Day: 28 July 2022

The Lynas Rare Earths Ltd (ASX: LYC) share price has rallied from six-month lows of $7.54 on 12 July to now trade at $8.75 per share.

Despite the near-term upside, the price of key rare earths metals has taken a backward step in 2022.

For example, after soaring to record highs of A$320,264 per tonne in February this year, neodymium has given back all of this year’s gains.

It now trades 28% down at $230,123 per tonne, amid a cooling off in industrial metals markets.

What does this mean for the Lynas share price?

Up until around two weeks ago, the downward pressure in spot neodymium appeared to be weighing in negatively on the Lynas share price.

The ASX rare earths miner had drifted to six-month lows, with the price of neodymium consolidating a relief rally in late June.

Lynas then released its Q4 FY22 earnings report on 12 July and that’s when the S&P/ASX 200 Index (ASX: XJO) share found a bottom and began to curl back upward.

In the report, Lynas showed it grew cash receipts by 34% year on year to a record $351 million, underpinned by strong demand for rare earths.

It also printed sales revenue of $294.5 million, the second-highest quarterly result ever recorded by the company.

Broker estimates haven’t swayed on the share either, with 66% of analysts covering the company saying it’s a buy right now, per Refinitiv Eikon data.

The consensus price target from this list is $10.26 per share, around 18% return potential should the brokers have it right.

The Lynas share price is currently up 3% today, taking its gains for the past 12 months to around 25%. However, it is down 14% so far in 2022, and 5% over the past month.

The post Rare earths are now in the red for 2022. What does this mean for the Lynas share price? appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for the Lynas share price in FY23?
• Here’s why Macquarie thinks these 2 ASX 200 shares can outperform
• Lynas share price higher following record Q4 sales
• Odd one out: Lynas share price inches ahead while miners drill down
• Here are the top 10 ASX shares today

Motley Fool contributor Zach Bristow 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 Straker Translations Ltd (ASX: STG) share price is down 6.73% in late afternoon trading.

It appears ASX shares investors are not impressed with the company’s June quarterly activities report released today. It reported “strong and profitable Q1 FY23 revenue growth” but significant cash outflows.

Straker shares opened at $1.03, well down on their previous closing price of $1.115. They slid to a 52-week low of 96 cents before recovering to $1.04 at the time of writing.

By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is well into the green today, up 1.09%.

Straker Translations share price dips despite 66% revenue growth

Straker Translations provides language services and technology via subscriptions to its customers. 

Here are the key takeaways from its quarterly report:

• Q1 FY23 revenue of NZD$18.8 million, up 66% on Q1 FY22 and 8% on Q4 FY22
• Adjusted EBITDA of NZD$1.5 million (third consecutive quarter of growth)
• Operating cash outflow of NZD$2.3 million due to an increase in working capital and the timing of customer receipts. Straker expects a return to positive operating cash flow in Q2 FY23
• Total cash outflow of NZD$4.3 million, up from NZD$2.2 million in Q4 FY22 following $1.1 million in earn-out payments on IDEST Communications and NZTC and $700,000 in research and development (R&D) capitalisation
• Strong balance sheet with no debt
• NZD$11.4 million in cash, down from NZD$15.1 million in Q4 2022
• Robust sales pipeline driven by customers looking for technology-led global localisation solutions.

Straker said its revenue growth was “… underpinned by growing sales to multinational organisations and the contribution from the Belgium-based translation provider IDEST Communications, acquired in Q4 FY22”.

Also contributing to the revenue boost was “strong growth across the APAC and European operations (excluding IDEST) and the continuing success and expansion of Straker’s strategic translations service agreement with IBM”.

What else happened in FY22?

Straker says IDEST “continues to perform well and in line with expectations”. The company sees an opportunity for cross-selling Straker’s global language translation capabilities.

IBM translation volumes are in line with expectations and the system integration is mostly completed “with new partnership opportunities developing”.

Straker said eased COVID-19 travel restrictions were enabling sales staff to once again attend industry conferences and meet face-to-face with customers.

What did management say?

Straker’s CEO Grant Straker said he’s pleased with the company’s progress and confident it can realise its growth opportunities.

Straker commented:

We have a strong balance sheet, are well funded and are on track to deliver on the guidance issued at the end of May 2022 for profitable growth in revenue for the 12 months to the end of March 2023 of 20% and gross margins exceeding the 54% achieved in FY 2022.

