesses, high returns on investor capital, with a catalyst to realise our variant perception on the business. We’re looking for those three aspects. 

We were trying to take a three- to five-year timeframe, but often we find that companies realised our valuation in a much shorter time frame.

MF: You mentioned it’s a high conviction fund, so how many stocks do you hold at any given time? 

CB: We target around 20 in the portfolio and that is reasonably concentrated within the top 10 names. 

We believe that if you’re picking an active manager, then you’re picking them for their stock-picking ability and you want to be able to express that ability as much as you can and it really comes down to concentration. It’s good to have a lot of good ideas — so when you have one, you want to make it count. 

MF: It’s been pretty turbulent for equities the past year. Where do you reckon it’s all headed this year? 

Mark Devcich: It’s not something we spend a lot of time thinking about where the market is heading, as it’s obviously very difficult to predict, especially in the short-term. 

However, we do feel relatively more constructive in Australia compared to the Kiwi market. We are only invested in NZX and ASX, but clearly more convicted around Australia, given strong commodity prices, immigration restarting, international education and also the pool of funds that is generated from compulsory superannuation. 

So we feel that Australia is in a relatively good spot compared to the rest of the world. Markets may be volatile, choppy, they may even hit lower from here on a global basis, but we feel Australia’s one of the shining spots around the world in terms of its equity markets and its economy for the next 12 months. 

Tomorrow: Chris and Mark’s two best ASX shares to buy right now

The post Revealed: Fund’s secret sauce to picking ASX shares for massive wins appeared first on The Motley Fool Australia.

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More reading

• Are Fortescue shares back on the menu amid job cuts?
• Australian Ethical just dumped 1.6 million shares of this ASX 200 company. Here’s why
• Buy these ASX dividend shares with big yields today: experts
• ‘Top quality’: Expert picks 2 ASX 200 shares to buy at a nice discount
• 2 ASX 200 shares to rocket from same booming industry: expert

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

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Fortescue Metals Group Limited (ASX: FMG) shares are often a talking point in the media, with its major mining operations and green ambitions through Fortescue Future Industries (FFI). But, could the ASX mining share’s move to cut jobs be a way to boost investor confidence in the business?

Job losses

According to reporting by the Australian Financial Review, the mining giant made some workers redundant last week. One of the newspaper’s sources said that the job losses amount to less than one hundred.

The importance of each job shouldn’t be discounted, and it’s possible this could amount to a sizeable annualised reduction of costs, depending on the size of the pay.

The AFR reported on comments from a Fortescue spokeswoman who said:

This is business as usual for rapidly evolving global companies. We are always looking for opportunities for continuous business improvement to maintain our industry-leading cost position.

Right now we are growing globally and allocating resources swiftly to North America, responding to the Inflation Reduction Act.

Projects such as Iron Bridge are coming into production phase soon, while our work in Gabon is just kicking off. As this occurs project staffing naturally ebbs and flows.

The newspaper also reported that sources close to Fortescue noted that the company’s “overall headcount” could rise in the year ahead despite the redundancies as it looks to make final investment decisions on “at least five” FFI green energy projects before the end of 2023.

What effect will this have on the Fortescue share price in the long term?

I’d assume that investors of every business would want their company to be having the right-sized workforce for the tasks and projects at hand. For a business of Fortescue’s size, I would guess that there are always people coming and going.

However, it comes at a time when there are a wide number of tech companies that have been laying off workers. This is happening on the ASX as well. For example, last week it was announced that Xero Limited (ASX: XRO) would be cutting between 700 to 800 roles globally to streamline its operations and boost its operating profitability.

While Fortescue may save its bottom line some money with these cost cuts, in the short-term it could be the iron ore price that has the biggest impact on the Fortescue share price. The iron ore price has reached around US$130 per tonne according to Commsec. But, while Goldman Sachs suggests the iron ore price could reach US$150 per tonne in the next few months, it’s certainly possible it could fall to US$110 as well.

In the long term, Fortescue’s efforts to produce green hydrogen, green ammonia and advanced batteries could have the largest impact on whether the company can continue its success or not.

Fortescue share price snapshot

Over the last six months, Fortescue shares have risen over 22%.

The post Are Fortescue shares back on the menu amid job cuts? appeared first on The Motley Fool Australia.

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More reading

• Could buying Fortescue shares at under $22 make me rich?
• How can I hope to retire rich when the share market is falling?
• Will the Fortescue share price crash in 2023?
• Why Fortescue, Lynas, Myer, and New Hope shares are dropping today
• This ASX 200 dividend share failed to be one of the world’s biggest payers in 2022. Could it get worse?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Australian Ethical Investment Ltd (ASX: AEF) has made an important call on one particular S&P/ASX 200 Index (ASX: XJO) share, resulting in the sale of all of its Lendlease Group (ASX: LLC) shares.

Australian Ethical aims to offer investors investment options that invest with the ethics that align with the investor.

