Tag: Motley Fool

Next week will be a big one for homeowners and borrowers. That’s because the Reserve Bank of Australia (RBA) will be meeting for the second time in 2024 to decide on interest rates.

In case you’re wondering, the central bank traditionally meets on the first Tuesday of the month. However, starting in 2024, the RBA has reduced the number of meetings from 11 to just 8.

As part of this change, it will now be meeting on the first Tuesday in February, May, August, and November, and then during the second to last week of each quarter (March, June, September, and December).

So, with a meeting coming on Tuesday and inflation recently showing signs of slowing, could interest rates be heading lower next week?

Let’s see what the economics team at Westpac Banking Corp (ASX: WBC) are expecting the RBA to do at the meeting.

Will the RBA cut interest rates next week?

According to the latest weekly economic report from Westpac, its team are not expecting the RBA to make any changes to interest rates next week.

In fact, its chief economist, Luci Ellis, believes that rates are staying on hold at 4.35% until September. At that point, Ellis is forecasting a 25 basis points cut to 4.1%. She said:

Next week, the RBA Board will meet to discuss recent economic data, including the Q4 National Accounts and Wage Price Index, to decide whether it warrants a shift in policy. Our view is that the RBA will be comforted by recent developments, given the Board’s aim to bring demand back into line with supply and ensure inflation continues to trend toward and then into the target range. We continue to expect the RBA to remain on hold until September at which time they should have enough confidence in the inflation outlook to slowly begin easing policy.

The good news for borrowers is that it may not take long for further easing after that first cut. Ellis is forecasting a series of cuts to take interest rates down to 3.1% by September 2025.

So, while next week might be disappointing for homeowners, it does appear that relief is on the way.

The post Here’s what Westpac says the RBA will do with interest rates next week appeared first on The Motley Fool Australia.

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More reading

• Why Pilbara Minerals, Syrah Resources, Tabcorp, and Westpac shares are sinking today
• Why are ASX investors so obsessed with dividends?
• What’s going so wrong for ASX 200 shares on Friday?
• Buyer beware! Why Macquarie just downgraded the big four ASX 200 banks
• Why Appen, Aussie Broadband, Core Lithium, and Westpac shares are dropping today

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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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Superannuation balances are an important asset for people in retirement. It’s ironic how a lot of people in their 60s, with little time to retirement, are very interested in superannuation, while younger Aussies don’t pay much attention to super despite having loads of time for compounding and making a difference.

It’s understandable why people start paying attention in their 60s, as that’s when people can start accessing their superannuation after reaching the preservation age.

We have recently looked at the average superannuation balance, but this time we’re going to focus on the average balance for someone aged 40.

The 40s can be a time of our highest earning power and lead to making the strongest superannuation contributions, so it’s a great stage to think about superannuation and which assets to invest in.

What’s the average superannuation balance at age 40?

Based on the Australian Taxation Office (ATO) Taxation Statistics report for FY21, the average balance for someone aged 40 to 44 was $123,993. The median superannuation balance was $91,590.

The average balance is influenced by people with large balances, such as high earners and people who have simply contributed a lot to their superannuation fund.

The median figure describes the ‘middle’ number as though we’ve lined up everybody and asked the person at the midpoint of the line what their superannuation balance is.

Those numbers include all Aussies, but as you may know, there can be a gap between male and female superannuation balances.

According to the ATO statistics, the average 40-year-old female superannuation balance was $107,538 and the median balance was $77,644.

Meanwhile, the average balance for a 40-year-old male was $139,431, while the median balance was $106,771.

For 50 to 54-year-old Aussies, the median male balance was 167,002, while the median female balance was $112,943.

What can we learn from these figures?

The average Australian has built up a decent nest egg, but there’s plenty of work to do to build it up to a large enough balance for a comfortable retirement.

According to the Association of Superannuation Funds of Australia, the superannuation balance required to achieve a comfortable retirement at age 67 is $690,000 for a couple and $595,000 for a single retiree.

