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Are you wanting to add some dividend shares to your portfolio this week? If you are, then the two listed below could be worth checking out.

Both have recently been named as best ideas by analysts at Morgans and tipped to provide very attractive yields.

Here’s what you need to know about them:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that Morgans has named as a buy is Dexus Industria.

Morgans is a fan of this industrial and office property company. This is due to its belief that Dexus Industria is well-placed for growth thanks to strong demand and its development pipeline. It commented:

DXI’s key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.

As for dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and 16.6 cents in FY 2024. Based on the current Dexus Industria share price of $3.06, this will mean yields of 5.4% and 5.5%, respectively.

Morgans currently has an add rating and $3.26 price target on the company’s shares.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that Morgans is positive on is HomeCo Daily Needs.

It is a property investment company that focuses on metro-located, convenience-based assets across neighbourhood retail, large format retail, and health and services.

Morgans likes the company due to its high occupancy, long leases, and attractive dividend yield. It said:

HDN’s portfolio is valued at around $4.7bn across +50 assets with exposure to Large Format Retail; Neighbourhood; and Health & Services properties. Over the medium term it expects to reweight towards Neighbourhood. Portfolio metrics are solid: weighted average cap rate 5.3%; weighted average lease expiry 5 years and occupancy 99%. HDN offers investors an attractive distribution yield which is underpinned by contracted rental income. Sites are also in strategic locations with strong population growth. The portfolio has exposure to ‘last mile’ logistics, as well as a significant land bank with future development potential (38% site coverage with a ~$500m development pipeline)

In respect to dividends, the broker is forecasting dividends per share of 8.3 cents in FY 2023 and 8.5 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.32, this will mean dividend yields of 6.3% and 6.5%, respectively.

Morgans has an add rating and $1.52 price target on its shares.

The post These are the best ASX dividend shares to buy: broker appeared first on The Motley Fool Australia.

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More reading

• 2 ASX dividend shares to buy with big yields: Morgans
• Top ASX value shares to buy in February 2023
• These top ASX dividend shares are buys: Morgans

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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With everyone piling onto ASX lithium shares, it’s hard to find any real bargains in that space.

However, lithium is not the only mineral critical for the zero-carbon transition.

Copper has been used for conducting electricity for centuries, and a typical electric car can contain more than 1.6km of wiring made from the element.

With the global economy about to rapidly slow down this year after steep interest rate rises, gold is also in favour as a “safe haven” investment.

Even after a cool-off this month, the gold price is up 5.4% over the past 60 days in US dollar terms.

So which ASX shares can give you exposure to these boom commodities?

There is one stock that Argonaut associate dealer Harrison Massey mentioned this week that is involved with both resources:

Supercharging the ‘size and economics’ of Queensland site

Massey is currently urging investors to buy shares of miner AIC Mines Ltd (ASX: A1M).

“AIC Mines owns and operates the Eloise copper mine in Queensland,” Massey told The Bull.

“Eloise is a high-grade underground mine with a 26-year operating history.”

The analyst likes how AIC’s production potential has significantly upgraded.

“The company recently increased its mineral resource to 115,000 tonnes of contained copper and 101,100 ounces of contained gold,” he said.

“AIC Mines bought an adjacent exploration company in late 2022, which should significantly enhance the size and economics of the Eloise project.”

The AIC share price has dipped 18.3% over the past 12 months, perhaps suggesting a nice entry point for those wanting to dive in now.

The resources company currently has a market capitalisation of $194 million, but is yet to pay out any dividends.

Massey is not alone in his bullishness for the Queensland miner.

According to CMC Markets, all four of the analysts currently covering AIC Mines shares recommend it as a strong buy.

The post Copper & gold: Expert says BUY this obscure ASX share digging up the good stuff appeared first on The Motley Fool Australia.

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More reading

• Bought $1,000 of Bendigo Bank shares in 2013? Here’s how much passive income you’ve received
• These are the best ASX dividend shares to buy: broker
• Buy these ASX passive income shares with 5%+ yields today: experts
• These are the best ASX 200 energy shares to buy now: Morgans
• The A2 Milk share price has lagged the ASX 200 in 2023. Time to pour in?

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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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 very attractive yields. Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

This footwear and youth apparel retailer could be an ASX passive income share to buy.

Thanks to its strong market position, popular retail brands, and exposure to younger consumers, Accent has been tipped to grow strongly in the coming years.

This is expected to lead to the retailer rewarding its shareholders with a growing stream of dividends.