But, while it may be easy enough to exclude fossil fuels, gambling and other industries like that, it can be a trickier decision about whether to exclude a business that makes a new move that does not align with Australian Ethical’s ESG investing criteria.

That means Australian Ethical looks to evaluate businesses based on environmental, social and governance factors.

Australian Ethical sells Lendlease shares

According to reporting by The Australian, the fund manager decided to sell of its shares in construction and infrastructure business Lendlease.

The reason for the sale is that the Lendlease housing development project Mt Gilead in NSW will hurt a koala colony.

In a blog post, Australian Ethical wrote about the ASX 200 share:

The survival of the Mt Gilead koala colony hinges on the existence of appropriately sized wildlife corridors to provide safe passage across the site, according to advice from the Office of the NSW Chief Scientist and Engineer (OSCE).

We have serious concerns about the way the reports from the OSCE are being interpreted by the NSW Department of Planning & Environment (DPE) and Lendlease and the lack of transparency around public consultation to date.

Even the NSW Government’s own environment protection body, the Environment and Heritage Group (EHG) has found that the current Lendlease proposal is inconsistent with the recommendation from the OSCE.

In our opinion, Lendlease has failed to produce critical information needed to independently assess the impact of its housing development on koalas.

That’s why we’ve sold our shares.

We’re calling on the NSW Minister for Environment & Heritage, the Hon. James Griffin MP to intervene by committing to a transparent public consultation.

Without this, we cannot be confident that this koala colony will survive the developments proposed for the area.

Australian Ethical also said it has concerns about another Lendlease development, Shoreline, in South East Queensland which “also has the potential for negative biodiversity impacts.”

Australian Ethical said it has sold its debt and equity positions in Lendlease and related vehicles, it will also sell its investment in an unlisted property trust, which is managed by Lendlease, “at the first available opportunity”.

According to reporting by The Australian, Australian Ethical reportedly owned around 1.6 million Lendlease shares, worth around $11 million.

Lendlease share price snapshot

Over the past six months, Lendlease shares have fallen by around 30%. Since 3 February 2023, it’s down by over 20%.

The post Australian Ethical just dumped 1.6 million shares of this ASX 200 company. Here’s why appeared first on The Motley Fool Australia.

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More reading

• I’d invest $5,000 into these excellent ASX shares for the long term
• 3 ASX 200 shares trading ex-dividend before the end of this week

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 positions in and has recommended Australian Ethical Investment. The Motley Fool Australia has recommended Australian Ethical Investment. 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 looking for dividend shares to buy this week to boost your passive income, then the two listed below could be worth checking out.

Both have recently been named as buys by analysts and tipped to provide generous yields. Here’s what you need to know about them:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share that could be a top option for investors is this property company.

As its name implies, Charter Hall Long WALE REIT is focused on high quality real estate assets that are leased to corporate and government tenants on long term leases.

Citi is a fan of the company. This is due to its low risk income stream, ultra-long leases, sky-high occupancy rate, and inflation-linked rental increases.

The broker believes this will underpin the payment of dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. Based on the current Charter Hall Long Wale REIT share price of $4.38, this will mean yields of 6.4% and 6.6%, respectively.

Citi currently has a buy rating and $5.00 price target on its shares.

Universal Store Holdings Ltd(ASX: UNI)

Another ASX dividend share that has been tipped as a buy is Universal Store.

Analysts at Morgans are bullish and have an add rating and $7.00 price target on the youth fashion retailer’s shares.

After delivering a very strong half-year result last month, the broker appears confident this strong form can continue. This is thanks to a combination of its strong brands, expansion opportunities, and younger target demographic. The broker believes the “youth demographic is likely to be more resilient” in the current environment.

In respect to dividends, Morgans expects fully franked dividends per share of 30 cents in FY 2023 and 35 cents in FY 2024. Based on the latest Universal Store share price of $5.25, this equates to yields of 5.7% and 6.7%, respectively.

The post Buy these ASX dividend shares with big yields today: experts appeared first on The Motley Fool Australia.

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More reading

• Buy these ASX dividend shares before it’s too late: brokers
• Top ASX small-cap shares to buy in March 2023
• Why Brainchip, Lynas, Megaport, and Universal Store shares are dropping today
• Morgans names 3 of the best ASX shares to buy in March
• How I’d aim to replace an entire salary with passive income from ASX dividend shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 go shopping for a couch or a car, you target ones that are on sale. 

So why wouldn’t you do the same for ASX shares?

For those who are still scared of buying into stocks that have fallen in price, here’s a couple of recommendations that might change your mind:

‘The shares are trading at a discount’

Even though Lynas Rare Earths Ltd (ASX: LYC) is the only major producer of rare earth minerals outside of China, the stock price has taken a 17.8% dive over the past month.

If you go back six months, the shares have taken a painful 21.8% haircut.

According to Catapult Wealth portfolio manager Tim Haselum, recent news from the world’s largest electric car marker sent a scare through investors.

“In our view, Tesla Inc (NASDAQ: TSLA) announcing a plan to eliminate rare earths from next generation electric vehicles… impacted the share price,” Haselum told The Bull.

