Day: September 16, 2022

Here are the top 10 ASX 200 shares today

A group of business people pump the air and cheer.A group of business people pump the air and cheer.

The S&P/ASX 200 Index (ASX: XJO) slumped lower on Friday, marking the end to what was likely a disappointing week for Australian investors. The index closed 1.4% lower at 6,747 points today.

That leaves the ASX 200 2.14% lower than it was at the end of last week, mostly due to Wednesday’s disastrous session.

The S&P/ASX 200 Energy Index (ASX: XEJ) weighed heaviest today, falling 3%. The sector’s suffering likely came on the back of falling oil prices.

The Brent crude oil price fell 3.5% to US$90.84 a barrel overnight while the US Nymex crude oil price dropped 3.8% to US$85.10 a barrel.

Mining giants also dragged on the market, with the S&P/ASX 200 Materials Index (ASX: XMJ) dumping 2.3%.

Gold futures slumped 1.9% to US$1,677.30 an ounce overnight while iron ore futures lifted 0.1% to US$100.58 a tonne. Meanwhile, the price of nickel fell 4.5% and that of copper slipped 0.6%.

Today’s top performing sectors were the S&P/ASX 200 Utilities Index (ASX: XUJ) and the S&P/ASX 200 Information Technology Index (ASX: XIJ). They fell 0.4% and 0.6% respectively.

But which ASX 200 share outperformed all others? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today’s top performing ASX 200 share was Star Entertainment Group Ltd (ASX: SGR).

The company’s interim chair Ben Heap responded to the findings of a review into its suitability to operate its Sydney casino, released earlier this week, yesterday afternoon.

Today’s biggest gains were made by these shares:

ASX-listed company Share price Price change
Star Entertainment Group Ltd (ASX: SGR) $2.90 5.07%
Computershare Ltd (ASX: CPU) $26.01 4.42%
Tabcorp Holdings Limited (ASX: TAH) $0.98 4.26%
Reliance Worldwide Corporation Ltd (ASX: RWC) $3.69 2.79%
News Corporation (ASX: NWS) $25.86 2.5%
Home Consortium Ltd (ASX: HMC) $5.06 2.43%
Nine Entertainment Co Holdings Ltd (ASX: NEC) $2.08 1.96%
Event Hospitality and Entertainment Ltd (ASX: EVT) $13.20 1.69%
Eagers Automotive Ltd (ASX: APE) $12.85 1.42%
Bapcor Ltd (ASX: BAP) $6.86 1.33%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of September 1 2022

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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 Reliance Worldwide Corporation Limited. The Motley Fool Australia has recommended Bapcor and Reliance Worldwide Corporation 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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Top broker values Mineral Resources rumoured lithium spin-off at $17 billion

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.

The Mineral Resources Limited (ASX: MIN) share price was out of form on Friday.

The mining and mining services company’s shares tumbled 5% lower to $66.39.

This was driven by a broad market selloff, which was felt hardest among riskier assets.

Is this Mineral Resources share price weakness a buying opportunity?

One leading broker that certainly sees this share price weakness as a buying opportunity is UBS.

According to a note, the broker has retained its buy rating and $83.00 price target on the company’s shares.

Based on the current Mineral Resources share price, this implies potential upside of 25% for investors over the next 12 months.

But it could get even better.

What else is the broker saying?

There has been a lot of speculation this month about Mineral Resources potentially unlocking value by demerging its lithium operations and listing them on Wall Street.

UBS has been looking into this option and appears to like what it sees. Its analysts note that Albemarle’s lithium business trades at 10x FY 2024 EBITDA, whereas Mineral Resources’ business is fetching just over 3x FY 2024 EBITDA.

And while UBS doesn’t necessarily think that the business will be able to command as great a premium as Albemarle, it still sees 6x EBITDA as possible. The broker commented:

While the case for MIN’s lithium spinoff to create value is strong, we believe ALB’s Li business arguably should trade at a premium to MIN.

If the business were to trade at 6x FY 2024 EBITDA, it would give it a valuation of $17 billion. That is notably more that the current Mineral Resources market capitalisation of $13 billion, which includes far more than just its lithium operations.

However, as things stand, management has not announced plans to spin off the business, so it is purely speculation at this stage. But with this much value potentially being unlocked from doing so, shareholders will no doubt be hoping it happens.

