On Thursday, the S&P/ASX 200 Index (ASX: XJO) recorded the smallest of gains. The benchmark index rose 3.8 points to 7,255. points.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open 26 points or 0.35% higher this morning. In late trade in the United States, the Dow Jones is up 0.9%, the S&P 500 is up 0.5%, and the NASDAQ index is up 0.5%.

Oil prices climb

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good finish to the week after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.5% to US$78.07 a barrel and the Brent crude oil price is up 0.4% to US$84.63 a barrel. Chinese demand optimism has lifted prices this week.

Miners lift

It could be a decent finish to the week for mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). In late trade on the NYSE, the miners' shares are pushing higher again. The BHP share price is up 3% and the Rio Tinto share price is up 1.5%.

Gold price edges higher

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,842.2 an ounce. US dollar and bond yields strengthened and put pressure on gold.

Shares going ex-dividend

A number of ASX 200 shares are trading ex-dividend this morning and could drop into the red. This includes fuel retailer Ampol Ltd (ASX: ALD), retirement village company Lifestyle Communities Ltd (ASX: LIC), media company Nine Entertainment Co Holdings Ltd (ASX: NEC), and wine giant Treasury Wine Estates Ltd (ASX: TWE).

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

Looking for ASX 200 shares to buy? Then you might want to check out the two shares listed below that are currently on the coveted conviction list of Goldman Sachs.

These are the ASX 200 shares that Goldman rates incredibly highly and is tipping big returns from. Here's why the brokers thinks they could be top options for investors right now:

Lifestyle Communities Limited (ASX: LIC)

The first ASX 200 share that Goldman Sachs is tipping as a conviction buy is Lifestyle Communities.

It builds, owns, and operates land lease communities which provide affordable housing options to Australians over 50.

Goldman Sachs is very positive on the company due to strengthening demand for land lease options, which is being driven by Australians increasingly looking to enhance retirement by releasing equity from the family home. It commented:

Lifestyle Communities (LIC) is a developer and manager of residential land lease communities in Australia. The long-term outlook for LIC is very positive — we believe outperformance of the stock will be driven by: (1) a step up in the pace of land acquisitions, with industry build rates below demand from an ageing population; (2) structural growth in demand for land lease as the sector increases its penetration among retirees; (3) fundamental valuation support for cap rates.

Goldman Sachs has a conviction buy rating and $26.00 price target on the company's shares. This suggests potential upside of 33% for investors from current levels.

Xero Limited (ASX: XRO)

Another ASX 200 share that has been named as a conviction buy is Xero.

It is a provider of a cloud-based accounting solution used by millions of small businesses globally.

Although it has been growing strongly for years, Xero could still grow materially in the future. That's because it only has 3.3 million subscribers out of a total addressable market of 100 million according to Goldman Sachs. This provides it with a huge growth runway over the next decade or two. Goldman commented:

We see Xero as very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$76bn TAM. Following the recent underperformance (absolute/relative), we see an attractive entry point into a compelling global growth story and our preferred large-cap technology name in ANZ, and are Buy rated (on CL).

Goldman Sachs has a conviction buy rating and $109.00 price target on its shares. This implies potential upside of almost 35% for investors based on the current Xero share price.

The post Conviction list: Goldman Sachs tips big returns from these ASX 200 shares appeared first on The Motley Fool Australia.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a very small gain. The benchmark index rose 5.1 points to 7,457.3 points.

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

ASX 200 expected to rise

The Australian share market looks set to continue its 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 18 points or 0.25% higher. In late trade in the United States, the Dow Jones is up 0.6%, the S&P 500 is up 1%, and the NASDAQ is up 1.7%.

Oil prices hit seven-week high

Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices rose again overnight. According to Bloomberg, the WTI crude oil price is up 0.3% to US$81.87 a barrel and the Brent crude oil price is up 0.9% to US$88.41 a barrel. Oil prices hit a seven-week high thanks to a stronger Chinese outlook.

South32 rated as a buy

Morgans has reiterated its add rating on South32 Ltd (ASX: S32) shares with an improved price target of $5.60 following the miner's quarterly update. The broker said: "Despite the recent share price strength we still see further upside potential on offer as the upcycle in resources continues (while volatility is likely to also remain a feature). We maintain an ADD rating with a A$5.60 Target Price."

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.1% to US$1,930.3 an ounce. The gold price rose despite the US dollar and bond yields ticking higher.

Lifestyle Communities is a strong buy

The Lifestyle Communities Ltd (ASX: LIC) share price may be nearing a 52-week high but Goldman Sachs believes it remains great value. This morning the broker has reiterated its conviction buy rating with an improved price target of $26.00. It said: "We believe inquiry rates and demand remain high for LIC's homes. The company is likely to report a strong sales pipeline supporting the view that settlements will rise significantly."

