The S&P/ASX 200 Index (ASX: XJO) travel shares lifted on Wednesday, despite the COVID-19 Omicron variant impacting travel plans around the world.

The Qantas Airways Limited (ASX: QAN) share price led the pack today followed by Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB).

Let’s take a look at what may be impacting ASX 200 travel shares lately.

Travel made easier

ASX 200 travel shares have taken a turn for the better following the Christmas break. Shares in Qantas were up by 1.62% from their closing price last Friday, while Flight Centre shares climbed 0.68% and Webjet had jumped 0.19% at the close of trade on Wednesday.

One announcement opening the way for people to travel more freely played out in Queensland. The State Government announced that travellers entering the sunshine state would no longer have to produce a negative PCR test. A rapid antigen test, which is much quicker, will now be the only requirement to cross this interstate border.

Commenting on the change, Queensland Premier Annastacia Palaszczuk said:

The Chief Health Officer is satisfied that a negative result using a rapid antigen test is sufficient for interstate arrivals.

Another factor that may be driving the Qantas share price was some positive news on international travel.

According to the Sydney Morning Herald, which obtained an internal memo from the company, the airline will be returning its A380 from the desert to the skies three months earlier than planned.

The A380 service will fly from Sydney to Los Angeles three times a week from 11 January 2022, and has almost double the passenger seats as the airline’s 787 planes.

The positive territory for ASX travel shares today came amid thousands of flight cancellations over the Christmas break. FlightAware data shows there was a 14% decrease in flight activity globally compared to last week.

The travel shares also rose today despite record case numbers of COVID-19 in some states. NSW recorded 11,201 cases, while the SA Government reported 1,471 cases.

ASX 200 travel shares recap

At the market close today, the Qantas share price was trading at $5.02, up 3.5% year to date and up 0.40% this month.

Meanwhile, Flight Centre travel shares closed at $17.84, rising 12.56% this year and 4.08% over the past month.

Webjet shares were swapping hands at $5.30, climbing 4.54% year to date but down 0.93% this month.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is up more than 12% this year to date.

The post How are ASX 200 travel shares faring over the holiday season? appeared first on The Motley Fool Australia.

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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 recommended Flight Centre Travel Group Limited and Webjet Ltd. 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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Shares in Allkem Ltd (ASX: AKE) spiked higher today to finish trading at $10.39, up 5.48%. The company, formerly known as Orocobre, has been on a bumpy ride these past few months when examining the charts.

Yet investors have bid up its share price in vertical fashion over the last week of trading following the release of the feasibility study and Maiden Ore Reserve for its James Bay Lithium Project located in Québec, Canada.

In the announcement, Allkem confirmed a sustainable, high value hard rock lithium operation utilising renewable
hydropower.

The company says this results in an approximate 2.5x increase in Net Present Value (NPV) from the preliminary economic assessment that was released in March 2021.

Construction is now planned to commence towards the end of 2022 with commissioning in the first quarter of 2024,
subject to certain criteria being met.

Allkem believes the move gives strategic exposure to purveyors “located in proximity to high-growth electric vehicle markets in North America and Europe”.

Allkem’s share price popped from $9.19 to over $10.30 in the days following the announcement, a 12% gain. The strength in pricing left UBS updating clients on its outlook in a note to investors today. Here are the details.

What is UBS saying on the Allkem share price?

UBS wasn’t too surprised with the results of Allkem’s feasibility study and maiden ore reserve results for its lithium Bay Project. Figures were in line with expectations, the investment bank says, however, UBS notes one curious factor.

It comments “What we find interesting is that the suggested recovery profile sees 71.2% in the early years and 66.5% in the later years, but the timing of variations in process plant recoveries are unknown and a key value driver”.

The firm sees Allkem delivering a more conservative recovery at the moment, and says there is added benefit of owning a plant that can produce up to 6% lithium oxide from 2 million tonnes of mined ore for high-end chemical use each year.

Aside from that, UBS reckons that Allkem is most likely to use a combination of cash flow and debt to fund the James Bay project, out of all the options provided.

The broker submits that Allkem could even tread towards forms of project financing or work alongside a collaborator to do some of the heavy lifting.

Regarding financing of the project, UBS notes that “of these options, we expect that strategic partners would be lining up to secure supply…it is more likely the project will be funded through a mix of operational cash flow and debt”.

UBS rates Allkem as a buy and values the company at $10.75 per share.

Meanwhile, both Macquarie and JP Morgan also reckon that Allkem is a buy right now, each valuing the company at $13.60 and $12 per share respectively.

Allkem share price summary

In the past 12 months, the Allkem share price has gained more than 128% after rallying 132% this year to date. Over the course of the previous month, it has shown strengths also.

In that time it has climbed almost 9% and has rallied 13% in the past week of trading. As such, it has outpaced the benchmark S&P/ASX 200 Index (ASX: XJO) across each of these timeframes.

The post 13% gain in a week: Alkem (ASX:AKE) share price sparks brokers’ interest appeared first on The Motley Fool Australia.

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The author 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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The Total Brain Ltd (ASX: TTB) share price is surging today after the company signed a new licensing agreement.

