A director of ASX 200 kitchen appliance manufacturer Breville Group Ltd (ASX: BRG), is in for a boosted dividend payout after buying 30,000 more shares a few days before the ex-dividend date.

The Breville share price is down 1.73% in early trading on Tuesday to $18.80.

A change of director's interest notice lodged with the ASX last Friday reveals that non-executive director, Lawrence Myers, spent $577,785.49 buying more Breville shares through a family trust fund.

He made the purchase on Friday on-market.

How much will this ASX 200 director receive in dividends?

Breville shares begin trading ex-dividend tomorrow.

The ASX 200 share will pay investors 15 cents per share fully franked for 1H FY23 on 27 March. This is the same amount as the interim dividend for 1H FY22.

Before the purchase, Myers already had an indirect interest in 133,000 shares through his superannuation, family trust, and other investment vehicles.

His bumped-up investment will deliver $24,450 in dividends for 1H FY23.

Investors typically draw comfort from seeing board directors spend their own money buying more shares in the ASX 200 companies they run. It's a clear sign of confidence in the company's future.

A quick recap on Breville's 1H FY23 results

In its 1H FY23 report, Breville revealed record sales with a 13.1% increase in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $141.9 million compared to the prior corresponding period (pcp) of 1H FY22.

Breville's net profit after tax (NPAT) increased by 1.3%, and its gross margin improved by 1% to 35.1%.

The ASX 200 share's return on equity (ROE) declined from 19.7% to 16.1% due to its acquisition of Italian prosumer coffee company, Lelit, in July 2022.

Breville Group CEO, Jim Clayton said:

The strength of our product portfolio, coupled with the maturity and agility of our underlying Acceleration Platform, cut through the macro-economic headwinds of the 1H23.

We grew Gross Profit by tacking into our areas of strength: we managed price to counter
material input and logistics cost inflation as well as negative currency swings; we leaned on our
geographic diversification to deflect the impact of EMEA retailers buying much less than they
were selling; we aligned our supply chain and go-to-market to take advantage of the trending
tailwinds of "air frying" and "café quality coffee at home"; we executed a much improved new
product launch process that accelerated revenue; and, we captured the benefit from the
investments we've made in our digital execution and geographic expansion.

Recent history on this ASX 200 share

The Breville share price is up 0.75% in 2023 compared to an 0.5% bump in the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 share is down 31% over the past 12 months, compared to a 2.4% fall for ASX 200 shares overall.

The post This ASX 200 director bought over $500k of his company's shares just in time for the dividend! appeared first on The Motley Fool Australia.

This means that today is the final day for investors to buy these shares if they want to receive their upcoming dividend payments.

The following ASX 200 shares are going ex-dividend tomorrow:

Breville Group Ltd (ASX: BRG)

Last month, this appliance manufacturer released its half-year results and declared a 15 cents per share fully franked interim dividend. This will be paid to eligible shareholders later this month on 27 March. Interestingly, Breville's chair, Lawrence Myers, just loaded up on the company's shares prior to them trading ex-dividend. He snapped up 30,000 shares on-market for a total consideration of approximately $578,000.

Eagers Automotive Ltd (ASX: APE)

This auto retailer giant had another strong year in FY 2022. This allowed the company to declare a record fully franked final dividend of 49 cents per share last month. This is scheduled to be paid at the very end of the month on 31 March.

Inghams Group Ltd (ASX: ING)

Things haven't been going as well for this poultry producer. Last month, it was forced to slash its fully franked interim dividend by 30% to 4.5 cents per share. This will be paid to eligible shareholders on 6 April.

TPG Telecom Ltd (ASX: TPG)

This telco giant was on form in FY 2022 and delivered a solid full-year result last month. This meant that TPG was able to increase its fully franked final dividend by almost 6% to 9 cents per share. This is scheduled to be paid to its shareholders next month on 13 April.

The post 4 ASX 200 shares trading ex-dividend on Wednesday appeared first on The Motley Fool Australia.

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

Breville Group Ltd (ASX: BRG)

According to a note out of Goldman Sachs, its analysts have retained their buy rating on this appliance manufacturer's shares with a trimmed price target of $22.70. This follows the release of a half year result which revealed weaker than expected sales but strong gross margins. Overall, the broker believes this result demonstrates Breville's characteristics as a high quality name in a secular growth category and continues to forecast solid earnings growth through to FY 2025. The Breville share price is trading at $20.37 this afternoon.

CSL Limited (ASX: CSL)

A note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this biotherapeutics company's shares to $350.00. This follows the release of a solid first half result which revealed a faster than expected recovery in plasma collections. The broker was also pleased to see CSL reaffirm its guidance for FY 2023. The CSL share price is fetching $304.83 on Wednesday.

