Month: May 2022

There are a select number of exchange-traded funds (ETFs) that give exposure to certain sectors, such as green technology.

Some ETFs are about the entire share market, such as Vanguard US Total Market Shares Index ETF (ASX: VTS) or Vanguard Australian Shares Index ETF (ASX: VAS).

Other ETFs can give exposure to specific sectors like cybersecurity, video gaming or banking.

The below two ETFs are ones that are all about green technology:

BetaShares Climate Change Innovation ETF (ASX: ERTH)

This investment is about a portfolio of businesses that are aiming to fight climate change. BetaShares says the portfolio “comprises a portfolio of up to 100 leading global companies that derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions.”

The types of sectors that it’s invested in include clean energy, electric vehicles, energy efficiency technologies, energy storage, sustainable food, water efficiency and pollution control.

Some of the names in the portfolio include ones like Eaton, American Water Works, Cie De Saint-Gobain, Trane Technologies, Ecolab, Vestas Wind Systems, Infineon Technologies, Tesla, Samsung and Zoom Video Communications.

It’s a pretty diverse portfolio, geographically speaking. The US is less than half of the country allocation, which is less than most globally-focused ETFs. China, France, Germany, Denmark, the UK, South Korea and Japan all get weightings of more than 3%.

The ERTH ETF has an annual management fee of 0.65%.

ETFS Battery Tech & Lithium ETF (ASX: ACDC)

As the name may suggest, this ETF is about businesses involved in battery technology and lithium mining.

ETFSecurities says that “demand for energy storage is being driven by the movement towards emissions reduction and renewable energy.”

It’s a global portfolio, with around 30 names. Some of the names in there include BYD, Allkem Ltd (ASX: AKE), TDK, Mineral Resources Ltd (ASX: MIN), LG Energy Solution, Renault, Livent and NGK Insulators.

The annual management fee of this ETF is 0.69%.

ETFSecurities says:

Battery technology represents a growth investment for many investors given the projected demand for storage in the coming years off the back of growth in renewables use and the electric vehicle industry.

The value chain for battery technology ranges from mining companies, mining for metals like lithium, to manufacturers of battery storage and storage technology providers. All are potential beneficiaries of the anticipated growth in this industry.

Foolish takeaway

I’m not going to say that either of these ETFs is a buy, but I do think that both of them give exposure to two very interesting sectors and megatrends.

The post These 2 ASX ETFs are focused on ‘green’ technology appeared first on The Motley Fool Australia.

More reading

• 2 fantastic ETFs for ASX investors to buy next week
• Does the ETFS Battery Tech & Lithium ETF (ACDC) pay dividends?
• What is a megatrend and which ones are impacting ASX shares right now?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla and Zoom Video Communications. The Motley Fool Australia has recommended Zoom Video Communications. 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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With electric vehicle adoption rising and the clean energy transition underway, demand for lithium has been increasing strongly.

This has led to the white metal commanding sky high prices, which bodes well for the many lithium stocks listed on the Australian share market.

But which lithium shares could be in the buy zone? Two that have been named as buys are listed below. Here’s what analysts are saying about them:

Allkem Ltd (ASX: AKE)

The first lithium stock to look at is Allkem. It is a lithium giant which owns a collection of world class operations and projects across Western Australia, Argentina, and Canada.

Analysts at Morgans have named it their top pick in the lithium industry. They expect electric vehicle demand to remain strong with geopolitical events and a potentially tight oil market accelerating the shift towards electrification. Morgans has an add rating and $14.83 price target on its shares.

It explained:

We maintain our ADD rating given the strong growth outlook for the company and the potential 24% upside to our valuation. AKE’s diverse products and geographical mix adds opportunities to capture value as the market evolves. There is further potential upside that are not in our numbers such as Olaroz stage 3 and/or another lithium hydroxide plant. Should the lithium market continue to remain strong AKE still has a large amount of untapped growth potential.

Mineral Resources Limited (ASX: MIN)

Another lithium stock to look at is Mineral Resources. It is the company behind the massive Wodgina operation, which is one of the largest known hard rock lithium deposits in the world with a production life of over 30 years. It also has the Mt Marion Lithium Project and exposure to iron ore.