“But we believe investors over-reacted to the Tesla news, given continuing demand for rare earths. Consequently, we believe the shares are trading at a discount.”

Shaw and Partners portfolio manager James Gerrish said pretty much the same last week.

“Tesla, and EVs in general, are just one of many demand sources of rare earth materials.”

Haselum also felt like reporting season last month didn’t flatter the Lynas Rare Earths.

“The company posted higher revenue in the first half of fiscal year 2023, but the cost of sales also rose,” he said.

“The company also experienced water supply disruptions at its Malaysian plant.”

‘A strong track record of compound sales growth’

Xero Limited (ASX: XRO) shares lifted 10.5% in a single day last week after its new chief executive announced plans to slash costs and focus on profitability.

However, the stock is still almost half what it was in November 2021.

Haselum thus sees a golden buying opportunity at the moment.

“This accounting software provider is trading at a discount to prior earnings multiples since the price has fallen from its highs,” he said.

“The company has a strong track record of compound sales growth and penetrating key markets… We consider Xero a top quality company.”

This week Xero shares took another dive due to the collapse of Silicon Valley Bank, which had substantial clientele in the US tech industry.

However, the New Zealand software company assured investors that it has no “material exposure” to the failed institution.

“As at 10 March 2023, Xero’s total exposure to Silicon Valley Bank was approximately US$5 million, reflecting Xero’s local transactional banking relationships with SVB in the US and UK,” the company announced to the ASX.

“That amount represents less than 1% of Xero’s cash and cash equivalents as at September 30 2022.”

The post ‘Top quality’: Expert picks 2 ASX 200 shares to buy at a nice discount appeared first on The Motley Fool Australia.

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More reading

• Xero share price dips 3% amid Silicon Valley Bank fallout
• These ASX tech shares have exposure to the Silicon Valley Bank collapse
• Top brokers name 3 ASX shares to buy next week
• Morgans names the best ASX 200 growth shares to buy in March
• Lynas share price resets 52-week low twice in one week

Motley Fool contributor Tony Yoo has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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Regardless of whether you’re a bull or a bear, consensus seems to be that more turbulence and volatility will rule ASX shares this year.

With consumers and businesses having less to spend due to steep interest rate rises, inflation still roaring and unemployment potentially rising, nothing is a certainty for any stock.

However, one industry that’s favoured by many professional investors for its defensive qualities is insurance.

The idea is that insurance companies reap better returns from premiums because of higher interest rates, have pricing power that can combat inflation, and their supply expenses are relatively low.

If you subscribe to this theory, here are two ASX shares playing in the insurance ecosystem that could make excellent buys at the moment:

Revenue and earnings upgraded for the year

Although Johns Lyng Group Ltd (ASX: JLG) seems to be a favourite among analysts in recent times, the share price has still lost more than 23% over the past year.

“The company provides insurance building and restoration services in Australia and the US,” Seneca Financial Solutions investment advisor Arthur Garipoli told The Bull.

He still has faith that the stock will come good.

“First half 2023 group sales revenue of $635.6 million was up 71.2% on the prior corresponding period,” he said.

“Catastrophe work significantly contributed to group revenue.”

Other business divisions also reported ahead of forecasts, boosting the share price over the past month in excess of 10%.

“The company has upgraded revenue and EBITDA for the full year.”

Incredibly, the professional investing community unanimously agrees with Garipoli.

According to CMC Markets, Johns Lyng Group is rated as a strong buy by all 10 analysts currently covering the stock.

‘A candidate for further upgrades going forward’

Garipoli’s said that his other pick, Steadfast Group Ltd (ASX: SDF), provides insurance brokerage services and underwriting agencies.

Similar to Johns Lyng, the reporting season was fruitful for the company.

“Steadfast delivered a solid first half 2023 result. Underlying EBITA of $188.6 million was up 22% on the prior corresponding period,” he said.

“Underlying net profit after tax and amortisation of $111.1 million was up 18.8%.”

The market has been appreciative of Steadfast’s potential in the current financial climate. The stock price has risen a tidy 23.3.% over the past 12 months.

Garipoli has high hopes of further gains.

“The company has the capacity to grow via acquisitions,” he said.

“The premium rate cycle remains strong. Steadfast is a candidate for further upgrades going forward.”

Garipoli’s peers are much more divided on Steadfast compared to Johns Lyng.

Seven out of 12 analysts currently surveyed on CMC Markets rate Steadfast shares as a strong buy, but the other five think it’s a hold.

The post 2 ASX 200 shares to rocket from same booming industry: expert appeared first on The Motley Fool Australia.

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More reading

• We still hold this ASX 8-bagger because there’s more to come: QVG
• 3 small-cap ASX shares flying high after reporting season: Elvest
• These are my top ASX 200 growth shares to buy today
• 3 ASX 300 shares soaring to new 52-week highs on Friday
• 7 more ideas for buying ASX shares this reporting season: expert

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group and Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool Australia has recommended Johns Lyng 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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