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The good news for income investors is that there are a great number of dividend-paying ASX stocks to pick from on the Australian share market.

To narrow things down, let’s now take a look at three ASX 300 dividend stocks that analysts have recently tipped as buys.

Here’s what sort of upside and dividend yields you can expect from them in the near term:

Healthco Healthcare and Wellness REIT (ASX: HCW)

The first ASX 300 dividend stock that could be a buy is the Healthco Healthcare and Wellness REIT. It is a leading health and wellness focused real estate investment trust with exposure to attractive megatrends.

Morgans is feeling positive about the company and its outlook. So much so, it recently put a buy rating and $1.61 price target on its shares.

As for dividends, the broker is forecasting dividends per share of 8 cents in both FY 2024 and FY 2025. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.22, this will mean yields of 6.5% for investors.

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation could be another ASX 300 dividend stock to buy. It is the lottery company responsible for the OZ Lotto, Powerball, and Keno brands.

UBS is a fan of Lottery Corporation. It has been pleased with the company’s performance so far in FY 2024, highlighting that its revenue and earnings came in ahead of expectations during the first half.

In response, the broker retained its buy rating and lifted its price target to $5.75.

In respect to income, the broker is forecasting dividends per share of 17 cents in FY 2024 and 20 cents in FY 2025. Based on the latest Lottery Corporation share price of $5.10, this will mean fully franked yields 3.3% and 3.9%, respectively.

Orora Ltd (ASX: ORA)

Goldman Sachs remains positive on this packaging company and sees it as an ASX 300 dividend stock to buy. This is despite the release of a disappointing trading last week which led to earnings estimates downgrades and a trimmed valuation.

Goldman now has a buy rating and $3.00 price target on its shares.

Positively, the broker is also expecting the company’s beaten down shares to provide investors with some generous yields. It is now forecasting dividends per share of 12 cents in FY 2024 and 13 cents in FY 2025. Based on the current Orora share price of $2.23, this will mean yields of 5.4% and 5.8%, respectively.

The post Buy these ASX 300 dividend stocks for a passive income boost 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 positions in and has recommended Goldman Sachs Group and Lottery. The Motley Fool Australia has recommended Orora. 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 wanting to add some ASX 200 blue chip shares to your portfolio this month, then the four shares listed below could be worth a closer look.

These ASX 200 shares have all been named as buys recently by analysts and tipped to rise from current levels. Here’s what you need to know about them:

Brambles Limited (ASX: BXB)

The first ASX 200 blue chip share that could be a buy according to analysts is Brambles. It is a supply chain solutions company that specialises in reusable pallets, crates, and containers for shared use.

UBS is feeling positive about the company. In response to its stronger than expected first-half results in February, the broker put a buy rating on its shares with an improved price target of $17.10.

Transurban Group (ASX: TCL)

Over at Bell Potter, its analysts think that this toll road operator could be a top blue chip option for investors to buy.

The broker believes “the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators.” In addition, it highlights its current pipeline of growth projects is valued at $3.3 billion.

Bell Potter currently has a buy rating $15.90 price target on the company’s shares.

Treasury Wine Estates Ltd (ASX: TWE)

A third ASX 200 blue chip share for investors to look at is Treasury Wine. It is the wine company behind popular brands including Penfolds, Wolf Blass, 19 Crimes, and Blossom Hill. It also recently added to its portfolio with the blockbuster U.S. acquisition of DAOU Vineyards for a sizeable $1.4 billion.

UBS is also a big fan of Treasury Wine and sees a lot of value in its shares at current levels. In response to news that Chinese tariffs have been removed, last week the broker retained its buy rating with an improved price target of $15.25.

Xero Limited (ASX: XRO)

Finally, the team at Goldman Sachs believes that cloud accounting platform provider Xero could be a top ASX 200 blue chip share to buy right now.

The broker is very positive on the company due to its long-term market opportunity. It highlights that this comprises “100mn SMBs worldwide representing a >NZ$76bn TAM.” It also states that it is “positive on the company’s outlook given accelerating product pipeline and strong management team to capture overseas market share while balancing profitability.”

