Month: May 2022

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Over the last 24 hours, the price of Shiba Inu (CRYPTO: SHIB) had fallen roughly 6% as of 1:55 p.m. ET today for no obvious reason, although investors look to be taking a breather after a strong rally in recent days.

So what

Last Thursday, Shiba Inu traded at $0.00000856 at its low for the day. On Friday and into the weekend, it rallied to $0.000014 and currently trades around $0.000012.

Last week was extremely volatile for cryptocurrencies as the price of Bitcoin briefly dipped below $26,000 multiple times while the collapse of the algorithmic stablecoin TerraUSD spooked investors. Shiba Inu outperformed Bitcoin last week.

Part of this could be related to Shiba Inu’s recently launched burning portal tokens, which have begun taking tokens out of Shiba’s current overall supply of more than 587 trillion tokens. Some believe this could help Shiba Inu’s supply-and-demand dynamics and eventually drive the price higher.

Now what

Shiba Inu started as a meme-inspired cryptocurrency and while it has accumulated a decent market cap, I’ve never seen any appeal to the token from a fundamental investing standpoint.

It has no real technical advantage or real-world use case. It has an extremely large amount of tokens and if you thought Bitcoin was hard to value, then Shiba Inu is next to impossible.

Additionally, as the Federal Reserve continues to aggressively raise its benchmark overnight lending rate and begins unwinding its balance sheet, which effectively removes liquidity from the economy, investor appetite for riskier assets is likely to decline. I would expect this to be even more of a case for an asset like Shiba Inu, which is why I would recommend staying away.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Shiba Inu is down today appeared first on The Motley Fool Australia.

More reading

• Good riddance to meme speculators ditching Bitcoin: expert
• Can regulators prevent another US$45 billion crypto stablecoin meltdown?
• 2 cryptocurrencies that could dwarf Shiba Inu
• Is the Bitcoin price heading all the way back down to US$20,000?
• Shiba Inu is down 85%, but here’s how it could recover

Bram Berkowitz has positions in Bitcoin.The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

It’s Monday, and with the Dow, S&P 500, and Nasdaq all down fractions of a percent, it seems stock markets are going into the red again today — and so is Tesla (NASDAQ: TSLA).      

As of 11:10 a.m. ET, Tesla shares have fallen 4.2% on reports that COVID-19-related lockdowns in China have dented the company’s (still impressive) market share in electric vehicles (EVs) — and that the situation won’t be immediately fixed.

So what

Tesla remains “dominant” in EVs, reports TheFly.com today, retaining a 20% market share, but competition is heating up and the company lost market share to new rivals in 2021. For consumers, this is great news — investment bank Bernstein says most growth in EV sales last year came from new models, “highlighting the pace of innovation in EVs” and providing new options for car buyers. With Tesla no longer the only game in town, it makes sense that its market share would begin to erode.  

That being said, Tesla’s problems are magnifying in 2022 as the coronavirus crisis in China continues to drag on. Last week, you’ll recall, shutdowns to contain COVID in Shanghai in April slowed Tesla’s production to as few as 200 cars per day. Today, Reuters reports Tesla is haltingly restoring production, and back to 1,200 units per day — less than half capacity — but has postponed by another week its plans to ramp to 2,600 units per day.  

Now what

Are these problems big enough to justify subtracting $32 billion from Tesla’s market capitalization, though? I don’t think so.

Consider: Tesla’s production in China may have been interrupted by COVID. Recovery of past production levels may have been delayed by another week. But at 1,200 cars per day (i.e., 438,000 vehicles a year), Gigafactory Shanghai is already nearly back to its production levels of 2021 (484,100 vehicles). If it takes Tesla another week — or another month, or even another two months — to get Shanghai producing 2,600 units per day, in the big picture that’s really insignificant. Whenever Tesla gets to that level, the company will be producing just 949,000 vehicles per year at just this single factory — more than Tesla sold worldwide last year!

Seems to me, just the promise that Tesla is working toward this goal is good news for Tesla stock — and today’s sell-off is a buying opportunity. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock got dented today appeared first on The Motley Fool Australia.

More reading

• Why Tesla stock is falling again today
• The US stock market just took a major dive. What’s going on?
• Why Tesla stock dropped this morning
• Why Tesla stock popped on Tuesday
• Why Tesla stock dropped, then popped on Monday

Rich Smith 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. 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. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Brambles Limited (ASX: BXB) share price has come under pressure on Tuesday.

