Month: October 2022

The Santos Ltd (ASX: STO) share price was a positive performer on Tuesday.

The energy producer’s shares rose almost 1% to end the day at $7.66.

This means the Santos share price is now up approximately 16% since the start of the year.

Can the Santos share price keep rising?

The good news for investors is that one leading broker believes the Santos share price can continue its ascent.

According to a note out of Morgans, its analysts have retained their add rating on the company’s shares and lifted their price target to $9.40.

Based on the current Santos share price, this implies potential upside of 23% for investors over the next 12 months.

In addition, the broker is expecting a dividend of approximately 27 cents per share in FY 2023, which equates to an attractive 3.5% yield.

Why is Santos an ASX 200 energy share to buy?

Morgans was pleased with Santos’ recent quarterly update and highlights that it “continues to unlock healthy synergies from its merger with OSH, so far achieving savings of US$112m during the 9 months since the merger completed.”

The broker believes that the “post-merger STO is starting to really stretch its legs in terms of quality of earnings and cash flow” and expects its gearing to continue to lower, which “will increase STO’s investment appeal.”

And while Morgans acknowledges that oil prices have started to stutter recently, it expects them to remain high and for Santos to benefit. It concludes:

While we have seen oil prices hit ‘pause’ on their upcycle over the last quarter, as the world digests slowing growth and a surging US dollar, we expect oil and gas price conditions to remain supportive with the upcycle intact. STO is positioned to benefit against this setting, having de-rated in recent months while the market worried over the threat of potential government intervention into east coast gas markets. With this risk now cleared, we expect STO will only need to work through recent legal issues at Barossa to start to trade towards our valuation.

The post Broker says Santos is an ASX 200 energy share to buy appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• Brokers name 3 ASX shares to buy today
• Broker names the ASX dividend shares to buy now
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The South32 Ltd (ASX: S32) share price struggled on the market on Tuesday.

South32 shares fell 1.37% to close the session at $3.60. For perspective, the S&P/ASX 200 Index (ASX: XJO) gained 0.28%.

Let’s take a look at what went on with the South32 share price today.

Broker downgrade

South32 is not the only ASX mining share that finished in the red today. BHP Group Ltd (ASX: BHP) shares fell 1.43%, while the Whitehaven Coal Ltd (ASX: WHC) share price lost 4.52%.

The S&P/ASX 200 Materials Index (ASX: XMJ) descended 1.19% today, making it the second-worst-performing sector behind the S&P/ASX 200 Energy Index (ASX: XEJ).

However, a broker downgrade may have impacted investor sentiment in the South32 share price.

JP Morgan has relegated the company’s share price from overweight to neutral but has maintained a $4.10 price target on the company’s shares. This implies a nearly 15% upside from the current price.

Analysts like South32’s exposure to base metals, but are mindful of the global GDP growth outlook. Analyst Lyndon Fagan, in quotes cited by the Financial Review, said:

S32 continues to offer relatively inexpensive exposure to base metals, with a net cash position (albeit lower than expected), ongoing share buybacks, and a medium-term growth profile.

However, we remain cautious on the global GDP growth outlook, and the impact on commodity prices resulting from a material slowdown. On this basis, we downgrade to neutral.

South 32 reported mixed quarterly production results to the market yesterday. For example, metallurgical coal production fell 8%, while copper production lifted 12%. Alumina production fell 8%, while aluminum output lifted 9%. Nickel production fell 11%, while silver and zinc production descended 9% and 3%, respectively.

South32 share price snapshot

South32 shares have shed 5% in the past year, while they have lost more than 10% in the year to date.

For perspective, the ASX 200 has slid nearly 9% in the past year.

South 32 has a market capitalisation of more than $16.5 billion based on the current share price.

The post Why did the South32 share price take a beating on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Why Ampol, Cann, Reliance Worldwide, and South32 shares are dropping
• BHP share price dips following rough night on Wall Street
• Why these 2 ASX 200 dividend shares are ‘of particular interest’: fund manager
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Austal, New Hope, Playside, and South32 shares are dropping

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 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 CSL Limited (ASX: CSL) share price still hasn’t recovered to its pre-pandemic level, which saw it trading solidly above the $300 mark.

Indeed, the S&P/ASX 200 Index (ASX: XJO) healthcare stock is nearly 20% lower than the record high of $342.75 it posted in February 2020.