The post Top broker values Mineral Resources rumoured lithium spin-off at $17 billion appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of September 1 2022

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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At a dire time for ASX 200 tech, how are Computershare shares trading near all-time highs?

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted.

The Computershare Ltd (ASX: CPU) share price has been on a roll lately. Not only has it dodged the carnage suffered by its S&P/ASX 200 Index (ASX: XJO) tech peers, it’s trading within a hair of its all-time record high.

The Computershare share price is launching another 5% today, closing trade at $26.13. That’s only 1.6% lower than its record high of $26.56.

That’s despite the broader ASX 200 tumbling 1.4% and the S&P/ASX 200 Information Technology Index (ASX: XIJ) slipping 0.56%.

In fact, the ASX 200 tech sector has plunged 30% so far this year. Meanwhile, Computershare’s stock has gained 30%.

So, why is the investor services operator outperforming the broader market while most of its peers have sunk deep into the red? Let’s take a look.

How are Computershare shares defying the tech downturn?

The Computershare share price is boasting major gains this year. At the same time, its sector has struggled to stay afloat.

Interestingly, the reason behind the tech sector’s suffering might explain the stock’s rise.

The major factor weighing on ASX 200 tech shares this year is arguably inflation. Inflation – and resulting rate hikes – tend to hit tech stocks harder than most, as they are more often growth-focused.

To put it simply, inflation can increase the cost of debt while reducing the value of a company’s future cash flows.

Thus, rising inflation can weigh on the share prices of companies valued on their expected future growth and cash flows. My Fool colleague Zach explained this phenomenon in more detail earlier this year.

But rising inflation is actually good news for Computershare, according to experts. And that could be what has helped to buoy the Computershare share price.

T. Rowe Price’s Randal Janneke previously noted the company’s business model sees it collect cash from its businesses before handing it out to investors. But before being distributed, the cash is placed in money markets where higher interest rates see it generate larger returns.

This sentiment is shared by Tribeca’s Jun Bei Liu, as my colleague Tony reports.

The post At a dire time for ASX 200 tech, how are Computershare shares trading near all-time highs? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of September 1 2022

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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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Top brokers name 2 ASX growth shares to buy now

Smiling man sits in front of a graph on computer while using his mobile phone.

Smiling man sits in front of a graph on computer while using his mobile phone.If you’re searching for growth shares to buy, then two ASX shares listed below could be worth considering.

Both have been named as buys by brokers and tipped to have major upside potential. Here’s what they are saying about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX growth share that could be in the buy zone is Domino’s.

It is one of the largest pizza chain operators in the world with a significant presence in the ANZ, European, and Asian regions. But management isn’t stopping there. It has set itself a target of 7,250 stores by 2033, which is over double its current footprint.

And while the company is going through a difficult period at the moment, the team at Morgans believe investors should be patient and focus on its long term growth opportunity.

Morgans has an add rating and $90.00 price target on Domino’s shares. It commented:

It is an affordable option that has performed well historically even in times of inflation or slower economic growth. The engine of DMP’s growth is its ability to roll out new stores all over the world. It added 438 stores to its global network in the year to June 2022, a pace of expansion that we forecast to accelerate to nearly 600 in FY23. This will take the total to almost 4,000 stores, up fourfold over a ten-year period. Over the next ten years, DMP expects to grow organically to 7,250 stores in the 13 countries in which it currently operates

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth share to look at is enterprise software provider Readytech.

It has been a strong performer in recent years and delivered the goods again in FY 2022. Last month, Readytech revealed a 16.8% year over year increase in revenue to $78.3 million and a 45.5% jump in underlying EBITDA to $27.5 million.

Goldman Sachs is expecting more of the same in the future. As a result, it has put a buy rating and $4.30 price target on the company’s shares. Goldman commented:

We are constructive on RDY’s growth outlook given its defensive end-market exposures (government and education represent ~3/4 of FY23E revenue) and see scope for margins to grow from FY23 onwards, aided by transitioning IT Vision’s on-premise customer base to cloud in coming years (generating a 2-3x ARPU uplift).

RDY remains materially undervalued relative to profitable SaaS peers (we estimate >50% discount on growth-adjusted FY24E EV/EBITDA) and is building an impressive track record of organic growth execution which in our view will drive a re-rating over time.

The post Top brokers name 2 ASX growth shares to buy now appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of September 1 2022

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Readytech Holdings Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Readytech 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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