For example, according to a note out of Goldman Sachs, its analysts are expecting the company to increase its dividend to a fully franked 12.2 cents per share in FY 2023. Based on the current Accent share price of $2.24, this will mean a yield of 5.4%.

Goldman has a buy rating and $2.75 price target on Accent’s shares.

Charter Hall Long WALE REIT (ASX: CLW)

Another ASX income share that could be a top option for investors is the Charter Hall Long Wale REIT.

It is a property company that 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 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 $4.68, this will mean yields of 6% and 6.2%, respectively.

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

The post Buy these ASX passive income shares with 5%+ yields today: experts appeared first on The Motley Fool Australia.

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More reading

• ASX 200: Buy high and sell higher
• Buy Pilbara Minerals and this ASX dividend share: experts
• These 2 ASX 200 shares yield 5% and 6% and I can’t wait to buy them
• 3 ASX All Ordinaries stocks hitting new 52-week highs today
• 7%+ dividend yield! I’d buy this ASX 300 share for passive income in 2023

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 Accent 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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There are plenty of options for investors to choose from in the energy sector. But which ASX 200 energy shares should you buy?

Listed below are a couple of energy shares that have been named on the best ideas list of Morgans for the month of February.

Here’s why they could be top options for investors:

Karoon Energy Ltd (ASX: KAR)

The first ASX 200 energy share that has been named as a buy is Karoon Energy. Morgans likes the company due to its strong balance sheet and bold production growth plans. It explained:

Unique as a reasonable scale pure conventional oil producer, benefitting directly from rising oil prices. Karoon has significant net cash and is fully funded through a doubling of production over the next 12 months. While there is also potential catalysts just around the corner with Karoon flagging at its recent result that it planned to shortly update the market with more detail on its growth plans, Bauna’s outlook, and its ESG approach.

Morgans has an add rating and $3.70 price target on Karoon Energy’s shares.

Santos Ltd (ASX: STO)

Another ASX 200 energy share that Morgans thinks investors should be considering is Santos. It sees the energy producer as a great option due to the strength of its growth profile and its diversified earnings base. It commented:

The resilience of STO’s growth profile and diversified earnings base see it well placed to outperform against the backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.

Morgans has an add rating and $8.75 price target on Santos’ shares. It also expects an attractive 5.8% dividend yield in FY 2023.

The post These are the best ASX 200 energy shares to buy now: Morgans appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX 200 shares to buy while energy shortage rages on: experts
• 5 things to watch on the ASX 200 on Tuesday
• Should I buy Santos shares right now for dividend income?
• 5 things to watch on the ASX 200 on Monday

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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The A2 Milk Co Ltd (ASX: A2M) share price has underperformed the S&P/ASX 200 Index (ASX: XJO) so far in 2023.

Year-to-date the ASX 200 has gained an impressive 7.1% while the A2 Milk share price is right about where it started the new year.

But, according to Adam Lund, co-founder of Spheria Asset Management, the dairy company is well positioned to turn that around and outperform over the full year.

The ASX 200 share remains ‘somewhat overlooked’

In our fund manager interview with Lund, he said the A2 Milk share price was among the top performers for the fund in 2022.

Having previously held shares in the company, Spheria added the stock back into their portfolio in 2021.

“We thought it was being irrationally priced by the market and the re-rate we anticipated came as new management returned the business to growth, cleaned up the inventory position and steadied the strategy of the business,” Lund told us.

That was 2022.

But the fund manager remains optimistic about the outlook for the A2 Milk share price in 2023 as well.

According to Lund:

A2 is a high-quality growth business, and even after the recent rally, it still remains somewhat overlooked by the market. The turnaround driven by CEO David Bortolussi, who stepped into the business in 2021, is well underway.

Among reasons to be bullish on the stock, Lund cited A2 Milk’s “enviable position” with importing infant formula into China with its “high margin and highly differentiated product”.

“It’s a strong cash generative business, capex light and has multiple potential longer term growth drivers,” he added.

As for the metrics, Lund said:

A2 has significant cash on its balance sheet with over $780 million of net cash. And it trades at only around 2.5 times enterprise value (EV) to sales and some 18 times enterprise value to earnings before interest and taxes (EBIT).

A2 Milk share price snapshot

As you can see in the chart below, the A2 Milk share price has had a really strong run over the past six months, up 38% since 8 August.

The post The A2 Milk share price has lagged the ASX 200 in 2023. Time to pour in? appeared first on The Motley Fool Australia.