In afternoon trade, the company’s shares were trading at 12.5 cents, up 13.6%. Earlier in the afternoon, shares raced ahead by a whopping 27% before retreating.

Let’s take a look at what may be causing the Total Brain share price to skyrocket.

New deal

In today’s release, Total Brain advised it has signed a licensing agreement with Alto Neuroscience for its iSpot-D research data. The agreement is ongoing and non-exclusive.

Total Brain is a digital mental health software-as-a-service (SaaS) company based in Sydney and San Francisco. The company has developed a platform that helps people monitor their mental health.

Alto Neuroscience is developing medicines for mental health conditions using AI-driven brain markers.

The iSpot-D research study is the largest of its kind looking into the treatment of depression and has been published in 55 peer-reviewed publications.

Speaking on the value of the data, Alto Neuroscience founder and CEO Amit Etkin said:

Members of the Alto team have a deep knowledge of the iSPOT-D study having acquired, worked with and published on its data in the past and have the breadth of expertise necessary to harness its unique value.

As part of the deal, Total Brain will receive a one-off license fee of US$500,000. The company will receive its first $100,000 by 15 January, with the remaining balance realised within 15 days of the data transfer date.

The news today follows another data deal with Janssen Research & Development this month. As reported by my Foolish colleague Aaron, Total Brain shares surged nearly 58% during the day off the back of the deal.

Total Brain share price snapshot

The Total Brain share price has fallen in the past 12 months, shedding 57%. Year to date, the company’s shares are down just over 60%.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned more than 12% to investors in the past year.

The company commands a market capitalisation of roughly $16.6 million based on the current share price.

The post Here’s why the Total Brain (ASX:TTB) share price rocketed 27% today appeared first on The Motley Fool Australia.

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• Here’s why the Total Brain (ASX:TTB) share price is rocketing 58% today

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As we roll on into the new year Australian financials have reclaimed some of the losses incurred in earlier months, as investors regain faith in the sector.

Two of the Aussie banking heavyweights have fallen onto the radar of investment bank Citi in a recent note out to clients.

In the update, Citi compared Commonwealth Bank of Australia Ltd (ASX: CBA)’s buyback program to that of Westpac Banking Corporation (ASX: WBC)’s off market buyback program that was announced in recent times.

Aside from that, in a list of analysts provided by Bloomberg Intelligence, sentiment between the two banks appears to be mixed, with Westpac coming out on top in many of the brokers’ individual assessments.

So how does Westpac stack up against the CBA share price? Let’s take a look.

How are brokers comparing CBA and Westpac shares?

The team at Citi reckon that whilst Westpac looks to have improved the offer in its off market buyback program, it is still most likely less valuable than CBA’s.

Part of the reason for this is the complexities that off market buybacks create and have originated for Westpac with respect to tax and payment structuring.

Last week, Westpac went back to the drawing boards with its buyback offer and subsequently amended the discount and extended the tender period for its proposal.

Citi says this has resulted in a modest improvement in post-tax returns for investors and the bank, but it is still a far cry from CBA’s 13% return.

The broker noes that with “less tax benefits on offer, we expect Westpac will likely receive significantly less demand than CBA, but has pledged to redirect any shortfall into an on-market buy-back”.

Yet, Citi feels the equation is far more balanced now that Westpac has committed to an on-market buyback of its shares should it miss the $3.5 billion off-market threshold.

Despite the cautious tone, Citi remains bullish on Westpac and remains adamant that it is the cheapest out of all the Australian banking majors right now.

The firm rates Westpac a buy and values the bank at $27.50 per share. Meanwhile, the team at Morgans, Macquarie, Goldman Sachs, JP Morgan, Credit Suisse and Morgan Stanley each have the CBA share price as a sell right now.

JP Morgan specifically notes CBA’s “very expensive valuation” right now. Even though it forecasts revenue at the top end of the competitor group in FY23/24, it sees pre-provision profit growth being compressed relative to peers.

The broker says that “further capital management is likely in FY23, supported by its residual franking balance; however, the surplus capital position is smaller than peers on a market-cap adjusted basis”.

It is given these factors that JP Morgan sees CBA underperforming the other majors. It rates the bank a sell with a $90 price target.

What’s the sentiment?

Comparing the two stocks with respect to analyst sentiment, the consensus price target on CBA is $92.73 and 69% of the analysts covering the company advocate it as a sell.

Trading at $102.24 on last check, this suggests CBA has almost $10 of downside potential baked into the consensus valuation.

Meanwhile, Westpac has a consensus valuation of $25.27 and just 25% of analysts recommend it as a sell. With the bank trading at $21.54 on last check, analysts submit the Westpac share price is currently undervalued given this upside target.

Despite this, looking at the data a little deeper reveals some interesting results. The spread in analyst price targets is just over 53% for both companies, whereas the number of analysts advocating buy/sell for each name has remained relatively constant over the last 12 months.

The post How does Westpac stack up against the CBA (ASX:CBA) share price? appeared first on The Motley Fool Australia.

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The author 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 recommended Westpac Banking Corporation. 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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