Goldman Sachs is very bullish on Mineral Resources and currently has a buy rating and $73.80 price target on the company’s shares.

It commented:

We forecast a more than doubling of group EBITDA to over A$2bn in FY23 driven by higher lithium and low grade iron ore prices, and a 5% increase to mining services volumes to ~300Mt. Over the next 5yrs we expect MIN’s mining services volumes to increase ~50% to over 400Mtpa, lithium volumes to triple, and iron ore equity volumes to nearly double.

The post Analysts name 2 of the best ASX lithium stocks to buy now appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX 200 lithium shares primed to take off
• Here are the top 10 ASX shares today
• Why Allkem, NAB, Pushpay, and Virgin Money UK shares are rising
• Why are ASX 200 lithium shares kicking goals today?
• The Mineral Resources share price leapt 10% this week. Too late to buy?

Motley Fool contributor James Mickleboro owns Allkem Limited. 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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Australia’s Labor Government could see the nation’s renewable energy capabilities triple over the next eight years. That’s likely got some investors wondering where that might leave ASX 200 energy shares.

Quinbrook Infrastructure Partners co-founder and managing partner David Scaysbrook recently told media Labor’s election has made the firm “the most hopeful that we have been in a decade”.

Quinbrook doesn’t invest in ASX energy shares. Rather, its portfolio consists of renewable energy projects worldwide.

He believes the Labor Government could fast-track investment in renewables, growing green energy to generate more than 80% of Australia’s electricity.

Let’s take a look at what that could mean for some major ASX 200 energy shares.

Australian renewables could triple by 2030

Labor’s Powering Australia Plan aims to see 82% of the nation’s power derived from renewable energy by 2030, helping Australia cut emissions by 43%.

The policy saw Australia voting the party into power for the first time in nine years last weekend. It’s also a plan that could see Australia becoming a renewable energy superpower, Scaysbrook says.

“We’ve seen the targets that are being discussed are now anywhere between 80% and 100% by 2030. Just to put that into context, we’re sitting around 30% today.

“The compound rate of growth that that implies is extraordinary and I don’t believe it’s been matched proportionally anywhere else in the world … All the existing renewables in Australia has to be tripled in eight years.”

But it’s not only the chance to decarbonise Australia’s domestic power supply that’s exciting the institutional investor.

“There’s a genuine intent to create a rapid shift in deployment of more green energy and renewables, and also to start capturing the opportunities that lie at Australia’s feet in industrial decarbonisation,” he said.

Could these ASX 200 energy shares jump on the green train?

Plenty of ASX 200 energy shares could be impacted by a rapidly changing energy environment.

Notably, AGL Energy Limited (ASX: AGL). The company is Australia’s largest emitter and its management recently denied the possibility of speeding up its build-out of wind farms to meet a 2030 deadline.

Additionally, its planned demerger has been criticised as potentially slowing down the company’s journey to renewable energy and decarbonisation.

Also worth mentioning, Wilson Asset Management boss Geoff Wilson is critical of the company’s work towards renewables. He recently told The Australian the company’s invested “virtually nothing” in renewables since financial year 2018.

Thus, AGL might be forced to shift gears over the years following the leadership handover. It’s already flagged that it be reassessing closure dates for its coal-fired power stations annually in the years to come.

Origin Energy Ltd (ASX: ORG), on the other hand, has a large renewable portfolio and plans to ditch coal by 2025. It might not be stressed to help meet the government’s target.

Of course, ASX 200 energy producers could also feel the heat following the change of government. Fossil fuel producers such as Santos Ltd (ASX: STO), Woodside Energy Group Ltd (ASX: WDS), Whitehaven Coal Ltd (ASX: WHC), and Beach Energy Ltd (ASX: BPT) could find themselves less globally competitive, my colleague Bernd Struben reported earlier this week.

Finally, while not an energy share, ASX 200 iron giant Fortescue Metals Group Limited (ASX: FMG) bears a mention.