This outlook is supported by the latent opportunities in recent acquisitions, including IDEST, a strong sales pipeline among global enterprise customers and governance organisations, the company’s technological leadership, and the strength of its reputation as a change maker in the global translations sector.

We also believe growth will be assisted by the easing of COVID-related travel restrictions …

What’s next?

In its statement, Straker said it wanted to increase its technology lead over its peers:

We are focusing part of our research and development team on a new innovation cycle aimed at
increasing our technology lead over the competition.

Based on some projects with major customers, we have seen how the world of localisation is evolving and how customers are looking for eco-system providers that are integrated into customer processes.

This cycle of innovation should also open up more SaaS revenue opportunities. We expect these efforts to start contributing to revenue in the second half of the year.

Straker Translations share price snapshot

The Straker Translations share price is down 35% in the year to date. The All Ords is down 10%.

Incorporating today’s losses, the micro-cap ASX share is up 1.96% over the past month.

The company has a market capitalisation of $75.59 million.

The post Straker Translations share price sinks 7% following mixed update appeared first on The Motley Fool Australia.

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More reading

• ‘On track’: Fineos share price climbs 6% on strong quarterly
• 3 ASX 300 retail shares majorly cashing in on Thursday
• The Bitcoin price is leaping 10% higher today. What’s going on?
• Why is the Bubs share price smashing the All Ordinaries today?
• Here are the 3 most traded ASX 200 shares on Thursday

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 recommended Straker Translations. 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 Fineos Corporation Holdings PLC (ASX: FCL) share price is rising during late afternoon trade on Thursday.

This comes after the insurance software company announced its fourth quarter results to the market.

At the time of writing, Fineos shares are swapping hands at $1.715, up 6.52%.

What did Fineos report for Q4 FY22?

Here’s a brief recap of how the company performed for the 3 months that ended 30 June 2022.

• Cash receipts from customers up 45% year-on-year to €32.9 million ($A48.04 million)
• Headcount up 1% to 1,075 since 30 June 2021
• High product consulting employee utilisation rate of 89% for FY22
• Cash payments from operating activities of €32.4 million (A$47.32 million), up 12% quarter on quarter
• Closing cash balance of €44.3 million ($A64.70 million) and no debt

What happened during the quarter?

For the final quarter of FY22, Fineos recorded customer cash receipts of €32.9 million ($A48.04 million). This reflected a 45% increase over the prior corresponding period, underpinned by strong revenue growth and the ongoing transition of customers to subscription agreements.

Subsequently, this reaffirms the company’s FY22 revenue guidance of between €125 million to €130 million (A$182.56 million to A$189.87 million) and subscription revenue growth of at least 30%.

Furthermore, headcount decreased by 0.5% to 1,075 for the quarter but lifted by 1% during FY22. This is expected to remain stable at the current level in FY23.

Capitalised R&D costs for the quarter were down 2% to €6.8 million (A$9.93 million) and up 3% to €25.8 million ($37.67 million) for FY22.

Uncapitalised R&D costs continued to increase in line with Fineos’ growth strategy and focus on product development.

What did management say?

Fineos founder & CEO, Michael Kelly commented on the company’s performance:

The fourth quarter saw the company continue to deliver on our growth strategy, with strong growth in customer cash receipts and subscription revenue underpinning the reaffirmation of previous guidance provided for FY22.

We finished the quarter with over €44 million in cash and no debt, providing a strong capital position that supports our organic growth plans. With the business continuing its growth trajectory and cash flows building, we are on track to achieve a positive free cash flow position in FY24.

Fineos share price review

Since the start of 2022, the Fineos share price has declined by more than 60%.

Strong volatility on the ASX and a gloomy economic outlook appears to have weighed down the company’s shares this year.

Based on today’s share price, Fineos presides a market capitalisation of around $530.18 million.

The post ‘On track’: Fineos share price climbs 6% on strong quarterly appeared first on The Motley Fool Australia.

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More reading

• Why did the Fineos share price roar 15% higher today?

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 recommended FINEOS Corporation Holdings plc. The Motley Fool Australia has recommended FINEOS Corporation Holdings plc. 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 a good day for many S&P/ASX 300 Index (ASX: XKO) retail shares, with some market favourites launching as high as 50%.

Their gains follow news Australian retail turnover reached another record high in June, lifting 0.2% – a sixth consecutive monthly increase. Though, it’s also the smallest increase of this year so far.

