Day: 3 June 2022

If you’re looking for blue chip shares to buy, then you may want to consider the two listed below that brokers are bullish on.

Here’s what you need to know about these blue chips:

Cochlear Limited (ASX: COH)

Cochlear is one of the world’s leading manufacturers and distributors of cochlear implantable devices for the hearing impaired.

It has been growing at a solid rate for decades and looks well-placed to continue this trend long into the future. This is thanks to its strong position in a market with high barriers to entry and the tailwinds from ageing population around the world.

Analysts at Morgans are bullish on this blue chip, particularly given its improving earnings profile post-pandemic.

Morgans commented:

Cochlear maintains a dominant position in the implantable hearing solutions segment. While we continue to believe a full recovery from Covid-based disruptions still has time to play out, improving demand and strong pipeline, coupled with management’s increasing confidence, suggests an improving earnings profile.

The broker currently has an add rating and $244.50 price target on Cochlear’s shares.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is an enterprise software provider with a focus on the government, financial services, health and community services, education, and utilities and managed services markets.

Like Cochlear, this blue chip has been growing for decades and has now carved out a leadership position in Australia. But management isn’t settling for that and is now aiming to grow its share of the much larger UK market.

The company is also transitioning to be a software-as-a-service (SaaS) provider. This shift has been going very well and is underpinning stellar recurring revenue growth.

Goldman Sachs has been impressed and expects the company’s annual recurring revenue (ARR) growth targets to be achieved. It said:

In our view, TNE is well-placed to meet its A$500mn FY26 ARR target and we are more constructive than consensus and the market (as implied by TNE’s current share price). SaaS flip uplift, elevated inflation (via contractual CPI pass-through) and underlying business growth underpin our A$505mn FY26 ARR estimate, and we think risks are skewed to the upside with our estimates assuming modest organic growth ex-flip (~10%).

Goldman has a buy rating and $13.30 price target on this blue chip’s shares.

The post Analysts name 2 high quality ASX blue chip shares to buy right now appeared first on The Motley Fool Australia.

More reading

• Why the TechnologyOne share price could be a top option for investors in June
• 3 ASX shares to buy in troubled times: expert panel
• 2 top ASX shares that could be excellent buy and hold options
• 2 beaten-up ASX tech shares with major upside: experts
• Leading broker names the best ASX tech share to buy following 2022’s tech meltdown

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and TechnologyOne Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/RxtwCnr

It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

CSL Limited (ASX: CSL)

According to a note out of Macquarie, its analysts have retained their outperform rating and $327.50 price target on this biotherapeutics giant’s shares. Macquarie notes that traffic volumes have been improving for its US plasma collection network and are now largely in line with pre-COVID levels. Its analysts believe this bodes well for its earnings growth in the coming years, which should also be boosted by the Vifor Pharma acquisition. The CSL share price is trading at $268.55 today.

Pro Medicus Limited (ASX: PME)

A note out of Morgans reveals that its analysts have retained their add rating and $56.20 price target on this health imaging technology company’s shares. This follows the announcement of a new major integrated delivery network (IDN) contract win. Morgans appears confident that this won’t be the last thanks to the shift to cloud-based software from legacy systems. The Pro Medicus share price is fetching $41.45 on Friday.

REA Group Limited (ASX: REA)

Another note out of Morgans reveals that its analysts have retained their add rating but trimmed their price target on this property listings company’s shares to $144.00. This follows the release of an investor day update which outlined REA’s plans to deliver double-digit revenue and earnings growth through the cycle. Morgans was pleased with what it heard and appears supportive of the company’s focus on digitisation throughout the property value chain. The REA share price is trading at $112.53 this afternoon.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Why Altium, Fortescue, PeopleIn, and REA shares are storming higher
• 3 ASX 200 shares swimming in billions, besides banks and miners
• Broker tips Pro Medicus share price to shoot 25% higher
• 5 things to watch on the ASX 200 on Friday
• Why Nanosonics, REA, Sayona Mining, and Zip shares are dropping

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 CSL Ltd. and Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Macquarie Group Limited and REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/zfe5LTd

The Dusk Group Ltd (ASX: DSK) share price continues its slide below $2 and is currently trading at $1.94, down 0.26% for the day so far.