It could be a good idea to check your superannuation balance currently so you know how much progress you’ve made towards your retirement goal. The last years of compounding will have the biggest effect. For example, a 66-year-old with a $600,000 balance who sees a 10% annual return can reach 67-years-old with a $660,000 balance.

What are some ways to help boost the nest egg? Two of the main strategies could be to add more into superannuation, and to invest in assets that can produce stronger returns over the long term. For example, ASX shares have beaten the return of more defensive assets over the long term.

The post What’s the average Australian superannuation balance at age 40 in 2024? appeared first on The Motley Fool Australia.

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More reading

• Stock-split watch: Is Nvidia next?
• 5 secrets of ASX millionaires
• Fund manager rates these 2 undervalued ASX All Ords shares as buys
• Here are the top 10 ASX 200 shares today
• Liontown share price tumbles 7% on half-year results

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) has had an incredible rise since the start of 2023, up around 500%. As a direct result of its huge stock price increase, the cost of one Nvidia share is nearing $1,000. This threshold may seem arbitrary, but it’s actually an important milestone with a special place in the stock market’s mass psychology. Therefore, management teams often consider splitting their stocks around this nice, round number. Furthermore, Nvidia’s management team has a history of enacting stock splits.

Is Nvidia preparing for another split?

The conditions are right

Stock splits can have both real and artificial effects. On the artificial side, you’re essentially cutting the same-sized pizza into smaller slices. Investors with access to brokerages that offer fractional shares can already cut Nvidia’s stock into pieces as small as they want (usually down to one-thousandth of a share).

However, not every investor (especially those outside the U.S.) has access to this capability. In that sense, Nvidia’s potential stock split becomes a real factor since more investors can purchase the stock without fear of overweighting their portfolio to one company. If you only have $100 to invest this month, a stock changing hands at $1,000 per share feels out of reach (even if fractional shares are available in your favorite stock brokerage).

But will Nvidia do it? The company’s history of stock splits suggests that another one could be imminent.

Nvidia has split its stock five times since it went on the market. The latest was in 2021, when it did a 4-for-1 split. The stock traded for around a pre-split price of $744 — cheaper than it is today.

Before that, Nvidia last split its stock in 2007, when it would have traded at a split-adjusted price of just over $50. Stock splits were far more common back then, so the instances before the 2021 split may be less useful for forecasting purposes in 2024.

Now that the stock price is above 2021 pre-split levels again, I’d say Nvidia is highly likely to enact a stock split.

When will Nvidia announce another stock split?

After Nvidia announced its stock split on May 21, 2021, the stock had a strong run-up until the split took effect on July 20, increasing nearly 40% at its peak.

NVDA data by YCharts.

This same time frame would also make sense in 2024, as Nvidia’s annual meeting occurs in June. So if you’re looking for a stock split announcement, stay tuned to Nvidia’s Q1 FY 2025 results, which will be reported sometime in late May.

Is right now a good time to buy the stock in anticipation of a run-up due to buying frenzies caused by a stock split? I’d say no. The only good reason to buy a stock is if the underlying business is worth owning. In Nvidia’s case, the answer to that question has been a resounding “yes,” as its graphics processing units (GPUs) have been in high demand due to interest in artificial intelligence (AI) computing.

Nvidia has continuously posted amazing revenue growth figures. Its latest results (Q4 FY 2024, ending Jan. 28) included a revenue rise of 265% to $22.1 billion and a projection for another 234% rise to $24 billion in Q1 FY 2025.)

That sounds like a great business. If the company continues to post results like that, management will likely enact a stock split. While some price movement may be associated with that announcement, don’t lose sight of the bigger picture: Nvidia has been one of the biggest winners so far in the AI movement.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Stock-split watch: Is Nvidia next? appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX tech stock is exploding 120% on a new deal with Nvidia
• Wake up! 3 stocks to watch RIGHT NOW
• Is Nvidia stock a buy?
• Is Nvidia headed for a stock split?
• Nvidia shares surged (again) today. Is it too late to buy the red-hot artificial intelligence (AI) growth stock?