Could things be about to turn around for the CSL share price? Some experts are tipping it to do big things from here.

Right now, the CSL share price is $275.98.

Is now a good time to buy CSL shares?

It’s been a rough couple of years for the CSL share price despite plenty of exciting happenings at the company.

Most obviously, it completed its $16 billion acquisition of Swiss giant Vifor Pharma earlier this year.

The ASX-listed healthcare favourite also recently revealed that, Vifor Pharma’s contribution included, it expects to post between US$2.7 billion and US$2.8 billion of net profit before tax and amortisation for financial year 2023.

The team at Morgans was pleased by the news, retaining its buy rating and adjusting its price target for CSL shares to $312.20, my Fool colleague James reports. That represents a potential 13% upside.

The broker said strong plasma collections and demand, as well as the addition of Vifor Pharma, “portends strong growth momentum”.

Meanwhile, Goldman Sachs remained neutral on the stock following its most recent announcement, tipping it to lift to $291 – a potential 5% gain.

Tribeca Investment Partners portfolio manager Jun Bei Liu is also hopeful about the stock. She said it was one of numerous in the space trading at a reasonable valuation, saying, courtesy of Livewire:

We do think healthcare will perform very well in an uncertain environment. These companies will deliver very strong earnings growth regardless of the economic outlook.

But the most bullish expert is Fairmont Equities founder Michael Gable. My Fool colleague Tony quoted the expert as telling media:

In some ways, CSL might have dropped off people’s radar because since the COVID lows [the share price] hasn’t really done anything.

It bottomed in February… and now it’s starting to outperform the broader index.

You could see CSL with a four in front of it potentially by the end of next year, if it breaks out.

To reach the $400 mark, the CSL share price would have to gain around 45%. No doubt plenty of investors will have their fingers crossed for such a rise.

The post Is buying CSL shares right now a smart move? appeared first on The Motley Fool Australia.

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More reading

• Want a free gift with purchase? Buy AMP shares right now: expert
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is ASX 200 share Reliance Worldwide crashing 16% today?
• Westpac share price trails ASX 200 big four following earnings dint
• Which ASX 200 shares could benefit from the federal budget?

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 CSL Ltd. and 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.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.3% to 6,799.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Ampol Ltd (ASX: ALD)

The Ampol share price is down 12% to $27.52. This morning this fuel retailer released its third quarter update. Although Ampol reported further strong earnings growth in FY 2022, it appears to have fallen short of expectations.

Cann Group Ltd (ASX: CAN)

The Cann share price is down 13% to 23.5 cents. This follows news that the cannabis company is seeking further funds from shareholders. The company has launched a share purchase plan to raise between $8 million and $10 million at an 18.8% discount of 22 cents per new share. Funds from the share purchase plan will contribute to the company’s strategic investment in expanding GMP manufacturing capabilities at its Mildura operation.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price has sunk over 13% to $3.11. Investors have been selling this plumbing parts company’s shares following the release of a disappointing trading update. For the first quarter, Reliance reported sales of US$303.1 million. While this was up 23% over the prior corresponding period, this was due largely to a US$53.8 million contribution from the EZ-Flo acquisition. Excluding this acquisition, its sales growth was 6%. And due to margin weakness, normalised EBITDA fell 4% to $63.2 million.

South32 Ltd (ASX: S32)

The South32 share price is down over 1.5% to $3.59. This appears to have been driven by a lukewarm response to the miner’s quarterly update on Monday. For example, this morning Goldman Sachs retained its neutral rating but trimmed its price target on the company’s shares to $3.60.

The post Why Ampol, Cann, Reliance Worldwide, and South32 shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Why is ASX 200 share Reliance Worldwide crashing 16% today?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Austal, New Hope, Playside, and South32 shares are dropping
• Why is the BHP share price leaping 4% on Monday?

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 Reliance Worldwide Corporation Limited. The Motley Fool Australia has recommended 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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The S&P/ASX 200 Index (ASX: XJO) has faded in afternoon trade but remains on course to record a decent gain. At the time of writing, the benchmark index is up 0.4% to 6,804.5 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Aroa Biosurgery Ltd (ASX: ARX)

The Aroa Biosurgery share price is up 12% to 90 cents. This morning this medical device company released its half year update and revealed a 44% increase in revenue to NZ$28.8 million. In light of this strong half, the soft tissue regeneration company has upgraded its full year guidance for FY 2023 by approximately NZ$10 million.