Nanosonics Ltd (ASX: NAN)

Analysts at Morgans have upgraded this infection prevention company's shares to an add rating with a $5.19 price target. The broker believes recent share price volatility has created a buying opportunity for investors. Particularly given its recent trading update that the broker feels demonstrates that Nanosonics' direct sales model is working successfully. The Nanosonics share price is trading at $4.71 on Wednesday afternoon.

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

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

Ansell Limited (ASX: ANN)

The Ansell share price is down 8.5% to $25.71. Investors have been selling this health and safety products company's shares following the release of its half year results. Ansell reported a 17.2% decline in sales to $835.3 million and a 16.5% reduction in net profit after tax to $64.8 million. This was driven by weakness in the company's healthcare segment, which offset growth in the industrial segment.

Breville Group Ltd (ASX: BRG)

The Breville share price is down 6% to $20.38. This follows the release of the appliance manufacturer's half year results. Breville reported a 1.1% increase in revenue to $888 million and a 1.3% lift in net profit after tax to $78.7 million. The latter was ahead of consensus estimate of $74.2 million, but that hasn't stopped its shares from falling.

Star Entertainment Group Ltd (ASX: SGR)

The Star share price is down a further 12% to $1.30. Investors have been selling this casino operator's shares since the release of a disappointing earnings update on Monday. Star revealed that competition in Sydney and regulatory issues have been weighing heavily on its performance.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down 22% to $3.84. This morning, Temple & Webster released its half year results and reported a 12% decline in revenue and a 46.7% reduction in net profit after tax. This was due to the company cycling strong lockdown-boosted sales in the prior corresponding period. It is also worth noting that the company's result was in line with Goldman Sachs' estimates, despite what its share price may indicate.

The post Why Ansell, Breville, Star, and Temple & Webster shares are falling appeared first on The Motley Fool Australia.

The Breville Group Ltd (ASX: BRG) share price is tumbling on Tuesday after the company dropped its earnings for the first half.

Shares in the S&P/ASX 200 Index (ASX: XJO) appliance developer are currently down 3.78%, trading at $20.88.

Breville share price plummets as debt grows in the first half

• $888 million of revenue – a 1.1% increase on that of the prior comparable period (pcp)
• Gross profit climbed 3.8% to $311.3 million at a 35.1% margin
• Earnings before interest and tax (EBIT) of $121.1 million – a 7.6% improvement
• 15 cents per share interim dividend declared – flat on that of the prior year
• Ended the period with a $212.2 million debt position – down from a $31.7 million net cash position

Breville posted record sales last half, growing its revenue by 1.1%, but that's nothing compared to the growth the market is accustomed to seeing from the small appliance icon. The last three financial years have seen its revenue grow between 19% and 25% annually.

The company's debt levels also soared last half as it bolstered inventory and forked out $84 million to acquire LELIT Group. It currently holds excess inventory as a hedge against supply chain disruptions but plans to transition to a normal inventory flow model in the second half.

Finally, it highlighted headwinds from shipping and freight costs, as well as a strong US Dollar. Fortunately, those were offset by price rises in its premium global segment, a slight benefit in the mix, and a normalising promotional cadence.

What else happened in the first half?

Revenue in Breville's global product segment grew 5% to $770.7 million last half. That was despite revenue from Europe, the Middle East, and Africa (EMEA) tumbling 22% to $156.6 million, reflecting retailer destocking.

On the other hand, revenue in its distribution segment fell as the business struggled to recover cost increases. Much of that was due to the Nespresso product line, which faced supply disruptions.

The company said its new product development launches were well received last half, while its investment in its digital platform "paid dividends" as direct-to-consumer sales grew more than 66%.

What did management say?

Breville CEO Jim Clayton commented on "a solid half of performance" wherein the company delivered growth despite "a challenging and dynamic backdrop", saying:

The strength of our product portfolio, coupled with the maturity and agility of our underlying acceleration platform, cut through the macro-economic headwinds of the [first half].

We grew gross profit by tacking into our areas of strength: we managed price to counter material input and logistics cost inflation as well as negative currency swings; we leaned on our geographic diversification to deflect the impact of EMEA retailers buying much less than they were selling; we aligned our supply chain and go-to-market to take advantage of the trending tailwinds of "air frying" and "café quality coffee at home"; we executed a much improved new product launch process that accelerated revenue; and, we captured the benefit from the investments we've made in our digital execution and geographic expansion.

What's next?

Breville expects the future to bring a more benign inflationary environment for its products, which should support gross margins. It's also aiming to reduce its debt position amid its inventory transition.

It forecasts its full-year EBIT to come in at between $165 million and $172 million – representing 5% to 10% of potential annual growth.

For comparison, the company's EBIT grew 15% year-on-year in financial year 2022 and 40% year-on-year in finanical year 2021.

Breville share price snapshot

Despite today's tumble, the Breville share price has outperformed so far this year.

The stock has risen 13% year to date while the ASX 200 has lifted just 7%.