Keithen Drury 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 Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Although ASX millionaires come from a diverse range of backgrounds and industries, there are some simple habits that many of them have in common.

And it’s all behaviour that all of us can emulate to improve our finances.

Let’s check out five of those millionaire secrets:

1. Actively managing assets

To grow your wealth you need to actually consciously manage it, rather than just letting it sit idle because it’s all too hard.

This might sound obvious, but many Australians do not pay attention to their finances.

This doesn’t necessarily mean going to the time and expense of establishing a family trust or a self-managed superannuation fund.

It could be as simple as checking what your superannuation balance is and setting it to an appropriate risk-reward setting. For example, if you’re in your 20s, you might want to take it off “cash” and put it into “high growth” mode.

There is also knowing how much and where you have money saved up in your various bank accounts. That’ll allow you to figure out how much you could set aside for investing and how much to reserve as backup funds.

2. Manage your tax

It wouldn’t surprise you that pretty much every millionaire and billionaire would be smart at minimising their tax obligations.

Again, this doesn’t necessarily mean anything complicated like seeking out overseas tax havens. 

It could be as simple as having a 30-minute chat with a tax professional. And knowing how much capital gains and losses you have racked up for the financial year. Or contributing to superannuation over other investment channels.

And with ASX shares specifically, there are great devices like franking credits and the capital gains tax discount that you could take advantage of, depending on your circumstances.

3. Plan for your retirement

A recent international survey conducted by DeVere Group showed that 59% of its millionaire clients ranked planning for sufficient retirement funds as a top priority.

Because of rapidly ageing populations in the developed world, DeVere chief executive Nigel Green warned punters they can’t count on a safety net.

“In the future, it’s unlikely that governments will be in a position to support older people like they have done for previous generations,” he said.

“As individuals accumulate wealth, the focus shifts towards preserving and enjoying that wealth during their later years, underscoring a strategic approach to financial longevity.”

4. Spend less than you earn

Again, this one seems obvious but we all know plenty of people who immediately burn all the cash they get in their paycheque. Then they spend some more on the credit card.

Millionaires didn’t get to where they are by doing that.

They ensured they spend less than they earn so that savings can go towards productive assets, such as ASX shares.

Yes, plenty of wealthy folk have debt. But that leveraging is often to invest in an asset that could pay back the loan plus more over the long run, such as ASX shares or a private business.

5. Think long term

This one’s easier said than done.

So many people invest in ASX shares with the best intentions, but end up checking their portfolios everyday and micromanaging it to underperformance.

Successful investors understand the power of compounding over a number of years. And when they buy ASX shares because they think the business will be in better shape in five years, they have the discipline to hold onto the stock for a half-decade.

Millionaires have long-term financial goals in mind. They want their investments to get from point A to B by the time it’s year Y.

If you don’t set goals, then you will make inappropriate investment choices.

The post 5 secrets of ASX millionaires appeared first on The Motley Fool Australia.

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More reading

• Fund manager rates these 2 undervalued ASX All Ords shares as buys
• Here are the top 10 ASX 200 shares today
• Liontown share price tumbles 7% on half-year results
• How are ASX REITs smashing 52-week highs despite today’s market meltdown?
• Why are ASX lithium shares being annihilated on Friday?

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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The fund manager Wilson Asset Management (WAM) has named two exciting All Ordinaries Index (ASX: XAO) shares with compelling futures.

These stocks may not be the largest, but they have been called out as opportunities that could deliver good returns.

The biggest listed investment company (LIC) that WAM manages is WAM Capital Limited (ASX: WAM), which looks for undervalued growth companies where there’s a catalyst that could send the share price higher.

These are two stocks that the investment team picked out.

Nick Scali Limited (ASX: NCK)

WAM described Nick Scali as one of Australia’s largest furniture retailers.

