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Investors looking for income options might want to check out the two ASX dividend shares listed below.

Both of these shares have just been tipped as buys with attractive forecast dividend yields. Here’s what brokers are saying about them:

QBE Insurance Group Ltd (ASX: QBE)

The first ASX 200 dividend share that could be in the buy zone right now is insurance giant QBE.

The team at Morgans is very positive on the company. It recently retained its add rating with a $14.93 price target on its shares. The broker commented:

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 is expecting a 41.7 cents per share dividend in FY 2022 and then a 76.8 cents per share dividend in FY 2023. Based on the latest QBE share price of $12.05, this equates to yields of 3.5% and 6.4%, respectively

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that brokers rate as a buy is banking giant Westpac.

According to a note out of Goldman Sachs, its analysts have a buy rating and $26.55 price target on its shares.

Its analysts believe that Westpac provides investors with strong leverage to rising rates. They commented:

We continue to see WBC as our preferred exposure to the A&NZ Financials reflecting: i) its strong leverage to rising rates, ii) while we think its A$8 bn FY24 cost target will now be unachievable, we still forecast a 7% reduction in underlying expenses, iii) its recent market update highlighted that the business is still investing effectively in its franchise.

In respect to dividends, Goldman is forecasting fully franked dividends per share of $1.23 in FY 2022 and $1.37 in FY 2023. Based on the current Westpac share price of $21.53, this will mean yields of 5.7% and 6.35%, respectively, over the next two years.

The post Brokers say these ASX 200 dividend shares are buys now appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Why is the Westpac share price outperforming the ASX 200 today?
• Could Westpac shares soon be saying bon voyage to money managing?
• Here are 2 ASX dividend shares experts say are buys
• Which ASX 200 bank share will win the great tech battle?

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 recommended Westpac Banking Corporation. 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.

It’s official: The stock market entered bear market territory a few months ago. And with the U.S. Federal Reserve poised to continue aggressively hiking interest in a fight against inflation, it’s unclear when this bear market will end. 

At this point, it’s too late to do anything in preparation. Nevertheless, there are still things you can do right now to help your investments weather the storm. Here are three things smart investors do to shore up their portfolios.

1. Resist the urge to chase the best-returning asset classes

If you’re invested in stocks, there’s a darn good chance you’re sporting some hefty losses this year. You’d be in good company. The world’s wealthiest people are, too, and their net worth has plummeted as a result. Even Warren Buffett, who prefers boring and predictable businesses, has reported significant declines. Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) revealed its stock portfolio lost over $63 billion during the second quarter of 2022 alone (a 21% decline)!

By and large, stocks aren’t a happy place during bear markets. Heck, even bonds haven’t done so hot, bucking the old wisdom that these are “safe” (bond values fall when interest rates rise, although you’ll get the principal value of the bond back if you hold it to maturity). But what has done well this year? Commodities (like agricultural products and mined materials), energy, and cold hard cash. We’ll get to cash in a moment, but as for the stuff that’s running higher this year, resist the urge to chase those returns.

That’s because commodities and energy tend to be cyclical in nature, not steady and consistent performers. Granted, if you think inflation will continue to run higher for a few years, investing some of your portfolio in top commodity and energy companies might not be a terrible idea. Nevertheless, when it comes to the commodities themselves, investing after they’ve already surged in value might simply be setting up your portfolio for yet another plunge. For example, oil prices are sharply down from their highs earlier this year. Something similar has happened in previous bear markets — a sharp increase in inflationary pressure can reverse course just as suddenly and unpredictably.

I’m not saying I expect oil to plunge further from here. However, the principle is this: Don’t chase the hottest trend of the moment! If you’re a long-term investor (you have at least a few years until retirement, or you’re already in retirement and need your portfolio to last you at least a decade or two), the best move is doing nothing at all, or making just small adjustments.

2. Sell those stocks that have been “swimming naked”

Speaking of small adjustments, one of the things bear markets do is expose companies in poor financial health. Again we tap the Oracle of Omaha for some help: Buffett has said, “You don’t find out who’s been swimming naked until the tide goes out.” The Fed is hiking interest rates and tightening the supply of cash, and this is the proverbial “tide going out” on easy money. Now that times are a bit harder, some businesses might not be in the strong position we once thought they held.  

But how do you tell who’s “swimming naked”? Falling revenue and profitability aren’t necessarily a red flag. Many of these businesses will be poised for a strong recovery. However, if falling sales and profits are paired with a weak balance sheet, that’s another story. Companies that have lots of debt and little to no cash, for example, could be in trouble. 