Goldman Sachs currently has a buy rating and $152.00 price target on its shares.

The post 4 ASX 200 blue chip shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
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Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Transurban Group, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Treasury Wine Estates. 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 CSL Ltd (ASX: CSL) share price is up 1.3% in afternoon trade today.

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech stock closed yesterday trading for $280.08. At time of writing on Wednesday, shares are swapping hands for $283.60 apiece.

As you can see on the chart below, that leaves the biotech stock down around 6% since this time last year.

As you can also see, CSL enjoyed a big rebound at the end of October, with shares up more than 22% since 31 October.

But for the CSL share price to hit $500 it would need to gain another 79% from current levels.

Is that achievable in just three years?

According to the analysts at Macquarie, it most certainly is.

Why the CSL share price could soar from here

As a bit of background, CSL has three operating arms: CSL Behring (the company’s blood plasma segment), CSL Vifor, and its Seqirus businesses.

The company acquired CSL Vifor, a global leader in iron deficiency therapies, in 2022 for US$11.7 billion.

While Vifor has been struggling to achieve growth since that acquisition, it’s the Behring division that Macquarie believes could help propel the CSL share price to new heights.

As The Australian Financial Review reports, Macquarie’s analysts believe the biotech giant is trading significantly below its 10-year average price-to-earnings (P/E) ratio. Macquarie expects CSL to trade back at historic P/E ratios amid annual earnings growth of some 15%.

That’s based expectations that CSL Behring will make up 90% of that earnings growth over the next five years.

As for the CSL share price hitting $500 in three years, the analysts said, “We see this as both attractive and achievable.”

Indeed, when CSL reported its half-year results on 13 February, CEO Paul McKenzie said:

For FY 2024, I am pleased to reaffirm our previous guidance. CSL’s underlying profit, NPATA is expected to be in the range of approximately $2.9 billion to $3.0 billion at constant currency, representing growth over FY23 of approximately 13% to 17%.

Scott Olsson, a portfolio manager at Firetrail Investments’ Australian high conviction fund, which owns CSL stock, is also bullish on the outlook for the CSL share price, citing a pullback in the high costs encountered during the pandemic alongside an improved outlook for the company’s plasma collections.

According to Olsson (quoted by the AFR):

We think CSL presents a buying opportunity now because the market is more sceptical on management than it has been in the past, and the Vifor acquisition is turning out to not be a great buy so far, but that’s a very small part of the business. I think the market is quite distracted on a few things.”

What are other experts saying?

Atop Macquarie and Firetrail, a number of other investment experts are bullish on the outlook for the CSL share price.

As the Motley Fool reported yesterday, Morgans has an ‘add’ rating and $315.40 price target on the ASX 200 biotech stock’s shares.

The analysts at UBS recently gave CSL the equivalent of a ‘buy’ rating, with a $330.00 price target.

Now, these are 12-month price targets, mind you, while Macquarie’s $500 a share forecast for CSL is a three-year prediction.

The post Can the CSL share price really reach $500 in just 3 years? appeared first on The Motley Fool Australia.

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More reading

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• 5 ASX 200 shares for trying to build wealth after 50

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 positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. 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 of Australia’s top brokers have been busy adjusting their financial models again. This has led to the release of a number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Life360 Inc (ASX: 360)

According to a note out of Bell Potter, its analysts have retained their buy rating on this location technology company’s shares with an improved price target of $16.25. The broker made the move in response to a positive and unexpected market update which revealed that Life360 had a record first quarter. It notes that the company’s global monthly active users and global paying circles materially exceeded both its own and the market’s expectations. This has led to Bell Potter lifting its revenue and earnings forecasts through to FY 2026. Together with improving sentiment thanks to the successful tech IPO of Reddit Inc (NYSE: RDDT), the broker has lifted the valuation metrics it uses for the company. The Life360 share price is currently trading at $13.74 on Wednesday.

