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The S&P/ASX 200 Index (ASX: XJO) stock Bapcor Ltd (ASX: BAP) has seen plenty of volatility over the past year. Could some insider buying by directors be a promising signal for investors?

For investors that haven’t heard of Bapcor, it’s one of the largest auto parts businesses in the Asia Pacific region. It owns a number of different businesses in its portfolio including Burson Auto Parts, Truckline, WANO, Autobarn, Autopro, Midas, ABS, Shock Shop and Battery Town.

After the company’s recent FY23 half-year result, directors have been buying.

Insider buying

The latest purchase by a director was Mark Bernhard who bought 10,000 shares on the market, at a price of $6.63 per share.

Director Kate Spargo bought 10,000 shares for an average price of $6.475 per share on the market.

The director Brad Soller bought 7,500 shares on the market for a price of $6.66 per share.

Director Margaret Haseltine bought 7,515 shares for a price of $6.65 per share.

Earnings recap

Bapcor recently reported its half-year result for the six months to 31 December 2022.

The ASX 200 stock achieved record revenue, with growth of 11.2% to $1 billion – there was “strong growth in all Australian segments.”

The company said that the first half of FY23 demonstrated the “resilience of Bapcor’s diversified business model”, with an ongoing focus on capital efficiency with actions implemented to enhance cash conversion.

It said that there was continued network expansion and growth in proportion to own-brand sales across all of its segments. The ASX 200 stock also said that the distribution centre in Queensland is on track for practical completion in the second half of FY23.

Bapcor reported that its pro-forma net profit after tax (NPAT), or the underlying net profit, increased by 2.3% to $62 million.

In terms of an outlook, the ASX 200 stock said it expects a “solid underlying performance in FY23 with slight improvements” in trading in the second half of FY23, compared to the first half of FY23. But, it also said that more progress is required to further reduce Bapcor’s still-elevated inventory levels.

The business expects to keep growing its network in the coming years, which can help grow its scale and profitability. That could help the Bapcor share price in time too.

Bapcor share price valuation

According to Commsec, Bapcor shares are valued at 18 times FY23’s estimated earnings.

The post 4 directors have been buying up this ASX 200 stock since the company reported appeared first on The Motley Fool Australia.

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More reading

• 6 ASX 200 directors buying up their companies’ shares this week
• Top brokers name 3 ASX shares to buy next week
• Why did the ASX 200 leap higher on rising unemployment data?
• Why Bapcor, Magellan, Sonic Healthcare, and Telstra shares are charging higher
• Bapcor share price surges 5% on record half

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor. 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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Brokers have been busy in recent weeks adjusting their forecasts and recommendations to reflect updates that were given during earnings season.

Two ASX dividend shares that have fared well are listed below. Here’s why broker think income investors should be buying these shares:

ANZ Group Holdings Ltd (ASX: ANZ)

According to a note out of Citi, its analysts believe that ANZ is the bank to buy right now. The broker has a buy rating and $29.25 price target on its shares.

It was pleased with ANZ’s first-quarter update and believes its earnings are currently ahead of expectations. The broker commented:

Likely a strong quarter for institutional ANZ’s 1Q23 disclosures exhibited strong trends in both lending growth and asset quality. No earnings disclosure was provided, but we think that after backing out RWA movements from capital, it comfortably implies above market earnings. […] ANZ remains our top pick in the sector, and we expect the lending momentum, particularly in institutional, to continue to differentiate vs peers.

As for dividends, Citi is forecasting fully franked dividends of 166 cents per share in FY 2023 and then 176 cents per share in FY 2024. Based on the current ANZ share price of $24.49, this will mean yields of 6.8% and 7.2%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

A note out of Morgans reveals that its analysts have an add rating and $7.00 price target on this youth fashion retailer’s shares.

Its analysts were impressed with Universal Store’s performance during the first half. Pleasingly, they appear to believe that it is well-placed for more of the same in the near term. The broker said:

UNI has opportunities to grow steadily through the rollout of bricks and mortar stores, increased digital penetration and expansion of wholesale channels. While we recognise the general risk around a decline in consumer expenditure on discretionary categories like apparel, we highlight that the youth demographic is likely to be more resilient.

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 $5.40, this equates to yields of 5.5% and 6.5%, respectively.

The post Buy these ASX dividend shares before it’s too late: brokers appeared first on The Motley Fool Australia.