Over the last 12 months, however, Breville shares have dumped 24% while the index has risen 3%.

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

ASX 200 expected to rise

The Australian share market looks set to rise on Tuesday following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 40 points or 0.55% higher. In late trade in the United States, the Dow Jones is up 0.9%, the S&P 500 is up 1%, and the NASDAQ is up 1.4%.

Oil prices rise

Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.5% to US$80.16 a barrel and the Brent crude oil price is up 0.25% to US$86.63 a barrel. Russia's plan to cut production has continued to give oil prices a boost.

CSL half-year result

The CSL Limited (ASX: CSL) share price will be one to watch on Tuesday when the biotherapeutics giant releases its eagerly anticipated half year results. According to CommSec, the market is expecting a net profit after tax of US$1.6 billion and an interim dividend of US$1.12 per share. Investors may also want to pay attention to commentary around plasma collections.

Gold price falls

It could be a tough day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price fell overnight. According to CNBC, the spot gold price is down 0.5% to US$1,865.5 an ounce. Strengthening bond yields weighed on the safe haven asset.

Short squeeze coming for Breville shares?

The Breville Group Ltd (ASX: BRG) share price will be one to watch closely today. The appliance manufacturer is releasing its half year results and has been tipped as a company that could potentially surprise positively by Goldman Sachs. The broker commented: "We expect 1H23 results to offer a positive surprise vs. the Street. As a result, any short covering driven by such outperformance could push the stock higher." It expects first half sales growth of 6.2% and EBIT growth of 6.8%.

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

Both have been named as buys and tipped to deliver solid long term growth. Here's what you need to know about these ASX 200 shares:

Breville Group Ltd (ASX: BRG)

This leading appliance manufacturer could be an ASX 200 share to buy for the long term.

Breville has been growing at a solid rate for over a decade. This has been driven by the popularity of its brands, its international expansion, successful acquisitions, and its investment in research and development.

The good news is that all these drivers remain in place and Breville appears well-positioned to replicate its success over the next decade. Particularly given its exposure to the growing premium coffee in-home consumption trend.

It is partly for this reason that Morgans currently has an rating and $25.00 price target on its shares.

Cochlear Limited (ASX: COH)

Another ASX 200 share that could be a top buy and hold option is Cochlear.

Like Breville, it has been growing at a consistently solid rate for at least a decade. This has been driven by its world class hearings solutions portfolio and growing demand.

And with demand only expected to increase as the global population ages, Cochlear appears well-placed for more of the same over the next decade. Particularly given the industry's high barriers of entry and its sizeable investment in research and development. The latter looks set to help the company maintain its leadership position for the foreseeable future.

Goldman Sachs is very positive on Cochlear. It currently has a buy rating and $247.00 price target on its shares.

The post Buy and hold these ASX 200 shares: experts appeared first on The Motley Fool Australia.

While there will inevitably be some results that disappoint the market, history shows us that there are plenty that positively surprise.

Goldman Sachs has been busy analysing the month ahead and has named 10 buy rated ASX stocks that it believes could deliver stronger than expected updates.

Which ASX stocks could surprise?

The 10 ASX stocks that Goldman Sachs is tipping to positively surprise are as follows:

• Breville Group Ltd (ASX: BRG)
• Corporate Travel Management Ltd (ASX: CTD)
• Data#3 Limited (ASX: DTL)
• Endeavour Group Ltd (ASX: EDV)
• Judo Capital Holdings Ltd (ASX: JDO)
• Qantas Airways Limited (ASX: QAN)
• QBE Insurance Group Ltd (ASX: QBE)
• Qualitas Ltd (ASX: QAL)
• Telstra Group Ltd (ASX: TLS)
• Temple & Webster Group Ltd (ASX: TPW)

Financials

In respect to QBE, the broker has a buy rating and $16.67 price target on this insurance giant's shares. Goldman believes that "COR guidance & underlying insurance margins for FY23 likely to surprise to the upside."

Judo Capital is another ASX 200 that could surprise thanks to its strong customer deposits growth. Goldman highlights that "JDO continues to grow materially above system levels on customer deposits (10x in the month of Nov-22). Overall, this would translate into an additional tailwind to NIM." The broker has a buy rating and $1.70 price target on the bank's shares.

Goldman has a buy rating and $3.45 price target on Qualitas' shares. It is tipping a strong result from the investment company thanks to "developers and asset owners look to alternative financiers."

Retail

Breville could deliver a stronger than expected half year and full year result in FY 2023. This is due to Goldman's belief that "the secular trend of coffee consumption upgrade will continue globally and that BRG will stand to benefit structurally as a leader in this upgrade." The broker has a buy rating and $23.50 price target on its shares.

Goldman believes the market is being "too negative on near-term revenue" of Temple & Webster. It has a conviction buy rating and $7.60 price target on the online furniture retailer's shares.