In morning trade, the logistics solutions company’s shares are down 7% to $10.75.

Why is the Brambles share price sinking?

Investors have been selling down the Brambles share price today following the release of an update on a takeover approach.

On Monday, the company confirmed speculation that it was in takeover talks with private equity giant CVC Capital Partners.

As we covered here, CVC was reportedly considering bidding around $20 billion for the pallet and container maker. Based on the Brambles share price at the time, this would imply a premium of ~30%.

However, Brambles advised that the “engagement is preliminary, incomplete and there has been no formal proposal received from CVC.” It went on to warn that there was “no certainty that the engagement will lead to a binding proposal being received from CVC.”

What’s the latest?

As you might have guessed from the Brambles share price reaction, today’s takeover update has not been a good one.

According to the release, CVC Capital Partners has decided to walk away from discussions with Brambles.

The company advised:

Brambles informs the market that CVC has today advised that it will not be putting forward a proposal nor seeking to conduct detailed due diligence at this time due to the current external market volatility. The engagement has therefore concluded earlier today.

What now?

As per yesterday’s announcement, the Brambles board and management team remain focused on implementing the Shaping our Future transformation plan.

This plan builds on the strength of Brambles’ sustainable business model to transform the business and unlock value for customers and shareholders.

Though, it will also continue to explore other options for the company that maximise shareholder value.

The post Brambles share price sinks 7% after takeover talks collapse appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why Brambles, Core Lithium, Infomedia, and Qube shares are charging higher
• ASX 200 midday update: Brambles rockets, Goodman upgrades guidance
• Here’s why the Brambles share price is rocketing 11% on Monday
• Brambles share price on watch as takeover talks confirmed

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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“Meme-stock speculators” selling out of Bitcoin (CRYPTO: BTC), while driving the valuation lower, is the best thing for the cryptocurrency market in the long run.

That’s according to DeVere Group chief Nigel Green, who said it will allow serious investors to buy in without unnecessary inflation of prices.

“This army of get-rich-quick speculators who were all about price frenzies, rather than the actual inherent value of digital, borderless, decentralised money, are now disappearing as crypto prices have lowered.”

The Bitcoin price has lost more than 34% so far this year in Australian dollar terms, and an ugly 21% over the past fortnight.

The flagship crypto has more than halved since early November.

Why this bear market is different from the last one

The last time crypto entered such a bear market was in 2018, marking the start of a long two-year “winter” for digital assets.

But eToro crypto analyst Simon Peters notes the world in 2022 is very different from that time.

“Institutional investors now make up a much bigger proportion of the market, which has already had an observable impact upon not just prices, but the way the market moves,” he said.

“In a positive sign for long-term investors in the crypto space, Goldman Sachs Group Inc (NYSE: GS) and Barclays PLC (LON: BARC) have just tied up a deal to invest US$500 million in Elwood Technologies — an institutional crypto investment platform.”

Green agrees, saying the exit of speculators and “memers” leaves behind a more serious community of crypto investors.

“This is evidenced by the ever-increasing global level of institutional and sovereign investment into the world’s largest cryptocurrency,” he said.

“For these investors, who bring with them enormous capital and clout, the robust fundamentals of it being a digital, global, viable, decentralised, tamper-proof, unconfiscatable monetary system remain – and, in fact, are becoming more valuable as time goes on.”

Bitcoin still the ‘best-performing asset class of the decade’

Despite the large drop in value over the past six months, Green pointed out that Bitcoin is still above its 2020 and 2021 lows.

“Financial markets are going through a period of readjustment as monetary policies are normalised,” he said.

“But as the sugar-rush of free money eases, we can see the real value of assets.”

Bitcoin remained the “best-performing asset class of the decade”, Green added.

And now with the speculators gone, the big investors will be more attracted to crypto, providing stability.

“Without heat and hype affecting prices, we can expect further significant waves of institutional investment into crypto.”

The post Good riddance to meme speculators ditching Bitcoin: expert appeared first on The Motley Fool Australia.