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More reading

• Here’s how much I’d need to invest in ANZ shares to generate a $300 monthly income
• Top ASX small-cap shares to buy in March 2023
• ASX 200 bank shares slump could continue: Morgan Stanley
• Why Brainchip, Lynas, Megaport, and Universal Store shares are dropping today
• Morgans names 3 of the best ASX shares to buy in March

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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Whitehaven Coal Ltd (ASX: WHC) shareholders had a very nice day yesterday. Thursday’s trading session saw the Whitehaven share price spike by a pleasing 5.55% up to $7.42 a share.

But no doubt today will also be a happy day for shareholders, regardless of what the Whitehaven share price does. That’s because today is payday for the latest (and monstrous) Whitehaven dividend.

Last month, Whitehaven delivered its latest earnings report, covering the half-year to 31 December 2022. It was an objectively impressive report, with Whitehaven announcing a 164% rise in revenues, as well as a massive 423% surge in net profits after tax (NPAT).

This enabled the company to announce a gargantuan interim dividend of 32 cents per share, fully franked. That’s up an eye-watering 300% on last year’s interim dividend of 8 cents per share, and the largest interim dividend Whitehaven has ever forked out.

Whitehaven shareholders set for dividend jackpot

As we warned last month, the ex-dividend date for this payment was on 23 February. So any shareholders who opened a position in Whitehaven after that date will miss out on this dividend.

But those lucky investors who had the shares in their name before 23 February are set to see this shareholder payment hit their bank accounts today.

Together with Whitehaven’s final dividend of 40 cents per share, also fully franked, that we saw in the back half of last year, this company has now paid out a total of 72 cents per share over the past 12 months.

That gives Whitehaven shares a trailing dividend yield of 9.7% on yesterday’s closing share price. That grosses up to a whopping 13.96% with the value of those full franking credits.

So no doubt today is a happy day for most Whitehaven shareholders.

Saying that, Whitehaven has had a rough start to 2023. Year to date, this ASX 200 energy share is down around 16%, as well as being down more than 33% from Whitehaven’s 52-week high of $11.04 a share. But even so, Whitehaven still remains up a happy 88% or so over the past 12 months:

So despite the rough start to 2023 Whitehaven shares have had, it’s hard to feel too sorry for shareholders of this ASX 200 coal share today.

The post The whopper Whitehaven dividend is being paid today. Here’s what you need to know appeared first on The Motley Fool Australia.

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More reading

• Is the party well and truly over for ASX 200 coal shares?
• Passive income watch: Here are the ASX 200 shares that delivered some of the biggest dividend boosts this earnings season
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares you might not know are trading ex-dividend today
• Why is the Whitehaven share price taking a thumping on Thursday?

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

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The Lake Resources N.L. (ASX: LKE) share price closed yesterday’s session up 3.25% to 64 cents.

The ASX lithium stock has had a turbulent time of late, with its share price falling 24% in February alone.

But broker Bell Potter says the stock is a buy with a potential 300% upside available to investors.

What will push the Lake Resources share price 300% higher?

Bell Potter has a speculative buy rating on Lake Resources with a 12-month share price target of $2.52.

That implies a 309.8% upside for investors who buy the ASX lithium stock today.

This is welcome news for shareholders, who have been suffering through a bunch of blows lately.

These include a tumbling share price, softening lithium prices, and a bearish outlook on the commodity.

Lake Resources also remains one of the most shorted ASX shares, with 6.9% of its capital shorted. It continues to be the subject of a sustained short-sell attack by US activist group, J Capital too.

Finally, with no production slated until 2024, Lake Resources shares may be attracting less support from investors than producing companies like Allkem Ltd (ASX: AKE), Pilbara Minerals Ltd (ASX: PLS), and Core Lithium Ltd (CXO).

Its flagship Kachi Project is due to commence production in 2024. In 2023, Lake Resources announced two conditional offtake agreements amounting to 50,000 tonnes per annum of lithium carbonate.

Bell Potter likes the look of these deals. Here’s its latest commentary on Lake Resources:

“LKE has … announced two conditional agreements with a combined offtake of 50ktpa lithium carbonate (LC) and listed-level equity placement of 20%.

WMC Energy (Netherlands) and SK On (Korea) have both signed 10-year 25ktpa LC offtake from LKE’s Kachi project.

Both companies are expected to make a 10% equity investment in LKE; WMC at $1.20/sh and SK On at an agreed 20-day VWAP.

Both agreements are conditional on the release of the Kachi definitive feasibility study, Lilac’s demonstration plant successfully operating, completion of financial due diligence on LKE and formal documentation and approvals.”

