Day: January 28, 2022

Analysts name 2 ASX shares to buy right now

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX marketThree different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX marketIf you’re looking for some new additions, then you may want to look at the shares listed below.

Both of these ASX shares have been named as buys by analysts this week. Here’s why they could be in the buy zone right now:

Nearmap Ltd (ASX: NEA)

The first ASX share for investors to look at is Nearmap. It is a growing aerial imagery technology and location data company. Nearmap provides businesses in the ANZ and North American markets with instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools.

While its growth has been a little inconsistent over the last five years, this was driven largely by its dependence on several large customers. With its customer base now more evenly spread, Nearmap’s growth has been smoother. The good news is that management is confident in its growth trajectory from here and is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term.

Earlier this week, analysts at Citi upgraded Nearmap’s shares to a buy rating with a $2.10 price target. Citi expects Nearmap’s cash burn to peak in FY 2022, which it feels could boost investor sentiment.

REA Group Limited (ASX: REA)

A final ASX share to look at is REA Group. It is the digital advertising company that operates Australia’s leading property website, realestate.com.au. It also operates a number of complementary businesses, such as mortgage broking, in the Australian market and internationally.

Although market conditions have been up and down over the last few years, the resilience of its business model allowed REA Group to continue its growth.

The team at Goldman Sachs appear confident this trend will continue. This morning the broker put a buy rating and $168.00 price target on REA’s shares. Goldman is expecting REA to deliver first half profit growth of 32% to $226.7 million.

The post Analysts name 2 ASX shares to buy right now 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 over ten 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 January 12th 2022

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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 Nearmap Ltd. The Motley Fool Australia owns and has recommended Nearmap 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.

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/analysts-name-2-asx-shares-to-buy-right-now/

Why is it when Jerome Powell sneezes, the ASX 200 catches a cold?

The word inflation written with a ticking time bomb.The word inflation written with a ticking time bomb.The word inflation written with a ticking time bomb.

Key points

  • The ASX 200 took a hit following comments from the United States Federal Reserve chair Jerome Powell
  • Expectations of interest rates being lifted in the US earlier is spilling over into the ASX
  • Major Australian banks now forecast rate hikes to occur this year

It’s been a tough few days for the S&P/ASX 200 Index (ASX: XJO). On Thursday, the market took another nose-dive after the United States Federal Reserve chair Jerome Powell made hawkish remarks about inflation.

The market is worried that central banks will be forced to bring forward interest rate increases faster than expected. This has left the ASX 200 in pain, as investors take note of Powell’s signals.

But why have Australian shares been reacting to the comments of Jerome Powell? After all, he is the chair of a central bank in the United States, not Australia.

Two markets cut from the same cloth

While the decisions made by Jerome Powell involve the monetary policy of a different country, Australia — and much of the developed world — is in the same boat.

Whether it is a product of globalisation, or a coincidence, Australia and the United States are both experiencing increased inflation. This in itself isn’t much of a surprise — in fact, central banks were targeting an increase in inflation.

A rebound in inflation would indicate a strengthening of the economy. For example, an increase in wages can suggest a reduction in unemployment. Furthermore, higher living costs may infer households are spending more money — a sign consumer confidence is higher.

However, inflation remains a balancing act for central banks. Let it run too hot and costs can get out of hand. But, if the hammer is brought down too hard and fast, all the economic strengthening can quickly be undone.

This is a tight rope that central banks have been trying to walk since the beginning of the COVID-19 pandemic. To date, Jerome Powell has opted to let inflation push above the target range. Similarly, our own chair of the Reserve Bank of Australia, Philip Lowe, has been cautious to suggest any rate rise in the near future.

Although, this has suddenly changed for Powell after US inflation reached 7% in December. In response, the chair hinted at its first interest rate rise occurring as early as March this year. The abrupt change of plans to the previously peddled roadmap has caught the ASX 200 index off guard.

Now, ASX investors are wary an interest rate rise could be happening sooner than previously expected in Australia.