Qantas Airways Limited (ASX: QAN)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $8.05 price target on this airline operator’s shares. This follows the announcement of a major upgrade to its Frequent Flyer program. This includes the launch of Classic Plus rewards. This will provide customers with 20 million+ more reward seats for redemption by the end of 2024. While the broker has trimmed its earnings estimates slightly in FY 2024 to reflect the change, this is offset by increases to medium term earnings estimates. As a result, it holds firm with its valuation and continues to believe that its shares are significantly undervalued. The Qantas share price is fetching $5.95 this afternoon.

Regis Resources Ltd (ASX: RRL)

Analysts at Bell Potter have retained their buy rating and $2.60 price target on this gold miner’s shares. This follows the release of an update on the McPhillamys Gold project. According to the note, the broker acknowledges that the miner has increased its cost estimates materially for the gold project. However, while this is disappointing, the higher costs are expected to be offset by the stronger gold price. As a result, the broker remains positive on the company. It also sees plenty of value in its shares at the current level. The Regis Resources share price is trading at $2.10 on Wednesday afternoon.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• These ASX 300 mining stocks could rise 25% to 50%
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• Why Qantas shares are a buy and could rise 40%
• 5 things to watch on the ASX 200 on Tuesday
• The best ASX shares to buy with $1,000 right now

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. 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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Whether by preference or circumstance, investors are often drawn to the big dogs of the ASX. The sheer size of companies in the S&P/ASX 20 Index (ASX: XTL) offers a level of security and dependability that is seldom found elsewhere — making it a popular fishing hole for top dividend stocks.

Some of the biggest dividend payers are housed within the 20 largest companies by market capitalisation. We’re talking about the likes of BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), and Telstra Group Ltd (ASX: TLS).

There are plenty of solid options. However, if I wanted to invest a decent sum of money in only one, I know exactly which company I’d select.

Process of elimination

I like to keep it simple when searching for a source of passive flows. The criteria I’ll first inspect are the current dividend yield and net income margin.

The company’s net margin is key. The way I see it, the more money the business is making, the more it can afford to pay me as a shareholder. Low margins require management to run a tight ship; if choppy waters were to hit, those dividends might be the first to go overboard.

As such, Woolworths Group Ltd (ASX: WOW) and QBE Insurance Group Ltd (ASX: QBE) are scrapped due to their low margins.

Additionally, commodity-linked businesses are susceptible to years of unprofitable prices. I’m not interested in that level of unpredictability in dividend income, excluding companies like Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO).

The cherry on top of a dividend stock is a catalyst for growth.

Tailwinds for this top dividend stock

As I discussed in another article today, The Big Short star Steve Eisman believes infrastructure is poised for massive expansion over the next decade. I tend to agree. So, it stands to reason a business in this domain could grow its dividends over the coming years.

Despite its more modest dividend yield of 3.7%, I figure Macquarie Group Ltd (ASX: MQG) is the top dog for the job.

The investment bank has routinely posted net margins above 20%. Moreover, dividends per share have grown significantly in the last decade. In 2023, Macquarie delivered $7.50 in annual dividends, compared to $2.12 in 2013, as shown above.

Lastly, Macquarie is arguably at the epicentre of infrastructure development. Through its Macquarie Asset Management arm, the company already manages $882.5 billion in assets.

As more infrastructure is developed, Macquarie is well-placed to engage in public-private partnerships (PPPs) with governments to obtain the necessary funding.

The post If I had to buy only one top 20 stock for dividends, this is it! appeared first on The Motley Fool Australia.

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More reading

• Here are the top five ASX 200 stocks in Macquarie’s model income portfolio
• 3 ASX shares I think will lead the next bull market charge
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• 2 ASX blue-chip shares I’d buy with $3,000 right now
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Motley Fool contributor Mitchell Lawler has positions in Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and 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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It’s been a decent week for the S&P/ASX 200 Index (ASX: XJO). Since last Thursday, the ASX 200 has gained a healthy 1.05%. But that’s nothing compared to the gains of the Liontown Resources Ltd (ASX: LTR) share price.

Liontown shares have rocketed over the past five trading days. This ASX 200 lithium stock opened at $1.17 a share last Thursday. But today, Liontown is swapping hands for $1.34 a share at the time of writing, up a rosy 3.47% for the day thus far. This means that Liontown shares have gained an impressive 14.53% over the past week or so.