Scaysbrook dubbed the ASX 200 iron giant’s Fortescue Future Industries “a champion of hydrogen”. That could mean big things for a future Australian renewable energy export industry.

The post Australia’s renewable energy output could triple by 2030 under Labor. Will that impact these ASX 200 shares? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Woodside share price steady on first day trading under new name
• Why has the Fortescue share price gained 10% in a week?
• AGL share price lifts despite intensifying demerger opposition
• What exactly is the difference between Woodside Energy (WDS) and Woodside Petroleum (WPL)?

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 Scott Phillips.

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The Westpac Banking Corp (ASX: WBC) share price is rising on Thursday.

In morning trade, the banking giant’s shares are up 1% to $24.12.

Why is the Westpac share price rising?

The catalyst for the rise in the Westpac share price has been the release of an update on the bank’s superannuation business.

According to the release, Westpac and BT Funds Management have entered into an agreement to merge BT’s personal and corporate superannuation funds with Mercer Super Trust through a successor fund transfer (SFT).

The merger of BT’s personal and corporate superannuation funds includes the Westpac employee default plan, Westpac Group Super Plan. BT employees who support these funds will be offered employment by Mercer as part of the agreement.

Not included in the agreement is superannuation held on Westpac’s BT Panorama and Asgard platforms.

Anything else?

Westpac also revealed that it has entered into an agreement to sell its Advance Asset Management business (Advance) to Mercer Australia.

Advance is a multi-manager investment business which provides specialist funds management services and products, including for certain investment options available through BT Super’s personal and corporate superannuation funds.

It had $43.7 billion funds under management at end of March and manages a number of products available through BT Panorama.

What will the financial impact be?

The SFT will result in a small loss as a result of transaction and separation costs, whereas the sale of Advance will result in a gain.

The net effect of both over the remainder of FY 2022 and FY 2023 is expected to be an after-tax gain of $225 million.

Westpac’s Specialist Businesses Chief Executive, Jason Yetton, commented that these agreements were part of the bank’s simplification strategy. He said:

This is a further step in the simplification of Westpac and supports the Group’s focus on banking in Australia and New Zealand. It also provides significant benefits for BT Super members, new opportunities for our people and redefines the landscape of superannuation in Australia.

Since the formation of Westpac’s Specialist Businesses Division around two years ago we have made significant headway on our portfolio simplification agenda, having announced eight business sales, of which five have now completed.

The post Here’s why the Westpac share price is pushing higher today appeared first on The Motley Fool Australia.

More reading

• Own Westpac shares? Here’s why the bank’s $45b super business is hitting headlines
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• Is the Westpac share price the cheapest in the bank sector today?
• 2 high quality ASX 200 dividend shares analysts have named as buys
• Why Nufarm, Pendal, Wesfarmers, and Westpac shares are sinking

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Scott Phillips.

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Bank of Queensland Limited (ASX: BOQ) shareholders will have something to cheer about today as the company pays out its latest dividend.

The regional bank is rewarding eligible investors with a fully franked interim dividend of 22 cents per share.

At Wednesday’s market close, the Bank of Queensland share price finished 0.66% lower to $7.52.

For context, the S&P/ASX 200 Index (ASX: XJO) climbed yesterday with a 0.37% gain to 7,155.2 points.

Let’s take a look below at all the details regarding the company’s dividend.

Bank of Queensland pays out H1 FY22 dividend

Bank of Queensland reported growth across key metrics in its results for the first half of the 2022 financial year.

In summary, statutory net profit after tax (NPAT) rose 38% to $212 million when compared to the prior corresponding period. This was driven by an increased non-interest income and credit to loan impairment expense along with disciplined costs.

Management noted the careful execution of the ME integration and digital transformation program through the period of ongoing economic uncertainty.

The company is aiming for all of its retail brands to operate under a common cloud-based digital platform.

Moving on, the board opted to increase its interim dividend by 29% on H1 FY21’s 17 cents per share.

When looking at the current share price, Bank of Queensland is trailing on a forecast fully franked dividend yield of 5.87%.

