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The Allkem Ltd (ASX: AKE) share price could be a top option for investors in the lithium industry right now.

That’s the view of analysts at Goldman Sachs, which have reiterated their bullish view on the lithium miner this morning.

What is Goldman saying about the Allkem share price?

According to the note, the broker continues to expect lithium prices to remain relatively solid for the first half of 2023 before weakening materially over the next 18 months. Goldman explained:

Our commodity team expect lithium prices through 1H23 to reflect the near-term tightness and lagging spodumene contract price pass-through (highlighted by PLS’ recent offtake repricing) before declining over 2H23, where we note 2024 futures have continued to pull back. While we see earnings support for the Australian stocks over 12-18 months on price lags, we expect lithium stock prices to reflect lithium commodity price movements as prices decline from record peaks.

However, due to its production growth plans, Goldman sees Allkem as well-positioned to navigate what lies ahead. It said:

Allkem has one of the best production outlooks in our lithium coverage, with broad-based growth optionality, second only to Mineral Resources on an LCE basis when including downstream hydroxide production on an equity basis. This drives our forecast for the company’s equity LCE production growth of >4x by FY27E, supporting earnings rebounding to near current record levels despite the declining lithium price environment.

Attractive valuation

In light of above and its attractive valuation at just 0.9x net asset value, the broker revealed that “Allkem is our preferred lithium exposure.”

As a result, this morning it has reiterated its buy rating and $15.20 price target on its shares.

Based on the current Allkem share price of $12.70, this implies potential upside of approximately 20% for investors over the next 12 months.

The post Broker says Allkem share price can rise 20% even if lithium prices fall appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Which ASX lithium shares are producing and which are not in 2023?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 lithium shares brokers just upgraded to ‘buy’

Motley Fool contributor James Mickleboro has positions in Allkem. 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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Looking at Magellan Financial Group Ltd (ASX: MFG) shares, it appears to have a very high dividend yield.

In FY22, the funds management business paid an annual dividend per share of $1.79. Including the franking credits, that’s a grossed-up dividend yield of around 25%.

It would be a huge yield if it were repeated in FY23. But, what are the chances of that?

Profitability is reducing

Magellan manages many billions of dollars of investors’ money. However, it manages a lot less than it used to.

In November 2021, it was managing around $116 billion of funds under management (FUM). By December 2022, this had dropped to just $45.3 billion.

Magellan has seen an enormous amount of money flow out of the door. The fund manager said that it experienced net outflows of $2.6 billion during the month of December 2022, which included net retail outflows of $0.6 billion and net institutional outflows of $2 billion.

The company also recently admitted that performance fees for the six months ended 31 December 2022 “are not meaningful”.

Magellan informed the market that the average FUM for the six months ended 31 December 2022 was $53.8 billion, compared to $112.7 billion in the prior corresponding FUM.

On 29 July 2022, the run rate of average base management fees based on its closing FUM of $60.2 billion was 65 basis points. With the huge fall of FUM over the past year, this means that Magellan’s ongoing revenue and net profit after tax (NPAT) have dropped a lot.

While a company’s board decides the dividend, it is heavily influenced by a company’s current earnings generation ability.

Magellan’s dividend expectations

The funds management business’ dividend policy for its interim and final dividends is to pay 90% to 95% of net profit of its funds management business.

According to Commsec, Magellan is expected to generate earnings per share (EPS) of $1.02 and pay an annual dividend per share of 87 cents which would equate to a grossed-up dividend yield of around 12%.

The problem is, with the shrinking FUM, Magellan’s earnings are expected to fall in FY24 as well. The FY24 grossed-up dividend yield could be 9.1%.

So, not only is the 25% yield an illusion, the FY23 dividend yield of above 10% may not be sustainable either.

Can it turn things around?

The new leadership of Magellan believes that through the growth of its existing strategies as well as new products, it can get back to $100 billion of FUM after five years. The growth is aimed to be “more diversified” and be less dependent on global shares.