More reading

• Can regulators prevent another US$45 billion crypto stablecoin meltdown?
• Is the Bitcoin price heading all the way back down to US$20,000?
• How is the Bitcoin ETF (EBTC) performing compared to the ASX on Friday?
• Could the next crypto collapse flow through to ASX shares?
• Crypto crash: Why Bitcoin, Ethereum, and Dogecoin are struggling again

Motley Fool contributor Tony Yoo has positions in Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. 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 dividends shares for you income portfolio? If you are, you may want to check out the two listed below.

Here’s what you need to know about these ASX dividend shares:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to consider is this supermarket giant. Coles could be a great option for income investors due to its defensive qualities, strong market position, and solid long term growth prospects.

The latter is being underpinned by its Refresh Strategy, which is leading to significant investments in its online business, distribution, and automation.

The team at Morgans is positive on the company and has an add rating and $20.65 price target on its shares. The broker is also forecasting fully franked dividends of 61 cents per share in FY 2022 and then 64 cents per share in FY 2023.

Based on the latest Coles share price of $18.61, this will mean yields of 3.3% and 3.4%, respectively, over the next two years.

Harvey Norman Holdings Limited (ASX: HVN)

Another ASX dividend share that could be in the buy zone is retail giant Harvey Norman.

The team at Goldman Sachs is very positive on the retail giant and has a buy rating and $5.80 price target on its shares. Its analysts believe Harvey Norman is better value than JB Hi-Fi Limited (ASX: JBH) and has stronger prospects.

It commented: “[W]e prefer HVN due to more protection from online competition given higher regional and boomer exposure as well as lower valuation vs JBH which we believe has been under-investing in the face of softening sector growth and intensifying competition.”

Goldman also expects big dividends in the coming years. It is forecasting fully franked dividends of 43.3 cents per share in FY 2022 and 39.6 cents per share in FY 2023. Based on the current Harvey Norman share price of $4.50, this will mean yields of 9.6% and 8.8%, respectively.

The post 2 top ASX dividend shares analysts are tipping as buys this month appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares of the most trusted brands in Australia
• Own ASX 200 retail shares? Here’s how the majors are tackling climate change
• Do Coles shares offer a dividend reinvestment plan?
• Is the Coles share price an inflation hedge?
• Analysts name 2 ASX dividend shares to buy with growing yields

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 Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET and Harvey Norman Holdings Ltd. 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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It’s been a disappointing 30 days for the Rio Tinto Limited (ASX: RIO) share price.

Before market open today, Rio Tinto shares are $104.40 apiece, 14.19% lower than this time last month.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has tumbled 6.24% in that time.

So, what’s driven the iron ore giant to underperform the market recently? Let’s take a look.

What’s been going wrong for Rio Tinto stock?

There are two major happenings that have likely been weighing on the Rio Tinto share price lately.

The release of the company’s production results for the first quarter of 2022 was the first.

Its production of iron ore and aluminium slumped over the three months ended 31 March, while its copper production recorded an increase.

Still, the company didn’t drop its financial year 2022 production guidance on the back of the disappointing quarter.

But that wasn’t enough to sate the market. The Rio Tinto share price slid 2.7% following the update on April 20.

Secondly, the price of iron ore is currently sitting at around US$125 a tonne, down from around US$150 a tonne this time last month, according to Trading Economics.

Much of the steel-making ingredient’s slump was seemingly due to rising COVID-19 cases in China and resulting continuing lockdowns.

The price of aluminium and copper also tumbled over the period.

Rio Tinto share price snapshot

Rio Tinto’s stock is recording a mixed performance over the long term.

It is currently 4.7% higher than it was at the start of 2022. That means it’s outperformed the ASX 200 by around 11% this year so far.

However, it has tumbled 17% over the past 12 months. Meanwhile, the index has gained 1%.

The post Why has the Rio Tinto share price dumped 14% in a month? appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 mining share has the highest dividend yield in May?
• How big will the Rio Tinto dividend be in 2022?
• Why are ASX 200 mining shares in the green today?
• Why are ASX 200 mining share prices slipping today?
• The Rio Tinto share price has dumped 8% in a week. Is it now cheap?

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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ASX dividend shares could be the answer for generating investment income.

Interest rates are still very low at this stage. After the recent ASX share market volatility, some businesses have seen price declines. This has also had the impact of pushing up potential dividend yields.

Here are two businesses that could be attractive for dividends:

Adairs Ltd (ASX: ADH)

Adairs is a business that sells homewares and furniture. The company has three different brands – Adairs, Mocka, and Focus on Furniture.