The Australian Bureau of Statistic’s Ben Dorber notes cost-of-living pressures – driven by rising inflation, which hit 6.1% last quarter – seem to be slowing spending growth. He said:

Given the increases in prices we’ve seen in the Consumer Price Index, it will also be important to look at changes in the volumes of retail goods in next week’s release of quarterly data.

But that doesn’t appear to have dampened sentiment for ASX 300 retail shares on Thursday.

These three favourites have rocketed higher. Let’s take a closer look at their outstanding performances.

These ASX All Ords retail shares are surging higher

Kogan.com Ltd (ASX: KGN)

The Kogan share price is skyrocketing 54.31% on Thursday to trade at $4.84.

That’s despite a business update from the online retailer detailing falling profits.

However, it also recorded a return to positive earnings before interest, tax, depreciation, and amortisation (EBITDA) after ending in the red in the March quarter.   

Temple & Webster Group Ltd (ASX: TPW)

Fellow ASX 300 retailer Temple & Webster is also in the green today. Its shares are currently up 16.13% to $4.65 despite the company’s silence.

Today’s gain sees the Temple & Webster share price 30% higher than it was at Tuesday’s close. Though, it’s still 45% below what it was at the start of 2022.

Redbubble Ltd (ASX: RBL)

The final ASX 300 retail share posting a whopper of a gain is Redbubble. The online marketplace’s stock has rocketed to $1.145 – a 21.16% gain.

Once more, there’s been no news from the company. Today’s gain sees it trading at a near-three-month high.

The post 3 ASX 300 retail shares majorly cashing in on Thursday appeared first on The Motley Fool Australia.

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More reading

• Why is the Temple & Webster share price flaming 16% higher?
• Why is the Kogan share price rocketing 32% higher today?
• Take a seat: What inflation data might mean for ASX retail shares
• These are the 10 most shorted ASX shares
• Why did the Kogan share price rocket 20% this week?

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 Kogan.com ltd, REDBUBBLE FPO, and Temple & Webster Group Ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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The Bitcoin (CRYPTO: BTC) price is soaring today.

The world’s original crypto is up 10% since this time yesterday, currently trading for US$23,138 (AU$33,109).

Over the past 24 hours, the Bitcoin price hit lows of US$21,112 and peaked at US$23,358, according to data from CoinMarketCap.

Although even with the sizeable rally, BTC has a long way to go before recouping its all-time highs of US$68,790, set on 10 November last year.

Why is the Bitcoin price rocketing?

Crypto investors are bidding up the Bitcoin price alongside a host of other risk assets.

Ethereum (CRYPTO: ETH), the world’s number two crypto by market cap, as one example, is up 14% over the past 24 hours.

In fact, only a single one of the top 100 cryptos by market cap has lost value since this time yesterday. Namely TerraClassic (CRYPTO: USD), which is down just under 2%.

As for another good gauge of investor risk appetite, the NASDAQ closed up a whopping 4.1% yesterday (overnight Aussie time).

“Bitcoin’s correlation to the NASDAQ is rising again, so it’s easy to see why we’ve had this rally,” Josh Gilbert, market analyst at eToro told The Motley Fool.

All this comes on the heels of the 0.75% interest rate hike by the US Federal Reserve.

So, why are risk assets heading higher following the second consecutive outsized rate hike from the world’s leading central bank?

It appears investors are taking heart from some potentially dovish signals issued by Fed chair Jerome Powell, who said it may “likely become appropriate to slow the pace of increases” later in 2022.

That, of course, will all depend on how quickly the central bank can get the inflation genie back in its bottle.

“This Bitcoin price rally comes as we could be nearing the end of red-hot inflation in the US, with the Fed acknowledging softer spending and production,” Gilbert said.

“Inflation is the most important number in markets right now and is the biggest worry amongst investors. If investors believe that we have reached peak inflation, they may look to slowly start adding exposure back to risk assets, such as Bitcoin.”

Risks remain

The Bitcoin price is historically volatile by nature, and risks remain of further downturns in the months ahead.

“We aren’t entirely out of the woods.,” Gilbert told us. “US Q2 GDP released this evening may show the US economy contracted for the second month in a row, which by definition is a technical recession.”

Gilbert added:

Yes, we have rallied off the lows. But plenty of macro risks can still affect crypto in the short to medium term. Markets have had plenty of surprises this year, and I don’t expect we’ve seen them all.