The broker also believes that Endeavour finished the half better than the market was expecting. It feels this "suggests that trading in 1H23 is likely to offer positive surprise vs. consensus." Goldman has a buy rating and $7.80 price target on the drinks company's shares.

Tech and telco

Goldman expects Data#3 to deliver "continued strong top-line growth from digital transformation projects delayed through COVID." The broker also expects operating leverage to flow through as the ASX tech stock's business scales. It has a buy rating and $9.20 price target on Data#3 shares.

Telco giant Telstra has been named as a positive surprise candidate. This is due to "top line momentum more than offsetting the higher costs." Goldman has a buy rating and $4.60 price target on Telstra's shares.

Travel

Goldman Sachs is feeling positive about Corporate Travel Management's prospects in the first half and full year. As a result, it has put a buy rating and $20.30 price target on this ASX travel stock. Goldman expects "upside surprise in both 1H23 earnings vs. the Street as well as outlook statements."

Finally, Qantas, which Goldman has a conviction buy rating and $8.20 price target on, has been tipped to have finished the first half strongly. It notes that "US airlines' 4Q results also reflected strength in pricing in the current environment, with American Airlines, Delta Airlines and United Airlines unit revenue averaging +19% vs. pre-covid level in the quarter."

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This could make it an opportune time for investors to look at making some investments before the market takes off.

But which ASX shares would be top options to buy before the bull charges through the door?

3 ASX shares I would buy

If I were going to load up on some ASX shares for a potential bull market, I would look at those which have good operational momentum and positive long-term outlooks, but an underperforming share price.

One ASX share that immediately comes to mind is Temple & Webster Group Ltd (ASX: TPW). Its shares have been punished over the last 12 months and are down almost by a third.

That's despite the online furniture and homewares retailer growing strongly and having an enviable leadership position in a retail category that is still in the early days of shifting online. Furthermore, with this category having relatively high barriers to entry, it appears well-placed to remain a leader in the future.

In fact, it is for this reason that Goldman Sachs is forecasting Temple & Webster's earnings before interest, tax, depreciation and amortisation (EBITDA) to grow by a compound annual growth rate (CAGR) of 22% over the next 10 years.

Coffee to the rescue

Another ASX share that I would buy ahead of the bull market is Breville Group Ltd (ASX: BRG). This leading appliance manufacturer's shares are down 20% over the last 12 months.

And while a slowing housing market and the cost of living crisis could put pressure on demand for appliances, Breville's exposure to the growing coffee market could offset this. In fact, a recent update from rival De'Longhi appears supportive of this.

In addition, management has the option to rein in its spending on research and development if it wants to trim costs and support its earnings.

A beaten-down tech star

Finally, I think Life360 Inc (ASX: 360) could be an ASX share to buy. This location technology company's shares fell heavily last year when the market sold off unprofitable tech shares.

But with Life360 growing at a rapid rate and expecting to become profitable later this year, I believe a re-rating could happen when this milestone is achieved.

Another reason to be positive is the company's huge market opportunity. In FY2022, Life360 is expecting to report revenue in the range of US$225 million to US$240 million. This compares to its total addressable market estimated by Goldman Sachs to be US$12 billion globally.

Overall, I believe including these three ASX shares in a balanced portfolio could deliver solid results for investors when the bull market comes.

The post A new bull market is coming: 3 ASX shares I'd load up on before it gets here appeared first on The Motley Fool Australia.

So, that gives us a bit of time to look at some of the ASX shares that Goldman Sachs is tipping to outperform or underperform expectations this month.

Potential to outperform

Goldman believes that the following ASX shares have the potential to outperform the market's expectations in February. Here's what it is saying:

Breville Group Ltd (ASX: BRG)

The broker has warned short sellers that this appliance manufacturer could surprise to the upside with its full year guidance this month when it releases its half year results. It said:

On Discretionary our top pick remains Breville – De'Longhi 4Q came in better than expected and the stock is likely to short squeeze on stronger than expected full year EBIT guidance at 1H23 results.

Temple & Webster Group Ltd (ASX: TPW)

Its analysts are also very bullish on this online furniture and homewares retailer. In fact, the broker not only expects a stronger than consensus half year result, it is expecting Temple & Webster to outperform over the medium term. The broker commented:

Our FY23/FY24/FY25 revenue forecasts are +2.6%/+5.2%/+3.9% ahead of the market (Visible Alpha Consensus Data). We are more constructive around the medium term revenue outlook despite category level headwinds.

Woolworths Group Ltd (ASX: WOW)

Goldman is expecting this retail giant to deliver a strong result this month. In light of this, it appears to believe the market is being too negative and that it deserves to trade on higher multiples than its arch rival. It said:

We expect an outperformance trend for WOW vs. COL in comp sales see margins beginning to come through from 2Q23 on stronger omni-channel Xmas trading as well as more targeted promotions. On GSe, WOW is trading at a similar FY23E P/E vs. COL.