In terms of the expected dividend, Adairs is predicted to pay an annual dividend of 19 cents per share in 2022, 26 cents per share in FY23, and 30 cents per share in FY24. This translates into forward grossed-up dividend yields of 10.7% in FY22, 14.7% in FY23, and 16.9% in FY24. Even if the dividend yields aren’t quite that high in the next few years, they are still likely to be pretty high.

The ASX dividend share is setting the growth foundations in a number of ways. In the first half of FY22, it opened two new homemaker centres and upsized four stores. It grew its store floor space by 3.8% in HY22. It increased its membership base by 10% over the prior 12 months, with ‘Linen Lovers’ approaching one million members.

Online sales represent 43% of total group sales and online sales continue to grow across all brands.

A new national distribution centre has been opened and the company’s supply chain consolidation project will be complete by June 2022. This is expected to save a few million dollars in costs annually once fully operational.

The company plans to keep increasing its total retail floor space, expand the range, and grow the Focus on Furniture business (which was recently acquired).

I think the Adairs share price is looking cheap right now, at under 7x FY23’s estimated earnings, according to Commsec.

GQG Partners Inc (ASX: GQG)

GQG is a fund manager that has a variety of investment strategies. Its investment performance is continuing to attract inflows of funds under management (FUM).

In the quarter for the three months to March 2022, it experienced net inflows of US$3.4 billion, despite “an extremely challenging macro environment”.

I think the fund manager has an attractive future if it can continue to win net inflows at the pace that it has been.

In my opinion, the 20% drop in the GQG Partners share price in 2022 makes the projected dividend much more attractive for investors. The ASX dividend share has committed to paying a high dividend payout ratio of its earnings each year.

According to Commsec, GQG is predicted to pay a dividend yield of 9.3% in FY23 and 10.4% in FY24.

I believe the business is setting itself up for long-term growth by offering its investment strategies in other markets outside of the US, such as Australia and Canada. FUM growth could be useful for the GQG profit and dividends because of the operating leverage of the fund’s management model. It doesn’t cost GQG much to manage another $1 billion of FUM.

The post 2 ASX dividend shares with yields above 5% appeared first on The Motley Fool Australia.

More reading

• Top ASX dividend shares to buy in May 2022
• 2 ASX dividend shares that brokers are tipping as buys right now
• 2 ASX dividend shares to buy this month: experts
• Are these 2 ASX dividend shares buys in May 2022?
• Analysts name 2 inflation-beating ASX dividend shares to buy

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 ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. 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 Newcrest Mining Ltd (ASX: NCM) share price has tumbled in the past month as investors head for the exits.

On 19 April, the gold miner’s shares hit a year-to-date high of $28.96, before crashing more than 14%.

At Monday’s market close, Newcrest shares clawed back some ground to finish 0.81% higher at $24.78.

Let’s take a look at what’s driving the recent slump.

What’s triggering the Newcrest share price to sink?

The deceleration in the price of gold has possibly weakened investor sentiment and prompted a sell in the Newcrest shares.

Macroenvironmental factors such as China’s COVID-19 crisis, the Russian war in Ukraine, inflation movements, and rate hikes are also causing panic.

The International Monetary Fund said it expects global economic growth to slow significantly for the remainder of the year.

Current projections expect the world’s economy to expand by 3.6% in 2022, down from 6.1% last year.

In addition, the price of gold has been on a steady decline over the last 30 days to trade at US$1,822.65 per ounce. This represents a decline of around 10% over the above timeframe.

On 18 April, the precious metal almost touched the psychological US$2,000 barrier, before falling wayside.

The drop in the gold price is likely impacting Newcrest’s earnings, which could be driving investors to look elsewhere.

What do the brokers think?

A number of brokers rated the Newcrest share price with different price points following the company’s third-quarter results, announced on April 28.

The team at UBS cut its 12-month price target on Newcrest shares by 2.2% to $26.50. Based on the current share price, this implies a potential upside of 6.9% for investors.

On the other hand, Macquarie analysts reduced their rating by 2.9% but had a bullish price of $33.00. Its analysts believe the company’s shares still have some room to bounce higher. This implies a potential upside of 33.2% from the current price.