Bank of Queensland share price snapshot

Over the past 12 months, the Bank of Queensland share price has fallen by roughly 15%.

Notably, its shares hit a 52-week low of $7.31 on 12 May before quickly rebounding in the days after.

Bank of Queensland has a price-to-earnings (P/E) ratio of 12.08 and commands a market capitalisation of roughly $4.86 billion.

The post The Bank of Queensland dividend is being paid today. Here’s the lowdown appeared first on The Motley Fool Australia.

More reading

• Is the Bank of Queensland share price a buy as an inflation hedge?
• Analysts name 2 ASX dividend shares to buy with juicy yields
• Could Bank of Queensland shares deliver 46% upside AND a 4.5% dividend yield in 2022?
• How does the Bank of Queensland dividend compare to the other ASX 200 banks?
• 2 high-yield ASX 200 dividend shares to fight inflation according to brokers

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 Scott Phillips.

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The Appen Ltd (ASX: APX) share price is squarely in focus on Thursday morning following news the AI training data company has received a takeover proposal.

Before the opening bell, Appen laid to rest the rumours this morning, confirming the receipt of an unsolicited, conditional, and non-binding indicative proposal from TELUS International. The Canadian technology company is looking to acquire 100% of Appen at a price of $9.50 per share.

This would put an extra ~48% in the pockets of shareholders from yesterday’s $6.40 closing price.

Appen share price on watch amid acquisition news

The Appen share price might be in for an exciting session today following a $1.2 billion offer from one of the company’s competitors.

According to the release, TELUS is pursuing a takeover of Appen by way of a scheme of arrangement. The initial offer is for $9.50 per share. However, the former tech darling is already tapping Telus on the shoulder and asking for a better offer.

In hopes of a sweetened deal, the board is offering TELUS limited business and financial information upon the Canadian company entering a confidentiality agreement. From here, Appen’s board intends to carefully consider any revised proposals put on the table.

Notably, TELUS acquired Lionbridge AI for roughly US$935 million last year. At the time, the company highlighted that Lionbridge was one of only two globally-scaled managed training data and data annotation services providers in the world.

Today’s news suggests TELUS is attempting to secure somewhat of a monopoly by adding Appen under its umbrella.

From here, Appen will be looking to ensure it gets a worthwhile payout for the business. Given the suppressed Appen share price, the TELUS bid looks opportunistic to many.

What else?

Appen provided shareholders with a trading update in addition to the takeover news. Unfortunately, the details continued to paint the picture of slowing performance. Namely first-half earnings before interest, tax, depreciation, and amortisation (EBITDA) being ‘materially’ lower than the prior corresponding period.

Furthermore, the company’s year-to-date revenue is approximately 14% lower than the prior year. The impacted EBITDA has been attributed to investment in transformation, product, and technology. This news comes ahead of the annual general meeting that will be held tomorrow.

The Appen share price is down 43% since the beginning of the year.

The post Appen share price on watch amid $1.2 billion takeover bid appeared first on The Motley Fool Australia.

More reading

• If you’d invested $10,000 in Appen shares 7 years ago, lucky you! Here’s what you’d have now
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• ASX 200 midday update: Brambles rockets, Goodman upgrades guidance
• Here’s why I think ASX-listed Appen could be a potential takeover target

Motley Fool contributor Mitchell Lawler has positions in Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen 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 Scott Phillips.

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If you’re looking for some blue chip ASX 200 shares to buy, then the two listed below could be top options.

Here’s why analysts at Morgans believes these blue chips are in the buy zone and have major upside potential over the next 12 months:

Macquarie Group Ltd (ASX: MQG)

This investment bank could be a blue chip ASX 200 share to buy right now according to analysts at Morgans. Its analysts like the bank due to its positive long term prospects thanks to its exposure to structural growth markets.

We continue to like MQG’s exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while the company continues to gain market share in Australia mortgages.

Morgans currently has an add rating and $215.00 price target on its shares. Based on the current Macquarie share price, this implies potential upside of 20%.