Even the mathematically challenged would recognise what a significant move this is for Liontown’s investors.

But how has this lithium stock pulled such an eye-watering gain out of its proverbial hat?

Unfortunately, it’s not immediately obvious why Liontown shares have exploded so dramatically in value over the past week. There have been no significant pieces of news or ASX announcements out of the company whatsoever over this period.

In fact, there hasn’t been a price-sensitive ASX filing from Liontown since 13 March last month.

How have Liontown shares put on 15% in just one week?

However, there is something we can point to that might have been influencing the Liontown share price of late.

Earlier this month, my Fool colleague James covered a very positive outlook on Liontown shares indeed, coming from ASX broker Bell Potter.

Bell Potter was so impressed with Liontown’s securement of a $550 million funding facility last month that it reaffirmed a ‘speculative buy’ rating on the company. That came with a drastically increased 12-month share price target of $1.90 for the Liontown share price.

If realised, this would see investors enjoy even more gains from Liontown shares – worth almost 42% over the coming year.

Bell Potter cited Liontown’s funding arrangement as the catalyst for its improved share price target. The broker stated that “the new facility provides funding headroom of around A$150m above [Liontown’s Kathleen Valley Lithium Project]’s remaining capex and working capital requirements”.

In addition, Bell Potter described the Kathleen Valley project as “highly strategic in terms of its stage of development, long mine life and location”. It also cited the significant involvement of Gina Rinehart’s Hancock Prospecting as a positive. Hancock currently has a 19.9% in Liontown.

However, the broker noted that its “speculative risk rating recognises this higher level of risk” involved in investing in an “asset development company” like Liontown.

Even so, this bullish outlook from one of the ASX’s major brokers could well be what has caused this notable uptick in the Liontown share price over the past week. Let’s see if this momentum continues.

The post How has the Liontown share price rocketed 15% in a week? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
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• Why Imugene, Liontown, Pointsbet, and Regis Resources shares are storming higher

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another gain. At the time of writing, the benchmark index is up 0.5% to 7,863.6 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Cardno Ltd (ASX: CDD)

The Cardno share price is down 46% to 33 cents. This has been driven by the professional infrastructure and environmental services company’s shares going ex-dividend this morning. Last week, the company announced plans to distribute an unfranked dividend of 27.6 cents per share to shareholders. This equates to a total return of $10.8 million. This reflects the repatriation of US$5.9 million of collections related to three positive legal claims and $1.5 million from the sale of Cardno International Development to DT Global Australia. This dividend will be paid to eligible shareholders later this month on 29 April.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is down 2.5% to 88.7 cents. This is despite there being no news from the allogeneic cellular medicines developer. However, it is worth noting that its shares have been on fire in recent weeks, so profit-taking could be happening today. For example, Mesoblast’s shares remain up approximately 175% since this time last month. This has been driven by excitement over recent correspondence from the US Food and Drug Administration. Investors appear optimistic that one of the company’s stem cell therapies could be approved at long last in the near future.

Perseus Mining Ltd (ASX: PRU)

The Perseus Mining share price is down 2.5% to $2.27. This morning, the gold miner announced that its takeover offer for Orecorp Ltd (ASX: ORR) has been given a boost. Perseus revealed that Silvercorp Metals has accepted the company’s offer. This is a big win as Silvercorp’s holding represents 15.61% of OreCorp shares on issue. This means that Perseus now has a relevant interest of 74.98% of OreCorp shares on issue. However, it seems that investors don’t appear overly keen on the proposed takeover.

Somnomed Ltd (ASX: SOM)

The Somnomed share price is down 47% to 20.5 cents. Investors have been hitting the sell button in response to an earnings downgrade and capital raising. Somnomed downgraded its revenue guidance to 6%-9% growth and EBITDA guidance to negative $1 million to $0 million. This compares to previous revenue guidance of 12%+ and EBITDA guidance of $3 million+ for FY 2024. Management blamed manufacturing constraints and delayed implementation of cost initiatives. It also raised approximately $5.8 million at a deep discount of 21 cents per new share.