The Dusk share price has been in the doldrums this year. For a three-month period between February and the end of April, it was rangebound between about $2.45 and $2.80. Then over May, the shares lost 21.96%. Boom, just like that. Like a candle in the wind.

Dusk’s flame-out in 2022

This year has been pretty unexciting in terms of ASX announcements from Dusk.

In February, the company released its FY22 half-year results which showed a 12% decline in sales revenue largely due to lockdowns and mandated store closures on the East Coast.

Lockdowns proved a major problem for Dusk, leading to a collective 5,483 lost trading days in NSW, Victoria, and the ACT.

On a positive note, online sales increased by 2.8% over the prior corresponding period to $7.7 million. This accounted for 9.7% of total sales.

Dusk announced it would pay investors an interim dividend of 10 cents per share fully franked. Based on the share price at the time, it represented an attractive dividend yield of 3.85%.

Then in March, Dusk disappointed investors by terminating its proposed acquisition of Eroma. There was no explanation other than the deal not meeting “certain conditions”.

The $28 million purchase of Australia’s leading supplier of candle making inputs and fragrance oils was announced in December 2021.

These are the only two price-sensitive announcements we have seen from Dusk in 2022 so far.

Dusk share price history

Dusk is a young ASX share. It began trading in November 2020. Its initial public offering (IPO) price was $2 and it closed on day one at $1.69.

Dusk had a quick ascension on the ASX, with a series of positive results pushing the share price to an all-time high of $4.07 in July 2021. It began drifting down in August and the decline has continued in 2022.

Since the beginning of the year, the Dusk share price has lost almost 40% in value.

Last month my Fool colleague Tristan posed the question: Is Dusk now “too cheap to ignore“?

Is Dusk worth buying for the dividends?

Dusk is a very good dividend payer. On 19 April, we reported that Commsec was tipping a grossed-up dividend yield of 10.25% in FY22 and further growth in dividends in FY23 and FY24.

The article said Commsec numbers “suggest the Dusk share price is valued at less than 10x FY22’s estimated earnings”.

The post Candle in the wind: Why is the Dusk share price down 20% in a month? appeared first on The Motley Fool Australia.

More reading

• Are these 2 small ASX shares too cheap to ignore?

Motley Fool contributor Bronwyn Allen has positions in Dusk Group 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 recommended Dusk Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/hVFxSGw

This year has been rough on the Life360 Inc (ASX: 360) share price but one top broker believes there are better days to come.

At the time of writing, the Life360 share price is $3.37. That’s 4% higher than its previous close but 65% lower than it was at the start of 2022.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.6% today. It has slipped nearly 5% this year. Additionally, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has also struggled this year, sliding 32%.

So, what has brokers bullish on the Life360 share price? Let’s take a look.

Why the Life360 share price could rise by 120%

The Life360 share price could have a 122.5% upside, according to Bell Potter.

The broker likes the company’s cash position and future profit prospects, The Motley Fool Australia’s James Mickleboro recently reported.

For those not familiar with the company, it’s the developer of the Life360 app. The app is designed to allow families to track their loved ones to ensure safety.

Life360 isn’t yet turning a profit. However, it did bring in US$52.7 million of revenue in the March quarter. It also boasted US$98.2 million of cash reserves as of the end of the quarter.

On top of that, the app was attracting 38.3 million active users at the end of March. That’s a 36% increase at the same point in 2021.

The company is expecting to break even in the final quarter of next year and be cash flow positive for the whole of 2024.

In the near term, it’s expecting its earnings before interest, tax, depreciation, and amortisation (EBITDA) to come to a loss of US$32 million to US$38 million in 2022.

All that considered, Bell Potter is very hopeful for the future of the stock. It has slapped a $7.50 price target and a buy rating on Life360 shares.

The post Top broker says unloved Life360 share price has 120% upside appeared first on The Motley Fool Australia.

More reading

• 3 excellent ASX growth shares with major upside potential
• ASX 200 midday update: Pilbara Minerals names new CEO, Wesfarmers’ strategy update
• What to do with these 3 pummelled ASX shares: advisor
• ASX 200 midday update: Beach, Santos rise but EML, Zip tumble
• Why BHP, Chalice Mining, IGO, and Life360 shares are storming higher

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 positions in and has recommended Life360, Inc. 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.

from The Motley Fool Australia https://ift.tt/cWQ7kdo

The Westpac Banking Corp (ASX: WBC) share price is on course to end the week with a small gain.