QBE Insurance Group Ltd (ASX: QBE)

Another blue chip ASX 200 share that has been tipped as a buy by the broker is insurance giant QBE. Morgans likes the company due to its exposure to rising rates and its cost reduction plans. In addition, it feels the company’s shares are trading on undemanding multiples at the current level.

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~14x FY22F PE.

Morgans has an add rating and $14.45 price target on the company’s shares. Based on the current QBE share price, this implies potential upside of approximately 18% for investors.

The post Broker names 2 ASX 200 shares with major upside potential appeared first on The Motley Fool Australia.

More reading

• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• What’s going on with the Challenger share price today?
• Is Macquarie a quality ASX dividend share worth buying?
• Broker names 2 ASX 200 dividend shares to buy this week
• Is QBE considered an ASX dividend share?

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 recommended Macquarie Group Limited. 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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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Catapult Wealth portfolio manager Tim Haselum picks whether he would cut or keep three ASX shares that have plummeted in value this year.

Cut or keep?

The Motley Fool: Let’s take a look at three fallen stars of the ASX. Firstly, would you keep or cut A2 Milk Company Ltd (ASX: A2M)?

Tim Haselum: For us it’s a hold. I know it’s continuing to get smashed, but for us it’s not cheap particularly. When you look at other consumer staple stocks, its [price to earnings ratio] P/E‘s still relatively high.

I think we just have to ignore the China story. We know they’ve got supply chain issues and we know all the China bad side, but for us, one, it’s consumer staples, and two, we will likely see some recovery as things reopen with supply-side issues dropping away. 

But it’s a growth opportunity outside of China we like. New Zealand, the US, Malaysia, Singapore, and Vietnam, they’ve launched new products, they’ve got a net cash position of around $800 million, they’ve got the firepower to wait this out. 

And even though the A2 moniker, if you look at the science, is a bit dubious, the brand clearly has value. Clearly, the punters do like it. 

Yes, there’s competition and, yes, it’s not going to go back up to previous highs, for sure, but we do think there’s growth in it. For us, it’s a hold and let’s see what that can do.

MF: Another one heavily influenced by the Chinese market — would you cut or keep Treasury Wine Estates Ltd (ASX: TWE)?

TH: Treasury Wines, for us, I think it’s too much of a struggle. For us, it’s a cut. 

Their last financials they said they expect zero sales into China. We saw Penfolds saying that they’re going to try and bypass this by opening a winery in China. We just think that it’s just too hard to replicate a Chinese market in the short term. Even though maybe in the long term they can claw it back, this is a pretty major shift for them in the wine industry. 

Australian wine has got a good brand name, but it’s very highly competitive. For us, because they have those issues where they had to dump out cheap wine because nobody wanted it, they’ve tried to shift to the more expensive market at the worst possible time.

When we think about wine versus milk, it’s a very different story. Wine for us, when you have rates rising and you might see mortgage distress and inflation is destroying real wages, that’s a bit of a tough one. For us, I think that wine is one where we’re happy just to cut it out and maybe look at it later on. 

Certainly could turn it around, but at this stage, we just put this one into the ‘too hard’ basket.

MF: Travel is back in a big way. So would you cut or keep Flight Centre Travel Group Ltd (ASX: FLT) shares?

TH: When you look at its market cap, it’s about where it was pre-COVID. If you think the share price is going to go up from here because the other side seems to be priced in, you’re expecting growth beyond pre-COVID. I just think that’s one where that’s a tough argument. 

You’ve got to remember there’s a petrol price story here and inflation is turning everyone. 

The argument for corporate travel, for example, is that corporates are going to jump back onto planes and do meetings. Well, maybe. I don’t think it’s going to fully recover anytime soon. 

There’s going to be a level of both consumer and corporate that’s going to be held back here. I think the whole interest rate rise story, there’s a big psychological effect on that across the board.

For us, looking at the market cap and looking at what’s priced in, I would say it’s one where it’s probably around about close to fair value normal times. 

In a situation like this, I’d say the market’s ignoring downside risk.

The post These 3 ASX shares have plunged this year: Expert reveals what to do appeared first on The Motley Fool Australia.

