These companies reported half-year results in late February, contrubuting to a mostly positive outlook from the broker. 

Here's what Morgans had to say. 

Ridley delivers strong results

Ridley provides and markets stock feed and animal feed supplements.

In late February, the consumer staples company saw its share price soar after investors reacted positively to earnings results. 

Investors gobbled up these ASX shares after the company reported a large increase in first-half net profit and revenue.

Its share price is now up 13.5% year to date. 

Morgans said the 1H26 result was stronger than expected and that the Integrated Poultry Feed (IPF) segment is off to a solid start. 

RIC's outlook comments were stronger than expected for Bulk Stockfeeds and IPF but softer for the Packaged Feeds & Ingredients (PF&I). Pleasingly, IPF synergies have been upgraded to A$15m from A$7m previously. We have revised our forecasts. RIC's new FY26-28 Growth Plan will be released at its Investor Strategy Day on 10-11 March. We view this event as the next catalyst for the stock.

Based on this guidance, Morgans said it remains positive on the group's future prospects and maintains its accumulate rating. 

It also maintained its $3.20 price target.

From yesterday's closing price of $2.94, this indicates 8.84% upside.

Peoplein has plenty of upside according to Morgans

Peoplein is a workforce solutions company operating in Australia and New Zealand. The company's services include recruiting, contracting, onboarding, rostering, timesheet management, payroll, and workplace health and safety management.

It released H1 FY26 results on February 20. 

Earnings results in line with expectations at $16.1m, while ongoing operating EBITDA of $10.5m declined 9.2%. 

Morgans said the result reflected its streamlined business, following the sale of its Health and Community operations in late CY25. 

Key P&L metrics improved hoh, while still falling short of the prior year, suggesting any earnings recovery is still unproven. To this end, we continue to believe that PPE is producing cyclically low earnings, with the improvement hoh still too early to be called a trend.

Based on this guidance, Morgans retained its speculative buy recommendation on these ASX shares. 

It also maintained its $0.95 price target, which is around 45% upside from yesterday's close price.

The broker commented:

Whilst tentative, we see some early signs of improvement and reiterate our Speculative Buy recommendation and $0.95/sh price target.

The post Are these ASX shares a buy, hold or sell after earnings results? appeared first on The Motley Fool Australia.

You only need to look at the performance of the S&P/ASX Small Ordinaries index to see this.

It is up 22% year to date, whereas the S&P/ASX 200 index is only up 7.4%.

But which small cap ASX stocks could be worth considering? Let's take a look at two that Morgans is positive on. They are as follows:

Atturra Ltd (ASX: ATA)

The first small cap ASX stock that Morgans has been looking at is Attura.  It is a technology company providing a range of enterprise advisory, consulting, IT services, and solutions to local government, utilities, education, defence, federal government, financial services, and manufacturing industries,

It recently revealed the immediate termination of a fixed term contract with an Australian public sector body. While this is disappointing, Morgans believes that significant share price weakness since the announcement has created an opportunity for investors. It said:

ATA have announced a contract dispute which will negatively impact its FY26 and its 1H26 result. Management commented that "Atturra does not have a history of disputes or termination of material contracts and views this as a one-off occurrence. ATA's balance sheet remains strong, and the Company sees no ongoing impact from this purported termination." We agree and see this as a largely one-off event. We reduce our forecasts in line with guidance which lowers our TP to 80cps (was 95cps).

Morgans has an accumulate rating and 80 cents price target on its shares. This implies potential upside of 21% for investors over the next 12 months.

PeopleIn Ltd (ASX: PPE)

Another small cap ASX stock that Morgans is positive on is PeopleIn. It is a workforce solutions company servicing over 4,000 businesses.

It focuses on high-demand and defensive employment sectors including engineering, trades and labour, food services and agriculture, technology, finance, corporate services, education and defence.

Morgans was pleased with the company's decision to divest businesses and believe it will create higher quality earnings. It explains:

PPE has now divested two businesses as it, refocuses on its core competencies, being Queensland infrastructure, food and agriculture, defence and professional services. Whilst the divestments have been opportunistic and at healthy earnings multiples, the impact has been dilutionary to EPS. Offsetting the lower EPS, the residual business should prove higher quality (and higher growth), as the business looks beyond what is approaching cyclically low earnings.

To this end, we continue to see earnings growth driving share price appreciation through FY27/28, with any turnaround unlikely to be visible until 4QFY26. Hence, we reiterate our Speculative Buy rating with a $1.10/sh price target.

Morgans has a speculative buy rating and $1.10 price target on its shares. This implies potential upside of 25% over the next 12 months.

The post Morgans names 2 small cap ASX stocks to watch appeared first on The Motley Fool Australia.

However, many of the large-cap companies we consider blue-chip stocks today once started out as humble penny stocks. 

Following earnings season, brokers have updated their guidance on plenty of ASX shares, including penny stocks.

Here are two that have attracted optimistic price targets from broker Morgans.

Peoplein Ltd (ASX: PPE)

Peoplein is a workforce solutions company operating in Australia and New Zealand. The company's services include recruiting, contracting, onboarding, rostering, timesheet management, payroll, and workplace health and safety management.

According to Morgans, FY25 was a challenging year for the company, with normalised EBITDA down 10% (vs pcp).

The broker said that while several operational metrics look to be stabilising, the result was light on forward guidance, although management did note that it remained well-positioned to benefit from a potential Queensland infrastructure boom. 