The post The Bitcoin price is leaping 10% higher today. What’s going on? appeared first on The Motley Fool Australia.

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More reading

• Bitcoin or Cardano: which crypto is most widely held among Aussies in 2022?
• Why top cryptocurrencies Bitcoin, Ethereum, and Dogecoin are slumping today
• 2 things need to happen for a sustained Bitcoin price rally: experts
• Why Bitcoin, Ethereum, and Shiba Inu are falling today
• Can Ethereum reach $10,000?

Motley Fool contributor Bernd Struben 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 Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. 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 fairly pleasant day of green for the All Ordinaries Index (ASX: XAO) so far this Thursday. At the time of writing, the All Ords has gained a robust 1.06% at 7,112.9 points. But that’s nothing compared to the Bubs Australia Ltd (ASX: BUB) share price.

Bubs shares have popped a pleasing 6.90% so far today to 62 cents a share. That comes after the baby formula company closed at 58 cents a share yesterday and opened at 59 cents this morning.

So what might be behind this marked outperformance for Bubs shares today?

Why are Bubs shares smashing the All Ords today?

Well, it’s not clear, unfortunately. Bubs haven’t put out any new news or announcements themselves today. Or indeed since 20 July, when the company dropped its quarterly report. This report was received very well by investors. In the two days following its release, the Bubs share price rose by more than 12%.

As we covered at the time, this report did provide some pleasing numbers. For the three months to 30 June, the company reported a 278% rise in gross revenues to $48.1 million.

That helped Bubs bump up its full-year revenues to $104.2 million which was a 123% increase.

The company reported that it has benefitted enormously from the shortage of baby formula in the United States. Bubs also managed to increase its Chinese daigou sales by 1,201% over the quarter.

But these results have been in the public domain for more than a week. So it’s a long bow to say they are responsible for today’s 6% rise in the Bubs share price.

So perhaps investors are just continuing with the momentum Bubs has been enjoying since the release of that quarterly update.

We are seeing a number of smaller-cap ASX shares enjoy some impressive gains on the markets today, despite an absence of fresh news. Bubs’ competitor in the baby formula space – A2 Milk Company Ltd (ASX: A2M) – is enjoying a 2.56% rise today.

And earlier, we covered how some smaller ASX shares like Laybuy Holdings Ltd (ASX: LBY) are seeing gains worth close to 100% today. Perhaps the Bubs share price has been caught up in this euphoria.

Whatever the reason for today’s gains, it’s certainly a good day to be a shareholder.

At the current Bubs Australia share price, this ASX All Ords share has a market capitalisation of $427.8 million.

The post Why is the Bubs share price smashing the All Ordinaries today? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares hitting new 52-week highs on Wednesday
• The A2 Milk share price has bubbled 10% higher in a month. What’s going on?
• Why did the Kogan share price rocket 20% this week?
• Do these 2 All Ords ASX shares offer a hefty upside?
• 3 ASX All Ordinaries shares going great guns on Thursday

Motley Fool contributor Sebastian Bowen has positions in A2 Milk. 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 and BUBS AUST 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 S&P/ASX 200 Index (ASX: XJO) has thrown off the shackles so far this Thursday and is decisively climbing higher.

At the time of writing, the ASX 200 has risen by a healthy 0.95% and is now back above 6,880 points.

But let’s dig deeper into these share market gains and check out the ASX 200 shares currently at the top of the market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Thursday

Pilbara Minerals Ltd (ASX: PLS)

Our first ASX 200 share up today is lithium stock Pilbara Minerals. This Thursday has seen a sizeable 15.87 million Pilbara shares fly around the ASX boards. This is almost certianly a result of the share price movements we have seen with the company.

At present, the Pilbara share price has risen by an eye-catching 5.45% at $2.71 a share. There hasn’t been any news from Pilbara. However, as my Fool colleague James covered earlier, broker Citi has come out with a new buy recommendation for Pilbara, complete with a 12-month share price target of $3.20. Perhaps this is playing a role too.

Lake Resources N.L. (ASX: LKE)

Another ASX 200 lithium stock in Lake Resources is our next cab off the rank this Thursday. So far, a notable 21.8 million Lake shares have been traded on the markets. We haven’t had any news out of this company during today’s trading session.

So this volume is probably a result of the decisive share price moves we have seen with this lithium stock. Lake Resources shares are presently trading at 77.2 cents each, up a pleasing 4.32% today.