Cettire Ltd (ASX: CTT)

The Cettire share price is up 12% to $1.74. This is despite there being no news out of the online luxury fashion retailer. This strong gain means its shares have now more than doubled in value since the start of the month. This has been driven by the release of a strong first quarter update earlier this month.

Estia Health Ltd (ASX: EHE)

The Estia Health share price is up 5% to $2.06. This morning this aged care provider announced a deal to acquire four residential aged care homes from the Premier Health Care Group. The release notes that these acquisitions are expected to be earnings per share accretive from the second half of FY 2023.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is up 4% to $2.44. Investors have been buying this semiconductor company’s shares following the release of an investor presentation. The presentation reveals that management believes that the embedded ReRam market will grow from $18 million in 2021 to $957 million by 2027.

The post Why Aroa Biosurgery, Cettire, Estia Health, and Weebit Nano shares are rising appeared first on The Motley Fool Australia.

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More reading

• Back in fashion? This ASX All Ords share is up over 130% so far in October
• It wasn’t all bad news for ASX All Ords shares on Monday. Here are some big winners
• Guess which ASX All Ordinaries share is rocketing 30% this week?
• Why Cettire, Moneyme, Piedmont Lithium, and Superloop shares are racing higher
• Guess which ASX ecommerce share is rocketing 17% higher today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cettire 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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It’s a deal touted on supermarket shelves, shopping centre posters, and marketing emails – free gift with purchase. Could there also be ‘free gifts’ hidden on the S&P/ASX 200 Index (ASX: XJO)? One expert has flagged a major freebie that appears to be on offer from AMP Ltd (ASX: AMP).

Roger Montgomery, founder and chair of Montgomery Investment Management, points out that, at recent levels, the AMP share price doesn’t factor in many of the company’s businesses.

In a way, that makes some of the company’s headline assets free for those buying into the stock.

Right now, AMP shares are trading for $1.195 apiece, 0.84% higher than the stock’s previous close. The ASX 200 has also lifted 0.23% on Tuesday.

So, what major assets could be essentially ‘free with any purchase’ of AMP shares in October? Keep reading to find out.

AMP shares essentially offer plenty of freebies: expert

Around a week ago, Montgomery sat down to prepare an investing brief for AMP shares. Since then, the stock has lifted around 1.4%.

Despite having previously declared the company one “that would not meet most investors’ definition of quality”, the expert’s funds have since bought into the stock.

That’s despite the 76% slide posted by the AMP share price over the last five years. On explaining the funds’ new position in AMP, Montgomery wrote:

We believe … the share price reflects legacy issues and investor anchoring and bias, and fails to acknowledge the turnaround and improvement in quality now underway.

The expert noted the divestment of Collimate Capital will likely see the company with a strong capital position. Meanwhile, its advice division’s losses and its wealth management division’s fund outflows are improving.

Finally, AMP Bank’s growth is outpacing its industry peers, helping to boost the company’s bottom line.

But what about that freebie? Here’s what Montgomery had to say:

With surplus capital of $2 billion, after the sale of assets, and a valuation of over $1.5 billion for the AMP Bank – based on book value – AMP’s market capitalisation of about $3.5 billion, suggests shareholders are receiving the +$100 billion multi-platform AMP North business, the Australian and New Zealand advice business, and a share of a Chinese asset management and pension company, for free. 

Finally, the expert believes that recent progress has delivered “objective evidence” that AMP shares offer “substantial” upside.

The post Want a free gift with purchase? Buy AMP shares right now: expert appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is ASX 200 share Reliance Worldwide crashing 16% today?
• Westpac share price trails ASX 200 big four following earnings dint
• Which ASX 200 shares could benefit from the federal budget?
• Even as one strategist predicts a 30% crash, others think the bottom of this bear market may already be in and shares might rally for Christmas

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is having a positive, if tenuous, day of green so far this Tuesday.

The ASX 200 initially opened strongly this morning. But over the day, the index has slipped lower. Even so, the ASX 200 remains up a decent 0.22% at the time of writing, putting the index at just under 7,800 points.

So time to dig a little deeper into today’s trading session. Let’s now have a look at the ASX 200 shares currently topping the market’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

Core Lithium Ltd (ASX: CXO)

Our first ASX 200 share to check out this Tuesday is the lithium share Core Lithium. So far today, a sizeable 27.55 million shares have been swapped on the markets.