Be careful with this analysis, though. If a company is in serious financial condition, it’s likely the stock has already tanked. At this stage, businesses have options that might unlock value for you, the shareholder — they can raise more cash, or they can sell themselves to a competitor. So don’t be too hasty to sell. 

In particular, check a business’ recent statement of cash flows and calculate its free cash flow (operating income minus capital expenditures). Now compare that figure to how much cash and investments they have on their balance sheet. If a company is generating negative free cash flow at a rate that would deplete its coffers within a year or two, this company might be in dire straits. 

Nevertheless, if the situation looks particularly bad (not for the stock price, but for the business itself), it may just be time to cut your losses and reallocate those funds to an industry peer that is in better shape to recover once the bear market ends.

3. Make sure you have the cash you need for the next year or two

Here’s another reason you might sell a stock in your portfolio: You need cash within the next couple of years.

Now, don’t get me wrong: The last time you want to sell a stock is after the market has crashed. That’s why always maintaining a cash position — or other very liquid assets like bonds that will mature within a year or two or CDs at a bank — is especially important. This is true if you’re young and have many years until retirement (get that emergency fund started!) or if you’re already retired.

Nevertheless, if you find you might be needing a little more cash in the short term than you originally anticipated, raising some cash now could be a good idea. Bear markets can last longer than we expect. The average duration of a bear market is about 10 to 12 months, but that’s just the average. Sometimes they can last longer.  

Start with selling those businesses you’ve lost faith in. An important word of caution here, though, is to avoid selling high-quality businesses just because having cash in the bank feels good at the moment. Those high-quality businesses are the ones that will help your portfolio eventually recover.

Whatever you do, don’t panic

Bear markets are no fun. There can be some ugly days when the market falls by a steep percentage. It’s also common for some upward momentum to be undone by unforeseen economic setbacks. This leads to strong emotions. Whatever you do, don’t panic and act on those strong emotions. That can simply lay the groundwork for more pain and future regret.

Take courage, though. Bear markets don’t last forever, and the end of a bear market is often called in hindsight — after a robust recovery for the market and economy has already been made. Keep a level head, favor small adjustments over big and rash decisions, and stay focused on the long-term.

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

The post 3 things the world’s smartest investors do in every bear market appeared first on The Motley Fool Australia.

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Nicholas Rossolillo and his clients have positions in Berkshire Hathaway (B shares). The Motley Fool has positions in and recommends Berkshire Hathaway (B shares). 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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The Australian share market is home to a number of companies with the potential to grow at a strong rate in the future.

Two such shares that analysts rate highly are listed below. Here’s what you need to know about these ASX 200 shares:

Allkem Ltd (ASX: AKE)

The first ASX 200 share that is rated highly is lithium miner Allkem.

It is the owner of a collection of quality projects across several lithium types. These include Olaroz, Mt Cattlin, and the Sal de Vida brine project.

With lithium prices at sky high prices and looking likely to stay that way in the near term, Allkem appears well-placed to deliver strong earnings growth. Particularly given the end of older supply contracts at much lower prices and increasing production.

In respect to the latter, management is aiming to grow its production three-fold by 2026 and command a 10% share of global lithium production over the long term.

Bell Potter is a big fan of the company. It has a buy rating and $21.58 price target on its shares.

Altium Limited (ASX: ALU)

Another ASX 200 share to look at is Altium. It is a printed circuit board design software (PCB) provider.

PCBs are the boards you find in almost all electronic devices. They are integral to the operation of the device and come in all shapes and sizes. As a result, the design of them is an extremely complex process and requires specialist software.

Altium’s software is regarded as the best in the industry. A testament to this is its customer base, which includes the likes of NASA and Tesla.

Management is very confident on its future and is aiming to double its revenue to US$500 million by 2026 with stronger margins. This bodes well for its earnings growth over the coming years.

Jefferies is a fan of the company. Its analysts currently have a buy rating and $38.13 price target on its shares. 

The post 2 fantastic ASX 200 shares analysts say are buys appeared first on The Motley Fool Australia.

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• ASX lithium shares take a beating on Friday
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• Why are ASX 200 tech shares being hit the hardest on Wednesday?

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. 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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Several ASX materials shares will receive $50 million in grants from the Australian Federal Government, according to an announcement this afternoon.

The release said the grants would help the government reach its net zero ambitions by 2050. They would also “bolster development across Northern Australia, generate new jobs and drive regional economic growth”.

Minister for Resources and Minister for North Australia Madeline King, made the following comments:

Australia has the potential to become a major global supplier of critical minerals and rare earths which will be essential to help Australia and the world transition to low-emissions technology and achieve net zero emissions by 2050.