In afternoon trade, the banking giant’s shares are up 0.2% to $23.97.

Can the Westpac share price keep climbing in June?

While it’s impossible to predict what the Westpac share price will do in the immediate term, a number of brokers certainly see potential for it to rise meaningfully from current levels.

One of the most bullish is Citi. Earlier this week, the broker retained its buy rating and $29.00 price target on the bank’s shares.

Based on the current Westpac share price, this implies potential upside of approximately 21% for investors.

According to the note, Citi believes the major banks will see a swing from lending-derived revenue growth to deposit-derived growth as rates rise and credit slows. As a result, its analysts expect the current valuation gap between asset growing and revenue challenged banks will close.

Citi prefers the latter in the current environment, which includes Westpac.

What are other brokers saying?

Elsewhere, analysts at Goldman Sachs currently only have a neutral rating on the company’s shares.

However, with a price target of $27.29, this suggests potential upside of 14% for investors. Not bad for a neutral rating!

Another broker that sees plenty of upside in the Westpac share price is UBS.

In response to the bank’s half-year results last month, its analysts put a buy rating and $27.00 price target on its shares. This suggests potential upside of approximately 13%.

Sitting on the fence

Finally, one broker that isn’t overly positive and is sitting on the fence is Morgans.

It recently went from being arguably the most bullish broker to the most downcast. This saw its analysts downgrade the bank’s shares to a hold rating with a $23.90 price target, which is broadly in line with where the Westpac share price trades now.

However, it is worth noting that the broker’s negative view is on short term issues and it remains positive on the long term. It commented:

We continue to believe that WBC’s stock offers compelling long-term value despite share price strength over the last five months. However, it has been disappointing to see that WBC’s Australian investor home loan book has continued to shrink post FY21 according to APRA statistics.

We believe this contraction is being partially driven by WBC’s business bankers being focused on remediation issues; we had hoped these issues would be resolved by now. We suspect the remediation issues are also hampering WBC’s Australian business loan growth.

The post What are brokers forecasting for the Westpac share price in June? appeared first on The Motley Fool Australia.

More reading

• What’s dragging on ASX 200 bank shares like NAB on Thursday?
• Why did the Westpac share price beat the ASX 200 in May?
• Leading brokers name 3 ASX shares to buy today
• The ANZ share price is ‘trading at its largest discount to its peers in 15 years’: Is this justified?
• Where next for the Westpac share price?

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.

from The Motley Fool Australia https://ift.tt/2wFhoGl

I think there are a number of investments that now look particularly attractive due to the recent market volatility. I’ve got my eye on some top exchange-traded funds (ETFs).

When the share market drops considerably, it can be difficult to know which shares to choose.

The main benefit of an ETF is that investors can buy a whole group of attractively-priced businesses at the same time. I like diversification, and I also like buying great businesses.

Here are two that I think give investors exposure to a great group of companies.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This ETF aims to track the performance of the 100 largest businesses on the tech-heavy NASDAQ stock exchange in the United States.

The Betashares Nasdaq 100 ETF has many of the world’s biggest tech companies in its portfolio. These include Apple, Microsoft, Amazon.com, Alphabet, Meta Platforms, and Nvidia.

But it’s not just the giants in there. There are plenty of other attractive, quality businesses in the portfolio including Broadcom, Adobe, Costco, Cisco Systems, Advanced Micro Devices, Qualcomm, and Texas Instruments.

One of the main things I like about these holdings is that many of them are the best at what they do in the Western world, or perhaps the whole world. I think this ETF’s holdings are high quality.

The annual management fee seems reasonable to me at 0.48%. While it’s not as cheap as some other ETFs, I think the net returns of the NDQ ETF will be great over the long term because of the strength of the underlying holdings. Plus, it’s a cheaper fee than many active fund managers charge.

Over the five years to April 2022, the average net return of the Betashares Nasdaq 100 ETF was 19.76% per annum. That compares to an average net return per annum of 14.1% from the Vanguard US Total Market Shares Index ETF (ASX: VTS) over the same period. The VTS ETF has an annual fee of 0.03%.