Bell Potter is tipping earnings per share (EPS) growth of 85.9% for Lake Resources in 2024.

What’s the latest news from Lake Resources?

The company recently presented at the BMO Global Metals, Mining and Critical Minerals Conference.

In its presentation, Lake Resources said demand continues to outweigh supply for lithium.

It notes an ongoing push from the United States and Europe for non-China lithium supply.

Lake said it expected to complete its definitive feasibility study for producing 50,000 tonnes of lithium carbonate per annum by the middle of this year.

The post Top broker says buy Lake Resources shares for potential 300% upside appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares this week
• Why did the Lake Resources share price sink 24% in February?
• These ASX 200 shares were crushed in February
• Here are the top ten ASX 200 shares today
• Here are the 10 most shorted ASX shares this week

Motley Fool contributor Bronwyn Allen has positions in Allkem and Core Lithium. 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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Things can change very quickly in the mining sector due to swings in both spot and forecast commodity prices.

Fortunately for shareholders of BHP Group Ltd (ASX: BHP), one leading broker believes the outlook for iron ore has just improved.

According to a note out of Goldman Sachs, its analysts believe iron ore will fall into a significant deficit in the coming months, boosting the price of the steel making ingredient meaningfully. The broker explained:

The GS commodity team recently increased their iron ore price forecasts to US$120/t for 2023 (from US$100/t) with a 3m target of US$150/t (vs. spot at US$125/t) with the expectation that the seaborne market should swing into significant deficit of 43Mt in 1H23 on the back of lower seasonal supply from Australia and Brazil and an expected recovery in Chinese steel volumes.

BHP dividend forecast

In response to the above, let’s look at what this might mean for the BHP dividend in the coming years.

As a reminder, in FY 2022, BHP paid shareholders a fully franked US$3.25 per share dividend.

In line with what the miner declared in the first-half, Goldman expects a softer BHP dividend year over year in FY 2023.

It has pencilled in a fully franked US$2.11 (A$3.20) dividend this year. Based on the current BHP share price of $46.59, this will mean a generous 6.9% yield for investors.

Another cut is expected in FY 2024, with Goldman forecasting a US$1.70 (A$2.58) per share dividend. This still represents an above average dividend yield of 5.5% based on current prices.

Finally, the trend is expected to continue in FY 2025, with the broker forecasting another dividend cut. Goldman expects a US$1.21 (A$1.84) per share fully franked dividend for that year. That equates to a more modest 4% dividend yield for investors.

The post Here’s the BHP dividend forecast through to 2025 appeared first on The Motley Fool Australia.

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More reading

• Why 29Metals, BHP, Helia, and Rio Tinto shares are dropping today
• How can I hope to retire rich when the share market is falling?
• Why is the BHP share price sinking today?
• 5 things to watch on the ASX 200 on Thursday
• Last chance to snag the next dividend from these 4 ASX 200 mining 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’re not a fan of stock picking, then exchange traded funds (ETFs) are here to make your life easier. That’s because they allow you to invest in a group of shares through a single investment.

And with ETFs catering for every occasion, there’s likely to be something out there that fits with your investment goals.

For example, if you’re looking to generate income in retirement, then the ETF listed below could be a great option for you.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF could be a top option for a retirement portfolio. That’s because this popular ETF provides investors with easy access to ASX listed shares that have higher than average forecast dividends.

Vanguard notes that instead of looking backwards, it relies on broker estimates to build a portfolio of shares that are expected to be among the biggest dividend payers in the next 12 months. It explains:

VHY is built smarter. Unlike most high yield equity ETFs, VHY uses forward looking broker estimates to determine which securities go in the fund. This ensures VHY can look past historical information and capture the securities that are forecast to pay a higher yield.

The fund manager also has diversity in mind when building its portfolio. It limits the proportion invested in any one industry to 40% and 10% for any one company. This ensures that income investors are holding a diverse collection of dividend shares.

Included in the fund are a number of income investor favourites. This includes BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS), and Woodside Energy Group Ltd (ASX: WDS). Australian Real Estate Investment Trusts (A-REITS) are not included in the ETF.

At the time of writing, the Vanguard Australian Shares High Yield ETF was trading with an estimated forward dividend yield of 5.2%.

The post Buy this ASX ETF for big retirement income appeared first on The Motley Fool Australia.