On Monday, Morgans said that this ASX penny stock's financial position is getting stronger, with debt down to $27.4 million. 

The stock looks comparatively cheap, trading at about 9 times earnings, and profits may be near their lowest point, suggesting potential for improvement. 

To this end, we see earnings growth driving share price appreciation through FY27/28, with any turnaround unlikely to be visible until 4QFY26. Hence we reiterate our Speculative Buy rating with a $1.00/sh price target.

Should this penny stock reach the $1.00 price target, that would be a 42% rise from yesterday's closing price of $0.70. 

Kina Securities Ltd (ASX: KSL)

Kina Securities provides diversified financial products and services. The company offers banking services, personal and commercial loans, money market operations, provision of share brokerage, fund administration, investment management services, asset financing, and corporate advice.

The company delivered 1H25 results in line with Morgans' predictions. 

Its 1H25 underlying NPAT (A$57m) was +16% on the pcp.  

Morgans described this as a clean, solid result. The only slight negative was that underlying cost growth remained high (+10% on the pcp), but this was matched by revenue growth.  

The broker has lowered FY25F/FY26F EPS by 1% to 5% on slightly higher cost growth than previously forecast. 

Despite this our valuation rises to A$1.67 (previously A$1.46) with our earnings changes offset by a valuation roll-forward, we maintain our BUY recommendation. 

From yesterday's closing price of $1.32, this indicates an upside of approximately 26% for this ASX penny stock.

The post Morgans says these ASX penny stocks can rise 40%! appeared first on The Motley Fool Australia.

That's the view of analysts at Morgans, which have just put buy ratings on both. Here's what it is saying about them:

Capstone Copper Corp (ASX: CSC)

The first ASX share that Morgans is tipping as a buy is copper miner Capstone Copper.

The broker believes that the miner is well-positioned for double-digit earnings growth through to 2030. This is thanks to the strong copper price and its production growth. It said:

CSC is a pure-play copper producer and developer with 5 diversified copper assets in the Americas and significant short and long-term growth opportunities that we forecast will take group copper production to well over ~300ktpa by CY30F. We forecast +14% EBITDA CAGR to CY30F through its pipeline of near-term volume growth and cost efficiencies in what we expect to be a healthy copper price environment. As a result, we expect CSC to garner share price support as it enters a period of transformational growth.

Morgans has initiated coverage on Capstone Copper with a buy rating and $11.50 price target. Based on its current share price of $9.44, this implies potential upside of 22% for investors over the next 12 months.

PeopleIn Ltd (ASX: PPE)

Another ASX share that Morgans is tipping as a buy is PeopleIn. It is an Australian workforce solutions company that provides contracted staffing and human resources outsourcing services to a range of industries.

Unlike Capstone Copper, which is delivering impressive numbers, Morgans highlights that PeopleIn's earnings are at a cyclical low. However, with the company's shares trading on low multiples and a cyclical turnaround on the horizon, it thinks that patient investors should consider an investment. It said:

Back in Apr-25 PPE provided a 3Q25 update with EBITDA for the quarter at $6.3m, down 9% on the pcp. While in FY24, PPE delivered 4Q EBITDA of $9.8m, a benchmark which is unlikely to be beaten in 4Q25, given amongst other factors the timing of Easter. This note sees us adjust down our 4Q25 earnings expectations ahead of the full year result. It remains our expectation that PPE's earnings are bumbling along the cyclical low, whilst the business is also trading at a relatively low PER multiple (8x FY26F). We reiterate our Speculative Buy rating and price target of $1.05/sh, pending a cyclical turnaround (the timing of which remains uncertain).

Morgans has a speculative buy rating and $1.05 price target on its shares. Based on its current share price of 72 cents, this suggests that upside of 46% is possible between now and this time next year.

The post Morgans says these ASX shares can rise 20% to 45% appeared first on The Motley Fool Australia.

At the time of writing, shares in the workforce management company are down 1.74% at $2.26 after opening 8.7% higher at $2.50.

What's driving the PeopleIn share price today?

Key takeouts from the company's yearly results include:

• Revenue of $1.19 billion, up 73.9% on FY22's result
• Organic revenue growth contribution of 25.6% for the year
• Normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) of $61.1 million, a gain of 29.5% year on year
• Normalised net profit after tax and before amortisation (NPATA) of $37.6 million, a gain of 17.8%
• Normalised earnings per share of 37 cents, up 14.5%
• Dividends per share for the full year FY22 of 14 cents

PeopleIn recognised growth throughout its FY23 income statement, with a particularly strong gain in revenue, up nearly 73.9% year on year.

The company said that its business growth in FY23 stemmed from higher demand across the accounting, food processing, childcare, community care and transport infrastructure sectors during the financial year, offsetting candidate supply challenges within the health sector.

Speaking on the results, CEO Ross Thompson said:

As outlined in our 2025 strategy, organic growth is a key strategic focus for the business and continues to be driven by diversifying our client base, cross-selling amongst our family of brands, as well as investing in international recruitment across our three verticals.

Pleasingly, we've gained traction on a number of these initiatives and, as a result, delivered a significant milestone of over $1bn in revenue and solid growth in the financial year

PeopleIn also declared a fully-franked final dividend of 7 cents per share, representing a 7.6% increase on the final dividend in FY22.

