While recent volatility has been disappointing, it may have created attractive entry points for some ASX 200 shares.

Two such shares are listed below. Here’s why analysts see a lot of value in them at current levels:

CSL Limited (ASX: CSL)

The first ASX 200 share to look at is CSL. It is one of the world’s leading biotherapeutics and vaccine companies.

CSL has a world class portfolio of products that are used around the world to treat immunodeficiencies, bleeding disorders, hereditary angioedema, Alpha 1 antitrypsin deficiency, and neurological disorders.

But management isn’t resting on its laurels. It is investing ~US$1 billion a year (and growing) into research and development and is in the process of making a major acquisition. The latter will add treatments for iron deficiency, nephrology and cardio-renal through the acquisition of Vifor Pharma for $17 billion.

The team at Citi is positive on its growth outlook over the coming years. For example, this year the broker is forecasting a net profit of US$3,158 million. It expects this to then grow to US$4,689 million by FY 2024.

Citi currently has a buy rating and $340.00 price target on the company’s shares. This compares to the latest CSL share price of $264.52.

REA Group Limited (ASX: REA)

Another ASX 200 share to look at is REA Group. It is best known as the digital advertising company that operates Australia’s leading property website, realestate.com.au.

But there’s more to REA than just the realestate.com.au website. It also owns and operates a number of complementary businesses in the Australian market and internationally. These include property listing websites and mortgage broking.

All in all, together with new revenue streams, its good cost control, and a strong housing market, REA appears well-placed for growth over the coming years.

Goldman Sachs is confident in its growth outlook. It is forecasting a net profit of $388 million in FY 2022, $445 million in FY 2023, and then ultimately $510 million in FY 2024.

In light of this, the broker has put a buy rating and $193.00 price target on REA’s shares. This compares to the current REA share price of $146.83.

The post Analysts name 2 excellent ASX 200 shares to buy appeared first on The Motley Fool Australia.

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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 and has recommended CSL Ltd. The Motley Fool Australia has recommended REA Group 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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The Fortescue Metals Group Limited (ASX: FMG) share price will be one to watch on Monday.

This follows the release of an announcement after the market close on Friday.

Why is the Fortescue share price on watch?

Investors may want to keep an eye on the Fortescue share price on Monday after it announced an agreement with China’s state-owned Sinosteel.

According to the release, the two parties have signed a binding Memorandum of Understanding (MoU) to complete a rapid project assessment of Sinosteel’s Midwest Magnetite Project in Western Australia. The assessment will include a rail and port development at Oakajee.

Following the conclusion of the 12 month rapid project assessment and subject to the outcome of that process, Fortescue will have the option to acquire up to 50% of the Midwest Magnetite Project and up to 100% of the proposed port and rail infrastructure project.

Fortescue’s Chief Executive Officer, Elizabeth Gaines, said: “For over three decades, Sinosteel has demonstrated their strong performance and ability to deliver mining projects in Australia including their Channar Mine in the Pilbara. The signing of this MoU demonstrates Fortescue’s commitment to our strategic pillars of investing in the long-term sustainability of our iron ore business, expanding into new regions and continuing to deliver strong returns to our stakeholders.”

Ms Gaines also sees opportunities for its highly divisive Fortescue Future Industries business to leverage the operation.

She said: “We look forward to working with Sinosteel on the next steps for this important project for Western Australia which, in addition to the magnetite and infrastructure development, offers the opportunity for a co-ordinated project combining Fortescue’s iron ore and infrastructure pedigree with Fortescue Future Industries’ green energy objectives.”

“Future development including a renewable, green hydrogen hub in the Midwest region at Oakajee would deliver a large-scale resources and renewables project for Western Australia, further underpinning our enduring relationship with China,” Ms Gaines added.

The post Fortescue (ASX:FMG) share price on watch amid Sinosteel Oakajee agreement appeared first on The Motley Fool Australia.

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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. 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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Key points

• The CogState share price fell as low as $1.84 today — 20% down on yesterday’s close
• The neuroscience technology company released a quarterly update today
• Clinical sale contracts have increased by 141%, hitting a new record

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The CogState Limited (ASX: CGS) share price flatlined today after the company released a business and investor update this morning.

At market close, the CogState share price was down 15.95% to $1.95. The share price bounced back in late afternoon trade after declining to an intraday low of $1.84.