The grants will accelerate early and mid-stage projects, driving new investment in our processing and manufacturing capabilities as we develop our critical minerals sector.

King said Australia’s vast reserves of critical minerals were “crucial” to the production of batteries and electric vehicles, as well medical equipment, defence, aerospace, automotive and agritech industries. She added:

These junior projects, should they be successful in scaling up to full production, will help diversify global critical minerals supply chains.

Which companies will receive grants?

A total of six companies will receive part of the $50 million in funding.

The companies include:

• Alpha HPA Ltd (ASX: A4N): $15.5 million for its “ultra-pure” aluminium chemical plant in Gladstone, Queensland
• Cobalt Blue Holdings Ltd (ASX: COB): $15 million for its Broken Hill Cobalt project in New South Wales.
• EQ Resources Ltd (ASX: EQR): $6 million for tungsten production and to restart production at its Mount Carbine site in Queensland
• Global Advanced Metals Pty Ltd: $4 million for its recovery plant in Western Australia
• Lava Blue: $5.24 million for developing modular re-processing technology
• Mineral Commodities Limited (ASX: MRC) $3.94 million to develop its integrated ore-to-battery anodes business

What will the grants produce?

Materials investors may well be hoping the grants will bring new life to the materials sector amid China’s fears of a slowdown in economic activity.

While ASX lithium shares are doing what they can to keep S&P/ASX 200 Materials Index (ASX: XMJ) above water, which is down 9.51% year to date, some other materials are falling far behind.

Iron ore has been hit especially hard due to China’s real estate crisis, and precious metals gold and silver are suffering from a stronger US dollar.

On the positive front, ASX graphite shares are emerging as an alternative to lithium, and copper’s outlook was recently upgraded for the long-term.

The post These ASX critical minerals companies just received millions in government grants appeared first on The Motley Fool Australia.

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• This ASX All Ords share you’ve never heard of is flying 15% today. Here’s why

Motley Fool contributor Matthew Farley 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 200 gold shares had a tough end to the week amid the falling gold price.

Gold shares on the ASX include Evolution Mining Ltd (ASX: EVN), Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST).

Let’s take a look at why today was a shocker for these ASX 200 gold shares.

Gold price tumbles

Evolution shares lost 5% today, while the Newcrest share price fell 2.75%. Meanwhile, the Northern Star Resources share price dropped 4.15%.

Newcrest, Evolution and Northern Star are all major gold producers.

The gold price dropped to the lowest level since April 2020 at US$1,659.47 overnight. The gold price has since recovered slightly to US$1,668.40 an ounce at the time of writing.

The gold price fell amid concerns the US Federal Reserve will raise rates sharply next week to fight inflation.

In comments cited by Reuters, Next Generation Research head Julius Baer said:

The gold market has clearly priced in a more aggressive US Federal Reserve ahead of next week’s meeting, reflecting the central bank’s determination to fight inflation.

Northern Star expects to deliver 1,560koz to 1,680koz (thousand ounces) of gold in FY23. Meanwhile, Newcrest is expecting to produce 2100 to 2,400 koz of gold in FY23. Evolution is planning to increase gold production in FY23 by 12.5% to about 720,000 ounces.

Share price snapshot

The Northern Star share price has slid 22% in the past year. Meanwhile, Evolution shares have dropped 48%, while Newcrest shares have fallen 32%.

For perspective, the S&P/ASX 200 Materials Index (ASX: SMJ) has fallen 3.51% in a year.

The post Why did ASX 200 gold shares have such a rough day? appeared first on The Motley Fool Australia.

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• Why is the Northern Star share price trading 4% down today?
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• 5 things to watch on the ASX 200 on Friday
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• Evolution Mining share price craters in brutal market sell-off

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 Imugene Limited (ASX: IMU) share price finished flat for today, but has been in the red for week.

At Friday’s market close, the clinical stage immuno-oncology company’s shares ended at 22 cents a pop.

This means the share is down 6.38% for the week.

What’s up with Imugene shares?

Investors are drove the Imugene share price to a two-month low on the day of company’s announced institutional placement.

Imugene advised it successfully received firm commitments to raise $80 million from a number of institutional investors.

However, with new Imugene shares to come onto the market, this will dilute the existing shareholder value.

Nonetheless, Imugene released its prospectus to the ASX today for the issue of the institutional placement options.

The offer is an issuance of one new option for every two new shares to eligible participants, to raise up to approximately $66 million.

In total, Imugene will offer 200 million new options at an exercise price of 33 cents per option.

They expire on 31 March 2026 and can be exercisable at any time up to and including the expiry date.

Allotment of the new options under the offer is expected on 19 September.