The post PeopleIn share price fizzles as revenue soars 74% in FY23 appeared first on The Motley Fool Australia.

Here's what analysts are saying about them:

IDP Education Ltd (ASX: IEL)

Goldman Sachs thinks that IDP Education is an ASX stock to buy. Its analysts note that the student placement and language testing company's shares have been hammered recently following news that it has lost its monopoly in Canada.

Goldman believes this has created a very attractive buying opportunity for investors. It said:

On our new estimates, IDP trades on 34x/27x FY24/25 P/E, a material discount to its historical 5-yr avg 12mf/24mf multiples of 54x/38x and representing an attractive entry point into IDP's long-term SP structural growth story; although we accept that in the near term the market may need to digest consensus earnings downgrades and gain greater comfort on IELTS growth re-basing. With +41% upside to our TP, forward estimates de-risked and the key potential negative catalyst now behind IDP, we retain our Buy rating.

The broker currently has a buy rating and a $30.60 price target on IDP Education's shares. This implies a potential upside of over 40%.

PeopleIn Ltd (ASX: PPE)

This workforce management company could have huge upside potential according to analysts at Morgans.

While the broker has recently revised its estimates to reflect a softer-than-expected trading update, it still believes this is a dirt cheap ASX stock. It commented:

Whilst valuation and earnings forecasts are incrementally weaker post the announcement, PPE still screens well, in that the company trades at c.10x (FY24F PER), with earnings growing at low to mid double digits, strong free cash flow conversion and a c.5% dividend yield, all positive characteristics that are somewhat rare amongst the small cap universe.

Morgans has an add rating and a $4 price target on its shares. This implies a potential upside of over 80%.

The post Analysts tip 40%+ returns from these ASX stocks appeared first on The Motley Fool Australia.

Both of these small cap ASX shares have been tipped as buys by analysts. Here's why:

Maas Group Holdings Ltd (ASX: MGH)

Goldman Sachs believes that Mass Group could be a small cap ASX share to buy.

Maas Group is a leading provider of property, construction, and infrastructure solutions, predominantly in regional Australia.

Goldman Sachs is positive on the company largely due to its belief that the company's ongoing transition will underpin higher quality earnings in the future. It explains:

We believe MGH is in a transition phase and will see higher quality real estate income become the largest source of earnings in the next 3-5 years. We believe the market is mispricing how MGH's civil and construction capabilities support the property development business to deliver best-in-class margins and asset turnover. In our view the value created through the development of quality annuity revenue from Build-to-Rent (BTR), Land Lease (potentially generating a 4.5x ROIC annuity income stream) and commercial real estate projects could re-rate the stock.

Goldman has a buy rating and $4.00 price target on its shares. This implies 20% upside from current levels.

PeopleIn Ltd (ASX: PPE)

Over at Morgans, its analysts believe the PeopleIn would be a great small cap ASX share to buy right now.

PeopleIn is a talent solutions company in Australia and New Zealand, servicing over 4,200 businesses across three verticals – Healthcare and Community, Professional Services, and Industrial and Specialist Services. Through its nationwide footprint and 26 brands, it employs over 33,500 workers every year.

Morgans believes its shares are very cheap at current levels, particularly given its defensive earnings and positive growth outlook. It commented:

The post Analysts are tipping big returns from these small cap ASX shares appeared first on The Motley Fool Australia.

Then you may wish to run your slide rule over workforce solutions company PeopleIn Ltd (ASX: PPE).

The ASX All Ords stock is trading about flat in 2023 and is down 12% over the past 12 months. That compares to a 3% loss posted by the All Ordinaries Index (ASX: XAO) over that same time.

PeopleIn is also known for its reliable, twice-yearly dividends. Its shares trade on a trailing dividend yield of 4.4%, fully franked.

At the current share price, PeopleIn trades at a price-to-earnings (PE) ratio of about 12 times.

The ASX All Ords stock trading at a 35% discount

Josh Clark, portfolio manager of QVG Capital's long-short fund, named PeopleIn as the most undervalued share on the ASX.

"PeopleIn is a diversified labour services business that has delivered double-digit organic growth supplemented by sensible acquisitions," Clark said (courtesy of the Australian Financial Review).

"In fact," he said of the ASX All Ords stock, "they're at a 35% discount to the average industrial despite having grown EPS (earnings per share) at 22% over an extended period."

Addressing potential concerns about why PeopleIn is trading at a steep discount, Clark said:

Stocks are always cheap for a reason but in this case, it's non-operational. Low liquidity and their gearing capacity appear to be keeping a lid on the valuation. However, if they continue to grow as we expect, these things will be resolved in time.

PeopleIn released its half-year results on 17 February.

The ASX All Ords stock reported revenue of $597 million for the six months, up 89% year on year. Normalised profits came in at $21 million, up 50% from the prior corresponding period.

How has the PeopleIn share price performed longer-term?

As long-term investors, it pays to take a step back to see how a company has fared over more than just the past year.

In the case of this ASX All Ords stock, if you'd bought shares five years ago, you'd be sitting on a gain of 105%. And that doesn't include the dividend payouts.

The post Fundie reveals the ASX All Ords stock trading at a 35% discount appeared first on The Motley Fool Australia.

That's because if you can catch a small cap ASX share on its way to becoming a mid or large cap, the returns could be mouth-watering for your portfolio.

