Day: October 11, 2021

Leading brokers name 3 ASX shares to buy today

ASX shares Business man marking buy on board and underlining it

With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

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

Altium Limited (ASX: ALU)

According to a note out of Citi, its analysts have retained their buy rating and $35.40 price target on this electronic design software company’s shares. Citi has been looking at Altium’s Octopart search engine business and estimates that site visits were up 68% year on year during the September quarter. This bodes well for its first half results. As does the fact that Altium has not been discounting its licenses in the US, UK, Germany, and Australia. The Altium share price is trading at $33.54 today.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Ord Minnett reveals that its analysts have retained their buy rating but trimmed their price target on this iron ore miner’s shares slightly to $25.00. Although the broker has downgraded its iron ore price estimates for the next few years, it remains positive on Fortescue. This is due to its attractive valuation following a recent and significant pullback. The Fortescue share price is fetching $14.89 today.

IDP Education Ltd (ASX: IEL)

Analysts at Morgan Stanley have retained their overweight rating and lifted their price target on this language testing company’s shares to $40.20. The broker remains very positive on IDP Education’s growth prospects due to its acquisition of the British Council’s (BC) India IELTS operations, its digital business, and efficient cost structure. The IDP Education share price is trading at $34.79 on Tuesday.

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

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium and Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended Altium. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Why this top broker says the Rio Tinto (ASX:RIO) share price is a buy despite weak iron-ore outlook

green buy stock button on a keyboard

The Rio Tinto Limited (ASX: RIO) share price is edging higher in afternoon trade and is currently exchanging hands at $102.80 apiece.

Despite the gain today, Rio Tinto shares have been on a slippery slope these past few months, having come off highs of $134.40 on 4 August.

That’s well behind the S&P/ASX 200 index (ASX: XJO) which is down around 4% in this time.

Why is the Rio Tinto share price drifting lower?

The Rio Tinto share price has been sliding lower lately in unison with the price of iron ore, which has come off a high of US$222/tonne in July to now trade at US$129/tonne.

Prior to this, it had rallied around 100% from November 2020 to May 2021, hitting an all-time high of US$229.50/tonne.

However, legislative efforts from China to curb steel production and control harmful emissions has drastically reduced the demand for iron ore in the last few months.

More than 80% of China’s domestic steel mills were closed in September, mostly due to maintenance. As such, iron ore prices sunk by about 50% in Q3 2021.

This has translated negatively for the Rio Tinto share price, as it’s an ASX resource that produces iron ore.

As such, its share price can and does fluctuate with the volatility in iron ore prices. With this recent weakness, it is unsurprising to see the effects on Rio’s shares, given that we saw the opposite when iron ore rallied from a low of US$116/tonne last year.

Rio shares had climbed $43 per share in the single-year period to August 2021, or 48%, as iron ore sent it through the roof.

One leading broker isn’t too fazed about the recent downturn in iron ore pricing, and actually foresees it as a good thing for Rio Tinto.

Can RIO Tinto shares recover again?

Analysts at leading investment bank JP Morgan certainly believe so. The top broker believes Rio Tinto’s share price is bolstered by its exposure to the base metal – especially when it begins to weaken in price.

Not only that, the bank reckons that Rio’s dividend yield is attractive, offering a forward yield above 10%. In such a low-rates and low-yield environment, this kind of number sticks out.

It also sees China’s geopolitical factors being a tailwind to Rio shares, once they settle and the growth outlook improves there.

JP Morgan believes “investors will be well rewarded owning the stock, particularly once we see China growth sentiment improve”, which it states will “most likely (be) after the Winter Olympics in February 2022”.

Yet, despite the bullish outlook, JP Morgan trims its price target on Rio Tinto shares, in line with weaker commodity forecasts.

It now holds a buy rating with a price target of $144, down from $150, but still around 33% implied upside potential from the broker’s valuation.

The Rio Tinto share price has struggled this year to date, and finds itself 10% in the red from January 1, after gaining only 6% this past year.

However, it is still trading above the majority of its 2019 and 2020 levels and is well off its 52-week high of $137.33.

The post Why this top broker says the Rio Tinto (ASX:RIO) share price is a buy despite weak iron-ore outlook appeared first on The Motley Fool Australia.

Should you invest $1,000 in Rio Tinto right now?

Before you consider Rio Tinto, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Rio Tinto wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Minerals 260 (ASX:MI6) share price leaps 36% following IPO

a man looks down at his phone with a look of happy surprise on his face as though he is thrilled with good news.