Vanguard aims to keep its fees as low as possible for investors. It isn’t looking to make a profit, unlike BetaShares.

The Betashares Nasdaq 100 ETF share price has fallen by almost 23% in 2022.

Betashares Global Cybersecurity ETF (ASX: HACK)

This is another ETF, but it’s focused on a particular industry. As you may have already guessed, it’s all about the global cybersecurity sector.

The HACK ETF has about 40 positions. While most (87%) of the portfolio is invested in US businesses, the underlying earnings come from across the world.

Sadly, cybercrime continues to rise. Indeed, there are predictions that cybercrime costs could more than triple between 2015 to 2025.

The businesses in this ETF’s portfolio are at the forefront of defending against the bad guys. Some of the biggest names in the portfolio include Crowdstrike, Cisco Systems, Zscaler, VMware, Mandiant, Booz Allen Hamilton, Leidos, Sailpoint Technologies and Akamai Technologies.

I think the HACK ETF has an attractive earnings growth outlook. BetaShares outlines that, according to Statista, the projected size of the global cybersecurity market is expected to rise to US$223.68 billion in 2022 (up approximately 10% from 2021) and then further increase to US$248.26 billion in 2023.

Cybersecurity is also very important for businesses, governments, and organisations – I’d guess it’s the last thing that would be cut from expenditure, so I believe that might make the HACK ETF more defensive than ETFs with cyclical stocks.

The Betashares Global Cybersecurity ETF share price has dropped by almost 17% in 2022. So, I think it looks even more attractive now.

The post 2 great ETFs I’d buy in June 2022 appeared first on The Motley Fool Australia.

More reading

• Three trillion reasons why young investors need to be taken seriously
• Why I’d buy these 2 excellent ASX shares exposed to megatrends
• 3 high quality ETFs for ASX investors to buy now
• Here’s why the Betashares Nasdaq 100 ETF (NDQ) is sinking today
• Are these 2 sold-off ASX growth shares now cheap bargains?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Adobe Inc., Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETA CYBER ETF UNITS, BETANASDAQ ETF UNITS, Cisco Systems, CrowdStrike Holdings, Inc., Meta Platforms, Inc., Microsoft, Nvidia, and Qualcomm. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended VMware and has recommended the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Amazon, Apple, CrowdStrike Holdings, Inc., Meta Platforms, Inc., and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/zMcCLVk

The Breville Group Ltd (ASX: BRG) share price has been distinctly off the boil for months. It’s drifted down from a 52-week high of $33.61 in August 2021 to a 52-week low of $19.74 last week. Since the start of the year, shares in the global home kitchen appliances giant have lost 36% of their value.

Now, a trio of brokers are tipping the Breville share price to rise by at least 50% over the next year.

Can the Breville share price go to $30-plus in a year?

Morgans has given Breville an add rating with a share price target of $32. UBS agrees that Breville is a buy, but it has a more ambitious price target of $34. Macquarie is the most bullish, tipping the Breville share price to rise to $34.80.

Morgans says favourable industry tailwinds combined with Breville’s ongoing global expansion and heavy investment in research and development position the company for strong ongoing growth.

In a note to clients in May, Morgans said Breville was “positioned to deliver double-digit sales growth consistently over the next few years as it grows its market share, notably in geographies into which it has recently launched”.

Breville recently expanded into Norway, Finland, Denmark, and Sweden. This month, it hopes to start operations in South Korea, and in July it’s targeting Poland.

UBS reckons Breville can deliver ongoing double-digit earnings per share (EPS) growth over the next few years.

Macquarie retains its outperform rating and says Breville shares could go as high as $34.80 by this time next year.

Breville retains FY22 EBIT guidance

Macquarie interpreted a positive update from Italian small-appliance manufacturer De’Longhi SpA (FRA: DLN) in May as indicative of strength in home appliances retailing. This may bode well for Breville’s second-half results in FY22.

Breville gave a presentation at the Macquarie Investor Conference in Sydney on 3 May, where it reconfirmed its FY22 guidance. Breville said it expects earnings before interest and tax (EBIT) “to be consistent with the markets’ consensus forecast of ~$156 million”. The FY21 EBIT was $136.4 million.

What’s next for Breville?

Breville expects to complete its 100% acquisition of the Italian prosumer specialty coffee group LELIT next month. The company announced the $113 million euros purchase in March.