It’s going to take signals from clients on how to position. Magellan wants to grow its allocations with clients’ portfolios, and supported by industry tailwinds.

Magellan said it’s looking to invest to ensure it can bring its more diverse offerings to global institutions and “create value-added partnerships that sustain in a competitive environment.”

The post Is the 25% dividend yield from Magellan shares a trap or a gold mine? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Magellan, Pointsbet, Star, and Zip shares are dropping today
• Magellan share price crashes 9% amid major funds under management decline
• Flying start: Magellan share price surges 11% in 2023
• Here are the top 10 ASX 200 shares today

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 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 Fortescue Metals Group Limited (ASX: FMG) share price has been in fine form in recent months.

As you can see below, since dropping to a 52-week low of $14.50 in late October, the mining giant’s shares have raced 58% higher.

This means the Fortescue share price is now trading within a whisker of a 52-week high.

Where next for the Fortescue share price?

Unfortunately for investors, one leading broker believes the Fortescue share price could give back all these gains and some more.

According to a note out of Goldman Sachs, its analysts have reiterated their sell rating with a trimmed price target of $13.40.

Based on where the miner’s shares are currently trading, this implies potential downside of approximately 42% over the next 12 months.

Why so bearish?

Goldman believes that the Fortescue share price is vastly overvalued, particularly in comparison to peers. It also feels that its dividends will come under significant pressure in the coming years as it spends big on decarbonisation.

Commenting on sector valuations, Goldman said:

The Australian bulk miner and steel sectors performed strongly in 4Q23 on the expectation of a China reopening and we now see the sector as more fairly valued trading on (simple averages) ~6x NTM EBITDA and ~1.05x NAV [net asset value].

However, the broker highlights that Fortescue trades at a lofty 1.62x NAV, making it the most expensive ASX 200 bulk mining share under coverage.

In respect to its decarbonisation spending, the broker adds:

We continue to think FMG is at an inflection point on capital allocation, and to fund the ambitious strategy, we assume the company raises ~US$5bn of new debt, reduces the dividend payout ratio from the current ~75% in FY22 to ~50% from FY24 onwards, and increases gross gearing to 30-35% by FY26 (in line with the company’s target of 30-40%).

Goldman appears to believe investors should buy Rio Tinto Ltd (ASX: RIO) instead. It has a buy rating and $130.00 price target on the miner’s shares.

The post Goldman tips Fortescue share price to crash 42% appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Fortescue’s Twiggy Forrest is in the wars this week. Here’s why
• Here’s why 2023 will be a huge year for passive income
• Will 2023 be a golden year for 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 looking for dividend shares to buy, then you may want to look at the two shares listed below that have been rated as buys by Morgans.

Here’s why the broker rates these ASX 200 dividend shares highly right now:

QBE Insurance Group Ltd (ASX: QBE)

The first ASX 200 dividend share that has been named as a buy is insurance giant QBE.

Morgans is positive on the company and believe it is well-placed to benefit from rising premiums and cost-outs. The broker also highlights that QBE’s shares trade on lower than average multiples. It said:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~9.1x FY23F PE

As for dividends, Morgans expects QBE to pay a 41.5 cents per share dividend in FY 2022 and then a 76.5 cents per share dividend in FY 2023. Based on the latest QBE share price of $12.93, this equates to yields of 3.2% and 5.9%, respectively.

Morgans has an add rating and $14.93 price target on QBE’s shares.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 share that has been named as a buy is telco giant Telstra.

Morgans likes the company due to its successful turnaround via the T22 strategy and its recently approved restructure. The broker believes the latter could unlock value through asset sales. It explained:

TLS currently trades on ~7x EV/EBITDA. However some of TLS’s high quality long life assets like InfraCo are worth substantially more, in our view. We don’t think this is in the price so see it as value generating for TLS shareholders.