The post Why Cardno, Mesoblast, Perseus, and Somnomed shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
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• 5 things to watch on the ASX 200 on Friday

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 S&P/ASX 200 Index (ASX: XJO) is on form again on Wednesday and on course to record another decent gain. In afternoon trade, the benchmark index is up 0.55% to 7,866.3 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are climbing:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The Electro Optic Systems share price is up over 3% to $1.69. This morning, this defence and space company announced that it has completed a debt repayment of $20.5 million on schedule. This follows the repayment of $26.9 million in September 2023 under a separate 12 month working capital facility. As a result, this means that Electro Optic Systems has now repaid 50% of the principal amounts originally due to Washington H. Soul Pattinson (ASX: SOL) and 100% of the working capital facility amounts. The only outstanding amount now relates to a term loan facility.

Novonix Ltd (ASX: NVX)

The Novonix share price is up 8% to $1.08. A number of battery materials shares are having a strong session today following a solid night on Wall Street for lithium miners. In addition, this morning Novonix revealed that members of its executive team are scheduled to participate in a number of investor events in April. Investors may believe that these events could increase interest in the battery materials and technology company and be supportive of its share price.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is up 14% to 26.2 cents. As well as getting a boost from another rise from the gold price, the release of drilling results from its Simberi Operations in Papua New Guinea has got investors excited. Commenting on the drilling, the gold miner’s managing director and CEO, Andrew Strelein, said: “We are getting positive results by applying more than 10 years of improvement in geological knowledge and targeting insufficiently drilled areas from drill pad locations now available because of more than 10 years of oxide mining.”

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is up 4% to $7.67. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has upgraded this coal miner’s shares to a buy rating with an improved price target of $8.70. It believes the company is well-positioned for the future thanks to a positive outlook for metallurgical coal. Particularly given the recent acquisition of Blackwater and Daunia. UBS’s price target implies potential upside of 13% from current levels.

The post Why EOS, Novonix, St Barbara, and Whitehaven Coal shares are storming higher appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX mining stock is rocketing 15% on a new gold discovery
• Here are the top 10 ASX 200 shares today
• ‘Share price looks cheap’: Fortescue & 1 other beaten-up ASX 200 share to buy now
• Brokers name 3 ASX shares to buy now
• Why is this tiny ASX gold share soaring 10% on Friday?

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 Electro Optic Systems and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) gold stocks have been enjoying a fantastic run amid a fast-rising gold price.

It was only on 28 February that the yellow metal was trading for US$2,030 per ounce. (It was already near historic highs.)

But since then, the price of gold has shot 16% higher, fuelled by a range of factors, including expectations of lower interest rates and its safe-haven status in times of geopolitical turmoil.

Earlier today bullion was fetching all-time highs north of US$2,355 per ounce, having since retraced a touch to US$2,348 per ounce.

As you’d expect, that’s been a boon to ASX 200 gold stocks.

Since 28 February, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller miners outside of the ASX 200 – has rocketed 26%, smashing the 3% gains posted by the benchmark index over this same period.

And ASX 200 gold stock Ramelius Resources Ltd (ASX: RMS) has handed investors even greater returns. The Ramelius Resources share price is up more than 39% since the closing bell on 28 February. And this is a miner with a market cap of $2.2 billion, no less.

Despite those juicy gains, there could be more to come.

A ‘cheap’ ASX 200 gold stock

Simon Brown, co-portfolio manager of Tribeca’s Smaller Companies Strategy, singled out Ramelius Resources as the most undervalued stock in the fund’s portfolio (courtesy of The Australian Financial Review).

“Management at gold producer Ramelius Resources have done a great job curating a strategy that leverages their existing mill infrastructure by adding nearby deposits through bolt-on mergers and acquisitions,” Brown said of the ASX 200 gold stock.

“The stock is cheap on traditional miner metrics,” he added.

According to Brown:

It has a price to net present value of 0.75 times and, with the recent multi-year breakout in gold prices, it provides further tailwinds to valuation. We see material upside from current share price levels.