Imugene is seeking to raise the funds to accelerate the development of its anti-cancer drugs.

Imugene share price snapshot

Adding to this week’s decline, the Imugene share price has tanked almost 50% since this time last year.

Half of these losses have come in the past month alone.

Based on today’s price, Imugene commands a market capitalisation of roughly $1.29 billion, with 5.87 billion shares on issue.

The post Why did the Imugene share price have such a lousy end to the week? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Teboneras 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) slumped lower on Friday, marking the end to what was likely a disappointing week for Australian investors. The index closed 1.4% lower at 6,747 points today.

That leaves the ASX 200 2.14% lower than it was at the end of last week, mostly due to Wednesday’s disastrous session.

The S&P/ASX 200 Energy Index (ASX: XEJ) weighed heaviest today, falling 3%. The sector’s suffering likely came on the back of falling oil prices.

The Brent crude oil price fell 3.5% to US$90.84 a barrel overnight while the US Nymex crude oil price dropped 3.8% to US$85.10 a barrel.

Mining giants also dragged on the market, with the S&P/ASX 200 Materials Index (ASX: XMJ) dumping 2.3%.

Gold futures slumped 1.9% to US$1,677.30 an ounce overnight while iron ore futures lifted 0.1% to US$100.58 a tonne. Meanwhile, the price of nickel fell 4.5% and that of copper slipped 0.6%.

Today’s top performing sectors were the S&P/ASX 200 Utilities Index (ASX: XUJ) and the S&P/ASX 200 Information Technology Index (ASX: XIJ). They fell 0.4% and 0.6% respectively.

But which ASX 200 share outperformed all others? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today’s top performing ASX 200 share was Star Entertainment Group Ltd (ASX: SGR).

The company’s interim chair Ben Heap responded to the findings of a review into its suitability to operate its Sydney casino, released earlier this week, yesterday afternoon.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
Star Entertainment Group Ltd (ASX: SGR)	$2.90	5.07%
Computershare Ltd (ASX: CPU)	$26.01	4.42%
Tabcorp Holdings Limited (ASX: TAH)	$0.98	4.26%
Reliance Worldwide Corporation Ltd (ASX: RWC)	$3.69	2.79%
News Corporation (ASX: NWS)	$25.86	2.5%
Home Consortium Ltd (ASX: HMC)	$5.06	2.43%
Nine Entertainment Co Holdings Ltd (ASX: NEC)	$2.08	1.96%
Event Hospitality and Entertainment Ltd (ASX: EVT)	$13.20	1.69%
Eagers Automotive Ltd (ASX: APE)	$12.85	1.42%
Bapcor Ltd (ASX: BAP)	$6.86	1.33%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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 Reliance Worldwide Corporation Limited. The Motley Fool Australia has recommended Bapcor and Reliance Worldwide Corporation 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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The Mineral Resources Limited (ASX: MIN) share price was out of form on Friday.

The mining and mining services company’s shares tumbled 5% lower to $66.39.

This was driven by a broad market selloff, which was felt hardest among riskier assets.

Is this Mineral Resources share price weakness a buying opportunity?

One leading broker that certainly sees this share price weakness as a buying opportunity is UBS.

According to a note, the broker has retained its buy rating and $83.00 price target on the company’s shares.

Based on the current Mineral Resources share price, this implies potential upside of 25% for investors over the next 12 months.

But it could get even better.

What else is the broker saying?

There has been a lot of speculation this month about Mineral Resources potentially unlocking value by demerging its lithium operations and listing them on Wall Street.

UBS has been looking into this option and appears to like what it sees. Its analysts note that Albemarle’s lithium business trades at 10x FY 2024 EBITDA, whereas Mineral Resources’ business is fetching just over 3x FY 2024 EBITDA.

And while UBS doesn’t necessarily think that the business will be able to command as great a premium as Albemarle, it still sees 6x EBITDA as possible. The broker commented:

While the case for MIN’s lithium spinoff to create value is strong, we believe ALB’s Li business arguably should trade at a premium to MIN.

If the business were to trade at 6x FY 2024 EBITDA, it would give it a valuation of $17 billion. That is notably more that the current Mineral Resources market capitalisation of $13 billion, which includes far more than just its lithium operations.

However, as things stand, management has not announced plans to spin off the business, so it is purely speculation at this stage. But with this much value potentially being unlocked from doing so, shareholders will no doubt be hoping it happens.