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

It's looking like yet another positive day for ASX shares and the S&P/ASX 200 Index (ASX: XJO) so far this Thursday. At present, the ASX 200 is up another 1.16%, putting the index at just under 7,280 points.

But it's been an even more exciting day for more than a few ASX 200 shares. So let's discuss five such shares that have just hit new 52-week highs this session.

BHP amongst ASX 200 shares smashing new highs today

First up is BHP Group Ltd (ASX: BHP). BHP shares hit a new record high just yesterday. But clearly, investors weren't done with showering the ASX 200's largest company with glory.

BHP has again climbed to fresh new highs today, hitting $49.50 just after midday. Investors probably have soaring iron ore prices to thank for this optimism.

Another ASX 200 resources share in Northern Star Resources Ltd (ASX: NST). This gold miner has been on fire lately, thanks largely to rising precious metal prices, and is up an extraordinary 70% or so since late September.

Today, Northern Star shares hit a new 52-week high of $12.13 just before midday.

A change of pace now, let's look at Lifestyle Communities Ltd (ASX: LIC). This residential property company has also had a fantastic couple of months, increasing its value by a third since September. That trend continues this Thursday, with Lifestyle Communities shares hitting a new 52-week high of $20.19 a share.

ASX travel shares soar

ASX 200 travel shares are having a dream run today as well. And one of the obvious winners is the Webjet Limited (ASX: WEB) share price. Webjet shares are booming today and hit a new 52-week high of $6.59 each this afternoon.

The company still has a long way to go before it reaches its pre-COVID highs in the $9 to $10 range. But today's new high is still a big moment for Webjet, which is now more than 160% above its 2020 lows of around $2.50 a share.

Another ASX 200 travel share flying high today is Qantas Airways Limited (ASX: QAN). Qantas shares soared to a new high watermark of $6.45 each this morning – a new post-COVID high for the national carrier.

Again, Qantas isn't quite back to its pre-COVID levels of over $7 a share, but this is still a big win for investors. Perhaps investor optimism over the reopening of China is at play with both Qantas and Webjet right now.

The post 5 ASX 200 shares smashing new, 52-week highs on Thursday appeared first on The Motley Fool Australia.

Thursday was another good day on the S&P/ASX 200 Index (ASX: XJO). It closed 0.53% higher at 7,152.5 points.

In the lead today was the S&P/ASX 200 Utilities Index (ASX: XUJ). The sector soared 1.6% as all three of its constituents gained between 1.2% and 1.7%.

Next best was the S&P/ASX 200 Information Technology Index (ASX: XIJ), rising 1.3% following a strong overnight session for the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC).

The Wall Street index rose 1.5% on Wednesday's session as United States consumer confidence reached an eight-month high.

There was only one sector trading in the red at the end of today's session. That was the S&P/ASX 200 Materials Index (ASX: XMJ). It fell 0.2% despite BHP Group Ltd (ASX: BHP) officially entering an agreement to buy copper giant OZ Minerals Ltd (ASX: OZL).

So, with all that in mind, which ASX 200 share outperformed all others on Thursday? Keep reading to find out.

Top 10 ASX 200 shares countdown

The top-performing stock on the index today was real estate services business Domain Holdings Australia Ltd (ASX: DHG). It dived 9% on Tuesday after the company released a disappointing trading update.

Today's biggest gains were made by these shares:

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.

In volatile times like 2022, it's worth paying attention to ASX shares that are on a winning streak.

That's because they must be doing something right to consistently attract support from investors while other stocks yo-yo up and down.

The analysts at Celeste Funds Management, in a memo to clients this week, pointed out two small-cap stocks that each had a spectacular October. 

They are still holding on to them, confident of further rises:

Bright future even after 'ongoing consistent performance'

Litigation fund Omni Bridgeway Ltd (ASX: OBL) saw its share price rocket 19.6% upwards last month, reported the Celeste team, on the back of "ongoing consistent performance".

"Income conversion for the quarter was lower than expected as a Fund 5 investment was realised earlier than the previously forecast FY27, resulting in an internal rate of return (IRR) of 152%," read the memo.

"Estimated portfolio value (EPV) in FY23 experienced normal slippage to outer years, although pleasingly total EPV increased by 4.4% [from] the June quarter."

Against the odds in a turbulent stock market, Omni Bridgeway shares have climbed in excess of 25% year to date.

The outlook for the coming years is bright, according to Celeste analysts.

"Commitments of $69 million and indicative investment opportunities of $214 million imply the business is on track to meet FY23 commitments guidance."

As of the end of October, Omni Bridgeway was the Celeste Australian Small Companies Fund's largest holding.

Coverage is sparse from other professionals on the litigator, but three out of the four analysts currently surveyed on CMC Markets are rating it as a strong buy.

Rare business where increased debt facility is to be celebrated

Lifestyle Communities Ltd (ASX: LIC) develops, owns and operates land lease properties for older Australians.