At risk of underperforming

Unfortunately, Goldman isn't very positive about the prospects of these ASX shares this month. Here's why it is tipping them to underperform expectations:

Altium Limited (ASX: ALU)

This electronic design software platform provider has been tipped to fall short of the market's expectations during the first half. Goldman is expecting Altium to deliver first half EBITDA of US$43 million, which is 3.6% short of consensus estimates. Its analysts are then expecting the same for its full year earnings.

Coles Group Ltd (ASX: COL)

Another ASX share that could underperform expectations according to Goldman Sachs is Coles. It believes that margin compression is weighing on the supermarket giant's performance. As a result, although it expects Coles' sales to be a fraction ahead of the market's estimates in FY 2023, its net profit assumption is 5.2% lower than the consensus. For the first half, Goldman said:

In 1H23, we expect group sales growth of 3.7% and EBIT growth of 0.4% as we expect ~10bps margin compression to 4.6% EBIT margin.

Wesfarmers Ltd (ASX: WES)

Finally, Goldman isn't feeling very positive on this conglomerate's prospects this month due largely to its Bunnings business. It warned:

We remain Sell-rated on WES as weaker home improvement trend and negative comps in 2H23 with Bunnings, at highest risk of volume deleverage impacting EBIT margins.

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I've got nothing against lithium. It looks likely that this future-facing metal is going to play a big part in the world's transition to providing cleaner energy. But I'm willing to bet the legendary investor Warren Buffett isn't interested in investing in lithium.

Buffett is famously generous with giving out investing wisdom. As such, we know what he typically looks for in an investment. Buffett's methodologies have helped him return upwards of 20% per annum in the investment portfolio of Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) over his 60-year investing career.

Buffett's typical investing checklist includes finding companies with intrinsic competitive advantages (or 'moats'), a management team with integrity, an easy-to-understand business model, and (of course), buying it at the right price:

The reason why Buffett hasn't ever bought a lithium stock? Most fail that first hurdle before they even get off the ground.

Buffett wouldn't buy lithium

A lithium miner is still a miner, even if the company possesses a key ingredient for a cleaner future. This means that a lithium producer has to sell its products at a common market price. Most of Buffett's long-term holdings aren't restricted by this kind of barrier.

Take Berkshire's largest position: Apple Inc (NASDAQ: AAPL). Apple has some of the best margins in the world because of its globally dominant brand. The company can basically charge whatever it likes for its products, safe in the knowledge that its customers will be happy to pay top dollar for the privilege of owning something with the famous Apple logo on it.

A lithium producer has no such luxury. It has almost no influence over what it can charge the buyers of its products. This doesn't matter so much when lithium prices are rising. But when the inevitable commodity cycle plays out and lithium prices go through a tough time, all producers will suffer, regardless of 'brand power'.

So I'm following the Buffett playbook in 2023 and limiting my search to companies that I can understand, have intrinsic competitive advantages, top management teams and compelling prices.

I'll be taking closer looks at the likes of TechologyOne Ltd (ASX: TNS), Transurban Group (ASX: TCL), Breville Group Ltd (ASX: BRG) and Premier Investments Limited (ASX: PMV).

But I'll be taking a pass on Core Lithium Ltd (ASX: CXO), Pilbara Minerals Ltd (ASX: PLS) and Liontown Resources Ltd (ASX: LTR). It's not that these companies are poor businesses. They just don't fit into the Buffett investing framework I like to try and stick to.

The post Forget lithium! I'm using the Warren Buffett method to help find winning ASX shares in 2023 appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted ASX share by some distance after its short interest rose to 13.9%. This may have been driven by concerns over ongoing revenue margin pressures.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease to 12.7%. Much to the delight of short sellers, this betting technology company's shares are trading within a whisker of a 52-week low.
• Megaport Ltd (ASX: MP1) has seen its short interest ease to 9.8%. Short sellers will be disappointed to learn that the network as a service provider's shares are up 20% so far this month.
• Sayona Mining Ltd (ASX: SYA) has 9.6% of its shares held short, which is down week on week. This appears to be due to concerns that lithium prices have peaked.
• Core Lithium Ltd (ASX: CXO) has short interest of 9.2%, which is down slightly since last week. Once again, short sellers appear to believe that Core Lithium could miss out on the sky high lithium prices being commanded today.
• Lake Resources N.L. (ASX: LKE) has 7.6% of its shares held short, which is flat week on week. J Capital's short report reveals that it is targeting the lithium developer due to concerns over its technology and project funding.
• Liontown Resources Ltd (ASX: LTR) is yet another lithium share in the top ten with short interest of 7.3%. Concerns over lithium prices and project costs may be behind this. The latter could mean a capital raising is required in the near future.
• Breville Group Ltd (ASX: BRG) has seen its short interest ease to 7%. There are fears that demand for this appliance manufacturer's production could soften notably this year.
• NextDC Ltd (ASX: NXT) has short interest of 6.8%, which is down week on week. Balance sheet concerns and Asian expansion uncertainty may be behind this.
• Pointsbet Holdings Ltd (ASX: PBH) has short interest of 6.8%, which is up slightly since last week. Short sellers don't appear confident that this sports betting company will turn a profit any time soon due to intense competition and significant marketing costs.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

The good news for investors is that the broker is positive on the sector as a whole. So much so, it has named a total of eight ASX retail shares to buy right now.