With that in mind, let's take a look at a couple of small cap ASX shares that Morgans has on its best ideas list this month. They are as follows:

PeopleIn Ltd (ASX: PPE)

Morgans thinks that this workforce management company could be a small cap ASX share to buy right now.

The broker currently has an add rating and $4.90 price target on its shares. This implies potential upside of almost 70% for investors.

Its analysts believe its shares are cheap at the current level. Particularly given the company's strong earnings growth potential and defensive qualities. It commented:

PPE is trading back at $3.00/sh and a sub-10x PER. We continue to think it looks cheap for a company that has grown earnings at c.20% year in year out – company guidance has EBITDA growing 35% in FY23. We are buoyed by management's focus on making the business more defensive, and capable of navigating any potential downturn. The opportunity under the Pacific Australia Labour Mobility (PALM) scheme is massive and following the Federal Government's Job Summit, there has rarely been more focus on increasing migration. With Covid all but done PPE's healthcare division could bounce back and drive earnings growth over the medium term. With $30m of spare debt capacity, management are well placed to deliver growth into FY24, if they can land a deal in the next 18 months.

Tourism Holdings Ltd (ASX: THL)

Tourism Holdings is a global tourism operator and the largest commercial recreational vehicle (RV) rental operator in the world. It merged with Apollo Tourism & Leisure late last year, creating a multi-national, vertically integrated RV manufacturing, rental, and retail business spanning motorhomes, campervans, and caravans.

Morgans has the company's shares on its best ideas list with an add rating and $5.15 price target. Based on the current Tourism Holdings share price of $3.88, this implies potential upside of 33% for investors.

The broker believes Tourism Holdings is well-placed for growth in the coming years thanks to the travel market recovery from COVID. All things considered, the broker feels its shares are too cheap at current levels. It commented:

THL recently reported a very strong 1H23 result which materially beat expectations. Pleasingly and reflecting the strong operating conditions to which it is leveraged to, it also upgraded its FY23 NPAT guidance. With all markets now reopened, THL has strong leverage to a tourism recovery over the next few years. In addition, it has further leverage from extracting the material synergies with ATL. We continue to believe that the merger synergies are conservative and will be upgraded over time. The prospects for the merged group are so strong that THL will now resume dividends with the FY23 result (6-12 months earlier than expected). With the stock trading on an FY25F high single digit PE, we think this is too cheap for the largest commercial, global RV rental business in the world. Importantly, THL is run by an impressive management team which have a strong track record.

The post Morgans expects big returns from these small cap ASX shares appeared first on The Motley Fool Australia.

While this is disappointing, it could have created some great buying opportunities for patient long-term focused investors.

For example, the two ASX small cap shares listed below have been tipped as buys with major upside potential. Here's what analysts are saying about them:

PeopleIn Ltd (ASX: PPE)

This workforce management company could be a small cap ASX share to buy. That's the view of analysts at Morgans, which have named it on the broker's best ideas list again this month.

The broker believes its shares are dirt cheap at the current level given its strong earnings growth and defensive qualities. It commented:

Readytech Holdings Ltd (ASX: RDY)

Another small cap ASX share that analysts rate highly is Readytech.

It is a growing provider of mission-critical software-as-a-service (SaaS) solutions for the education, employment services, workforce management, government and justice sectors.

Goldman Sachs is positive on the company. It believes Readytech is well-placed to continue its solid growth in the current environment thanks to its defensive earnings. It explains:

[We] believe RDY is now passing through margins from cost headwinds (tech wage pressures) and R&D investment, with the company well-placed to grow margins back towards mid-to-high 30s as larger, higher-margin enterprise deals increasingly drive growth from here. RDY is now trading at ~17x FY24 P/E while delivering ~20% FY23-25E EBITDA CAGR, supported by its defensive public sector end-markets (~3/4 of earnings) and mission-critical software systems

Goldman has put a buy rating and $4.40 price target on its shares. This suggests potential upside of almost 50% for investors.

The post Analysts are tipping big returns from these small cap ASX shares appeared first on The Motley Fool Australia.

When share prices fall, it means that dividend yields are increased for potential investors. For example, if a business has a 6% dividend yield and its share price drops 10%, the yield turns into 6.6% if the same dividend is paid.

While it's hard to say what share prices are going to do next, it's comforting knowing that ASX dividend shares can keep sending the dividend cash to shareholders.

So which names are worth looking at? Here are three that could be in the bargain basket.

Jumbo Interactive Ltd (ASX: JIN)

Jumbo describes itself as Australia's leading dedicated digital lottery company. It offers its proprietary lottery software platform and lottery management experience to government and charity lottery sectors in Australia and globally. It also retails lottery tickets in Australia and the South Pacific.

The Jumbo share price has plunged 26% in 2022 to date. FY22 was solid with underlying earnings per share (EPS) increasing by 13% to 51.5 cents per share.

The ASX dividend share is expecting a lower profit margin in FY23, but Commsec numbers suggest it could grow its profit and the dividend in FY23. The Jumbo share price is valued at 27 times FY23's estimated earnings with a grossed-up dividend yield of 4.5%.

PeopleIn Ltd (ASX: PPE)

PeopleIn says that it "provides clients with complete talent solutions, from workforce resourcing and project management, through to staffing and upskilling solutions".

The ASX dividend share recently reaffirmed its FY23 earnings guidance, with normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of between $62 million to $66 million.