The stock price enjoyed a 15.7% rise in October, despite unfavourable conditions for real estate assets.

The Celeste team attributed the ascent on the news of new debt capacity.

"Lifestyle Communities increased its [debt] facility size from $375 million to $525 million, secured as a $150 million, five-year tranche."

The facility in totality now has expiries spread over mid-2025 to late 2027, according to Celeste analysts.

"The debt is earmarked for ongoing land acquisitions and development costs as the business scales up to enable the sale of two communities per annum to move towards three over the next few years."

Celeste's peers are less convinced about Lifestyle Communities than Omni Bridgeway.

According to CMC Markets, three analysts each think the stock is a strong buy and a hold respectively, while one recommends it as a moderate buy.

The post 2 small-cap ASX shares to buy that had a MASSIVE October: fund appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) posted its first gain of the week today. The index lifted 0.04% to close at 6,647.5 points.

It followed a mixed session on Wall Street that saw the Dow Jones Industrial Average Index (DJX: .DJI) gain 01%, the S&P 500 Index (SP: .INX) fall 0.6%, and the Nasdaq Composite Index (NASDAQ: .IXIC) dump 1.1%.

The S&P/ASX 200 Financials Index (ASX: XFJ) led the way on Wednesday, gaining 1.9%.

Its strong performance came as Bank of Queensland Ltd (ASX: BOQ) posted its full year earnings and Commonwealth Bank of Australia (ASX: CBA) hosted its annual general meeting.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) fell 1.5% amid lower oil prices.

Both the Brent crude oil price and the US Nymex crude oil price fell slipped 2% overnight to trade at US$94.29 a barrel and US$89.35 a barrel respectively.

Miners and tech shares also had a rough day, with the S&P/ASX 200 Materials Index (ASX: XMJ) and the S&P/ASX 200 Information Technology Index (ASX: XJI) both slipping 0.9%.

All in all, two of the ASX 200's 11 sectors closed in the green. But which share outperformed all others? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today's top performing ASX 200 share was none other than Bank of Queensland. The stock gained 11% on news the bank's after tax profits lifted 15% year on year in financial year 2022.

Today's biggest gains were made by these shares:

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.

But which shares might be suitable? Listed below are a couple of shares that could be good options for a well-balanced retirement portfolio. Here's what analysts are saying about them:

Lifestyle Communities Limited (ASX: LIC)

The first ASX share that could be a good option for a retirement portfolio is Lifestyle Communities.

It builds, owns, and operates land lease communities which provide affordable housing options to Australians over 50.

Analysts at Goldman Sachs are very positive on the company. This is due to strengthening demand for land lease options which is being driven by Australians increasingly looking to enhance retirement by releasing equity from the family home. They commented:

Over the medium-term, LIC's accelerating development pipeline, growing rental/DMF revenues, and favorable exposure to more affordable markets should underpin an EPS CAGR of 21% over FY22-25 in our view.

Goldman Sachs has a conviction buy rating and $25.75 price target on the company's shares. The broker is also expecting a growing income stream for investors. Though, at this stage, the yields are expected to start at ~1% in FY 2023.

Suncorp Group Ltd (ASX: SUN)

Another ASX share that could be worth considering for a retirement portfolio is Suncorp.

It is one of Australia's leading insurance and banking (for the time being) companies. As well as the eponymous Suncorp brand, it also owns the AAMI, Apia, Bingle, GIO, Shannons, and Vero brands.

The team at Morgans are positive on Suncorp. They were pleased with its performance in FY 2022 and believe its shares are "inexpensive" at the current level. It has an add rating and $13.70 price target on its shares. The broker said:

We would describe this result as a broadly solid underlying performance, with good 2H22 GWP growth and GI underlying margin expansion. […] We lift our SUN FY23F/FY24F EPS by ~5% mainly on higher GWP growth expectations in future years. Our SOTP valuation falls to $13.70 reflecting SUN's lower excess capital level. ADD maintained, we see SUN as inexpensive trading on ~12x FY23F PE and a 6% dividend yield.

As mentioned above, Morgans is expecting generous yields in the near term. It is forecasting fully franked dividends per share of 69.4 cents in FY 2023 and 77 cents in FY 2024. Based on the current Suncorp share price of $10.88, this will mean yields of 6.4% and 7.1%, respectively.

The post Analysts name 2 quality ASX shares to buy for a retirement portfolio appeared first on The Motley Fool Australia.

ASX reporting season saw a whole host of S&P/ASX 200 Index (ASX: XJO) shares declare lucrative dividends.

Before these dividends can be paid, companies must first determine which investors are eligible for the dividend payment.

To do so, they set a cut-off date, otherwise known as the ex-dividend date. Investors looking to secure a dividend must own shares in the company before the associated ex-dividend date.

Here are five ASX 200 shares going ex-dividend tomorrow, in order of market capitalisation from largest to smallest.

This means that today is the final day to lock in the latest dividends from these ASX 200 shares.