What is Morgans saying about ASX retail shares?

Morgans notes that consumer spending has remained surprisingly strong despite rising interest rates. This even led to the biggest Christmas period for retailers on record in 2022. It commented:

Australian consumer sentiment has been in the doldrums. Preoccupied by the impact of higher home loan and rental payments on household finances already feeling the effects of the highest rates of inflation in 30 years, consumers indicated throughout 2022 that they intended to tighten their belts and pull back on their discretionary expenditure.

And yet, retail sales continue to rise faster than market expectations. The Australian Retailers Association recently commented that last Christmas saw 'without a doubt the biggest festive spend on record'.

In light of the above, the broker suspects that a number of ASX retail shares could report strong results next month.

Combined with the prospect of inflation easing and the RBA slowing its interest rate hikes, it believes analysts may be forced to upgrade their earnings estimates meaningfully. It explained:

We do expect consumer demand to soften over the course of 2023, especially as a high proportion of fixed rate mortgages roll off.

But with the prospect of inflation easing and with the possibility that the RBA will pause its relentless series of rate hikes, we think the market may have overestimated the extent of the weakness in the year ahead.

We could see earnings upgrades in the retail sector during February as analysts adjust to better than expected numbers in 1H FY23 and the emerging prospect of a more gentle decline in 2H FY23.

Which shares should you buy?

The eight ASX retail shares in the consumer discretionary space that Morgans rates as a buy are as follows:

• Beacon Lighting Group Ltd (ASX: BLX)
• Breville Group Ltd (ASX: BRG)
• Domino's Pizza Enterprises Ltd (ASX: DMP)
• JB Hi-Fi Limited (ASX: JBH)
• Lovisa Holdings Ltd (ASX: LOV)
• Step One Clothing Ltd (ASX: STP)
• Super Retail Group Ltd (ASX: SUL)
• Universal Store Holdings Ltd (ASX: UNI)

However, of the eight, its key picks are Beacon, JB Hi-Fi, and Universal Store.

Commenting on Beacon, for which it has an add rating and a $2.60 price target, the broker said:

The potential of the trade strategy is underestimated. We expect it will allow BLX to continue to grow earnings positively even as retail demand softens.

As for JB Hi-Fi, which the broker has an add rating and $53.00 price target on, Morgans said:

We think the market overestimates the extent of the likely slowdown in sales in 2H23, resulting in a P/E that's too low and a dividend yield that's too high.

Finally, Universal Store, which Morgans has an add rating and $6.70 price target on, the broker commented:

We believe this is one of the most underrated retailers on the ASX. It offers network growth, resilient demand, price and cost discipline.

The post Morgans names 8 ASX retail shares to buy appeared first on The Motley Fool Australia.

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

Breville Group Ltd (ASX: BRG)

According to a note out of Morgans, its analysts have retained their add rating and $25.00 price target on this appliance manufacturer's shares. Although the broker acknowledges that Breville's product range is clearly discretionary and expects to demand to weaken in the months ahead, it believes its shares are great value. Particularly in comparison to rival DeLonghi. It suspects that a solid result in February could put a rocket under them. The Breville share price is trading at $22.17 today.

Suncorp Group Ltd (ASX: SUN)

A note out of Goldman Sachs reveals that its analysts have initiated coverage on this insurance and banking giant's shares with a buy rating and $13.88 price target. The broker believes rate increases have been strong and accelerated during the first half. It also suspects that a clear and rational focus on pricing and margins will offset higher reinsurance costs, perils allowances, and underlying claims inflation. Another positive is the prospect of significant capital returns after the sale of its banking operations. The Suncorp share price is fetching $12.75 today.

Universal Store Holdings Ltd (ASX: UNI)

Another note out of Morgans reveals that its analysts have retained their add rating and $6.70 price target on this fashion retailer's shares. Morgans believes that Universal Store is one of the most underrated retailers on the Australian share market. It highlights that the company offers investors network growth, resilient demand, and price and cost discipline. The Universal Store share price is trading at $5.76 this afternoon.

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

The S&P/ASX 200 Index (ASX: XJO) continued its upwards trajectory today, posting a 0.44% gain to close at 7,490.4 points. That sees it just 1.8% lower than its all-time high – reached in 2021.