What ASX 200 banks are forecasting for interest rates?

Soon after Jerome Powell’s revised rate expectations, more revisions flowed from the major banks on their forecasts for Australia rates.

The National Australia Bank Ltd. (ASX: NAB) revealed to investors yesterday that the RBA could move to lift rates in November this year. Following this, additional increases in interest rates could happen in December 2022 and February 2023.

Meanwhile, another ASX 200 bank — Westpac Banking Corp (ASX: WBC) beat the Federal Reserve to the punch line and announced its expectations for the first rate increase in August this year. The major bank provided this forecast on 20 January, nearly a week before Powell’s comments.

The post Why is it when Jerome Powell sneezes, the ASX 200 catches a cold? 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 over ten 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 January 12th 2022

More reading

Motley Fool contributor Mitchell Lawler 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.

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/why-is-it-when-jerome-powell-sneezes-the-asx-200-catches-a-cold/

NAB (ASX:NAB) is the only Aussie bank on this international list of 7,000 companies. Here’s why

A group of happy office workers throw papers in the air and cheer after seeing the Latrobe Magnesium price skyrocket 38%A group of happy office workers throw papers in the air and cheer after seeing the Latrobe Magnesium price skyrocket 38%A group of happy office workers throw papers in the air and cheer after seeing the Latrobe Magnesium price skyrocket 38%

Key points

  • NAB shares finished Friday higher following an uptick on the ASX
  • The bank made the cut for the world’s most sustainable corporations
  • NAB is actively pursuing its goal to achieve net-zero emissions

The National Australia Bank Ltd (ASX: NAB) share price closed higher on Friday. This comes after the company released a statement earlier in the week regarding its global sustainability ranking.

At the closing bell, the banking giant’s shares were up 1.47% at $27.65 apiece.

Let’s take a closer look at what the company had to say to investors.

NAB highlights its commitment to climate action

The NAB share price finished the day higher following positive investor sentiment across the market. The S&P/ASX 200 Index (ASX: XJO) rebounded strongly to end the day 2.19% higher after spending the week in the red.

On Monday, the bank put out a media release highlighting its spot among the world’s most sustainable corporations.

NAB was ranked 71 out of nearly 7,000 companies, based on financial and sustainability performance. It’s worth noting it was the only Australian bank to make the cut and just one of three Australian companies.

NAB group executive, corporate and institutional banking, David Gall, commented:

With 50 per cent of the rating based on a company’s clean revenue and investments, our role as the leading Australian bank for lending to renewables plays an important part in our ranking.

Renewables represent 71 per cent of our total lending to energy. Since 2003 we’ve completed 150 renewable financing transactions and lent over $11.5 billion.

Climate action is everyone’s job. We need to be part of the solution and support our customers as they take action too.

Last year, environmental, social and governance (ESG) issues took focus across businesses, government and investors.

Following the United Nations’ climate summit in November, around 90% of countries have made pledges to cut emissions. In addition, hundreds of major corporations have in place a net-zero target within the next three decades. 

NAB, in particular, has a goal to align its lending portfolio with net-zero emissions by 2050. It is the first Australian bank to sign the Collective Commitment to Climate Action. This will see the bank managing its portfolio to align with the Paris Agreement goal of limiting global warming.

NAB share price summary

Despite recording a negative performance in 2022, the NAB share price has risen by 15% over the last 12 months.

Its shares reached a 52-week high of $30.30 after the release of its FY21 results last November before retreating. It’s worth noting that even at today’s prices, the company’s shares are trading at pre-COVID-19 levels.

NAB commands a market capitalisation of roughly $89.81 billion, making it the fourth largest company on the ASX.

The post NAB (ASX:NAB) is the only Aussie bank on this international list of 7,000 companies. Here’s why appeared first on The Motley Fool Australia.

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

Before you consider NAB, 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 NAB wasn’t one of them.