Zip Co Ltd (ASX: ZIP)

Our final and most traded share today is not a lithium stock like the other two. But rather a buy now, pay later (BNPL) share in Zip Co. This Thursday has seen a whopping 54.03 million Zip shares bought and sold on the markets.

This is almost certainly the result of the massive share price moves we have once again seen with the Zip share price. Zip is currently up a jaw-dropping 19.52% at $1.482 a share, putting its gains over the past five trading days at almost 90%. It’s perhaps no wonder so many shares have been traded today.

The post Here are the 3 most traded ASX 200 shares on Thursday appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Rio Tinto drops, tech shares jump, Macquarie impresses
• Zip share price rockets again and is now up 225% in four weeks
• Sandfire share price rallies as miner beats production guidance
• ASX 200 shares marching higher on successive US Fed interest rate hike
• Broker gives its verdict on the Pilbara Minerals share price

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 positions in and has recommended ZIPCOLTD FPO. 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 Volpara Health Technologies Ltd (ASX: VHT) share price is rising today after the company released its quarterly results.

The company’s shares lifted 13% in earlier trade before retreating. The Volpara share price is now up 4.65%, trading at 67.5 cents.

Volpara develops software for the early detection of breast cancer. Let’s take a look at what Volpara reported in today’s results.

Volpara share price responds to ‘strong’ update

The Q1 FY23 quarterly cash flow report is likely driving the Volpara share price higher today. Highlights include:

• Customer cash receipts up 35% on Q1 FY22 to NZ $8.7 million
• Net operating and investing cash outflow of NZ$3.6 million, compared to N$2.9 million in the previous quarter
• Subscription receipts lifted 36% on prior corresponding quarter to NZ$8.3 million
• Net cash at hand of NZ$15.2 million. A $10 million undrawn bank facility is also available
• Guidance of NZ$31.5 to $33 million revenue in FY23

What else did Volpara report?

Volpara said cash receipts were the “strongest on record”.

Net outflow was 24% on the previous quarter, due to multiple costs, including performance-related pay. Volpara was expecting this loss but plans to reduce outflows from Q3 onwards.

Volpara described its cash position as “strong” and highlighted it has no debt. Management is confident the cash at hand will help the company break even in the future.

Highlights for the quarter included a partnership with Microsoft, and a ‘best scientific contribution’ award for a scientific paper.

Contracted annual recurring revenue (CARR) lifted by US$1.5 million on the prior quarter to US$23.7 million.

Annual recurring revenue (ARR) also lifted by $1.2 million to US$18.5 million.

Management commentary

Speaking on the results that are giving the Volpara share price a boost today, CEO Teri Thomas said:

This quarter we are pleased with our continued growth. We are delighted about the momentum we’ve gained with large healthcare organisations’ faith in us and our portfolio of products and services.

We are highly focused on continued support of our customers’ successes, while engaging with additional ‘elephant-sized’ organisations for the next quarters

Strategy update

Volpara is aiming to return to profit by FY25 and balance the books by Q4 FY24. Central to this return to profit will be focussing on high revenue geographic regions, including Australia and the United States.

The company said it will prioritise sales opportunities that generate high value, and large revenue. Volpara will also keep investing in science and technology.

Commenting on this strategy, Thomas said: “This time focusing our expertise in both the products and geographical areas that provide maximum value to shareholders will position us well for growth as a profitable company within the foreseeable future.”

Volpara will also freeze or limit investment in low-margin or long lead time products.

Volpara share price snapshot

The Volpara share price has lost 38% in the past year and more than 34% year to date.

However, in the past month, the company’s stock has exploded 69%.

Volpara has a market capitalisation of about $173 million based on today’s share price.

The post Volpara share price leaps 5% following record cash receipts appeared first on The Motley Fool Australia.

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More reading

• Why I think these 2 ASX growth shares could keep marching upwards
• This ASX All Ordindaries healthcare share is ripping 17% higher amid a new contract win

Motley Fool contributor Monica O’Shea 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 VOLPARA FPO NZ. The Motley Fool Australia has positions in and has recommended VOLPARA FPO NZ. 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 BHP Group Ltd (ASX: BHP) share price is in positive territory on Thursday afternoon.

This comes despite the company not releasing any price-sensitive announcements since its fourth quarter trading update.

At the time of writing, shares in the world’s largest miner are up 0.72% to $37.79.

What’s lifting BHP shares on Thursday?