Meanwhile, the market geared up to learn of the latest Australian inflation figures, set to drop tomorrow. Some experts are hopeful the cash-eating measure that wreaked havoc on markets in 2022 peaked in the December quarter, my Fool colleague James reports.

Perhaps in anticipation, the S&P/ASX 200 Real Estate Index (ASX: XRE) posted today's biggest gain, lifting 1.8%.

Meanwhile, the S&P/ASX 200 Information Technology Index (ASX: XIJ) rose 1.3% following a strong session for the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC). It surged 2% overnight.

On the other hand, the S&P/ASX 200 Financials Index (ASX: XFJ) lost ground on Tuesday, falling 0.25%, dragged down by many of the big four banks.

So, having covered all that, let's take a gander at today's 10 top-performing ASX 200 shares.

Top 10 ASX 200 shares countdown

The index's biggest gains came from the Breville Group Ltd (ASX: BRG) share price today. It soared 7.5% to close at $22.39.

That's despite no news having been released by the manufacturer of small appliances.

These shares made today's biggest gains:

Our top 10 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.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues as the most shorted ASX share despite its short interest sliding week on week again to 13.5%. There are concerns that airlines are offering slender revenue margins to travel agents at present due to a lack of competition.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest remain flat at 12.9%. Concerns over its cash burn and competitive pressures are weighing on this betting technology company's shares.
• Perpetual Limited (ASX: PPT) has 12.5% of its shares held short, which is down week on week. Investors appear concerned about the prospects of the fund management industry in 2023. Pendal was also highly shorted prior to being acquired by Perpetual last week.
• Megaport Ltd (ASX: MP1) has seen its short interest ease to 10.5%. This network as a service operator's lack of cash flow generation has caused a few alarm bells to ring in recent months.
• Sayona Mining Ltd (ASX: SYA) has 9.9% of its shares held short, which is down week on week again. Short sellers may be targeting Sayona due to concerns that lithium prices have peaked.
• Core Lithium Ltd (ASX: CXO) has short interest of 9.3%, which is up again since last week. This appears to have been underpinned by valuation concerns, production delays, and falling lithium prices.
• Lake Resources N.L. (ASX: LKE) is another highly shorted lithium share with short interest of 7.6%, which is up week on week. J Capital is targeting the company due to concerns over its technology and funding.
• Breville Group Ltd (ASX: BRG) has seen its short interest remain flat at 7.3%. Short sellers may believe that the appliance manufacturer's sales could soften due to housing market weakness and the cost of living crisis.
• NextDC Ltd (ASX: NXT) has short interest of 7.2%, which is up slightly week on week. This may be due to the sky high multiples the data centre operator's shares trade on.
• Pointsbet Holdings Ltd (ASX: PBH) has short interest of 6.6%, which is down slightly since last week. Intense competition in the betting industry and its ongoing cash burn may be why short sellers are targeting it.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted ASX share with short interest of 14.1%, which is down week on week. Short sellers appear concerned by revenue margin pressures.
• Perpetual Limited (ASX: PPT) has 13.1% of its shares held short, which is up week on week once again. It appears that some investors aren't confident that things will get easier for the fund management industry in 2023.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease slightly to 12.9%. Short sellers aren't giving up on this betting technology company despite its shares crashing 60% over the last 12 months.
• Megaport Ltd (ASX: MP1) has seen its short interest ease to 10.6%. Concerns over this network as a service operator's cash flow generation appears to be behind this high level of short interest.
• Sayona Mining Ltd (ASX: SYA) has 10.1% of its shares held short, which is down week on week. This may be due to fears that lithium prices have peaked and are heading sharply lower from here.
• Core Lithium Ltd (ASX: CXO) has short interest of 8.8%, which is up since last week. Valuation concerns, production delays, and falling lithium prices could be the reason why short sellers are loading up on this lithium developer's shares.
• Breville Group Ltd (ASX: BRG) has seen its short interest edge lower again to 7.3%. There are concerns that demand for this appliance manufacturer's products could soften due to housing market weakness and the cost of living crisis.
• Lake Resources N.L. (ASX: LKE) has short interest of 7.1%, which is down slightly week on week. Analysts at J Capital are targeting the company due to concerns over its technology and funding.
• NextDC Ltd (ASX: NXT) has entered the top ten with short interest of 7%. This may be due to the sky high multiples the data centre operator's shares trade on.
• Pointsbet Holdings Ltd (ASX: PBH) is back in the top ten with short interest of 6.9%. Fierce competition and its ongoing cash burn may be why short sellers are targeting this sports betting company.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

Take Wesfarmers Ltd (ASX: WES) shares as an example. Wesfarmers is the owner of Bunnings and Kmart. Its share price is 27% lower than it was in August 2021 and it's down 13% compared to mid-January 2022.

Investors need to ask themselves a few questions.