The company recently reported its FY24 first-half result which supposedly beat market expectations. Nick Scali achieved a net profit after tax (NPAT) of $43 million for the six-month period, which was above the $40 million to $42 million guidance given in late 2023.

Nick Scali’s trading update also pleased the investment team. The company reported a 3.6% increase in sales orders in January year over year, which was more than what analysts were expecting from the ASX All Ords share.

The WAM team said:

We are pleased to see a solid half-year result from Nick Scali and we are positive on its ability to execute its long-term target of establishment 86 Nick Scali stores and 90 to 100 Plush stores. We also see the potential for earnings accretive acquisitions outside Australia given the company’s strong balance sheet.

SG Fleet Group Ltd (ASX: SGF)

This business provides fleet management, vehicle leasing and salary packaging services,

ASX reporting season saw the company reveal its FY24 first-half result, which “materially beat” analyst estimates.

In the FY24 first-half result, the ASX All Ords share reported an 8.5% increase in its NPAT year over year. This growth was driven by record delivery volumes and improved supply of new vehicles.

Why is the WAM investment team positive on the business? They said:

We remain positive on SG Fleet Group’s ability to maintain its positive momentum over the next 12 months as it finalises the completion of the Leaseplan acquisition made in 2021.            

The company is trading on an attractive price-to-earnings multiple valuation of 9 times compared to its peer which trades on 15 times, therefore we see the potential for a re-rating of the share price.

The post Fund manager rates these 2 undervalued ASX All Ords shares as buys appeared first on The Motley Fool Australia.

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More reading

• I think they can! 3 ASX shares that can keep chugging higher
• 2 ASX companies with the firepower to raise their dividends
• Key takeouts for ASX shares this earnings season: CBA analysis
• Why Cettire, Fletcher Building, Lake Resources, and Nick Scali shares are falling 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 recommended Nick Scali. 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 post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Why Beach, Clinuvel, Deep Yellow, and EML shares are charging higher today
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• What’s going so wrong for ASX 200 shares on Friday?
• Woodside share price slips despite oil hitting 2024 highs
• 5 things to watch on the ASX 200 on Friday

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 positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Telix Pharmaceuticals. 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 Liontown Resources Ltd (ASX: LTR) share price is having a tough finish to the week.

In afternoon trade, the lithium developer’s shares are down 7.5% to $1.26.

This has been driven by the broad weakness in the lithium industry today, which has overshadowed the release of the company’s half-year results.

Let’s now take a look at how the company performed during the half.

Liontown share price tumbles on results day

Firstly, as Liontown is still pre-revenue, its results look very different to its revenue-generating peers like Core Lithium Ltd (ASX: CXO) and Pilbara Minerals Ltd (ASX: PLS).

For the six months ended 31 December, the company reported a net loss before tax of $31 million. This includes interest revenue of $8.5 million, corporate and administrative costs of $20.7 million, share based payments of $3.9 million, and exploration and evaluation expenditure of $6.6 million.

Management notes that its corporate and administrative expenses increased $14.3 million due partly to an increase in personnel expenses in line with its increased headcount. In addition, there are costs related to its proposed scheme of arrangement with Albemarle Corp (NYSE: ALB), which was terminated on 16 October, as well as system development and implementation costs necessary for the commencement of operations.

Liontown’s net cash used in investing activities was $325.6 million and its net cash from financing activities was $555.8 million for the six months. The latter includes drawdowns from the Ford facility ($181.3 million) and the proceeds from the issue of shares ($389.9 million), offset by share issue costs ($11.2 million).

This ultimately led to Liontown ending the period with cash and cash equivalents of $516.9 million. Since then, it has announced a $550 million debt facility agreement with a syndicate comprising leading domestic and international commercial lenders, and government credit agencies.

This is expected to take Liontown through to production and positive cash flow.

Speaking of which, management has confirmed that the Kathleen Valley Lithium Project remains on schedule for first production in mid-2024 and is in line with the updated $951 million capital cost estimate.

The Liontown share price are down 14% over the last 12 months.