At the time, Breville Group CEO Jim Clayton said:

Both companies have a shared passion for using product innovation to improve our customers’ coffee experience at home, and we look forward to working alongside LELIT and its existing partners to further accelerate its growth and product innovation, while preserving the values that underpin its Italian identity.

The Breville share price slipped into the red early this afternoon and is trading at $20.44, down 0.39% at the time of writing.

The post The Breville share price has at least 50% upside: top brokers appeared first on The Motley Fool Australia.

More reading

• Why these 2 ASX 200 shares are undervalued opportunities: WAM
• 2 top growth shares experts are tipping as buys in June
• Potential buys from experts: 2 compelling ASX shares
• Leading brokers name 3 ASX shares to buy today
• Here are 2 ASX growth shares experts have named as buys

Motley Fool contributor Bronwyn Allen 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.

from The Motley Fool Australia https://ift.tt/rbNOkVM

Lithium stocks have been on a wild ride this week.

ASX lithium shares have been some of the best performers on the index over the past year. That outperformance has been driven by rocketing lithium prices, with the battery metal in high demand for its crucial role in powering electric vehicles (EVs).

But ASX lithium shares tumbled on Wednesday as investors were spooked by the bearish forecast for lithium prices from Goldman Sachs. The broker believes the sector is overinvested with excess supply hitting the market over the next few years and predicts “a sharp correction in lithium”.

News of legendary investor Warren Buffett’s intention to buy six lithium mines in Africa via EV company BYD, also may have led investors to fear a potential oversupply of the lightweight conductive metal.

On Wednesday, the Allkem Ltd (ASX: AKE) share price lost 15.4%; IGO Ltd (ASX: IGO) closed down 12.7%; Pilbara Minerals Ltd (ASX: PLS) dropped 22.4%; and shares in Mineral Resources Ltd (ASX: MIN) fell 8.1%.

All four ASX lithium shares are well into the green today.

But if Credit Suisse has it right, they’re in for some more headwinds.

What does Credit Suisse forecast for supply and demand?

Credit Suisse analyst Matthew Hope said runaway lithium prices have seen a surge of new lithium brought to market while raising the costs of the batteries the metal is used in, thereby “incentivising supply and destroying demand”.

As reported by The Australian, Hope believes the supply and demand dynamics will be in balance in 2023 through 2024, adding that “surpluses threaten from 2025“.

According to Hope:

We previously considered the deficit was intractable, but the world has changed with inflation, war and lockdowns souring the demand outlook, whilst the pace of supply response to spiking prices has been more rapid than anticipated.

What this could mean for ASX lithium shares

Alongside its forecast that lithium markets are facing a looming period of oversupply, Credit Suisse has downgraded Allkem to a neutral rating. It reduced its target for the Allkem share price by 10% to $14.70. That’s still 24% above the current price of $11.86, at the time of writing.

Credit Suisse also reduced its rating for Pilbara Minerals to neutral. Its target price for the ASX lithium share was lowered by 19% to $3, representing a 25% upside to Pilbara’s current share price of $2.40.

Both Mineral Resources and IGO held onto their outperform rating from Credit Suisse.

The broker’s price target for Mineral Resources is $73, 22% above the current price of $59.92. While involved in lithium production, Credit Suisse flagged the company’s diversified operations outside of the lithium space. This includes its mining services segment and gas projects.

Credit Suisse kept IGO as an outperform. It cited its low lithium production costs and intentions to ramp up the Kwinana project as offering tailwinds ahead. Kwinana, located in Western Australia, is one of the first fully automated battery-grade lithium hydroxide facilities in the world. Credit Suisse has a price target of $15.60 for the ASX lithium share, 30% above IGO’s current share price of $11.97.

The post One broker’s outlook for lithium supply and demand and what it could mean for ASX lithium shares appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Healius disappoints, BHP and Fortescue storm higher
• Could the Pilbara share price take off in June?
• Was May a good month for the Pilbara Minerals share price?
• Aside from Goldman Sachs, what are other brokers saying about ASX lithium shares?
• Why Bubs, IGO, Strike Energy, and Woodside shares are pushing higher

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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.

from The Motley Fool Australia https://ift.tt/uQnla5h

The Evolution Mining Ltd (ASX: EVN) share price backtracked more than 5% across the month of May.