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More reading

• Why this ASX 200 share has ‘great further upside potential’ in 2023: fund manager
• A2 Milk shares are up 30% in a year, is this price sweet or sour?
• 3 ASX shares to cash in on China’s reopening to the world: Jun Bei Liu
• If I invest $1,000 in A2 Milk shares now, what could my return be this year?
• 5 ASX All Ords shares cracking new 52-week highs on Tuesday

Motley Fool contributor Bernd Struben 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 A2 Milk. 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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Small cap ASX shares suffered more than most in 2022, but there’s a theory from many experts that they will make a roaring comeback in 2023.

But with those small fish, one needs to be extra fussy about which stocks to buy into.

“There’s a lot of variability in there,” Cyan portfolio manager Graeme Carson said in a Reach Markets video.

“It’s very much about stock picking. Very much about picking the eyes out of it. To do that you need to do grassroots research, because a lot of these companies are undiscovered.”

With this in mind, Carson named two ASX shares that his fund is holding very tightly for the long run:

Get most of the assets for free

Carson’s partner at Cyan, Dean Fergie, has previously told The Motley Fool multiple times how much he believes in craft beer maker Mighty Craft Ltd (ASX: MCL).

Carson is no different, holding it up as a shining example of Cyan’s growth portfolio.

“They hold a portfolio of liquor assets in boutique beer, ready-to-drink alcohol, cider and Aussie spirits,” he said.

“We think there’s pretty comfortable upside, even up to 100% upside, on a pretty conservative basis, for this one.”

The Mighty Craft share price has dropped 43% over the past 12 months. But this year it has headed 11% up on the back of hype behind its Better Beer brand, which is co-owned by prominent comic duo The Inspired Unemployed.

Carson pointed out that Mighty Craft also owns some licenced venues but it could potentially sell these off to fund the growing alcohol business.

And at the current market cap below the value of Better Beer label by itself, buying the stock means investors acquire all the other assets for free anyway.

“We think it’s a very very interesting opportunity.”

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‘Incredibly cheap’ with proven performance

Carson presented Silk Logistics Holdings Ltd (ASX: SLH) as a torch bearer for Cyan’s cash-generative portfolio.

“It’s at $2.30 but it listed July 2021 at $2. So it’s performed pretty well in a difficult market,” he said.

“We think it’s [still] incredibly cheap.”

The company provides port and contract logistics services in Australia for many big-name clients.

“It’s founder-led and managed, and they own a large chunk of the equity — and are heavily incentivised to continue the growth there.”

The stock is trading at a single-digit price-to-earnings ratio all while paying out a 5% dividend yield including franking.

The performance is there in black-and-white. 

In its listing prospectus, the 2022 financial year revenue forecast was $339.4 million. Just a year later, the actual revenue turned out to be $394.7 million.

“We value it at $4.20 on a two-year view, which is 85% upside.”

The Silk Logistics share price is already up 8.9% so far this year.

The post ‘100% upside’: 2 small-cap ASX shares Cyan is quietly riding to the moon appeared first on The Motley Fool Australia.

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More reading

• Small-cap ASX share ‘well-funded’ with ‘good growth’: fund manager

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 recommended Silk Logistics. 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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Many ASX growth shares, particularly those in the tech sector, took an absolute pummelling last year. But some experts are saying right now could be “the beginning of a rebound” for growth stocks.

The prospect of rising inflation, however, still looms large. So the market’s appetite for ASX cash-eating machines is definitely not what it once was.

So how can investors get on board the growth train whilst minimising their risk exposure? The answer is to do a little homework on the growth stocks you’d like to buy before diving in.

Our Foolish writers have done some homework of their own and these are the ASX growth shares they reckon are well worth a look at in February:

6 best ASX growth shares for February 2023 (smallest to largest)

Vmoto Ltd (ASX: VMT), $103.52 million

IkeGPS Group Ltd (ASX: IKE), $151.75 million

BetaShares Global Cybersecurity ETF (ASX: HACK), $624.96 million

Johns Lyng Group Ltd (ASX: JLG), $1.51 billion

Domino’s Pizza Enterprises Ltd (ASX: DMP), $6.44 billion

Aristocrat Leisure Limited (ASX: ALL), $23.92 billion

(Market capitalisations as at market close on 7 February 2023)

Why our Foolish writers love these ASX growth stocks

Vmoto Ltd

What it does: Vmoto manufactures and sells scooters worldwide, with a strong focus on electric-powered, two-wheel vehicles.