The post Liontown share price tumbles 7% on half-year results appeared first on The Motley Fool Australia.

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More reading

• Why are ASX lithium shares being annihilated on Friday?
• Could Liontown shares really rally another 32%?
• Here are the top 10 ASX 200 shares today
• Why Accent, Liontown, PSC Insurance, and Zip shares are charging higher today
• Liontown share price leaps 10% on fresh $550 million funding

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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It’s hard to describe what has happened on the ASX boards today as anything other than a full-on meltdown. At present, the S&P/ASX 200 Index (ASX: XJO) has retreated by a sobering 0.7% after falling as much as 1.6% earlier this morning. That makes what is currently going on in the ASX real estate investment trust (REIT) space all the stranger.

Whilst most ASX 200 blue chips are nursing heavy losses today, REITs are, mostly, on fire. This space is currently one of the best-performing sectors on the ASX, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) up a healthy 1.46% at the time of writing.

What’s more, we’ve seen several real estate investment trusts even clock fresh new 52-week highs today.

Scentre Group (ASX: SCG) units touched a new high of $3.34 this afternoon, and are currently up 1.22% at $3.3 each.

Stockland Corporation Ltd (ASX: SGP) units reached up to a new high of $4.83 around the same time. Ditto for Centuria Industrial REIT (ASX: CIP), which vaulted up to $3.56 a unit in the past hour.

We’ve seen similar moves from HMC Capital Ltd (ASX: HMC), Charter Hall Group (ASX: CHC), and Dexus Industria REIT (ASX: DXI).

So how can we explain this apparent stock market paradox?

How are ASX REITs defying the meltdown to hit new highs?

Well, it’s fairly difficult to pinpoint what’s going on here. there are no obvious catalysts that can explain why investors seem to be flocking out of other ASX 200 shares and into REITs this Friday. Real estate investment trusts are often some of the ASX’s most cyclical shares, so it’s a real headscratcher.

There are a couple of things we can point to though.

Firstly, we got some news today out of Bunnings REIT BWP Trust (ASX: BWP).

In January, we covered BWP’s bid for fellow Bunnings landlord Newmark Property REIT (ASX: NPR). This bid, consisting of 0.4 BWP units offered for every Newmark unit, saw the Newmark unit price rocket 40% at the time.

Yesterday, BWP announced that it intends to shift its offer to an “unconditional” one as of 21 March, and extended its offer period to 12 April.

Given the rapturous reception of its original offer, it’s possible that this news is having an impact on the REIT scene today.

Another factor we can point to is the recent broker love that many REITs have been on the receiving end of.

Earlier this week, my Fool colleague James covered the buy ratings that two different ASX brokers gave to Rural Funds Group (ASX: RFF) and Stockland.

Then last week, my colleague Bronwyn also covered similar buy ratings from different brokers again, this time covering Ingenia Communities Group (ASX: INA), Arena REIT No 1 (ASX: ARF) and Charter Hall Group.

Perhaps these recent and glowing reviews of these ASX REITs have convinced investors of their safe haven potential this Friday.

Whatever the reason for today’s market defiance from the ASX REIT space, no doubt its investors will be delighted.

The post How are ASX REITs smashing 52-week highs despite today’s market meltdown? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Rural Funds 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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To be fair, most ASX shares aren’t having a very pleasant day this Friday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has slumped by a nasty 1.4%. But ASX lithium shares are really taking a hit during today’s trading.

Take the Pilbara Minerals Ltd (ASX: PLS) share price. Pilbara shares are currently nursing a horrid loss of 5.64% down to $3.94 a share.

Liontown Resources Ltd (ASX: LTR) has been hit even harder, with its shares down 7.33% to $1.26 each. Core Lithium Ltd (ASX: CXO) hasn’t been punished as much, but has still copped a 5.26% hit to 18 cents a share. But Arcadium Lithium plc (ASX: LTM) is enduring a 7.07% sell-off to $6.83.