It gave a market update that said "operating conditions continue to be highly positive, given the strength of the employment market and extensive demand" from clients. The company said its healthcare and community vertical is "well-placed to address the critical shortages within its sector, as delays in visa processing and travel costs improve".

Despite the positive outlook, the PeopleIn share price has fallen just over 30% in 2022.

According to Commsec, the PeopleIn business is priced at nine times FY23's estimated earnings with a potential grossed-up dividend yield of 7%.

TPG Telecom Ltd (ASX: TPG)

TPG is one of the largest telecommunication businesses in Australia. It has the brands of TPG, iiNet, and Vodafone Australia.

The business is rolling out its 5G network and has also signed up to a major regional network sharing agreement with Telstra Group Ltd (ASX: TLS) which will improve its offering to customers.

Its latest result, the FY22 half-year report, shows a 135,000 net increase in mobile subscribers. The ASX dividend share is also working on growing its number of fixed wireless subscribers. This is home internet powered by the mobile network, which can generate much stronger profit margins for the business.

The merger between Vodafone Australia and TPG is on track to deliver the synergies target of between $125 million to $150 million in FY22.

The FY22 interim dividend grew 12.5% to nine cents per share. After a 25% fall in the TPG share price since mid-August, it's expected to pay a grossed-up dividend yield of 5.6% in FY23.

The post 3 ASX dividend shares to buy on sale right now appeared first on The Motley Fool Australia.

But it's easier said than done.

If you don't pick the right businesses to invest, your "reward" for sticking with your ASX shares through thick and thin could be seeing your wealth shrink.

Ouch.

That's why among all the stock tips you hear on here and everywhere, it's worth noting the ones that the experts have marked as long-term prospects.

Those are the stocks in which you might have more confidence holding onto even when the valuation becomes volatile in the immediate future.

Here is a couple of ASX shares that are fit the bill:

'Benefitting from a tight labour market'

Wilsons investment advisor Peter Moran is currently a fan of PeopleIn Ltd (ASX: PPE) because of Australia's historic low unemployment rate.

"PeopleIn provides human resources outsourcing and contract staffing to a diverse range of sectors, including health and community services, early learning, government and manufacturing," Moran told The Bull.

"PeopleIn is benefitting from a tight labour market."

The long-term driver for the business, according to Wilson, is the nature of its clientele.

"PPE is also attractive for its positioning in defensive sectors, which are expected to experience strong growth over the long term," he said.

"We hold an overweight rating."

The PeopleIn share price has dropped 27% year to date, but has spiked up 24.9% since a mid-June trough.

It seems Moran's peers are unanimously in agreement with him.

According to CMC Markets, all six analysts who currently cover PeopleIn rate it as a buy, with five of them labelling it a strong buy.

Immediate earnings downgraded, but still great balance sheet

The Allkem Ltd (ASX: AKE) share price has ridden the lithium thematic all the way home to be almost 50% up so far in 2022.

According to Ord Minnett senior investment advisor Tony Paterno, his team has recently downgraded the earnings expectations for the miner due to "lighter production".

But it's still a worthy long-term buy.

"The stock continues to show valuation support, based on a recent price-to-net-present-value multiple of 0.76 times," he said.

"Anticipated growing free cash flow yields of 5% to 17% between fiscal years 2023 and 2025 also appeals. There's no stress on the balance sheet."

With lithium prices reaching phenomenal highs this year, experts are divided as to whether the producers have hit their peak.

Ten out of 17 analysts currently surveyed on CMC Markets are rating Allkem shares as a strong buy, but six others are convinced it's a hold.

The post 'No stress': Experts name 2 ASX shares to buy for strong long-term growth appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are charging higher:

AGL Energy Limited (ASX: AGL)

The AGL share price is up 3% to $6.87. This is despite there being no news out of the energy company today. However, the utilities sector has been performing strongly. This could be due to investors seeking safe havens amid today's market volatility.

Mirvac Group (ASX: MGR)

The Mirvac share price is up over 2% to $2.00. This morning this property company announced the appointment of its new managing director and CEO, Campbell Hanan. According to the release, Campbell Hanan will take up this appointment from early March 2023, succeeding Susan Lloyd-Hurwitz. Hanan currently serves as the Head of Mirvac's Integrated Investment Portfolio.

PeopleIn Ltd (ASX: PPE)

The PeopleIn share price is up 3.5% to $3.27. This follows the release of the workforce management provider's market update this morning. PeopleIn advised that operating conditions continue to be highly positive, given the strength of the employment market and extensive demand from its clients. This allowed the company to reaffirm its FY 2023 earnings guidance for normalised EBITDA of $62 million to $66 million.

SkyCity Entertainment Group Limited (ASX: SKC)

The SkyCity share price is up 3.5% to $2.53. This morning the casino and resorts operator released a trading update ahead of its annual general meeting. Management revealed that it has started the year strongly with "revenue and EBITDA exceeding" internal expectations. This includes its Adelaide operation achieving its highest revenue result yet in the first quarter.

The post Why AGL, Mirvac, PeopleIn, and SkyCity shares are charging higher appeared first on The Motley Fool Australia.

Businesses that are both undervalued and could pay a good dividend may be able to give investors an attractive total return, with a mix of both income and capital growth.