In respect to dividends, the broker is expecting Telstra to continue to pay fully franked 16.5 cents per share dividends in both FY 2023 and FY 2024. Based on the current Telstra share price of $4.01 this equates to yields of 4.1%.

Morgans has as an add rating and $4.60 price target on the company’s shares.

The post Buy Telstra and this ASX 200 dividend share: Morgans appeared first on The Motley Fool Australia.

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More reading

• Why I think these 3 ASX 200 dividend shares are top buys for retirement
• Morgans names 2 ASX 200 dividend shares to buy now
• Can Telstra shares deliver 16% upside AND a healthy dividend this year?
• How different is the Vanguard Australian Shares Index ETF (VAS) now compared to a year ago?
• Buy Telstra and this ASX 200 dividend share for income in 2023: brokers

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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Bank of Queensland Ltd (ASX: BOQ) is expected to deliver the biggest dividend yield among the ASX 200 bank shares in FY24.

That’s according to data from Commsec on consensus estimates for FY24 dividends among bank shares.

Bank of Queensland is expected to deliver a 52-cent dividend for FY24, which equates to a 7.5% yield.

In FY22, the regional bank paid 44 cents per share, fully franked. This was a 9% bump on FY21.

Here are the consensus estimates for the other ASX 200 bank shares.

ANZ 200 bank share	FY24 forecast dividend	FY24 forecast dividend yield
Bank of Queensland Ltd (ASX: BOQ)	52 cents	7.5%
ANZ Group Holdings Ltd (ASX: ANZ)	$1.60	6.6%
Westpac Banking Corp (ASX: WBC)	$1.473	6.3%
Bendigo and Adelaide Bank Ltd (ASX: BEN)	60 cents	6%
National Australia Bank Ltd (ASX: NAB)	$1.77	5.7%
Virgin Money UK CDI (ASX: VUK)	$1.79	5.2%
Commonwealth Bank of Australia (ASX: CBA)	$4.55	4.3%
AMP Ltd (ASX: AMP)	5.2 cents	3.9%
Macquarie Group Ltd (ASX: MQG)	$6.775	3.8%

What will drive dividends in 2023 for ASX 200 bank shares?

Rising interest rates are leading to improved net interest margins (NIMs) for the ASX 200 bank shares.

This is a big factor in a bank’s profitability, so there is an obvious impact on dividends because they are funded by profits.

A bank’s NIM represents the difference between the income it receives from interest on home and business loans and the interest it pays out on deposits or savings accounts.

In October, the Bank of Queensland was among the first of the ASX 200 banks to report an improved NIM in its full-year FY22 results.

The market had been waiting to find out whether consecutive official cash rate rises since May had flowed through to the banks’ bottom lines positively or negatively. Positively in terms of improved NIMs, or negatively in terms of higher bad debts as mortgages became more expensive for homeowners.

It turned out to be positive, with Bank of Queensland reporting an exiting net interest margin for FY22 of 1.81%.

Broker Goldman Sachs noted that was well ahead of the 1.75% 2H FY22 average and above their forecast for FY23 of 1.78%.

Investors loved the news and pushed the Bank of Queensland share price 11.3% higher on the day of the release of the full-year results. The share prices of many ASX 200 bank shares rose in the following days.

Banks return to wholesale international markets for lending

One threat to expanding NIMs is that Australian banks now have to return to the overseas wholesale market to at least partly fund ongoing mortgage lending.

This follows the closure of the Term Funding Facility (TFF), which was set up by the Reserve Bank in 2022. The TFF allowed Australian lenders to borrow at exceptionally low rates to keep mortgage lending going through the COVID-19 crisis.

However, the banks now have to pay that money back and return to wholesale markets for funds. The TFF was closed for drawdowns on 30 June 2021, and the last possible maturity date is 30 June 2024.

Wholesale funding is more expensive than using money from savings accounts, so the banks are starting to raise term deposit rates to attract more local fixed-term savings to use for lending.