By Bernd Struben: Vmoto’s e-scooters aren’t like the rentals you see on urban footpaths. Rather, they are high-quality products, even suitable for commercial use.

With the world moving towards zero emissions, I believe the electric scooter phenomenon is likely only in its early days. And, in my opinion, this makes Vmoto a promising ASX growth share.

The Vmoto share price is down by around 12% in 2023, which could represent a good buying opportunity. And, I believe the market appears to have underappreciated some strong Q4 2022 figures.

These included a 19% increase in total units sold from FY21 and a 58% increase from FY20. As at 31 December, the company had a net cash position of $28 million, with no bank debt.

Motley Fool contributor Bernd Struben does not own shares in Vmoto Ltd.

IkeGPS Group Ltd

What it does: Based in New Zealand, Ike predominantly services customers located in North America with software and hardware solutions that help collect, analyse, and manage assets associated with electricity and communication networks.

By Mitchell Lawler: The growth companies that get me really excited are the ones operating in traditionally stagnant and ‘boring’ industries. These are often enormous, mature markets that are ripe for innovation.

IkeGPS brings cloud-based software to utility providers – making power pole assessment faster, safer, and easier. The offering is clearly a success with its customers, with Tuesday’s third-quarter update showing a 134% increase in year-to-date revenue to $23.3 million.

I believe the economics of the business are highly attractive. Namely, the ‘platform transactions’ and ‘platform subscriptions’ revenue streams.

As Ike continues to roll out its offering, I think the small marginal cost of providing the software to more customers means this company could be extremely profitable in the future. Not to mention the massive tailwinds associated with the deployment of 5G and maintenance of aging infrastructure.

Motley Fool contributor Mitchell Lawler does not own shares in IkeGPS Group Ltd.

BetaShares Global Cybersecurity ETF

What it does: This exchange-traded fund (ETF) invests in a basket of global shares all involved in the cybersecurity industry.

By Sebastian Bowen: When I put my mind to thinking about which trends might be growth engines of the next decade, cybersecurity tops my list. Last year was a potent reminder of the importance of cybersecurity in our increasingly digital world.

It’s pretty obvious that companies, individuals, and governments will all be paying plenty of cash for the foreseeable future to secure both their own and their customers’ data.

The BetaShares Global Cybersecurity ETF is, I believe, a perfect way to capitalise on this long-term tailwind. The fund holds some of the top cybersecurity companies in the world, including names like Fortinet, Cisco, Okta, and CrowdStrike.

As of 31 December, this ETF had returned an average of 14.15% per annum since its inception in 2016. With cybersecurity growing ever more important, I think there is a good chance this stellar performance track record can continue in 2023 and beyond

Motley Fool contributor Sebastian Bowen does not own units of the BetaShares Global Cybersecurity ETF.

Johns Lyng Group Ltd

What it does: The company describes itself as an integrated building services group that delivers building and restoration services across Australia and the US. The core business is rebuilding and restoring properties and contents after damage from insured events, including impact, weather, and fire events.

Johns Lyng’s client base includes major insurance companies, commercial businesses, local and state governments, body corporate/owner corporations, and retail customers.

By Tristan Harrison: The Johns Lyng share price has dropped close to 20% since early December and more than 30% since April.

That’s despite the company projecting that its FY23 business-as-usual (BaU) revenue will rise by 27% to $930 million, and its FY23 BaU earnings before interest, tax, depreciation and amortisation (EBITDA) will increase by 43% to $93 million.

I think these numbers demonstrate that profit is scaling faster than revenue, with rising margins – an attractive feature.

I believe Johns Lyng is executing well on expanding its presence in Australia and the US. It is also growing its bolt-on services. Plus, it’s a beneficiary of the unfortunate increase in more costly climate impacts, such as the floods in Victoria and NSW last year.

Motley Fool contributor Tristan Harrison does not own shares of Johns Lyng Group Ltd.

Domino’s Pizza Enterprises Ltd

What it does: Domino’s is a fast-food staple around the globe. It operates a network of more than 3,100 stores across 10 countries and has plans to continue growing its slice of the pizza pie in the years to come.

By Brooke Cooper: When I look for growth shares, I aim to seek out companies I think are capable of growth in nearly all economic environments. I believe Domino’s fits that bill.

The company operates in the discretionary space, and the ‘affordable’ end at that.

While its price-to-earnings (P/E) ratio is relatively high right now – at around 39 times – I think the pizza chain’s intended growth trajectory is worth it.