Keep in mind that just because an expert thinks a share price will rise doesn't mean the market will push it higher over the next 12 months. But I think it's interesting to look at businesses that are seen as significantly cheaper than their fair value.

With that in mind, let's look at some of the dividend opportunities that brokers think are attractive.

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price recently got walloped. It's down around 35% since 6 October 2022. While the baby product retailing business reported total sales growth of 12% to 7 October 2022, it said the first quarter gross profit margin was down 230 basis points year over year. At the same time, pro forma net profit after tax (NPAT) in the first quarter was down $3 million year over year.

After seeing the update, the brokers at Macquarie still rate the company as an outperform, with a price target of $4.95. That implies a possible rise of around 80% over the next year. It thinks the gross profit margin can somewhat recover during the year.

The ASX dividend share plans to open eight new stores in FY23, with six in Australia and the other two in New Zealand.

Macquarie puts the Baby Bunting share price valuation at 15 times FY23's estimated earnings with a projected grossed-up dividend yield of 6.1%.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Nine is the business behind a number of media names including the Nine free-to-air television network, digital streaming business Stan, and newspapers like the Australian Financial Review, The Age, and the Sydney Morning Herald.

Since the beginning of the year, the Nine share price has dropped around 33%. That's despite the business achieving a strong level of growth in FY22. The last financial year saw revenue growth of 15% to $2.69 billion and NPAT growth of 35% to $373.5 million.

The company also said the new financial year had "started on a positive note in terms of audiences" across all of its platforms. The advertising market, to August, had also "remained resilient", Nine said. It's also expecting its advertising revenue to grow more strongly than the markets where it operates in FY23.

The ASX dividend share is currently rated as a buy by the broker Credit Suisse, with a price target of $3.30. That implies a possible rise of more than 60%. The broker predicts the FY23 grossed-up dividend yield to be 10.1%.

PeopleIn Ltd (ASX: PPE)

The business provides staff, business services, and operational services, including workforce management, recruiting, onboarding, contracting, rostering, timesheet management, payroll, and workplace health and safety management.

The PeopleIn share price is another that has suffered heavily in 2022. It is down by 33% year to date.

Broker Morgans thinks that FY23 looks good for the company, rating it as add. It has a price target of $4.90, implying a possible rise of more than 60% over the next year. The potential grossed-up dividend yield for the 2023 financial year is 7.2%.

In FY22, the ASX dividend share generated $47.2 million of normalised earnings before interest, tax, depreciation, and amortisation (EBITDA). In FY23, it guided that it could generate normalised EBITDA of between $62 million to $66 million. However, management said at the time this was "based on the continuation of current economic conditions".

However, management also said the core business is "resilient even in the event of economic uncertainty". It plans to focus on growing in sectors that are defensive and have long-term demand for talent.

The post Dividend beasts: Experts name 3 ASX dividend shares that could deliver 50% returns next year appeared first on The Motley Fool Australia.

But there are few other areas that have more stable demand and are important to the economy than the development of human capital.

Helpfully, in a video last week some Wilson Asset Management analysts named three ASX shares to buy in the education and human resources industry:

Could there be buybacks for shareholders of this business?

For Wilson senior equity analyst Shaun Weick, childcare provider Evolve Education Group Ltd (ASX: EVO) makes a compelling investment case right now.

"Evolve's a standout buy for us," he said.

"They've just divested their New Zealand assets for $50 million. You're essentially left with an Australian trading business which is performing well."

Weick pointed out that the Evolve shares are currently trading around 2 to 2.5 times enterprise value to earnings, compared to more than five for its peers.

"The balance sheet, therefore, provides immediate flexibility around capital returns. We think buybacks are possible — and acquisitions over time," he said.

"That's a strong buy for us."

Analyst coverage is sparse for Evolve Education. According to CMC Markets, at least Canaccord Genuity agrees with Weick, rating the stock as a strong buy.

'Non-fundamental factors weighing on the share price'

Despite the world opening up after the COVID-19 pandemic, shares for international education service provider IDP Education Ltd (ASX: IEL) have fallen 24.6% year to date.

"We think there are non-fundamental factors weighing on the share price at the moment, with the release of escrow arrangements and the departure of well-regarded CEO Andrew Barkla."

Weick thus feels like the stock will head up as business performance once again becomes the major factor in investor decisions.

"If you look at the policy settings globally, they're the most supportive they've been, in terms of migration for students into IDP's key destination markets," he said.

"You couple that with the investment they've made in their digital strategy, we think they're well-placed to take significant market share and generate very strong earnings growth."

Earlier in the week, Medallion Financial private client advisor Jean-Claude Perrottet praised IDP's reporting season update.

"Margins improved by 24.8%, the highest in the company's history. Revenue grew by 50% on the prior corresponding period, in response to a 45% increase in student placements and a 67% increase in international English language tests."

Growing both organically and via acquisitions

Fellow senior equity analyst Sam Koch likes workforce management provider PeopleIn Ltd (ASX: PPE).

"PeopleIn has been growing organically at about a 10% clip, and they supplement their organic growth through acquisitions."

The business has been hamstrung during the pandemic years, he added, with border closures prohibiting access to the migrant workforce their customers normally utilise.

As international movements are liberalised, according to Koch, PeopleIn's organic growth will accelerate.

The shares have fallen more than 31.7% so far in 2022, putting it into bargain territory.

"You're trading at a sub-10 times price-to-earnings multiple with strong earnings growth," said Koch.