There are a couple of reasons why the BHP share price has been heading north throughout the day.

The current uptick in iron ore prices is providing support across the mining sector, with most of the majors edging higher.

Shares in Fortescue Metals Group Limited (ASX: FMG) and Mineral Resources Limited (ASX: MIN) are up 1.10% and 6.21%, respectively.

However, the Rio Tinto Limited (ASX: RIO) share price is down 0.91% after the company announced a weakened quarterly performance and a 52% dividend cut.

Nonetheless, this is leading the S&P/ASX 200 Resources (ASX: XJR) index to completely rub out yesterday’s 1.12% loss.

As such, the benchmark index for Australian resource companies is in the green by 1.59% to 5,141.2 points.

With the price of the steel-making ingredient recovering from a 7-month low of US$100 per tonne, the market is being driven by hopeful demand.

Dwindling steel inventories in China have boosted sentiment amid the gloomy economic outlook by economists.

Currently, the iron ore price is fetching at US$106.24, up 0.22% from yesterday’s close.

Previously, the commodity experienced selling pressure following the establishment of a centralised iron ore buyer in China.

As reported by my Foolish colleague, Zach, the Xi administration is aiming to reduce its reliance on Australia’s biggest export.

The move involves Beijing securing lower iron ore prices through larger bulk purchases from its nationalised company, China Mineral Resources Group.

BHP share price snapshot

Over the last 12 months, the BHP share price has fallen almost 19%.

However, when looking at 2022, the mining outfit’s shares are up around 3%.

Based on today’s price, BHP commands a market capitalisation of roughly $193.74 billion.

The post Why is the BHP share price gaining ground today? appeared first on The Motley Fool Australia.

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More reading

• Top broker issues new warning on outlook for iron ore price
• Why did the BHP share price have such a cracking session today?
• 5 ASX 300 shares this fundie has been buying at bargain prices
• Here’s why I think the BHP share price is a buy right now
• How might China’s $6b Mineral Resources Group impact the iron ore price?

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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When it comes to inflation, the Medibank Private Ltd (ASX: MPL) share price might just jump to mind. After all, the costs of all private health insurance (not just Medibank’s) have been rising by more than the rate of inflation for years now.

But now we’ve just received confirmation that inflation in the Australian economy is at an annualised rate of 6.1% (the highest in decades), ASX investors have inflation to worry about.

Medibank is the largest provider of private health insurance in the country. It used to be a government-owned company, but was privatised back in late 2014 and listed on the ASX.

Since that time, the Medibank share price has appreciated by 58.5%. That’s including the 0.3% loss Medibank shares have clocked so far today, putting the company at $3.44 a share. That works out to be a compounded annual growth rate of approximately 6.34%, not including dividend returns.

So is the Medibank share price a smart buy for rising inflation going forward? Let’s see what one expert investor reckons.

Is the Medibank share price a buy today?

According to Livewire, ASX broker UBS has just upgraded its rating on Medibank shares. The broker has raised its rating on Medibank shares from “neutral” to “buy”. That came with a 12-month share price target of $3.90. That’s up from the previous target of $3.35.

If Medibank shares do rise to $3.90 over the coming year, it would result in an upside for investors of 13.4% from the current share price.

UBS has identified Medibank as a share to buy in these inflationary times. UBS analyst Scott Russell reportedly cited Medibank’s “relatively stable revenues and predictable margins, improving claims trends assisted by [government] policy, and rising investment yields among its attractive attributes”.

“Whilst the stock doesn’t look cheap at around 20 times PE [price-to-earnings ratio], we think these attributes are unique amongst financials and attractive at this point in the cycle,” Russell said.

So that’s a fairly bullish outlook on the Medibank share price. No doubt investors will be happy with that assessment. But we shall have to see what the coming 12 months bring to the table for Medibank shares.

At the current Medibank share price, this ASX 200 healthcare share has a market capitalisation of $9.47 billion, with a dividend yield of 3.78%.

The post Is the Medibank share price a smart buy for rising inflation? appeared first on The Motley Fool Australia.

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More reading

• Why is the Piedmont Lithium share price piling on 6% today?
• Macquarie share price lifts as CEO spruiks ‘very good inflation protection’
• Sezzle share price surges another 40% following speeding ticket response
• 3 ASX lithium shares going gangbusters on Thursday
• Why is the Tyro share price tearing 18% higher today?

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 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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