Whilst CogState reported record figures for contracts and revenue, its shares continued the bleeding today as they have all month. The CogState share price began 2022 at $2.55 on the first day of ASX trading on 4 January. That’s a 23% dip to date.

So what exactly did CogState report? Let’s take a closer look.

CogState investors unenthused by results

CogState aims to provide tools to measure brain health and cognition in order to assist in research and remedies.

Today’s announcement reveals just a small number of business financials, with a more detailed report set to be released on 24 February.

CogState’s business update revealed:

• Revenue for 2Q22 up 40% at $10.8 million against its prior corresponding period (PCP)
• Revenue for 1H22 up 67% at $23.1 million compared to PCP
• $24.6 million in net cash as of 31 December

Record figures for CogState

In its investor report, CogState revealed a number of records hit during the quarter, including:

• A 141% increase in executed clinical sale contracts amounting to $54.5 million
• A 78% increase in contracted future revenue at $132.9 million
• A 67% increase in group revenue at $23.1 million

The company said Alzheimer’s trials have continued to boost its clinical sales contracts. In 1H22, the disease accounted for 90% of CogState sales contracts.

What else is news?

Just recently, CogState announced that its brain assessment tool, CogMate, is to be marketed in Taiwan and Hong Kong through its Taiwanese subsidiary, Eisai Taiwan Inc.

CogMate is a multilingual tool that measures cognitive performance. It can be used with smartphones and other smart devices.

CogState hopes the product will assist in the “self assessment and prevention” of diseases such as dementia, with ageing populations in mind.

Exposure to other countries, including Singapore, is on the horizon.

Cogstate share price snapshot

Over the past 12 months, the CogState share price has leapt 75%.

There was a 50% jump in June after the company announced its Alzheimer’s therapeutic had received accelerated approval based on its clinical trials. At that time, the CogState share price was $1.40. It also saw a sharp 8% jump in September to $1.87.

The company has a market capitalisation of just over $402 million and a price-to-earnings ratio (P/E) of 55.25.

The post CogState (ASX:CGS) share price crashes 20% on quarterly update appeared first on The Motley Fool Australia.

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Motley Fool contributor Alice de Bruin 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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Key points

• The Wesfarmers share price has descended more than 10% since the start of the year
• COVID-19 is impacting consumer confidence and retail sales
• The S&P/ASX 200 Consumer Discretionary Index has fallen almost 8% since 31 December

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The Wesfarmers Ltd (ASX: WES) share price is plummeting this year.

The Western Australian-based conglomerate’s share price has fallen 10.51% since market close on 31 December to finish this week trading at $53.07. It fell 2.27% today alone.

Let’s take a look at what is impacting the company’s shares in January.

What’s going on with Wesfarmers?

The Wesfarmers share price has been on a steady decline since the start of the year with a few positive bumps along the way.

Retail shares have been falling amid declining consumer confidence due to the COVID-19 Omicron variant.

Early this week, an ANZ-Roy Morgan survey revealed consumer confidence had dropped 8.1 points to its lowest level since October 2020. This followed confidence falling 2.4 points in the first week of January.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ), which includes Wesfarmers, has fallen 7.77% since 31 December.

However, on Monday the Wesfarmers share price had a minor reprieve following the release of its half-yearly results up to 31 December.

The company anticipates its net profit after tax to decline by 12.5% to 16.5% compared to the previous corresponding period. Kmart and Target sales fell 10.3% due to COVID-19 restrictions and Target store closures. However, the results were in line with expectations.

Analysts at Citi maintained their sell rating on the company’s shares this week with a $50 price target. That’s 5.8% less than the current share price. Citi expressed concerns about consumer spending and increased COVID-19 costs.

However, there could be brighter days coming in the view of some analysts. Morgans upgraded Wesfarmers shares to a buy rating on Tuesday, describing the company as “high quality”. The broker gave the company a price target of $60.80. That is 14.6% more than the current share price.

Wesfarmers share price snapshot

The Wesfarmers share price has returned 1.6% in the past 12 months. This week it has fallen 1.7%, while it has slumped 9.97% over the past month.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has returned 5.16% in the past year.

The post What’s happening to the Wesfarmers share price (ASX:WES) this year? appeared first on The Motley Fool Australia.

More reading

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• Own Wesfarmers (ASX:WES) shares? Jefferies just lowered FY22 earnings forecasts

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 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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