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• Dividend dessert: Which ASX ETFs are the sweetest for a passive income?
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• Buy these ETFs for passive income and growth
• Is the Vanguard Australian Shares High Yield ETF (VHY) a good buy for passive income?
• Growth and income: 2 excellent ETFs for ASX investors to buy this month

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 positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Investors are pretty skittish at the moment with the economy teetering on the brink and inflation still raging.

So last month’s reporting season saw ASX shares punished brutally even if the result slightly missed expectations — or even for just meeting analyst forecasts.

That means there could be some bargains out there for businesses that still have bright long-term prospects.

Here are two examples in Celeste Funds Management’s portfolio:

Weak half-year result was just a matter of timing

Litigation funder Omni Bridgeway Ltd (ASX: OBL) watched in horror last month as its share price plunged 25% off a cliff.

In fact, the stock has fallen even further this month to bring the total losses since the start of February to a painful 35%.

The Celeste analysts, in a memo to clients, attributed this to “a weak result” and the retirement of its chief executive.

“Completions in the half were significantly lower than expected and operating costs were materially higher.”

However, the Celeste team is not too worried about Omni Bridgeway’s longer term prospects.

“With $304 million of commitments during the period, Omni Bridgeway [is] on track to achieve their FY23 target of $550 million,” read the memo.

“We think the result and completions remain a timing issue.”

Celeste’s peers seem to agree that Omni Bridgeway stocks remain attractive.

According to CMC Markets, all three of the analysts covering the stock currently recommend it as a strong buy.

‘Strong’ pipeline of work coming up

Mining and infrastructure services contractor NRW Holdings Limited (ASX: NWH) also had to shut its eyes during February as its stock price tumbled.

“NRW Holdings fell 16.8% in February post a slightly softer than expected earnings result impacted by weather, delay of new contract awards and investment in North America.”

Cash conversion was weaker in the half yearly results, due to “projects’ working capital releases and requirements”.

The Celeste analysts, though, were optimistic upon affirmation of previous guidance for the full financial year.

“NRW Holdings reiterated FY23 guidance of $2.6 to $2.7 billion revenue and $162 to $172 million EBITA with normalising cash flow.”

The company has plenty of work coming up, too.

“NRW’s group pipeline is a strong $19.3 billion with orderbook up +$0.9 billion to $4.9 billion.”

The professional community isn’t quite as unanimous about NRW Holdings as Omni Bridgeway shares.

Current figures on CMC Markets show five out of eight analysts rating NRW shares as a buy.

The post Golden buying opportunity for 2 ASX shares slashed last month: Celeste appeared first on The Motley Fool Australia.

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More reading

• These ASX shares are being dumped from the ASX 200 index this month
• These 4 ASX shares could rocket this month: Here’s why
• Why Clinuvel, Cogstate, Omni Bridgeway, and Westgold shares are sinking
• 2 ASX All Ords shares making massive moves on results announcements

Motley Fool contributor Tony Yoo has positions in Nrw. 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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With much uncertainty hanging over both consumers and businesses, stock picking at the moment is a fraught activity.

However, there could be a pretty straightforward method to spot ASX shares worthy of buying.

Some stocks took off during last month’s reporting season. And it’s not an outrageous argument to hop on to these stocks that have both business and share price momentum.

The analysts at Celeste Funds Management this week named two such ASX shares this week that still have appealing prospects for further returns.

Executing well and plenty of future opportunities lined up

Shares for automotive industry software maker Infomedia Limited (ASX: IFM) went absolutely gangbusters in February.

“Infomedia rose 26.7% over the month, with the 1H23 result pointing to sales re-acceleration, good progress on cost control and a healthy sales pipeline,” stated a Celeste memo to clients.

“Infomedia delivered sales growth across all regions (HoH) and made solid progress in reshaping the cost base.”

The Infomedia share price has now gained more than 7% over the past year, all while paying out a dividend of 3.5%. Not bad for a period when most technology stocks suffered.

There is plenty of potential to be tapped in the near future, too.

“The company disclosed $15 million of potential annual recurring revenue opportunities, and while they still have to be won, it highlighted a refocus on client engagement by the new management team,” read the Celeste memo.

“The balance sheet is net cash and Infomedia should see ongoing improved performance.”

Much of the rest of the professional investment community agrees with the Celeste team. According to CMC Markets, six out of seven analysts currently rate Infomedia as a buy with five of those recommending it as a strong buy.

‘Appealing exposure to a defensive industry’

While Australian Clinical Labs Ltd (ASX: ACL) shares have struggled over the past year, losing 22.5%, the stock enjoyed a massive renaissance during reporting season.