The Minerals 260 Limited (ASX: MI6) share price has hit the ground running after making its ASX debut at 1:00 pm on Tuesday.

The company’s oversubscribed initial public offering (IPO) successfully raised $30 million at a listing price of 50 cents per share.

The Minerals 260 share price opened at 75 cents, or 50% higher, and the company’s shares are currently fetching 61 cents each.

You can read more about Minerals 260’s projects here.

What’s driving the Minerals 260 share price?

There’s arguably a lot of hype behind the Minerals 260 share price.

The new company is a spin-off of Liontown Resources Limited (ASX: LTR)’s non-lithium assets.

Liontown is an emerging lithium player with a world-class lithium deposit in Western Australia. Its share price has ballooned 250% year-to-date and 440% in the last 12-months on the back of the bullish lithium sector and surging lithium prices.

Minerals 260’s most advanced exploration project, the Moora Project, is in the same geological terrain as the Julimar discovery by Chalice Mining Ltd (ASX: CHN), located 95 km to the south.

Chalice has been one of the top performing ASX shares, surging some 1,000% since its Julimar discovery in April 2020.

Minerals 260 described its IPO as “oversubscribed” meaning it may have received more than the $30 million it was asking for.

This means some investors might have had their IPO allocations scaled back. If they wanted more shares, they’d have to buy Minerals 260 on-market.

What’s so special about Minerals 260?

Minerals 260 owns four prospective gold, nickel, copper and platinum-group elements (PGE) projects across Western Australia.

The Koojan, Dingo Rocks and Yalwest projects are early-stage exploration projects where the area is relatively underexplored.

The Moora Project is arguably its most exciting prospect at this time, given its proximity to Chalice’s “globally significant” Julimar.

The resources the company is looking for play into the concept of “green metal” used for technologies to decarbonise the global economy and address climate change.

Nickel is a key battery material used in electric vehicles while copper is used extensively in the green energy industry. Platinum also has applications in green hydrogen production and fuel cells.

The post Minerals 260 (ASX:MI6) share price leaps 36% following IPO appeared first on The Motley Fool Australia.

Should you invest $1,000 in Minerals 260 right now?

Before you consider Minerals 260, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Minerals 260 wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Why is the Beach Energy (ASX:BPT) share price falling on Tuesday?

a man in a hard hat and checkered shirt holds paperwork in one hand as he holds his hands upwards in an enquiring manner as though asking a question or exasperated by uncertainty.

The S&P/ASX 200 Index (ASX: XJO) is having yet another day in the red so far this Tuesday. At the time of writing, the ASX 200 is down by 0.41% to 7,269 points. But the Beach Energy Ltd (ASX: BPT) share price is doing quite a bit worse.

Beach Energy shares are currently trading at $1.43 each, down 2.59% so far today. That’s vastly underperforming the broader markets.

So why are Beach shares being so badly punished this Tuesday?

Well, it’s not entirely clear. The usual culprit for a share price fall for an energy share like Beach is the crude oil price. As an oil driller, Beach’s profitability is directly impacted by the underlying price of crude oil.

But oil prices have been rising pretty steadily of late. My Fool colleague James just this morning discussed how prices were up overnight. As it currently stands, West Texas Intermediate (WTI) crude is trading at US$79.35 a barrel, while Brent is asking US$83.65. Both of those prices are pretty close to the top of their respective 52-week ranges.

Perhaps the answer is some good old-fashioned profit-taking. Beach shares have had a wild and volatile year, as you can see in the graph below:

Beach Energy share price
Beach Energy 1-year share price and data | Source: fool.com.au

But even so, the Beach share price is also up a very solid 38% over the past month. That includes a bump of around 2% just yesterday. Perhaps investors are seeing the current (and historically high) crude oil pricing and deciding to take some profits off the table.

About the Beach Energy share price

Although the Beach share price has had an amazing month to date, the picture doesn’t quite look as rosy if we zoom out a little. This oil company remains down 22% year to date, although it’s up 2.8% over the past 12 months.

Beach shares are also up 89% over the past 5 years but remain down close to 50% from the company’s all-time high of $2.77 or so that we saw back in January 2020.

At the current share price, Beach Energy has a market capitalisation of $3.25 billion, a price-to-earnings (P/E) ratio of 10.3 and a dividend yield of 1.4%.

The post Why is the Beach Energy (ASX:BPT) share price falling on Tuesday? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Beach Energy right now?

Before you consider Beach Energy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Beach Energy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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