The post Top broker values Mineral Resources rumoured lithium spin-off at $17 billion appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Mineral Resources share price lifts amid lithium stock buy-up
• The Vulcan share price sank 7% today in ASX sea of red
• 3 ASX 200 mining shares that smashed all-time highs on Tuesday
• With most investors thinking the next big move in the stock market is down, Warren Buffett says times like these are your friend

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 Computershare Ltd (ASX: CPU) share price has been on a roll lately. Not only has it dodged the carnage suffered by its S&P/ASX 200 Index (ASX: XJO) tech peers, it’s trading within a hair of its all-time record high.

The Computershare share price is launching another 5% today, closing trade at $26.13. That’s only 1.6% lower than its record high of $26.56.

That’s despite the broader ASX 200 tumbling 1.4% and the S&P/ASX 200 Information Technology Index (ASX: XIJ) slipping 0.56%.

In fact, the ASX 200 tech sector has plunged 30% so far this year. Meanwhile, Computershare’s stock has gained 30%.

So, why is the investor services operator outperforming the broader market while most of its peers have sunk deep into the red? Let’s take a look.

How are Computershare shares defying the tech downturn?

The Computershare share price is boasting major gains this year. At the same time, its sector has struggled to stay afloat.

Interestingly, the reason behind the tech sector’s suffering might explain the stock’s rise.

The major factor weighing on ASX 200 tech shares this year is arguably inflation. Inflation – and resulting rate hikes – tend to hit tech stocks harder than most, as they are more often growth-focused.

To put it simply, inflation can increase the cost of debt while reducing the value of a company’s future cash flows.

Thus, rising inflation can weigh on the share prices of companies valued on their expected future growth and cash flows. My Fool colleague Zach explained this phenomenon in more detail earlier this year.

But rising inflation is actually good news for Computershare, according to experts. And that could be what has helped to buoy the Computershare share price.

T. Rowe Price’s Randal Janneke previously noted the company’s business model sees it collect cash from its businesses before handing it out to investors. But before being distributed, the cash is placed in money markets where higher interest rates see it generate larger returns.

This sentiment is shared by Tribeca’s Jun Bei Liu, as my colleague Tony reports.

The post At a dire time for ASX 200 tech, how are Computershare shares trading near all-time highs? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares defying Friday’s sell-off to surge higher
• Why Computershare, Critical Resources, Judo Capital, and Platinum shares are charging higher
• Here are the top 10 ASX 200 shares today
• Guess which ASX 200 share is holding firm amid today’s carnage
• 3 ASX 200 directors who have been selling shares in their companies this week

Motley Fool contributor Brooke Cooper 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 searching for growth shares to buy, then two ASX shares listed below could be worth considering.

Both have been named as buys by brokers and tipped to have major upside potential. Here’s what they are saying about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX growth share that could be in the buy zone is Domino’s.

It is one of the largest pizza chain operators in the world with a significant presence in the ANZ, European, and Asian regions. But management isn’t stopping there. It has set itself a target of 7,250 stores by 2033, which is over double its current footprint.

And while the company is going through a difficult period at the moment, the team at Morgans believe investors should be patient and focus on its long term growth opportunity.

Morgans has an add rating and $90.00 price target on Domino’s shares. It commented:

It is an affordable option that has performed well historically even in times of inflation or slower economic growth. The engine of DMP’s growth is its ability to roll out new stores all over the world. It added 438 stores to its global network in the year to June 2022, a pace of expansion that we forecast to accelerate to nearly 600 in FY23. This will take the total to almost 4,000 stores, up fourfold over a ten-year period. Over the next ten years, DMP expects to grow organically to 7,250 stores in the 13 countries in which it currently operates

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth share to look at is enterprise software provider Readytech.

It has been a strong performer in recent years and delivered the goods again in FY 2022. Last month, Readytech revealed a 16.8% year over year increase in revenue to $78.3 million and a 45.5% jump in underlying EBITDA to $27.5 million.

Goldman Sachs is expecting more of the same in the future. As a result, it has put a buy rating and $4.30 price target on the company’s shares. Goldman commented:

We are constructive on RDY’s growth outlook given its defensive end-market exposures (government and education represent ~3/4 of FY23E revenue) and see scope for margins to grow from FY23 onwards, aided by transitioning IT Vision’s on-premise customer base to cloud in coming years (generating a 2-3x ARPU uplift).

RDY remains materially undervalued relative to profitable SaaS peers (we estimate >50% discount on growth-adjusted FY24E EV/EBITDA) and is building an impressive track record of organic growth execution which in our view will drive a re-rating over time.

The post Top brokers name 2 ASX growth shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Own Domino’s shares? Get ready for a delivery
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• Down 50% in 2022: Is the Domino’s share price a bargain buy?

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 Readytech Holdings Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Readytech Holdings Ltd. 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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