Coles Group Ltd (ASX: COL)

Today will be the last day Coles shares will be trading with a final FY22 dividend of 30 cents, fully franked.

Investors who own Coles shares by the time the market closes today should see this payment come through on 28 September. Alternatively, a dividend reinvestment plan (DRP) is also available.

Across the full year, the ASX 200 supermarket giant declared total FY22 dividends of 63 cents, up 3% from the prior year.

This puts Coles shares on a trailing dividend yield of 3.6%. Throwing in franking credits, this yield bumps up to 5.1%.

Ampol Ltd (ASX: ALD)

ASX 200 fuel company Ampol will be trading tomorrow without an interim dividend of $1.20, fully franked.

Like Coles, the payment date has been pencilled in for 28 September.

For the first half of FY22, Ampol reported a 114% uplift in statutory net profit after tax (NPAT) as its refiner margins went gangbusters.

This helped the company to hike up its interim dividend by 130% compared to the 52-cent interim dividend declared last year. In fact, this latest FY22 interim dividend alone is bigger than Ampol's total dividends across FY21.

On the back of this monster interim dividend, Ampol shares are currently trading on a trailing 12-month dividend yield of 4.7%. This grosses up to 6.7% including franking credits.

Eagers Automotive Ltd (ASX: APE)

Eagers Automotive shares will be on watch tomorrow as the ASX 200 automotive retail group turns ex-dividend.

Despite first-half profit taking a backwards step, the company lifted its ordinary interim dividend by 10% to 22 cents, fully franked. This dividend will be paid on 23 September.

Eagers Automotive shares are currently flashing a trailing 12-month dividend yield of 4.8%, or 6.9% grossed up.

Lifestyle Communities Limited (ASX: LIC)

Lifestyle Communities is another ASX 200 share turning ex-dividend tomorrow.

That means that today will be the last day to bag the company's FY22 final dividend of 6 cents, fully franked. The payment date has been marked down for 6 October.

Across the financial year, Lifestyle Communities declared total FY22 dividends of 10.5 cents, fully franked. 

This was up 31% on the prior year and puts shares on a trailing dividend yield of 0.6%. With the benefit of franking credits, this yield ticks up to 0.9%.

Kelsian Group Ltd (ASX: KLS)

Last but not least, shares in Kelsian, formerly known as Sealink Travel, will also be trading ex-dividend tomorrow.

The company recently declared a fully franked final dividend of 9.5 cents, up 6% over the prior year. This payment should appear in shareholders' accounts on 5 October.

With this final dividend, Kelsian's total FY22 dividend payouts edged higher by 3% to 16.5 cents. 

As a result, Kelsian shares are printing a trailing dividend yield of 3.0%. Including franking credits, this yield cranks up to 4.3%.

The post Here are 5 ASX 200 shares going ex-dividend tomorrow appeared first on The Motley Fool Australia.

The Lifestyle Communities Limited (ASX: LIC) share price finished 0.23% higher today after the property developer and manager released its FY22 full-year results.

Lifestyle Communities develops and manages independent living residential land lease communities for senior citizens across Victoria. Lifestyle's properties target retirees, semi-retirees, and working downsizers with plenty of recreational facilities and entertainment on site.

The Lifestyle Communities share price opened at $17.50 today, up 0.8% on yesterday's close of $17.36. It then fell to an intraday low of $16.91 before rebounding again to close at $17.40.

Let's take a look at the results.

Lifestyle Communities share price fluctuates after results released

The highlights of the results are as follows:

• Net profit after tax (NPAT) of $88.9 million, down 2.4% on the prior corresponding period (pcp)
• Underlying profit after tax of $61.4 million, up 69% pcp
• Total assets worth $1,006.2 million, up from $781.3 million pcp
• Net debt of $243.1 million, up from $187.7 million pcp
• Annuity income of $40.6 million, up 25% pcp
• 401 new home settlements, up 57% pcp
• 3,193 homes currently under management
• Final dividend of 6 cents per share payable on 6 October.

What else happened in FY22?

Lifestyle Communities said its annuity income increased due to a higher number of settlements and homes under management.

The annuity income included gross rental income of $29.7 million and deferred management income (DMF) of $10.9 million on resales.

The company also said increased property valuations lifted its statutory profit after tax to $89.9 million.

Over the 12 months, Lifestyle Communities acquired four sites, including the Phillip Island site in August 2021 and the Merrifield site in Mickleham in November 2021.

These acquisitions have put more than 2,150 new homes into the development pipeline. Managing director James Kelly says this will "underpin our continued growth for the next three to five years".

Lifestyle now has more than 4,500 homeowners living in 19 operating communities across Melbourne and regional areas of Victoria.

Lifestyle Communities increased its dividend payment in FY22 by more than 30%, paying a total of 10.5 cents per share. The company paid 8 cents per share in FY21.

What did management say?