This has no doubt been assisted by the company’s pleasing 4% jump that we’ve witnessed. As my Fool colleague Zach dug into earlier, this could be a consequence of Core’s recent deal with the electric car manufacturer Tesla Inc (NASDAQ: TSLA).

Pilbara Minerals Ltd (ASX: PLS)

Another ASX 200 lithium share is next up. Pilbara Minerals has seen a notable 30.33 million of its shares bought and sold on the share market thus far.

It’s been a big day for Pilbara. The company put out its quarterly update this morning, which investors were initially delighted with.

Soon after market open, Pilbara shares hit a new record high of $5.66 a share. But sentiment has dramatically cooled since, and the Pilbara share price is presently down by 0.74% at $5.34. With all of this bouncing around, it’s perhaps no wonder so many shares have been trading.

Sayona Mining Ltd (ASX: SYA)

Another ASX 200 lithium company is our third and final share experiencing high trading volumes this Tuesday. At this point of the session, a whopping 95.13 million Sayona shares have found a new home as it currently stands.

Alongside its lithium contemporaries, Sayona has enjoyed a very strong session today. Unlike Pilbara though, investors’ feet remain warm. The company is currently up a healthy 9.36% at 26 cents a share.

We haven’t had any news out of Sayona today. But it has released some well-received updates over the past month or so, which we dove into earlier. This could be a factor at play here.

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

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More reading

• Why is ASX 200 share Reliance Worldwide crashing 16% today?
• Westpac share price trails ASX 200 big four following earnings dint
• Which ASX 200 shares could benefit from the federal budget?
• Why is the Sayona Mining share price booming 10% on Tuesday?
• Why are Core Lithium shares lifting another 5% on Tuesday?

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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The S&P/ASX 200 Index (ASX: XJO) is having a fairly solid, if tenuous, day of gains so far this Tuesday. At present, the ASX 200 has gained 0.3%. But the same can’t be said for the Reliance Worldwide Corporation Ltd (ASX: RWC) share price.

Reliance Worldwide shares are having a shocker. This ASX 200 share has suffered a 16.3% drop at the time of writing, putting the company down to $3 a share. That’s right on a new 52-week low for Reliance.

Reliance Worldwide share price tanks 16% on quarterly update

It’s not hard to see why investors have sent this company down by such a large margin this Tuesday. Reliance Worldwide put out a trading update this morning before market open. This covers the three months ending 30 September 2022.

It was something of a mixed bag for the quarter for Reliance. The company reported sales for the period of US$303.1 million, up 23% over the prior corresponding period (pcp). This includes US$53.8 million from EZ-Flo after the November 2021 acquisition. Excluding this acquisition, sales growth was 6%.

This was driven primarily by pricing increases from the company, which were implemented to offset the effects of inflation.

Meanwhile, operating earnings before interest, tax, depreciation and amortisation (EBITDA) came in at US$76.8 million, an increase of 16% over the pcp. However, excluding synergies from EZ-Flo and the sale of surplus property in the United Kingdom, EBITDA was US$63.2 million. That represents a loss of 4% over the pcp.

EBITDA margins fell from 26.6% in the pcp to 21.4% over this quarter. According to Reliance, “lower
volumes and higher costs negatively impacted margins, while price rises implemented to recover
costs resulted in diluted margins”.

Outlook

In terms of outlook, Reliance Worldwide said the following:

RWC’s end market exposure, which is predominantly to repair and maintenance activity, should provide greater resilience to economic shocks compared with the more cyclical new residential construction market. Weaker global economic conditions and the risk of a downturn in RWC’s key markets, however, mean the immediate outlook is uncertain.

RWC believes it is well placed with its local manufacturing operations and strong track record of class–leading customer service to navigate these challenges and respond to customer needs. We also expect our ongoing new product introductions will enable us to continue our long–standing track record of delivering above–market growth with quality margins.

So clearly ASX 200 investors haven’t been too impressed with this quarterly update, judging by the share price reaction. It puts the Reliance Worldwide share price down 53.1% year to date.