Domino’s grew its footprint by 450 stores in FY22 and plans to better that in FY23. And I’m not alone in my bullishness.

Morgans has slapped the stock with a $90 price target – a potential 25% upside at the time of writing.

Motley Fool contributor Brooke Cooper does not own shares of Domino’s Pizza Enterprises Ltd.

Aristocrat Leisure Limited

What it does: Aristocrat Leisure is a gaming technology company that owns a portfolio of industry-leading poker machines and digital games.

By James Mickleboro: My ASX growth share to buy this month is ASX 200-listed Aristocrat Leisure.

I believe the gaming technology company is well-positioned to deliver solid, long-term growth thanks to its leadership position in a growing market, its recent expansion into the potentially lucrative real-money gaming sector, and its very strong balance sheet.

With the company sitting on a mountain of cash right now, it has the opportunity to potentially boost growth with earnings-accretive acquisitions or return funds to shareholders via buybacks.

Motley Fool contributor James Mickleboro does not own shares of Aristocrat Leisure Limited.

The post Top ASX growth shares to buy in February 2023 appeared first on The Motley Fool Australia.

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More reading

• 3 fantastic ETFs for ASX investors to buy in February
• Why did this ASX lithium share just rocket 42%?
• How I’d invest $300 a month in ASX shares to target an extra income of $20,000 per year
• Leading brokers name 3 ASX shares to buy today
• Cybersecurity spending is rocketing in 2023. Here’s why this ASX ETF might benefit

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, Cisco Systems, CrowdStrike, Domino’s Pizza Enterprises, Fortinet, Johns Lyng Group, Okta, and ikeGPS Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Adore Beauty Group, CrowdStrike, Domino’s Pizza Enterprises, Johns Lyng Group, Okta, Vmoto, and ikeGPS 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) ended the day in the red after the RBA’s cash rate meeting spooked investors. The benchmark fell 0.45% to 7,504.1 points.

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

ASX 200 expected to rise

The Australian share market looks set to rise on Wednesday following a volatile but solid night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points or 0.1% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.35%, the S&P 500 is up 0.8%, and the Nasdaq is 1.15% higher.

Oil prices jump

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a strong session after oil prices jumped. According to Bloomberg, the WTI crude oil price is up 3.7% to US$76.84 a barrel and the Brent crude oil price has risen 3% to US$83.48 a barrel. Comments out of the US Federal Reserve eased recession fears.

Suncorp results

The Suncorp Group Ltd (ASX: SUN) share price will be one to watch on Wednesday. That’s because this morning the banking and insurance giant is scheduled to release its half year results. According to CommSec, the market is expecting a net profit after tax of $570 million and an interim dividend of 31.9 cents per share.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a positive session after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.25% to US$1,884 an ounce. Easing rate hike concerns boosted the precious metal.

Buy Macquarie shares

One leading broker believes the Macquarie Group Ltd (ASX: MQG) share price is good value following the investment bank’s third quarter update. A note out of Morgans reveals that its analysts have retained their add rating with a $214.50 price target. It commented: “MQG is a quality franchise, exposed to structural growth areas, and the company has performed exceptionally well in a more difficult FY23 environment.”

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

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More reading

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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 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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Ask a Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In part two of this edition, we’re rejoined by Adam Lund, analyst, head of trading & co-founder, Spheria Asset Management.

Motley Fool: The Spheria Australian Smaller Companies Fund and Spheria Australian Microcap Fund focus on the smaller end of the market. How do you see small-cap ASX shares performing compared to the big blue-chips in 2023?

Adam Lund: Small-caps dramatically underperformed large-caps in 2022. It’s an asset class that tends to underperform during periods of economic turmoil as sentiment turns negative and investors look to reduce the liquidity risk in their portfolios.

But the good news for 2023 and beyond is that smaller companies are also an asset class with a well-documented history of strong outperformance during market recoveries.

In recent months, we have been seeing some exceptional value in small-cap ASX shares and starting to add some fresh names to the portfolio.

Given the lack of coverage of small caps relative to large-caps, the inefficiency in this market is much greater than what you see in large caps. Particularly at times like this, that provides active small-cap managers an edge to outperform their large-cap peers.

MF: Which ASX shares are you most bullish about for 2023?

AL: One company we’re positive on is City Chic Collective Ltd (ASX: CCX). It’s a retailer of plus-sized women’s apparel, footwear and accessories in Australia, New Zealand, the United States, Canada, the UK and Europe.