Kelly said FY22 had been challenging, mainly due to COVID-19 lockdowns:

To say this year was an unusual one for the business is an understatement.

Lockdowns for the first four months of the year were followed by a large upswing in demand through the Christmas/New Year periods as pent-up demand and a 'life is short' sentiment coming out of lockdown saw strong sales and increasing desire to free up equity through downsizing.

We continue to see new land acquisition opportunities come to market and are well funded to continue to purchase high quality sites that meet our investment criteria.

What's next?

Lifestyle Communities plans to launch seven new sites for development and sale in FY23. This will take the total number of sites at various stages of development to 11 by FY25.

The company plans to deliver between 1,400 and 1,700 new home settlements between FY23 and FY25.

Lifestyle Bellarine will be the next site that Lifestyle takes to market in September 2022.

Share price summary

In FY22, the Lifestyle Communities share price hit a 52-week high of $23.85 in October 2021.

It then fell in line with the broader S&P/ASX All Ordinaries Index (ASX: XAO) until reaching a 52-week low of $11.34. The shares have since rebounded along with the rest of the market.

Overall, the Lifestyle Communities share price is down 16.2% over the year to date. This compares to a 5% fall in the All Ords.

Lifestyle Communities has a market capitalisation of approximately $1.81 billion.

The post Lifestyle Communities share price seesaws on FY22 results after 'unusual' year appeared first on The Motley Fool Australia.

There are a lot of quality shares to choose from on the Australian share market. To narrow things down, listed below are a couple of ASX shares that are highly rated by analysts.

Here's what they are saying about them:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX share to look at is Aristocrat. It is a gaming technology company best-known for its industry-leading poker machines. However, it also has a digital business, named Pixel United, which is generating significant recurring revenues from mobile games.

But management isn't settling for that. As well as investing heavily in research and development each year, it is aiming to expand into the emerging real money gaming market.

Citi is very positive on Aristocrat. Its analysts believe the company "represents a compelling long-term growth story" and recently noted that "while industry-wide trends present a risk to Aristocrat's digital bookings outlook, the company's key social casino titles and RAID had outperformed within their respective genres."

The broker currently has a buy rating and $41.00 price target on the company's shares.

Lifestyle Communities Limited (ASX: LIC)

Another ASX share that could be a quality option for investors is retirement communities company, Lifestyle Communities.

It develops, owns, and manages affordable independent living residential land lease communities and, at the last count, had 26 residential land lease communities under contract, in planning, in development, or under management.

Goldman Sachs is very positive on the company and believes it is well-placed to benefit from Australia's ageing population and the structural growth in land lease living. It explained:

We believe LIC is well positioned to benefit from shifting demographic trends, as its business helps address some critical emerging social issues. Its core business is to provide affordable housing to an ageing population, addressing a key social issue that is becoming more prevalent as the proportion of over 50's increases. We expect as this population cohort continues to grow, this should deliver structural growth for the industry; we expect demand to far outpace supply at current build rates.

Goldman has a conviction buy rating and $24.30 price target on its shares.

The post Top analysts say investors should buy these quality ASX shares appeared first on The Motley Fool Australia.

In fact, its analysts rate them so highly that they have them on their conviction list. Here's what you need to know:

Iluka Resources Limited (ASX: ILU)

Goldman Sachs is a big fan of this mineral sands and rare earths company and has named it as an ASX share to buy.

Last week the broker retained its conviction buy rating and lifted its price target to $14.40. This implies potential upside of over 40% for investors over the next 12 months.

Goldman likes Iluka due to its attractive valuation and "compelling Mineral Sands and Rare Earth growth potential." It commented:

Trading at ~0.6x NAV (A$15.04/sh). We think the market is ascribing only some value to ILU's Wimmera and Eneabba RE projects and the high grade zircon Balranald development project. We think ILU is undervalued (on just c.3.5x EBITDA NTM) vs. key rare earth (c.13x) and mineral sands/pigment (c.5x) industry peers.

Compelling Mineral Sands and Rare Earth growth potential: We are positive on ILU's project pipeline and forecast >40% production growth in mineral sands volumes, c.18ktpa of Rare Earths (~3.5-4ktpa of high value NdPr).

Lifestyle Communities Limited (ASX: LIC)

Another ASX share that Goldman rates highly is retirement communities company Lifestyle Communities.

Last week Goldman Sachs retained its conviction buy rating with a slightly trimmed price target of $24.30. This implies potential upside of over 50% for investors over the next 12 months.

Its analysts believe the company is well-placed to benefit from Australia's ageing population and structural growth in demand for land lease. The broker commented:

LIC is well-placed to provide supply to a growing cohort of over 50's with limited savings outside the family home seeking to free up equity. In the near term, we see potential modest house price declines offset by LIC's favourable pipeline and inventory position, coupled with a strong value proposition for incoming home-owners, with the cost of an LIC home currently sitting at c.65% of the median house price (vs. company feasibility of up to 80%), thus providing pricing support.