As most Australian savers know, the banks were quick to pass on rate hikes to home loan customers but slow to pass them on to savings account holders. This helped protect NIMs in the second half of 2022.

Now, it is becoming cheaper to offer higher term deposit rates to attract local money for lending.

The post Which ASX 200 bank share is forecast to pay the highest dividend yield in FY24? appeared first on The Motley Fool Australia.

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More reading

• My $15 a day plan to build passive income this year
• Can ASX bank shares deliver in 2023 after higher interest rates?
• Should I buy Bank of Queensland shares for passive income?
• Why Bank of Queensland, Block, Fletcher Building, and Newcrest are dropping today
• 3 ASX 200 value shares I think could soar in 2023

Motley Fool contributor Bronwyn Allen has positions in Anz Group, Commonwealth Bank Of Australia, Macquarie Group, and Westpac Banking. 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 Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Macquarie Group and Westpac Banking. 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 past year has been rough for many investors, with professionals certainly not immune from poor performance.

The QVG Capital team admitted 2022 was a disaster in a recent memo to clients, with the fund losing 23.4%.

The QVG analysts attributed this to three reasons.

“We started this year with a ‘highly rated’ portfolio. which was de-rated through the year due to rising rates,” read the memo.

“We did not own any companies in the hottest sectors (energy and resources). We made some stock-specific mistakes — e.g. holding City Chic Collective Ltd (ASX: CCX) too long and Symbio Holdings Ltd (ASX: SYM) at all.”

The QVG team is again expecting a difficult 2023. 

But investors might be surprised to hear what they are doing.

“We expect next year to be a tough one for the global economy. Despite this we are almost fully invested.”

‘Patience is required’

So if they think 2023 will be rough, why are the QVG professionals sticking to ASX shares?

“This is because prospective returns from our portfolio holdings are compelling and when the market turns it tends to move quickly.”

The memo reiterated that no one is able to forecast when the bottom will pass and those stunning returns will materialise.

“Because of this, some patience is required,” stated the team.

“Now is not the time to get too glum.”

‘The best formula for strong performance’

The QVG team has an investment strategy based on investing in three types of stocks — “buying balance sheets, businesses with high through-the-cycle returns and organic growth potential”.

They will not deviate from that philosophy, regardless of what 2023 has in store.

“Over the long-term we believe this is the best formula for strong performance,” read the memo.

“In the short-term we are not making any bold predictions but promise to stay humble, hungry and eat plenty of our own cooking.”

Despite the terrible performance in 2022, the QVG fund has returned 89.21% since inception, which equates to 12.71% per annum.

“Economic growth will slow next year, but we’re not trying to time the market and are mindful the strongest gains in markets can occur immediately after a bottom.”

The post ‘Now is not the time to get glum’: Fund reveals why it’s ‘almost fully invested’ appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• What’s the forecast for the coal price in 2023?
• Here are some top ASX dividend share ideas according to experts
• Why has the Zip share price already bolted 21% higher in 2023?
• Goldman Sachs names 3 ASX growth shares to own in 2023

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 Symbio. The Motley Fool Australia has positions in and has recommended Symbio. 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) was in fine form and raced notably higher. The benchmark index rose 1.2% to 7,280.4 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 poised to rise

The Australian share market looks set to end the week with a solid gain following a decent night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 33 points or 0.45% higher this morning. In late trade in the United States, the Dow Jones is up 0.8%, the S&P 500 has climbed 0.55%, and the Nasdaq has risen 0.7%. This was driven by the softening of inflation in the United States.

Oil prices charge higher

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a strong finish to the week after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.7% to US$78.68 a barrel and the Brent crude oil price is up 1.95% to US$84.20 a barrel. Demand hopes boosted prices.

Allkem tipped as a buy

The Allkem Ltd (ASX: AKE) share price could be heading a lot higher from current levels. That’s the view of analysts at Goldman Sachs, which have reiterated their buy rating and $15.20 price target on the lithium miner’s shares today. It said: “We prefer Allkem (Buy) with optionality across the Americas and Australia growing equity LCE production >4x by FY27E and at a discount to peers.”