The online investing service he’s run for over 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 January 13th 2022

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Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/nab-asxnab-is-the-only-aussie-bank-on-this-international-list-of-7000-companies-heres-why/

Here’s why the Neometals (ASX:NMT) share price flew 8% today

A sophisticated older lady with shoulder-length grey hair and glasses sits on her couch laughing while looking at her Neometals shares rising on her smartphoneA sophisticated older lady with shoulder-length grey hair and glasses sits on her couch laughing while looking at her Neometals shares rising on her smartphoneA sophisticated older lady with shoulder-length grey hair and glasses sits on her couch laughing while looking at her Neometals shares rising on her smartphone

Key points

  • The Neometals share price gained 8% on Friday, ending the session at $1.35
  • The gain followed the release of the company’s report for the December quarter
  • Over the productive 3-month period, the company continued developing its many ventures

The Neometals Ltd (ASX: NMT) share price was on the move today after the company released its quarterly activities and cash flow reports.

As of Friday’s close, the Neometals share price is $1.35. That’s 8.4% higher than it was at the end of Thursday’s session.

Neometals share price surges after productive quarter

  • Neometals ended the period with $72.8 million of cash and no debt
  • The company’s lithium-ion recycling technology venture progressed its demonstration plant and signed an agreement to enter North America
  • Its Eli Lithium Process Project achieved a milestone agreement to build a pilot plant
  • Progress continued at the Barrambie Titanium Vanadium Project and Vanadium Recovery Project.

Primobius

Primobius — Neometals’ joint venture with SMS Group GmbH — made strides with the demonstration plant for its lithium-ion battery recycling technology.

It also advanced a memorandum of understanding with steel producer and recycler, Stelco, which is a wholly-owned subsidiary of Canadian group Stelco Holdings Inc (TSX: STLC). The pair made a formal agreement to commercialise the recycling technology in North America.

Stelco has licensed the recycling technology to fast-track its feedstock supply arrangements. Primobius has an option to acquire up to 50% of the resulting recycling entity.

ELi Lithium Process Project

Meanwhile, at the ELi Lithium Process Project – owned 70% by Neometals and 30% by Mineral Resources Limited (ASX: MIN)an agreement was made with Portuguese chemical company, Bondalti Chemicals.

Bondalti will co-fund and construct an electrolysis pilot plant at its chemical complex.

The plant will help the companies decide whether to form a joint venture to build and operate a lithium refinery in Portugal.

Barrambie Titanium Vanadium Project and Vanadium Recovery Project

There was also good news from Neometals’ upstream activities over the December quarter.

The company prepared Barrambie mixed gravity concentrate samples for commercial smelting trials in China.

Additionally, the project’s pre-feasibility study is expected to be released this quarter.

Finally, at the company’s Vanadium Recovery Project – a 50:50 venture with the unlisted Scandinavian mineral development company, Critical Metals – engineering process data was prepared for its feasibility study.

The project’s development activities, including offtake, carbon capture, and other business activities, also continued to advance over the quarter.

What else happened in the December quarter?

On top of all of the above activities, Neometals dropped its second sustainability and environmental, social, and governance (ESG) report last quarter.

Finally, the company waved goodbye to its founder, David Reed. Reed retired from the company’s board in November.

What’s next for Neometals?

The ASX company is continuing to work towards its listing on the London Stock Exchanges’ AIM market in the current quarter.

Additionally, each of Neometals’ businesses is continuing to work towards their respective production goals. There is certainly plenty of news to look out for from Neometals over the coming year.

Neometals share price snapshot

The Neometals share price gained a whopping 66% over the December quarter.

Unfortunately, 2022 hasn’t been so kind. The shares have slipped 18% year to date.

Still, the Neometals share price is 310% higher than it was this time last year.

The post Here’s why the Neometals (ASX:NMT) share price flew 8% today appeared first on The Motley Fool Australia.

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

Before you consider Neometals, 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 Neometals wasn’t one of them.

The online investing service he’s run for over 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 January 13th 2022

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.

from The Motley Fool Australia https://www.fool.com.au/2022/01/28/heres-why-the-neometals-asxnmt-share-price-flew-8-today/