The post Goldman Sachs names 2 ASX shares as conviction buys appeared first on The Motley Fool Australia.

The Lifestyle Communities Limited (ASX: LIC) share price is rangebound today.

At the time of writing, the share is trading 0.5% higher at $14.19 apiece on no news.

The real estate company is having a tough time in 2022, with its share price down 32% year to date.

To compare, the S&P/ASX 200 Real Estate Index (ASX: XRE) is 1.2% lower today and down 23% year to date.

Are Lifestyle Communities shares now drifting higher?

It was a flat year on the ASX charts for Lifestyle Communities in FY22, right up until market volatility crept in on 29 December 2021.

That confirmed a longer-term downtrend that remained in situ until the shares found a bottom at $11.63 on 17 June.

Since then, Lifestyle Communities has drifted marginally higher, and then sideways over the past two to three weeks.

Turning to FY23 and the outlook could be bright for the Lifestyle Communities share price, according to a research note from Goldman Sachs.

The Goldman team rates Lifestyle Communities a buy and values its shares at a price of $24.65.

Macroeconomic analysts at the investment bank reckon there could be a 10% drawdown in house prices in coming periods.

However, Lifestyle Communities offsets this risk with its annuity-style rental income, Goldman says.

Meanwhile, the share has a buy rating from 80% of the analysts covering it, according to Refinitiv Eikon data.

UBS analysts led by Tom Bodor were neutral on Lifestyle Communities back in March.

The 12-month consensus price target from this list is $17.30, suggesting brokers think there's some upside yet to be priced in during FY23.

In the past 12 months, the Lifestyle Communities share price is down 5.5%.

The post Can the Lifestyle Communities share price recover in FY23? appeared first on The Motley Fool Australia.

There are a lot of shares to choose from on the Australian share market. To narrow things down, listed below are two ASX shares that are highly rated by analysts.

Here's what they are saying about them:

Lifestyle Communities Limited (ASX: LIC)

The first ASX share to look at is Lifestyle Communities. It owns and manages affordable independent living residential land lease communities. At the last count, Lifestyle Communities had 26 residential land lease communities under contract, in planning, in development or under management.

Goldman Sachs is a fan of the company and believes it is well-placed to benefit from Australia's ageing population and the structural growth in land lease living.

It explained:

We believe LIC is well positioned to benefit from shifting demographic trends, as its business helps address some critical emerging social issues. Its core business is to provide affordable housing to an ageing population, addressing a key social issue that is becoming more prevalent as the proportion of over 50's increases.

We expect as this population cohort continues to grow, this should deliver structural growth for the industry; we expect demand to far outpace supply at current build rates.

Goldman has a conviction buy rating and $24.65 price target on its shares.

NEXTDC Ltd (ASX: NXT)

Another ASX share that could be a buy in July is NextDC.

It is a leading data centre operator which has been growing at a consistently strong rate for a number of years. This has been driven by the ongoing structural shift to the cloud, which is underpinning significant demand for data centre capacity.

Morgans is very positive on NextDC and appears confident its strong growth will continue for a long time to come.

The broker said:

We retain our Add recommendation and highlight that NXT remains our preferred pick given substantial structural growth, quality management, significant barrier to entry and, in our view, improving competitive advantage with regional/edge sites.

We see a clear pathway for long-term growth, substantially higher EBITDA and material free cash flow, over the medium term.

Morgans has an add rating rating and $13.01 price target on NextDC's shares.

The post Why analysts say investors should buy these top ASX shares appeared first on The Motley Fool Australia.

There are plenty of businesses that have fallen in value over the last several months as investors get to grips with inflation and rising interest rates.

With some heavy declines out there, is this now an opportunity to buy some of these ASX shares such as Lifestyle Communities?

Firstly, let's look at how the company operates.

What Lifestyle Communities does

The business is based in Victoria. It "develops, owns and manages affordable independent living residential land lease communities. It has 26 residential land lease communities under contract, in planning, in development or under management".

The business says that it wants to create an amazing lifestyle for homeowners and sustainable returns for shareholders.

By building a portfolio of communities, the business is creating a growing 'annuity' income stream. In the first half of FY20, it generated $11.4 million in site rental fees. This increased to $12.3 million in the first half of FY21 and $14.5 million in the first half of FY22.

The company points out that its annuity income will continue to increase through new home settlements, rental increases, and resales of existing homes. The site rental fee is indexed at the greater of CPI inflation or 3.5% per annum. The weekly site fee is approximately 20% to 25% of the aged pension after receipt of Commonwealth rental assistance.

The homes are typically priced at between 75% to 80% of the median house price in the target catchment.

It also receives deferred management fees (DMF) which increase at 4% per year and are capped at 20% of the resale price. There were 68 resales in the first half of FY22, generating $4.7 million of DMF.

How does it choose locations?