Gold price jumps

Gold shares Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a great finish to the week after the gold price jumped overnight. According to CNBC, the spot gold price is up 1.2% to US$1,900.9 an ounce. Softening US inflation has sparked hopes that the US Federal Reserve will slow its rate hikes.

Fortescue named as a sell

The Fortescue Metals Group Limited (ASX: FMG) share price remains severely overvalued according to analysts at Goldman Sachs. This morning, the broker has reiterated its sell rating with a trimmed price target of $13.40. This implies potential downside of 41% from current levels.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Power up: 3 best ASX 200 energy shares of 2022
• Fortescue’s Twiggy Forrest is in the wars this week. Here’s why
• Can Woodside shares keep delivering stellar gains in 2023?

Motley Fool contributor James Mickleboro has positions in Allkem. 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 coal price soared ahead in 2022, taking ASX coal shares along for the ride. But will it keep lifting higher this year?

ASX shares directly impacted by changes in the coal price include Whitehaven Coal Ltd (ASX: WHC), New Hope Corporation Ltd (ASX: NHC) and Yancoal Australia Ltd (ASX: YAL).

All three fell in today’s trade, with Yancoal shares dropping 3.33%, shares in Whitehaven down 1.36%, and New Hope shares sliding 3.58% at the close of trade.

Zooming out for a look at the bigger picture, however, trading economics data shows that coal prices have soared 85% in the last year.

Let’s check the outlook for the coal price this year.

Could the coal price go higher?

The outlook for coal prices appears to be mixed for 2023. However, long term, analysts anticipate the commodity will fall.

The Australian Government’s Office of the Chief Economist said thermal coal prices were expected to rise in 2023.

According to a report in December, prices for thermal coal were forecast to rise from US$245 a tonne in FY22 to US$360 a tonne in FY23. However, in FY24, the government predicted thermal coal prices would slide to US$239 a tonne.

Meanwhile, metallurgical coal is tipped to drop from US$404 a tonne in FY22 to US$262 in FY23 and US$238 in FY24.

Coal exports are also expected to rise in the 2023 financial year. Commenting on the outlook for thermal coal, the report stated:

Thermal coal exports should exceed $75 billion this financial year, up from $46 billion in 2021–22. After 2023–24, earnings from these commodities are likely to fall back towards pre-COVID-19 levels, as gains in world supply bring down prices.

Meanwhile, an analyst quoted by Bloomberg recently tipped coal prices to lift in the new year before retreating as Europe and the United States head into summer. Saxo Capital Markets strategist Jessica Amir, cited by the publication, said:

Demand for coal usually peaks in January, so some of these shareholder returns could grow into the new year as the energy crisis continues.

She added coal prices might “lose heat before the mid-year, as Europe and US head into summer and thus demand for coal will cool”.

As my Foolish colleague Tristan reported recently, Whitehaven and New Hope could pay big dividends in FY23. New Hope may pay a dividend yield of 40% in FY23, while Whitehaven may pay 16%

Share price snapshot

The Whitehaven share price has exploded 203% in the last year.

The New Hope share price has climbed 157% in the last 52 weeks.

Yancoal shares have also surged, lifting 110% in the past year.

The post What’s the forecast for the coal price in 2023? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Power up: 3 best ASX 200 energy shares of 2022
• Here’s why 2023 will be a huge year for passive income
• 3 ASX 200 dividend shares with HUGE passive-income potential for FY24
• With a projected 20% dividend yield, is this ASX 200 energy share for real?

Motley Fool contributor Monica O’Shea 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 Zip Co Ltd (ASX: ZIP) share price is in the green year to date, despite falling nearly 85% in the last year.

Zip shares have risen 21% since market close on 31 December and are currently fetching 61.5 cents.

However, in today’s trade, Zip shares fell sliding 1.6%. Let’s take a look at what is going on with the Zip share price.