More reading

• Why is the Flight Centre share price still attracting so much short interest in May?
• Could the new Labor Government herald better days for Treasury Wine shares?
• The Flight Centre share price has taken off 5% in a week. Is travel really ‘back, baby’?
• Can A2 Milk shares benefit from the US baby formula shortage?
• These are the 10 most shorted ASX shares

Motley Fool contributor Tony Yoo 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 recommended A2 Milk, Flight Centre Travel Group Limited, and Treasury Wine Estates Limited. 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was a positive performer and pushed higher. The benchmark index rose 0.4% to 7,155 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to rise on Thursday following a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% higher this morning. On Wall Street, the Dow Jones rose 0.6%, the S&P 500 climbed 0.95%, and the Nasdaq stormed 1.5%. This was driven by the release of the US Fed’s minutes which revealed plans for further rate hikes to tame inflation.

Champion Iron full-year results

The Champion Iron Ltd (ASX: CIA) share price will be one to watch on Thursday when the iron ore miner releases its full-year results. According to a note out of Goldman Sachs, it is expecting Champion to report revenue of C$1,466 million and EBITDA of C$924 million. This will be a 14% and 12.8% increase, respectively, over the prior corresponding period.

Oil prices rise

It could be a good day for energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.95% to US$110.80 a barrel and the Brent crude oil price is up 0.75% to US$114.41 a barrel. Optimism over demand boosted prices.

Tabcorp downgraded

The Tabcorp Holdings Limited (ASX: TAH) share price could be almost fully valued according to analysts at Goldman Sachs. According to a note, the broker has downgraded the wagering company’s shares to a neutral rating with a $1.07 price target. While Goldman is reasonably positive on new Tabcorp and notes that it offers “a unique business mix,” it just doesn’t see enough value to keep its buy rating.

Gold price tumbles

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a tricky day after the gold price tumbled lower overnight. According to CNBC, the spot gold price is down 0.7% to US$1,852.10 an ounce. The release of the US Federal Reserve’s minutes weighed on the precious metal.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• This is the top ASX 200 share I wish I’d bought when starting out
• Woodside share price steady on first day trading under new name
• These 3 shares are topping the ASX 200 volume charts on Wednesday
• Why are ASX gold shares leaping today?

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 Scott Phillips.

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Looking for a blue chip ASX 200 share or two for your portfolio following the market selloff? Listed below are two that have been given buy ratings recently.

Here’s what you need to know about them:

Goodman Group (ASX: GMG)

The first ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of warehouses, large scale logistics facilities, and business and office parks.

Goodman recently released its third-quarter update and revealed that it continues to experience strong demand for its properties. This is being driven by increased intensification of use, long-term supply chain requirements, tight supply in urban infill locations and the quality of its assets.

Demand has been so strong, that last week management upgraded its earnings guidance for the second time in FY 2022. Its latest guidance reveals expectations for annual growth of at least 23%.

The good news is that its growth looks unlikely to stop here. Goodman has $13.4 billion of development work in progress, which is expected to underpin further solid growth over the coming years.

Citi is a fan of the company and sees the recent weakness in the Goodman share price as a buying opportunity. Following its third quarter update, the broker said: “We re-iterate Buy and see the -25% YTD share price decline as a good entry point.”

Citi currently has a buy rating and $29.50 price target on the company’s shares. This implies potential upside of 51% for investors.

Xero Limited (ASX: XRO)

Another ASX 200 share that has been sold off is Xero. The leading cloud-based business and accounting software provider’s shares are down 40% since the start of the year due to weakness in the tech sector.

While this is disappointing, analysts at Goldman Sachs believe this could be a buying opportunity for long term focused investors. Particularly given its view that Xero is a “compelling global growth story” with potential for multi-decade strong growth. This is being underpinned by its global expansion and platform strategy, which Goldman highlights is “showing positive signs.”

The broker recently reiterated its buy rating on the company’s shares with a $118.00 price target. This suggests potential upside of 35% for investors over the next 12 months.

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

More reading

• What’s happening with ASX 200 tech shares today?
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• Here’s why ASX 200 tech shares are under pressure on Tuesday
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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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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