The company says it undertakes a detailed vetting of each potential site and looks at the following criteria: land prices and location, population demographic, local amenities, public transport options, future development plans and competition, and ESG factors.

Lifestyle Communities is focused on Melbourne and Geelong growth corridors. The company pointed to a number of benefits to Melbourne and the surrounding area.

It said that Melbourne has "flat topography" which increases site choice. Multiple communities can be built in each growth corridor. Forward planning has created large areas of serviced zoned land in each catchment. These factors make Victoria the "greatest growth opportunity" in the company's eyes.

Is the Lifestyle Communities share price a buy?

The company is rated as 'neutral' by the broker UBS, though it has fallen further since then. The price target is $17.75 which implies a possible rise of around 50%.

The broker likes the ageing demographics that Lifestyle Communities is exposed to, with its ability to produce growth over time. UBS also points out that approximately half of the sales come through referrals, which is a positive sign.

But it may be worth noting in the company's FY22 first half result that its net debt was $273.5 million and the ratio of net debt to net debt plus equity was 40.6%, up from 36.4% in the prior corresponding period. It could be interesting to see how that plays out with the rising interest rates. But, as mentioned, the Lifestyle Communities share price has halved over the last several months.

The post The Lifestyle Communities share price is down 50% in 8 months – time to buy? appeared first on The Motley Fool Australia.

Since the start of 2022, this retirement communities company's shares have lost a third of their value.

Is the weakness in the Lifestyle Communities share price a buying opportunity?

One leading broker appears to see the weakness in the Lifestyle Communities share price as a major buying opportunity.

According to a recent note out of Goldman Sachs, its analysts have a conviction buy rating and $24.65 price target on the company's shares.

Based on the current Lifestyle Communities share price of $13.87, this implies potential upside of almost 80% for investors over the next 12 months.

Why is Goldman so bullish?

There are four key reasons why Goldman Sachs is bullish on Lifestyle Communities. These include structural drivers, the pace of its land acquisitions, first home buyer support, and the overall valuation of the Lifestyle Communities share price.

In respect to structural drivers, Goldman explained:

Continued ability to deliver supply against structural growth in demand for land lease: LIC is well-placed to provide supply to a growing cohort of over 50's with limited savings outside the family home seeking to free up equity. In the near term, we see potential modest house price declines offset by LIC's favourable pipeline and inventory position, coupled with a strong value proposition for incoming home owners, with the cost of an LIC home reaching <70% of the median house price in some areas (vs. ~c.80% typically), thus providing pricing support.

As for its valuation, the broker highlights the following:

[D]espite a rising rate environment (our GS Macro team forecasts peak-to-trough house price declines of 10% and a year-end policy rate of 2.60%) we continue to see valuation support for lower or maintained cap rates across the Australian land-lease sector, and would expect to see spreads decline.

LIC generates low-risk, annuity rental income. RLLCs (Residential Land Lease Communities) are becoming an institutional-grade property sub-sector, with increasing demand, particularly from offshore institutions/pension funds/corporates. At a business level, LIC trades on 25x FY23 P/AFFO vs. the median of peers at 23x, yet it offers a +32% 3-year AFFO CAGR (FY21-FY24E) vs. peers at only +11% CAGR.

The post Top broker tips Lifestyle Communities share price to rocket 80% higher appeared first on The Motley Fool Australia.

Fortunately, not all shares dropped with the market. Here's why these were the best performers on the ASX 200 last week:

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price was the best performer on the ASX 200 last week with a whopping 44.4% gain. This was driven by countless announcements revealing that the heavily shorted medical device company's chairman, David Williams, had bought shares on-market. This may have spooked short sellers into buying shares to close their positions.

Lifestyle Communities Limited (ASX: LIC)

The Lifestyle Communities share price was on form and charged 11.2% higher over the period. This was driven by a positive response from brokers to a trading update. That update revealed that the land lease communities company has reaffirmed its forecast to deliver 1,100 to 1,300 new home settlements and 450 to 550 resale settlements attracting a deferred management fee between FY 2022 and FY 2024. Goldman Sachs responded by reiterating its conviction buy rating and $24.65 price target.

TPG Telecom Ltd (ASX: TPG)

The TPG share price was a positive performer and pushed 8.6% higher last week. This followed a positive reaction to news that the telco has signed a binding agreement to sell 100% of its passive mobile tower and rooftop infrastructure. TPG is selling the infrastructure to OMERS Infrastructure Management for $950 million. These funds are expected to be used by TPG to pay down its existing debt.

IPH Ltd (ASX: IPH)

The IPH share price wasn't far behind with a 7.4% gain. This was despite there being no news out of the intellectual property services company. This latest gain means the IPH share price is now up by a sizeable 22% over the last 12 months despite the market volatility.