The recent weakness in the City Chic share price came with the market betting on a potential capital raise as the balance sheet looked to be under pressure. This saw the shares trading at close to asset backing.

The weaker retail environment and excess inventory position has forced increased promotional activity which resulted in further gross margin compression. The company is now expecting a small loss in the first half of 2023.

MF: The half-year loss isn’t concerning?

AL: We’re taking a longer-term view on this business. We think management can work through the currently elevated inventory levels to take the balance sheet from a net debt to a net cash position.

Much like The a2 Milk Co Ltd (ASX: A2M) [discussed in part one of this interview], we have a long history of investment with CCX. We previously owned a substantial position post its spinoff from Specialty Fashion, before divesting most of the position as the stock re-rated with the international growth of the business.

We now think it’s a great time to reacquire a position in what is a sound business trading at a very attractive multiple, and where the risk/reward is skewed in investors’ favour.

MF: Any other ASX shares you think will outperform in 2023?

AL: One other ASX share we like that might surprise some readers is listed funds management company, Platinum Asset Management Ltd (ASX: PTM).

It’s perhaps one of the most under-owned stocks in the Australian market. But when you buy Platinum shares, you are investing in a very experienced investment team that manages $18.1 billion across strategies that have outperformed their direct competitors over most periods.

And you’re getting that for nine times EBIT [earnings before interest and taxes], with a net cash balance sheet and strong cash flow generation.

MF: Platinum is also popular with some income investors.

AL: Right, PTM pays a 6.5%, fully franked dividend yield and provides investors with cheap beta in a market that has started 2023 with strong positive momentum.

Recently we’ve seen investors starting to appreciate that the team’s performance may start to strengthen flows into their funds. Investor flows in and out of funds management companies is a metric they live and die by.

Additionally, one of the firm’s founders, Kerr Nielsen, recently stepped off the board. So the question is, can we expect the overhang of his stock to hit the market as the shares recover? A sell-down would see a large index upweight which would mean a large flow of passive capital back into the name.

***

Be sure to check in tomorrow for part three of our fund manager interview series with Adam Lund. You can read part one right here.

(You can find out more about Spheria Asset Management’s fund offerings here.)

The post Two ‘attractive’ ASX shares set to outperform in 2023: fund manager appeared first on The Motley Fool Australia.

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• Avoid my biggest mistake in investing: fund manager
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Motley Fool contributor Bernd Struben 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 A2 Milk. 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 are looking to bolster your portfolio with some ASX 200 blue chip shares, you may want to look at the two listed below that experts rate highly.

Here’s why analysts think they are in the buy zone this month:

Cochlear Limited (ASX: COH)

The first ASX 200 blue chip share that has been named as a buy is this leading hearing solutions company.

Goldman believes that Cochlear is well-placed to deliver the top end of its guidance this year. It commented:

In our view, the backdrop for this year appears relatively more favourable, and we see clear scope for COH to deliver at the upper-end of another solid guidance (+8-13% to $290-305m, with further accretion possible from the Oticon Medical transaction, which is yet to close).

Goldman Sachs currently has a buy rating and $247.00 price target on its shares.

Qantas Airways Limited (ASX: QAN)

Another ASX 200 blue chip share that has been named as a buy is airline operator Qantas.

Morgans is bullish on the company and believes it is well-placed in the current environment. It said:

QAN is now our preferred pick out of our travel stocks under coverage given it has the most near-term earnings momentum. Looking across travel companies globally, airlines are now in the sweet spot given demand is massively exceeding supply.

The broker also sees plenty of value in the Qantas share price at the current level. Morgans adds:

QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings, a much stronger balance sheet, a better domestic market position, a higher returning International business and more diversification (stronger Loyalty/Freight earnings).

All in all, this makes Qantas the broker’s top pick in the travel sector right now. As a result, it has put an add rating and $8.50 price target on the company’s shares.

The post Why experts say these ASX 200 blue chip shares are buys appeared first on The Motley Fool Australia.

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More reading

• 10 ASX stocks to buy before they report this earnings season: Goldman
• Virgin IPO talks are heating up. So why is the Qantas share price still climbing?
• Up 25% in a year, is it time to cash in Qantas shares?
• Should I buy Qantas shares before the company’s ASX earnings update?
• Morgans names 2 of the best ASX 200 shares to buy in February

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 positions in and has recommended Cochlear. The Motley Fool Australia has recommended Cochlear. 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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