What’s going on?

Zip shares may be rising this year, but it is not the only ASX buy now pay later (BNPL) share rising year to date.

The Block Inc CDI (ASX: SQ2) share price is lifting 11% this year, while Sezzle Inc (ASX: SZL) shares are rising 13%.

Optimism in the BNPL sector appears to be impacting the Zip share price and other ASX BNPL shares.

As my Foolish colleague James reported earlier this month, investors could be buying up BNPL shares after they fell sharply in 2022.

USA BNPL stocks are also charging higher in 2023. For example, the Affirm Holdings Inc (NASDAQ: AFRM) share price has soared 24% year to date. Block’s New York Stock Exchange listing Block Inc (NYSE: SQ) has also leapt 11% higher this year.

Zip has not provided any price-sensitive news to the market this year. However, the company is targeting earnings before interest, taxes and depreciation (EBITDA) profit in the 2024 financial year. Commenting on this outlook in November, CEO Larry Diamond said:

We expect to see the US exiting FY23 cash EBITDA positive and to neutralise the cash burn from our rest of world footprint during the second half of FY23.

We are on track to deliver positive cash EBITDA as a group in the first half of financial year 2024.

Zip’s CEO has been upbeat with optimism in recent months. For example, in late October Diamond predicted Zip could be the next Commonwealth Bank of Australia (ASX: CBA). He said:

We still believe, in this market, we can be the next CBA. Why not? We have the right leadership, the best technology, and the best people. We are committed to the long term.

Further, Zip also advised in late 2022 that Diamond has moved to the USA, where he sees a significant opportunity for the company. He commented:

There is still a significant opportunity for fintech in the US, as US banks are asleep at the wheel.

The post Why has the Zip share price already bolted 21% higher in 2023? appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• Why Magellan, Pointsbet, Star, and Zip shares are dropping today
• Why Alkane, Appen, Warrego Energy, and Zip shares are racing higher today
• The Zip share price crashed 88% in 2022. Can it recover in 2023?
• Here are the 10 most shorted ASX shares

Motley Fool contributor Monica O’Shea 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 Affirm, Block, and Zip Co. The Motley Fool Australia has positions in and has recommended Block. 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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Are you wanting to add some new ASX growth shares to your portfolio this month? If you are, read on.

Three ASX growth shares that have been tipped as buys by Goldman Sachs are listed below. Here’s what you need to know about them:

Breville Group Ltd (ASX: BRG)

The first ASX growth share that Goldman has tipped as a buy is leading appliance manufacturer, Breville. The broker believes the company is well-placed to continue its solid growth in the coming years despite the tough economic environment. In fact, it is forecasting an EBITDA compound annual growth rate of 7% between FY 2023 and FY 2025. This is being driven by the “strong premium coffee in-home consumption trend and competitive advantage in premium brand and product.”

The broker currently has a buy rating and $24.70 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share that could be in the buy zone is data centre operator NextDC. Goldman is very positive on the company and expects another strong result in FY 2023. This is thanks to robust demand for data centre services and its strong market position. Goldman then expects “an acceleration in growth following S3/M3 openings and supply chain normalization.”

The broker has a conviction buy rating and $14.30 price target on the company’s shares.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share that Goldman Sachs rates as a buy is online furniture and homewares retailer Temple & Webster. Goldman Sachs believes the company is well-placed for long term growth due to its leadership position in a retail category that is still only in the early stages of shifting online.

Its analysts have a buy rating and $7.50 price target on the company’s shares.

The post Goldman Sachs names 3 ASX growth shares to own in 2023 appeared first on The Motley Fool Australia.

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More reading

• These beaten down ASX shares are cheap buys: experts
• Here are the 10 most shorted ASX shares
• 3 ASX growth shares to buy with huge upside potential – analysts
• 2 excellent ASX growth shares that analysts say are buys in January
• 3 of the best ASX shares I’d buy now for a stock market rally in 2023

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster 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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