The post Why has the Newcrest share price fallen 14% in a month? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• ASX 200 midday update: Block and Xero rebound, gold miners fall
• 5 things to watch on the ASX 200 on Friday
• If gold is regarded as a ‘safe-haven’ asset, why is the Newcrest share price still tumbling?
• 5 things to watch on the ASX 200 on Monday

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 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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The Woolworths Group Ltd (ASX: WOW) share price arguably has many positives. Woolies is one of the most famous and established businesses in Australia with a commanding lead in its industry’s market share. Woolworths is also one of the largest businesses on the ASX. It’s currently the 10th-largest company on the S&P/ASX 200 Index (ASX: XJO) by market capitalisation.

But one area that Woolworths shares might not shine too brightly is dividends. The ASX 200 is known for its dividend prowess. Most of the top shares on the index pay out large dividends, exemplified by shares such as Westpac Banking Corp (ASX: WBC) and BHP Group Ltd (ASX: BHP). Today, Westpac shares offer a trailing dividend yield of 4.96%. BHP is even more impressive with its 10.58% trailing yield.

But the Woolworths dividend? It’s currently sitting at 2.51%.

Woolworths dividend: Why so low?

Now 2.51% is nothing to turn one’s nose up at. But it’s arguably rather small fry when compared to some other ASX shares. There are the heavy hitters, such as Westpac and BHP, of course. But consider this – at the current time, Woolworths’ arch-rival Coles Group Ltd (ASX: COL) is smashing Woolies with its own dividend yield of 3.28% right now. Woolies’ other major ASX-listed rival is Metcash Limited (ASX: MTS). Metcash is the company behind the IGA-branded supermarket chain. And it currently has a dividend yield of 4.32%.

When it comes to dividends in the supermarket space, Woolies is the clear loser. So why is this the case?

Well, it’s mostly a function of the Woolworths share price. See, Woolies currently trades at quite a premium compared to its rivals. Woolworths shares’ current price-to-earnings (P/E) ratio of 42.92 tells us that investors are willing to pay $42.92 for every $1 of earnings Woolworths makes. In contrast, investors are only willing to pay $24.69 for every dollar of earnings Coles brings in. And just $19.76 for every $1 of Metcash earnings.

If investors decided to give Woolies shares the same valuation as Coles currently enjoys, it would result in a large share price reduction for Woolworths. And thus, a big increase in Woolworths’ dividend yield. But that is not the case today. For whatever reason, investors are pricing Woolies shares at a premium to its competitors. And that comes with a lower dividend yield as a result.

At the current Woolworths share price, this ASX 200 grocery giant has a market capitalisation of $45.69 billion.

The post Why are the dividends from Woolworths shares still so small? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• Here’s why the CBA share price could soon be in for some pain
• Brokers: 2 ASX 200 shares that could be top buys for growth
• Here are the 3 most heavily traded ASX 200 shares on Monday

Motley Fool contributor Sebastian Bowen 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 positions in and has recommended COLESGROUP DEF SET. 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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If you’re looking for exposure to the mining sector, then you may want to check out the two ASX 200 mining shares listed below.

Here’s why brokers rate them as buys:

Iluka Resources Limited (ASX: ILU)

The first ASX 200 mining share for investors to look at is Iluka. It is a mineral sands and rare earths producer with a number of quality operations across South Australia, Western Australia, and Sierra Leone.

Analysts at Goldman Sachs are very positive on the company. The broker highlights the company’s attractive valuation, the favourable outlook for mineral sands, and its exposure to rare earths.

Goldman commented:

“We are Buy rated on mineral sands/rare earth producer ILU (on CL) on attractive valuation and compelling Zircon and TiO2 price upside and Rare Earth growth potential. ILU is trading at a >50% discount to RE peers and >10% discount to min sands/pigment peers on an EV/EBITDA basis.

The broker currently has a conviction buy rating and $13.90 price target on Iluka’s shares.

Santos Ltd (ASX: STO)

The Santos share price has been soaring in 2022 thanks to strong oil prices. But don’t worry, one leading broker doesn’t believe it is too late to invest in this ASX 200 share. In fact, it sees material upside ahead for investors.

According to a recent note out of Morgans, its analysts have retained their add rating with a slightly trimmed price target of $10.00 on the company’s shares. This compares to the current Santos share price of $8.09.

Morgans commented:

We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.

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

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Woodside share price lifts despite Twiggy’s latest ‘greenwashing’ accusations
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Thursday
• What’s happening with ASX 200 energy shares this week?

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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