The post Why is ASX 200 share Reliance Worldwide crashing 16% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Westpac share price trails ASX 200 big four following earnings dint
• Which ASX 200 shares could benefit from the federal budget?
• Even as one strategist predicts a 30% crash, others think the bottom of this bear market may already be in and shares might rally for Christmas
• Westpac share price on watch following $1.3b earnings hit

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 Reliance Worldwide Corporation Limited. The Motley Fool Australia has recommended 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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The Rio Tinto Limited (ASX: RIO) share price is in the red today.

Rio shares are down 1.85% and are currently trading at $90.88. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.2%.

Let’s take a look at what might be affecting Rio Tinto shares.

What’s going on?

The Rio Tinto share price may be down today, but it is not the only ASX mining share struggling. The BHP Group Ltd (ASX: BHP) share price is falling 1.79% at the time of writing, while Fortescue Metals Group Limited (ASX: FMG) shares are sliding 2.44%.

The S&P/ASX 200 Materials Index (ASX: XMJ) is 1.49% in the red today.

Rio, BHP and Fortescue are all huge producers of iron ore, which is used to make steel.

The iron ore November 22 contract on the Singapore Exchange is down 2.49% at the time of writing.

ANZ senior economist Catherine Birch highlighted “sentiment remains fragile” amid property sector concerns. In a research note this morning, Birch said:

Infrastructure is now becoming the most likely sector through which demand for steel and iron ore can receive a boost, but its impact on demand is waning.

In quarterly results last week, Rio Tinto reported a 4% boost in iron ore shipments to 82.9Mt. However, this was below consensus forecasts of 84.5 Mt, as my Foolish colleague James reported at the time.

Despite this, Morgans analysts recently reaffirmed an add rating on the Rio Tinto share price with a $108 price target. This is a nearly 19% upside on the current price. Analysts said:

Putting the 3Q22 result into perspective, we still see RIO boasting solid earnings quality, dividend yield, balance sheet strength and trading at a discount to our $108.00 Target Price. We maintain our Add rating.

Goldman Sachs analysts have also recently maintained a buy rating on Rio Tinto shares with a $112.90 price target.

Rio Tinto share price snapshot

Rio Tinto shares have lost nearly 6% in the past year, while they have descended 9% year to date.

For perspective, the ASX 200 has shed nearly 9% in the past year.

Rio Tinto has a market capitalisation of about $33.7 billion based on the current share price.

The post Why is the Rio Tinto share price in the doldrums today? appeared first on The Motley Fool Australia.

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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 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 Allkem Ltd (ASX: AKE) share price is edging higher on Tuesday afternoon.

At the time of writing, the lithium miner’s shares are up almost 0.5% to $14.95.

This means the Allkem share price is now up 33% since the start of the year.

Has the Allkem share price peaked yet?

While the team at Macquarie believe the Allkem share price can keep rising all the way up to $20.00, another leading broker doesn’t agree with this view.

According to a note out of Morgans, its analysts have retained their hold rating and trimmed their price target to $15.00.

This is largely in line with where the company’s shares are trading today.

What did the broker say?

Morgans wasn’t impressed with Allkem’s quarterly update. It commented:

AKE’s 1Q revenue of $298m missed expectations (-17% on VA consensus, -6% on Morgans forecast). The major shift was smaller production at Mt Cattlin. The company has pointed to ongoing pre-stripping activities as it moves to new areas of the mine.

It also highlights that there is a “bigger issue” to be concerned about. That’s the delay and “cost increases expected for Olaroz’s stage 2 expansion” which are expected to add “an additional $45m (12%)” to its budget.

All in all, because of this and its belief that lithium prices could soften, the broker believes the Allkem share price is now fully valued. Morgans concludes:

AKE is a well-diversified lithium producer in terms of products (spodumene, lithium carbonate and soon to be lithium hydroxide) and geographies (Argentina, Australia, Canada). We think it will perform more strongly than peers over the cycle. However, it’s not clear to us whether or not there will be shorter term interruptions to the likely long term uptrend in lithium demand that means there could be a better entry point. Given the stock’s previous sensitivity to the outlook for lithium prices and, in our view, the potential for prices to move away from their recent new found highs, we maintain our HOLD rating.

The post Top broker says the Allkem share price has peaked appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• Broker says the Allkem share price can rise another 30%
• Why Allkem, Bowen Coking Coal, Pantoro, and Redbubble are dropping today
• Brokers name 5 ASX lithium shares to buy now
• Allkem share price tumbles on quarterly update

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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