Day: October 23, 2021

What Goldman Sachs is saying about the CSL (ASX:CSL) share price after its R&D update

ResMed share price healthcare asx share price flat represented by doctor shrugging

Last week was a reasonably disappointing one for the CSL Limited (ASX: CSL) share price.

Despite releasing its research and development (R&D) update for 2021, the biotherapeutics company’s shares ended the period with a weekly decline of 0.5%.

What was the reaction to the R&D update?

The team at Goldman Sachs looked through the update and have given their verdict.

According to the note, one of the products under development that the broker is most positive on is CSL112. This is a potential treatment for early recurrent cardiovascular events following an acute myocardial infarction.

Goldman commented: “Across the pipeline, we believe CSL112 represents the most material opportunity, and remains the primary focus amongst the investor base.”

It notes that CSL112’s final phase three interim analysis is now targeted before July 2022 instead of September/October 2022.

What else?

Goldman also spoke positively about its EtranaDez product candidate.

It said: “EtranaDez offers potential for functional cure in hemophilia B. In May-2021, CSL acquired global rights from UniQure to EtranaDez, a first-in-class and potentially best-in-class gene therapy targeting hemophilia B.”

The broker has previously spoken about how this product could be a significant contributor to revenue in the future if all goes to plan.

Is the CSL share price good value?

Goldman concluded: “Based on today’s update, we update our pipeline valuation framework, primarily reflecting: 1) the incorporation of EtranaDez for the first time (leading heme B gene therapy); 2) a modest increase in PoS for CSL112 (from 10% to 15%), reflective of successful navigation of second futility analysis.”

“However, we also factor several clinical delays across the pipeline (largely reflective of challenges associated with Covid-19). Incorporating these changes, we upgrade our risk-adjusted pipeline valuation to A$57/share, from A$44 (non risk-adjusted: A$205, from A$200).”

This ultimately led to the broker retaining its neutral rating but lifting its price target on the CSL share price to $305.00.

Based on the current CSL share price of $295.86, this suggests there is just modest upside of 3.1% for investors at present.

The post What Goldman Sachs is saying about the CSL (ASX:CSL) share price after its R&D update appeared first on The Motley Fool Australia.

Should you invest $1,000 in CSL right now?

Before you consider CSL, 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 CSL 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 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 CSL Ltd. 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 Citi has a sell rating on the Wesfarmers (ASX:WES) share price

busy trader on the phone in front of board depicting asx share price risers and fallers

The Wesfarmers Ltd (ASX: WES) share price has been a solid performer this year.

Since the start of the year, the conglomerate’s shares have risen just over 11% to $57.31.

Where next for the Wesfarmers share price?

Unfortunately for shareholders, one leading broker believes the Wesfarmers share price is overvalued now.

According to a note out of Citi, its analysts have retained their sell rating and $49.00 price target on the company’s shares.

Based on the current Wesfarmers share price, this implies potential downside of 14.5% over the next 12 months.

What did the broker say?

Citi notes that the company released an update at its annual general meeting last week.

In response to the release, the broker saw no reason to change its rating on the Wesfarmers share price, believing it is overvalued at the current level.

Citi commented: “While no quantitative trading update has been provided, AGM commentary on how the businesses are performing was similar to that provided at the FY21 result and therefore there were no real surprises.”

“Online is naturally lifting to partially offset the loss of sales from store closures. Bunnings has also seen strong commercial sales, but combined with online has not fully offset the impact of store closures. Kmart and Target were most impacted by store closures while Officeworks continues to benefit from customer demand for technology and furniture, though is margins dilutive.”

“The non-retail businesses appear to be performing well with Wesfarmers noting strong demand for ammonium nitrate and favourable LPG pricing. We make no changes to our earnings estimates and maintain our Sell rating on the basis of valuation with a $49.00 target price,” the broker concluded.

The post Why Citi has a sell rating on the Wesfarmers (ASX:WES) share price appeared first on The Motley Fool Australia.

Should you invest $1,000 in Wesfarmers right now?

Before you consider Wesfarmers, 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 Wesfarmers 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 James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. 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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What this broker thinks of the AMP (ASX:AMP) share price after its update

A businesswoman stares in shock at her computer screen.

The AMP Ltd (ASX: AMP) share price was on form last week and pushed 3% higher following its quarterly update.

This means the financial services company’s shares are now up 21% since the time last month.

Can the AMP share price keep rising?

One leading broker has been looking at the company’s third quarter update and given its verdict on the AMP share price.

According to a note out of Citi last week, its analysts have retained their high risk neutral rating and $1.25 price target.