This comes despite the gold miner keeping a relatively quiet profile on the news front.

In comparison, the S&P/ASX 200 Index (ASX: XJO) treaded 3% lower over the same time frame.

At the time of writing, Evolution shares are recovering some lost ground, up 2.18% to $3.75.

And in case you were wondering, the ASX 200 index is also up 0.74% to 7,229.1 points.

What impacted Evolution shares in May?

Investors reacted negatively to the Evolution share price following a selloff across global markets last month.

Fears surrounded a global economic slowdown brought on by high inflation, interest rate hikes, and China’s COVID-19 crisis.

While the price of gold is currently fetching at US$1,870 an ounce, it dipped 1.34% lower in May.

This appears to have attributed to the company’s shares heading south.

A decline in the price of the yellow metal translates to a loss of potential revenue for Evolution.

In its March quarterly report released in April, the company recorded 148,787 ounces of gold produced for the 3 months ending 31 March.

All-in sustaining costs (ASIC) came to A$990 (US$717) per ounce.

This means at the current gold price; Evolution is making around US$1,153 profit for every ounce sold.

It’s worth noting that this does not include the capital and discovery expenditure used on developing and bringing the assets online.

Evolution share price summary

Evolution is an Australian mining and exploration company that owns and operates five mines, mostly based in Australia. They include Cowal in New South Wales, Mungari in Western Australia, Mt Rawdon and Ernest Henry in Queensland, and Red Lake in Ontario, Canada.

Over the past 12 months, the Evolution share price has lost 29%.

Year-to-date, its shares are down roughly 8%.

On valuation metrics, Evolution commands a market capitalisation of around $6.87 billion.

The post Why did the Evolution share price fall in a hole in May? appeared first on The Motley Fool Australia.

More reading

• Why did these brokers upgrade the Evolution Mining share price to buy?
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Thursday

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.

from The Motley Fool Australia https://ift.tt/qE0JuAc

The past three weeks have been good to the Treasury Wine Estates Ltd (ASX: TWE) share price. And the fun might have only just begun. One top broker is tipping the winemaker and distributer to gain another 18%.

At the time of writing, the Treasury Wine share price is $11.74. That’s 5.86% higher than it was three weeks ago.

For context, the S&P/ASX 200 Index (ASX: XJO) has risen 2.1% over that time. Meanwhile, the company’s home sector ­– the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) – has dumped 4.6%.

Let’s take a look at why Treasury Wine has garnered this broker’s eye.

Broker tips Treasury Wine share price to gain 18%

The Treasury Wine share price could have some seriously bright days ahead if Morgans’ predictions come true.

The broker was impressed by the company’s latest half-year results, released in February.

Its earnings before interest, tax, SGARA, and material items (EBITS) slipped 6.7% in the half. But that was seemingly better than expected considering the headwinds faced by the company.

Its most renowned brand, Penfolds, saw a revenue drop of 16.3%, while its EBITS fell 19%. The fall was generally expected considering the brand struggled in the Chinese market due to tariffs.

Additionally, Treasury Wine’s management – which Morgans also likes – flagged a shift in the company’s mindset.

Treasury Wine CEO Tim Ford said the company is moving from “recovery and restructuring” to a new phase of “growth and innovation”.

“We have great confidence that by leveraging the unique strengths of our business … we are well placed to capitalise on the significant opportunities,” Ford said.

Morgans is bullish on the company’s plans for the future, saying:

The foundations are now in place for [Treasury Wine] to deliver strong double-digit growth from [the second half of financial year 2022] over the next few years.

The broker slapped a price target of $13.93 on Treasury Wine shares with an add rating.

The post The Treasury Wine share price has leapt 6% in 3 weeks. Why this top broker is tipping more gains appeared first on The Motley Fool Australia.

More reading

• Top broker names 2 of the best ASX shares to buy in June
• Experts name 2 ASX 200 shares with high quality management teams to buy
• These 3 ASX shares have plunged this year: Expert reveals what to do
• Could the new Labor Government herald better days for Treasury Wine shares?
• Treasury Wine share price beating the sell-off amid ‘made in China’ push

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 recommended 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.

from The Motley Fool Australia https://ift.tt/sG1Jkyi