"With an undergeared balance sheet, we believe there'll be plenty of catalysts to see this company rerate."

The post 'Standout buy': Expert names 3 human capital ASX shares to boom appeared first on The Motley Fool Australia.

At the time of writing, the PeopleIn share price is up 11.6% at $3.74 after spiking 17.6% off yesterday's close to a high of $3.94 in earlier trading.

Revenue and profit growth in FY22

Key takeouts from the workforce management company's year include:

• Revenue of $682.4 million, up 53.6% on FY21's result
• Organic revenue growth contribution of 15.9% for the year
• Normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) of $47.2 million, a gain of 23.9% year on year
• Normalised net profit after tax and before amortisation (NPATA) of $31.9 million, a gain of 27.7%
• Normalised NPATA per share of 32.3 cents, up 19.8%
• Dividends per share for the full year FY22 of 13 cents

What else happened?

PeopleIn recognised growth throughout its FY22 income statement, with a particularly strong gain in revenue, up nearly 54% year on year.

The company said that its business growth in FY22 stemmed from higher demand for
staffing services, as business operating levels shifted higher than before COVID-19.

In addition, acquisitions of Vision Surveys QLD Pty Ltd and GMT Group in 2021, alongside Perigon Group and FIP Group in 2022, were also accretive to both revenue and earnings.

PeopleIn also declared a fully-franked final dividend of 6.5 cents per share, representing an 8% increase on the final dividend in FY21.

Management commentary

Speaking on the announcement, CEO Ross Thompson said:

Operating conditions continue to be positive for PeopleIN given the strength of the employment market and unprecedented demand from clients for employees. Based on the operating results for the financial year and current economic conditions continuing, PeopleIN expects strong organic growth performance to continue in FY23.

The number and diversity of our clients, and critical demand for their services, mean that our core business is resilient even in the event of economic uncertainty. Our strategy has always been to focus on growing in sectors that are defensive and have long term demand for talent.

PeopleIn share price snapshot

In the past 12 months, the PeopleIn share price has slipped 11% into the red. Despite this, it has surged more than 17% in the last month of trade and lifted a further 10% this week.

The post PeopleIn shares spike 17% as earnings come in above guidance for FY22 appeared first on The Motley Fool Australia.

There is much volatility in the markets. Every day we seem to see a sudden jerk upwards or downwards as investors try to reconcile their feelings about the latest economic news.

According to many experts, this has caused many otherwise healthy businesses to see their valuations plummet.

"Given the next leg of this bear market is likely to be a focus on earnings not multiples, we have been positioning the portfolio towards companies we believe have greater earnings certainty," stated QVG Capital in a memo to clients.

"This ought to mitigate the impact on the portfolio of a recessionary or slowing growth environment, should it occur."

The QVG team named two such ASX shares in its portfolio that it still has high hopes for:

Great time to put people in jobs

Recent labour shortages in Australia have been well-documented. Perhaps this is what makes staffing provider PeopleIn Ltd (ASX: PPE) an attractive proposition.

With international borders now opened up for the post-COVID era, the QVG team feels like a major deal last month was perfectly timed.

"Labour staffing business PeopleIn made a [sizable] acquisition of a business called Food Industry People, which helps provide workers from the Pacific Islands and Timor to Australian employers," read the memo.

"The acquisition was 15% earnings accretive and PeopleIn reaffirmed earnings guidance for FY22 which puts it on 10x FY22 PE and 8x FY23 PE."

The wider professional community is apparently in agreement with QVG Capital.

According to CMC Markets, all four analysts covering the stock recommend it as a strong buy.

Extreme weather events lead to work for this business

Insurance builder Johns Lyng Group Ltd (ASX: JLG) saw its share price lose more than 29% so far this year.

But with record-breaking rains causing havoc on the east coast of Australia once again, it might find itself with a hefty pipeline of work.

QVG analysts liked the latest trading update, which was an upgrade on its previous guidance.

"Johns Lyng now expect[s] to make $83 million EBITDA in FY22 – 5% ahead of their prior expectations."

The outlook for the current financial year looks very positive too, the memo stated.

"Looking forward into FY23, Johns Lyng Group will benefit from a full year contribution of their US acquisition Reconstruction Experts and a full pipeline of 'cat' [catastrophe] work given the sequence of extreme weather events experienced over this financial year."

It seems many investors are catching onto Johns Lyng's potential. The share price has risen 10% just over the past week.

On CMC Markets, an astounding seven out of eight analysts currently rate the stock as a strong buy.

The post 2 ASX shares you never heard of ready to make hay appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are storming higher:

Altium Limited (ASX: ALU)

The Altium share price is up 4% to $28.92. This follows a rebound in the tech sector on Friday following a strong night on the Nasdaq index. In addition, earlier this week Morgan Stanley put an overweight rating and $35.00 price target on its shares. Its analysts believe that chip shortages and supply chain issues could be supporting demand for its software and parts search engine.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is up 4% to $21.47. Investors have been buying Fortescue and other iron ore mining shares on Friday after the price of the steel-making ingredient jumped overnight. According to CommSec, the benchmark 62% fines iron ore price rose by US$6.86 or 5.1% overnight to US$142.20 a tonne.