Based on the current AMP share price of $1.17, this implies potential upside 6.8% for investors. Or 11% including Citi’s FY 2022 dividend estimate of 5 cents per share.

What did the broker say?

Citi notes that the company’s third quarter update was a little mixed.

It commented: “Overall AMP’s 3Q cashflows are a little weaker than we expected with a modest deterioration in flows for AWM removing the early release of super impact in pcp and sizeable outflows from AMP Capital, albeit a large proportion of this was previously flagged. North flows, however, rebounded. Bank loan growth was also a bit better than expected, while NZ also saw modest net outflows. Factoring this in sees very little change to our estimates, although we have also reassessed AWM’s likely margins etc, reducing our EPS by 4% in FY22E & 2% in FY23E.”

And while it sees value in the AMP share price, it isn’t enough for a change of rating due to high levels of uncertainty. Though, this could change after its investor day event next month.

Citi concluded: “AMP may be offering value but it remains too hard to tell currently with so many moving parts. We are, however, hopeful that the upcoming 30th Nov investor day may help to clarify some of these. In the meantime, we retain our Neutral/High Risk call and A$1.25 TP.”

The post What this broker thinks of the AMP (ASX:AMP) share price after its update appeared first on The Motley Fool Australia.

Should you invest $1,000 in AMP right now?

Before you consider AMP, 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 AMP 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 James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Woodside (ASX:WPL) share price fell 8% this week. But there is some good news

happy solar panel installers, solar energy

The Woodside Petroleum Limited (ASX: WPL) share price slid this week despite the company reporting increased quarterly revenue on Thursday.

While the week was a struggle for the oil and gas producer’s stock, its United States subsidiary had exciting news.

It’s decided to work with Bill Gates-backed renewable energy technology company Heliogen to create a commercial scale artificial intelligence (AI)-enabled concentrated solar energy system.

The Woodside Petroleum share price slumped 7.59% over the course of this week. It finished Friday’s session at $23.27, 2.8% lower than it ended Thursday’s trade.

For context, the S&P/ASX 200 Index (ASX: XJO) gained 0.7% over the same week. Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) fell 4.3%.

Let’s take a closer look at the partnership between Heliogen and Woodside.

Woodside share price falls despite Heliogen agreement

As the Woodside share price fell, Heliogen announced the companies will create a 5-megawatt demonstration facility for Heliogen’s “breakthrough technology” in California.

The solar technology aims to provide renewable power nearly 100% of the time.

The facility will use computer vision software to align an array of mirrors. Those mirrors will reflect sunlight into a target atop a solar tower. Therefore, it will be able to provide low-cost storage in the form of high-temperature thermal energy.

Customers of the technology can choose to add additional technology to their systems. Examples of such would be thermal energy storage systems, a turbine for power generation, and electrolysers for green hydrogen production.

Additionally, the companies have agreed to jointly market Heliogen’s technology in the United States and Australia.

Under the marketing agreement, the companies are considering building more renewable energy projects and, potentially, replicating the demonstration facility internationally.

They’re also talking about designing and selling industrial-scale, cost-competitive, integrated renewable energy and hydrogen solutions in the United States.

Excitingly, Woodside would take on the marketing rights for Australia.

What did management say?

Woodside’s CEO Meg O’Neill commented on the company’s collaboration with Heliogen. She said it demonstrated Woodside’s focus on developing innovative technologies for low-cost, lower-carbon energy:

Heliogen’s innovative technology could play a key supporting role in development of Woodside’s zero-carbon hydrogen and ammonia business, which would rely on access to abundant and reliable renewable power.

We are also excited about the marketing rights for Heliogen’s technology in Australia, where our abundant solar energy resources support application of this technology in remote power generation and other industrial processes.

Heliogen CEO and founder Bill Gross also commented:

Heliogen’s AI-enabled concentrated solar technology has the potential to transform heavy industry by turning sunlight into a zero-carbon source of heat, power and hydrogen that is nearly always available… As the energy sector is ripe for applications of green hydrogen fuels and decarbonisation strategies, Woodside is an ideal collaborator for our breakthrough solar technology, which will support the operational characteristics of heavy industry.

The Woodside share price is up less than 1% this year to date, but has climbed 25% over the past 12 months.

The post The Woodside (ASX:WPL) share price fell 8% this week. But there is some good news appeared first on The Motley Fool Australia.

Should you invest $1,000 in Woodside Petroleum right now?

Before you consider Woodside Petroleum, 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 Woodside Petroleum 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 Brooke Cooper has no position in any of the stocks mentioned.

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

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