The post These were the best performers on the ASX 200 last week 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:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Macquarie, its analysts have retained their outperform rating and $44.00 price target on this gaming technology company's shares. Macquarie is positive on Aristocrat due to its belief that the company is well-positioned to deliver solid growth in the coming years. This is thanks to strong performances from its existing businesses and potential M&A activity. The latter is supported by its cash balance of well over $1 billion. The Aristocrat share price is trading at $30.92 today.

Life360 Inc (ASX: 360)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating but slashed their price target on this location technology company's shares to $5.50. Morgan Stanley continues to forecast strong recurring revenue growth from Life360. However, due to a de-rating in the tech sector, it has taken an axe to its valuation. But with price target this still offering material upside, it holds firm with its overweight rating. The Life360 share price is fetching $3.13 on Thursday.

Lifestyle Communities Limited (ASX: LIC)

Analysts at Goldman Sachs have retained their conviction buy rating and $24.50 price target on this retirement communities company's shares. Goldman is very bullish on Lifestyle Communities due to Australia's ageing population, structural growth in demand for land lease options, and fundamental valuation support for cap rates. The Lifestyle Communities share price is trading at $13.50 this afternoon.

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

Among those attending were the three ASX shares listed below that Goldman believes would be great investment options right now.

Here's what it is saying about these shares:

Hipages Group Holdings Ltd (ASX: HPG)

Goldman Sachs is a big fan of this tradie platform provider. It is very positive on the ecosystem that the company is building and is tipping Hipages to win a significant market share in the future.

It said:

HPG is the leading trade services marketplace in Australia, connecting tradies with consumers for a range of home improvement jobs. The business is building out an ecosystem of adjacent services which will allow it to capture a greater share of tradie wallet, improve tradie retention and attract new tradies to the platform.

The broker currently has a buy rating and $2.50 price target on Hipages shares.

Lifestyle Communities Limited (ASX: LIC)

Another ASX share that Goldman is very positive on is Lifestyle Communities. The broker believes the retirement communities company is well-placed for growth thanks to a combination of Australia's ageing population and structural growth in the land lease model.

It explained:

The long-term outlook for Lifestyle Communities is very positive, in our view, with outperformance of the stock to be driven by: (1) a step up in the pace of land acquisitions, with industry build rates below demand from an ageing population; (2) structural growth in demand for land lease as the sector increases its penetration among retirees; (3) fundamental valuation support for cap rates.

Goldman Sachs has a conviction buy rating and $24.50 price target on the company's shares.

Readytech Holdings Ltd (ASX: RDY)

A final emerging ASX share that the broker thinks is a buy is Readytech. It is a growing provider of enterprise software to a number of markets.

The broker said:

RDY owns a portfolio of enterprise software businesses across several defensive market verticals including higher education, HR/payroll, work pathways and local government. RDY's competitive position is underpinned by its focus on market niches that are under-served by both large and small enterprise software competitors.

Goldman has a buy rating and $5.00 price target on Readytech's shares.

The post Broker names 3 emerging ASX shares to buy now appeared first on The Motley Fool Australia.

Today is yet another rough day for the All Ordinaries Index (ASX: XAO), but not all the shares among its ranks are in the red.

Right now, the benchmark index is trading 0.11% lower than at Tuesday's close and 2.5% lower than at the end of last week.

Let's take a look at the stocks defying the downturn to record notable gains on Wednesday.

3 ASX All Ordinaries shares outperforming today

Lifestyle Communities Limited (ASX: LIC)

The Lifestyle Communities share price is one of the All Ordinaries Index's best performers on Wednesday. Its share price is currently boasting a 11.13% gain, trading at $13.48.

It's gaining amid news of insider buying. One of the company's directors, Nicola Roxon, snapped up 1,000 more Lifestyle Communities shares in an on-market trade valued at $12,050 yesterday.

Of course, insider buying tends to boost sentiment in listed companies as it seemingly shows those 'in the know' believe a stock is trading at a good price.

Accent Group Ltd (ASX: AX1)

The Accent Group share price is also launching upwards on Wednesday, gaining 6.4% to trade at $1.37.

While there's been no price sensitive news out of the All Ordinaries stock, one of the richest Australians, Brett Blundy has upped his stake in the company.

Blundy resigned as a company director in 2020 before being reappointed in April 2022.

His investment firm BBRC World just splashed out on $6.3 million worth of Accent shares, bringing the firm's voting power in the company to 19%.

Judo Capital Holdings Ltd (ASX: JDO)

Finally, the Judo share price is besting many of its All Ordinaries peers to post a 2.85% gain on Wednesday afternoon. Right now, stock in the bank is swapping hands for $1.63 apiece.

It comes after the bank released its investor day presentation to the market. In the presentation Judo announced it expects to meet or beat its previously given guidance for this financial year.

The company also noted that it has positive leverage to rising interest rates and favourable current funding markets.

The post 3 ASX All Ordinaries shares having a stellar run on Wednesday appeared first on The Motley Fool Australia.