How much pain are the ASX 200 retail shares really going to report in FY23?

Have the share prices overreacted for what may only be a short-term problem?

Are they now opportunities?

I'm going to look at each of those questions.

FY23 pain?

ASX 200 retail shares may not see too much pain at all.

Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) generate most of their earnings from supermarkets, which I think means their earnings will be fairly consistent and defensive. Metcash Limited (ASX: MTS), the hardware business and supplier to IGAs, saw a strong first half of its FY23 and reported ongoing growth in the first few weeks of FY23's second half.

Harvey Norman Holdings Limited (ASX: HVN) has started FY23 off with total sales growth in the first four months of the financial year, as did JB Hi-Fi Limited (ASX: JBH), Super Retail Group Ltd (ASX: SUL), and Premier Investments Limited (ASX: PMV) as they cycle against lockdowns in the first half of FY22 when many stores were shut.

Wesfarmers has said its retail store sales are doing well in the first few months of FY23.

Lovisa Holdings Ltd (ASX: LOV) sales and earnings are jumping higher as the company continues its global store rollout.

Breville Group Ltd (ASX: BRG) has said its business is performing to its expectations.

Despite many of them reporting impressive growth, their share prices are lower.

According to the Australian Bureau of Statistics (ABS), retail trade figures for November 2022 showed a 1.4% month-over-month rise in total Australian turnover and a 7.7% rise year over year.

Is it an overreaction?

Inflation and higher interest rates could cause a problem during 2023.

The higher repayments can take a while to flow through to mortgage holders, particularly ones that have been on, or are on, a fixed-rate mortgage. Will we see a sudden drop in retail spending growth? Perhaps even a decline?

It's quite possible. Plus, unemployment could rise. As well, ASX bank share arrears could increase.

Investors could justifiably point to a number of factors that could mean 2023 is not a good year for ASX 200 retail shares.

But the first half seems like it's going to be a solid report for many of the names I've mentioned.

Keep in mind that share prices are meant to reflect the long term, not just what's going to happen in the next six or twelve months.

While higher interest rates are meant to push valuations lower, I think some are too low considering many of these businesses continue to grow their store count and potentially gain from scale benefits.

Are ASX 200 retail shares in the bargain basket?

They aren't as cheap as they were a few months ago. However, I believe any negative hits to earnings will be time-limited to the next 12 to 18 months. A reduction in official interest rates in the future could mean a good boost to sentiment.

I'm very optimistic about the future of Wesfarmers, Premier Investments, Metcash, and Lovisa. So, at the current prices, they'd be the first four I'd buy in the sector.

Smaller ASX retail shares which have been hit even harder over the last year could be even more tantalising opportunistic ideas to consider at the lower share prices.

The post Are ASX 200 retail shares on sale in 2023? appeared first on The Motley Fool Australia.

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

Breville Group Ltd (ASX: BRG)

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

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

NextDC Ltd (ASX: NXT)

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

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

Temple & Webster Group Ltd (ASX: TPW)

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

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

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

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues as the most shorted ASX share with short interest of 14.7%, which is up week on week. Short sellers may believe that investors are too optimistic about Flight Centre's recovery from the pandemic. Particularly given revenue margin pressures.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rebound to 13%. This betting technology company's shares have been crushed over the last 12 months, but short sellers don't appear to believe they have bottomed yet.
• Perpetual Limited (ASX: PPT) has 12.9% of its shares held short, which is up week on week. The fund management industry is going through a difficult period right now as rates rise.
• Megaport Ltd (ASX: MP1) has seen its short interest ease slightly to 11.1%. This network as a service operator's shares have come under pressure in recent months amid concerns over the capital intensive nature of its business and its cash flow generation.
• Sayona Mining Ltd (ASX: SYA) has 10.5% of its shares held short, which is up week on week. Short sellers may be targeting Sayona Mining due to concerns that lithium prices could have peaked.
• Core Lithium Ltd (ASX: CXO) has short interest of 8.4%, which is flat since last week. Production delays and falling lithium prices may be behind this.
• Breville Group Ltd (ASX: BRG) has seen its short interest edge lower to 7.4%. Short sellers may be going after this appliance manufacturer due to fears that consumer spending on household goods could soften in 2023 due to housing market weakness and the cost of living crisis.
• Zip Co Ltd (ASX: ZIP) has seen its short interest remain flat at 7.4%. This high level of short interest may have been driven by concerns over Zip's high debt and doubts over its ability to become profitable in the near term.
• Lake Resources N.L. (ASX: LKE) has short interest of 7.2%, which is down week on week. One short seller, J Capital, is alleging that this lithium developer is having issues producing battery grade lithium at scale.
• Chalice Mining Ltd (ASX: CHN) has seen its short interest ease to 7.1%. Short sellers may be targeting Chalice due to delays to the mineral exploration company's scoping study.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.