“Australian Clinical Labs rallied 16.5% during the month following a 1H23 result that beat market expectations,” read the Celeste memo.

“Although COVID revenue was down (PCR testing volumes), the core business revenue grew 18%.”

The Celeste analysts were impressed with the pathology service provider’s cost control, as it “maintained an operating profit margin of 11%, in line with previous guidance”. 

The current half is already looking great, and Celeste analysts reckon the shares are still inexpensive to buy in.

“Looking ahead, 2H23 has started strongly with Jan 23 LFL revenue growth of 22%,” read the memo.

“ACL is an appealing exposure to a defensive industry and remains cheap versus listed peers.”

Australian Clinical Labs is also popular with other fund managers, with four out of five analysts currently surveyed on CMC Markets rating it as a strong buy.

The post Catch these fast-rising 2 ASX shares before it’s too late: Celeste appeared first on The Motley Fool Australia.

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More reading

• Why Accent, Brambles, Infomedia, and Pilbara Minerals shares are pushing higher
• Infomedia share price shifts up a gear as profits surge almost 40%

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 positions in and has recommended Infomedia. The Motley Fool Australia has recommended Infomedia. 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) recorded the smallest of gains. The benchmark index rose a modest 3.3 points to 7,311.1 points.

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

ASX 200 expected to fall

The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open 43 points or 0.6% lower this morning. In late trade in the United States, the Dow Jones is down 0.8%, the S&P 500 is down 1%, and the NASDAQ index is down 1.2%.

Oil prices fall again

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices continued to slide overnight. According to Bloomberg, the WTI crude oil price is down 1.3% to US$75.68 a barrel and the Brent crude oil price is down 1.3% to US$81.58 a barrel. Recession fears have been weighing on prices this week.

Buy Xero shares

The Xero Limited (ASX: XRO) share price surged higher yesterday after announcing major cost reductions. This has gone down well with analysts at Goldman Sachs, who have retained their conviction buy rating with an improved price target of $116.00. It said: “We upgrade FY24-26E EBITDA by +9-17% given the step change in opex.”

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price rose overnight. According to CNBC, the spot gold price is up 1.1% to US$1,838.5 an ounce. US dollar weakness and market volatility gave gold a boost.

Metcash shares downgraded

The Metcash Limited (ASX: MTS) share price could be overvalued according to Goldman Sachs. This morning, the broker has downgraded the wholesale distributor’s shares to a sell rating with a $3.50 price target. It explained: “We downgrade MTS from Neutral to Sell due to moderating supermarket inflation and rising competition, both of which we expect to negatively impact MTS’s Food sales and EBIT.”

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

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Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Metcash. 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 team at Goldman Sachs has been running the rule over the healthcare sector following the conclusion of earnings season.

Two ASX 200 healthcare shares that have been given the thumbs up by the broker are listed below. Here’s what its analysts are saying about them:

Cochlear Limited (ASX: COH)

This hearing solutions company could be a top option in the sector according to Goldman Sachs. Its analysts believe Cochlear is well-placed to outperform its guidance in FY 2023 thanks to improving trading conditions.

Goldman has a buy rating and $265.00 price target on its shares. It commented:

We believe Cochlear screens well on these fundamental factors, and largely avoids the margin uncertainties prevalent across other verticals. We expect a sequential improvement in momentum through 2H23 (further elective volume improvement and new processor launch momentum, potentially tempered by some moderation in Acoustics). We forecast above guidance in FY23E (GSe: $306m vs. $290-305m) and believe shares will now be further supported by a newly announced multi-year buyback program (GSe: $75m/year).

ResMed Inc. (ASX: RMD)

Another ASX 200 healthcare share that Goldman Sachs is bullish on is ResMed. It is forecasting double-digit earnings growth through to at least 2026. It also sees scope for even quicker growth depending on the Philips re-entry after a major product recall.

Goldman has a buy rating and $38.00 price target on this sleep treatment company’s shares. It said:

The timing/nature of Philips’ re-entry remains an important debate, but under most scenarios we expect excess demand through end-2023 at least. Whilst supply shortages and cost inflation mitigated the tailwinds through FY22, the benefits to RMD are significant, and could accrue over many years. As operational pressures continue to ease we see margin/cost dynamics improving, both near- and long-term. We expect a sequentially stronger 2H23, and currently model an EPS CAGR of +11% FY23-26E (with potential upside depending on how competitive dynamics develop).

The post Buy these excellent ASX 200 healthcare shares: Goldman Sachs appeared first on The Motley Fool Australia.

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