PeopleIn Ltd (ASX: PPE)

The PeopleIn share price is up 6% to $3.39. This follows the announcement of an agreement to acquire FIP Group for an upfront consideration of $45 million. This comprises $35 million cash and $10 million in shares. Management notes that FIP is a highly complementary workforce solutions business specialising in staffing solutions to the food and agricultural sector.

REA Group Limited (ASX: REA)

The REA share price is up 2.5% to $112.54. This follows the release of a number of positive broker notes in response to the property listings company's investor day update. One of those was Goldman Sachs, which has retained its buy rating and $167.00 price target. Goldman notes that REA "remains confident it can achieve double digit revenue/EBITDA growth through the cycle."

The post Why Altium, Fortescue, PeopleIn, and REA shares are storming higher appeared first on The Motley Fool Australia.

They are as follows:

Alliance Aviation Services Ltd (ASX: AQZ)

This airline and aviation services company has been given an add rating and $5.05 price target. This is materially higher than where the Alliance Aviation Services share price currently trades.

The broker believes that investors should look beyond the short term turbulence that the company is facing and feels that an inflection point is coming.

It commented: "AQZ's interim result and FY22 guidance was weaker than expected. However, significant progress on its E190 deployment has been achieved over the past ~18 months and cash generation in the underlying Fokker business remained robust. Our positive investment case on AQZ has been predicated on the step-change in FY23 earnings growth as its material fleet expansion is deployed and we continue to think the company is nearing this inflection point."

Dexus Industria REIT (ASX: DXI)

Another ASX share that Morgans is a fan of is Dexus Industria (formerly known as APN Industria). It has put an add rating and $3.65 price target on the industrial property company's shares.

Morgans believes that the significant work it has done during the first half has positioned it for growth in the coming years. This includes $584 million in new acquisitions that were funded via a capital raising. It also highlights its attractive dividend yield.

The broker commented: "We retain an Add rating on a revised price target of $3.65. DXI is trading at a discount to NTA, offers a +5% distribution yield with solid underlying portfolio metrics and near/medium term growth opportunities via the development pipeline."

PeopleIn Ltd (ASX: PPE)

Finally, this workforce management company is one of the broker's top picks. It has put an add rating and $5.15 price target on its shares.

The broker is pleased with the way the company has been balancing its portfolio through acquisitions, sees scope for more, and believes it is well-placed for growth as COVID headwinds ease.

Morgans said: "We expect a solid interim result on 18 February and organic growth to accelerate over the 2H22 as COVID challenges normalise. Current international candidate sourcing initiatives should deliver benefits in FY23. With a solid organic growth outlook, potential for further accretive M&A and an undemanding valuation (FY23F PE of ~11.5x), we maintain an Add rating."

The post Morgans names 3 of the best ASX shares to buy today appeared first on The Motley Fool Australia.

Shares in the staffing business rallied 8.85% within the first few minutes of trade to a high of $4.55.

At the time of writing, the People Infrastructure share price is up 3.11% to $4.31.

People Infrastructure share price rallies on strong growth in FY21

People Infrastructure grew considerably in FY21, both organically and via acquisitions. Some key highlights include:

• Revenue rose 19% to $444 million
• Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 33% to $38 million
• Underlying net profit after tax and amortisation lifted 37% to $25 million
• Final fully franked dividend of 6 cents per share

What happened to People Infrastructure in FY21?

The People Infrastructure share price has been a steady performer in 2021, up 20% year-to-date.

The company completed a number of acquisitions throughout the year to drive greater staffing sector diversification and accretive growth. Companies acquired in FY21 include:

• Ecareer & Illuminate (IT) in December 2020
• Swingshift (Healthcare) in March
• Techforce (Industrial) and Vision Surveys (Op services) in June

All divisions, both organic and acquired, made strong contributions to growth. The company said that in the final quarter of FY21, all divisions were either at or exceeding record profit contribution.

In relation to recent COVID-related restrictions and lockdowns, the company said they impact a portion of clients and in different ways. Some clients have seen increased demand for new services while other clients have seen business activity restricted. Overall, the company said the recent impact is far smaller than the initial wave of COVID-19.

Management commentary

People Infrastructure CEO Declan Sherman commented on the record results, saying:

People Infrastructure confronted a number of challenges in FY21 due to the impact of COVID-19. The business has shown tremendous resilience to bounce back over the last 12 months. As a result, we are pleased to announce a significant increase in revenue and earnings.

The business demonstrated a steady increase in billed hours in the second half versus the first half and a significant increase in permanent billings in the second half versus the first half. This was consistent across all divisions and as a result the company is starting FY22 in a very strong position.

Despite the near-term volatility and impact of COVID-19, Sherman remains confident in the company's ability to navigate through uncertainty.

Any short term impacts on our clients are significantly mitigated by our regional and product diversity.

Importantly, the outlook for the employment market continues to be positive in the sectors that we service and we look forward to continuing to work with clients to manage their problems around staffing shortages.

What's next for People Infrastructure?

Looking ahead, People Infrastructure flagged that there may be some short term volatility due to NSW and Victorian lockdowns. But this could also be mitigated by its regional and industry diversification.

Management said that the company would continue to be on the lookout for acquisition opportunities in staffing and managed services to drive geographic spread and/or further expand its service offering.

The People Infrastructure share price will go ex-dividend on Friday, 3 September for a 6 cents per share dividend.

The post People Infrastructure (ASX:PPE) share price struggling to hold gains following record FY21 result appeared first on The Motley Fool Australia.