What’s been happening with Ramelius Resources?

Ramelius Resources released its quarterly production update last Wednesday, with shares closing up 5.3% on the day.

Among the highlights, the ASX 200 gold stock achieved record quarterly gold production of 86,928 ounces. The prior record production for a three-month period was achieved in the June 2020 quarter, when Ramelius produced 86,516 ounces of gold.

The gold miner also reported an all-time high quarterly free cash flow of $125.3 million, which saw Ramelius Resources holding net cash and gold of $407.1 million at the end of the reporting period.

The post 1 ASX 200 gold stock with ‘material upside’ appeared first on The Motley Fool Australia.

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More reading

• Buying ASX 200 gold stocks? Here’s why the record gold price could keep charging higher
• COVID’s lasting impacts for shares vs. property: AMP economist
• Here are the top 10 ASX 200 shares today
• Why 29Metals, Boss Energy, Cooper Energy, and Ramelius shares are pushing higher
• Guess which ASX 200 gold stock is rocketing 12% on record production

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 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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ASX copper stocks are getting the kind of attention the lithium miners were back in 2022.

That’s because, like lithium a few years back, copper prices are running higher as booming demand outpaces new supplies.

At US$9,418 per tonne, the copper price has already gained more than 10% in 2024. And many analysts are forecasting that the red metal will continue to run higher for some time yet.

Which would be welcome news to shareholders in Aeris Resources Ltd (ASX: AIS) and S&P/ASX 200 Index (ASX: XJO) copper stock Sandfire Resources Ltd (ASX: SFR).

We’ll get back to those two miners in a tick.

But first…

What’s driving the copper price back towards new highs?

ASX copper stocks have already been benefiting from improving sentiment on the outlook for the red metal.

Atop its broader industrial uses, copper’s conductive nature makes it a crucial element in the world’s ongoing move towards electrification. And the nascent booming growth in artificial intelligence (AI) and the data centres that support the industry is adding more fuel to that fire.

“We’re adding even more sources of demand. First it was the energy transition, now also data centres and AI. That growth has suddenly exploded.” Saad Rahim, chief economist at Trafigura said about the copper market (quoted by The Australian).

That demand explosion could push prices far higher, offering some potential ongoing tailwinds for ASX copper stocks.

According to Citi global head of commodities, Max Layton, “We think the stars are aligning for the copper bull story.”

Layton’s base case scenario (courtesy of The Australian) sees the copper price reaching US$12,000 per tonne by 2026.

But he said copper prices could run above US$15,000 per tonne, or some 60% above current levels if cyclical demand increases at a higher pace.

“Explosive price upside is possible over the next two-to-three years too, if a strong cyclical recovery occurs at any time,” Layton said.

Two ASX copper stocks to ride the boom

Which brings us back to ASX copper stocks Sandfire Resources and Aeris Resources.

Aeris is a small-cap miner with a market cap of $198 million. It’s in a turnaround phase, with the share price down 60% since this time last year but up a whopping 95% over the past month.

Investor enthusiasm was most recently spurred when Aeris reported on significant copper resource growth potential at its joint venture Canbelego copper project, located in New South Wales.

ASX 200 copper stock Sandfire Resources is considerably larger and more established, with a market cap of $4.2 billion.

The Sandfire share price is up 35% over 12 months, with shares having gained 45% in the past six months.

While the ASX 200 miner also digs up zinc, lead, gold and silver, 74% of its H1 FY 2024 earnings were derived from copper.

And if the red metal continues to charge higher as Citi expects, Sandfire shares could continue to offer some outsized gains in 2024.

The post 2 ASX copper stocks to buy now for this ‘explosive price upside’ appeared first on The Motley Fool Australia.

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More reading

• 2 ASX mining stocks smashing the market on Tuesday
• Own ASX 200 mining shares? Here’s the 5-year forecast for commodity prices
• Why hot ASX copper shares could have further to run
• Why this ASX small cap stock could rocket 60%
• Here are the top 10 ASX 200 shares today

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 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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