So what on earth is scorching the ASX lithium share space so brutally this Friday?

Why are ASX lithium shares in a Friday freefall?

Well, it’s hard to say. We did get some news out of Pilbara yesterday that could be having an impact on today’s trading. Pilbara informed investors yesterday afternoon that it was able to secure a pre-action bid of US$1,106 per dry metric tonne for a 5,000-tonne shipment of lithium spodumene concentrate.

That’s an improvement on what pricing the company has been able to secure in recent months amid the ongoing slump in global lithium markets. As such, this news is unlikely to be a major catalyst in today’s ASX lithium share sell-off.

So we can probably point to a simple reluctance of ASX investors to hold lithium shares during a broad-market route to explain today’s events in the lithium space.

Lithium shares tend to be amongst some of the most volatile shares on the ASX. Before the recent slump in lithium prices, these shares tended to rocket when the broader markets were rising, and crater when things went the other way.

Overnight on the US markets, we saw American lithium stock Albemarle Corporation (NYSE: ALB) shares shed a hefty 4.39% of their value down to US$119.89 a share. This probably helped set the mood for ASX lithium stocks this morning too.

Given concerns that interest rates might not be coming down as soon as investors hope today, it’s no real surprise to see ASX lithium shares cop a beating.

No doubt investors will be hoping next week proves to be kinder to this corner of the share market.

The post Why are ASX lithium shares being annihilated on Friday? appeared first on The Motley Fool Australia.

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More reading

• Why Pilbara Minerals, Syrah Resources, Tabcorp, and Westpac shares are sinking today
• Are short sellers of Pilbara Minerals stock about to get stung?
• Could Core Lithium shares really fall another 40%?
• Core Lithium shares: Is it time to cut and run?
• Why Appen, Aussie Broadband, Core Lithium, and Westpac shares are dropping today

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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It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Aussie Broadband Ltd (ASX: ABB)

According to a note out of Ord Minnett, its analysts have upgraded this broadband provider’s shares to a buy rating with a trimmed price target of $4.16. This follows a selloff on Thursday in response to news that its white label agreement with Origin Energy Ltd (ASX: ORG) has been terminated after the two parties failed to agree on terms. While the broker has reduced its earnings estimates to reflect the unexpected loss of the contract, it still believes the company can continue to grow at a very strong rate. In fact, it is expecting double-digit earnings per share growth long into the future. As a result, it believes this weakness has created a buying opportunity. The Aussie Broadband share price is trading at $3.54 on Friday afternoon.

BHP Group Ltd (ASX: BHP)

A note out of Citi reveals that its analysts have upgraded this mining giant’s shares to a buy rating with an unchanged price target of $46.00. The broker made the move on valuation grounds follow a rather sharp pull back in the Big Australian’s share price in recent weeks. It feels this has dragged its shares down to an attractive level for investors to snap them up today. This certainly could be the case for income investors, with Citi forecasting dividend yields of around 6% in both FY 2024 and FY 2025. The BHP share price is fetching $42.38 today.

Bega Cheese Ltd (ASX: BGA)

Analysts at Bell Potter have retained their buy rating and $5.00 price target on this diversified food company’s shares. The broker believes that the recent ABARE commodities report has been a positive for Bega Cheese’s ingredients business and feels that this upside potential is underappreciated by the market. It notes that farmgate pricing could be “a game changer” for the company. This is because if prices fall as much as forecast, it would represent a $55 million to $60 million reduction in milk costs for the company. In addition, it highlights that its shares are still trading at a material discount to global dairy and FMCG peers. The Bega Cheese share price is trading at $4.05 on Friday.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares at risk from the slowdown in China
• What’s going so wrong for ASX 200 shares on Friday?
• 5 things to watch on the ASX 200 on Friday
• If you’d put $1m into shares vs property at the start of COVID, how much would you have now?
• Why are ASX copper shares having such a bumper day?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Aussie Broadband. The Motley Fool Australia has recommended Aussie Broadband. 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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