Month: October 2022

Wesfarmers Ltd (ASX: WES) shares are back on form on Tuesday.

In afternoon trade, the conglomerate’s shares are up over 1.5% to $45.10.

This has reduced the Wesfarmers share price year to date decline to approximately 25%.

Can Wesfarmers’ shares keep rebounding?

The good news is that Morgans believes Wesfarmers shares have major upside potential over the next 12 months.

In fact, its analysts are so positive on the company, they have named its on their best ideas list again.

This list contains the ASX shares that the broker believes offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence. They are its most preferred sector exposures.

According to the note, Morgans has an add rating and $55.60 price target on its shares.

This implies a potential return of 23% for investors before dividends and approximately 27% including them.

What did the broker say?

Morgans believes recent share price weakness has created a buying opportunity for investors. Particularly given the quality of the company, its talented management team, and robust balance sheet. It commented:

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While COVID-related staff shortages are proving to be a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the pullback in the share price as a good entry point for longer term investors.

Morgans also previously said:

Trading on 22.5x [now 21x] FY23F PE and 3.8% [now 4%] yield, we continue to see WES’s valuation as attractive for a high-quality business with a diversified group of retail and industrial brands, solid balance sheet and strong leadership team that will continue delivering long-term value for shareholders.

All in all, this could make Wesfarmers’ shares worth considering if you’re looking for some new additions this month.

The post Wesfarmers shares could be one of the best options on the ASX 200: Morgans appeared first on The Motley Fool Australia.

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More reading

• These ASX 200 dividend shares have been named as buys by analysts
• Top ASX dividend shares to buy in October 2022
• Is the Wesfarmers share price in the buy zone ahead of this month’s AGM?
• Down 9% in a month, is the Wesfarmers share price a bargain buy for dividends?
• Morgans names 2 ASX 200 blue chip shares to buy

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 positions in and has recommended Wesfarmers 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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Coles Group Ltd (ASX: COL) shares are up 1.3% in afternoon trade on Tuesday.

The Woolworths Group Ltd (ASX: WOW) share price is also climbing, up 1.1%.

When comparing Coles shares to Woolworths, income investors will note Coles pays a 3.8%, fully franked trailing dividend yield. That compares to a 2.7% yield paid by Woolworths, also fully franked.

So, which of the S&P/ASX 200 Index (ASX: XJO) retail giants is the better buy?

Which ASX 200 retail share has the advantage?

For some greater insight into whether Woolworths or Coles shares are the better buy, we defer to UBS (courtesy of The Australian).

According to UBS, shoppers can expect to keep paying more for their food, especially fresh food, heading into 2023.

Overall, food inflation in the three months ending 30 September (Q1 FY23) increased by 8.2%. Fresh food prices rose an even steeper 9%.

And UBS analyst Shaun Cousins forecasts that the food inflation trend will stick around for some time yet.

“Food inflation is expected to reach 8.7% over the next 12 months,” he said. “We expect food inflation to peak in [Q2 FY23] as cost pressures remain.”

Cousins added that Woolies and Coles have taken a “divergent approach” to operating in a competitive market amid fast-rising prices.

According to Cousins:

COL is seeking to maintain promotional breadth & depth, arguably reflective of it seeking to differentiate on price as per its period of market share gains in the early to mid 2010s and following market share losses in recent years.

WOW has more sales drivers (for example, online, refurbished store network, fresh participation) and hence is taking a more nuanced approach to inflation, moderating breadth & depth of promotions, although this raises risks as cost of living pressures rise.

UBS predicts that volume weakness will hinder Woolworths shares more than Coles shares. That’s due to Woolies’ online sales outperformance in the first half. With a less developed online offer, Coles’ like-for-like sales growth is forecast to outperform in H1 FY23, with Woolies retaking the lead in H2.

UBS has a neutral rating on both Woolworths and Coles shares.

Its price target for Woolworths is $32.91, 1.5% below the current share price.

UBS’s price target for Coles is $16.23, 2.3% below the current share price.

How have Coles shares performed compared to Woolies longer-term?

Longer-term, the Woolworths share price has been the stronger performer.

Over the past five years, Woolies shares are up 54%. That compares to a 29.4% gain for Coles shares.

The post Better buy: Woolworths or Coles shares? appeared first on The Motley Fool Australia.

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More reading

• How is the Woolworths share price handling the MyDeal cyberattack news?
• Which ASX All Ords shares could perform well in a recession?
• 5 things to watch on the ASX 200 on Monday
• 2 first-rate ASX 200 dividend shares experts rate as buys
• If I’d invested $5,000 in these 5 ASX shares five years ago, here’s what I’d have now

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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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Westpac Banking Corp (ASX: WBC) has its sights set on ASX fintech Tyro Payments Ltd (ASX: TYR), with a potential takeover tipped to strengthen its small business offerings. That could land a decent impact on National Australia Bank Ltd (ASX: NAB) shares.

NAB is currently the market leader in small business banking, and the business sphere is offering the big four some major growth.

Right now, the NAB share price is up 1.79% at $31.33. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has lifted 1.78%.

Let’s take a closer look at what today’s takeover talk could mean for NAB shares.

What could Westpac’s latest takeover talks mean for NAB?

Westpac and Tyro both confirmed they’re in takeover talks this morning. The big four bank says swallowing the tech stock could see it “better support customers and grow merchant acquiring”.

Tyro’s loan originations leapt 283% year-on-year to $99.1 million worth in financial year 2022. Its gross transaction value also surged 34% to $34.2 billion, while the number of merchants using the fintech’s offerings increased 10% to 63,770.

Of course, Westpac could be the name behind those merchants – and their data – if talks progress.

It’s only been a matter of weeks since The Australian speculated NAB had the most to gain from a Tyro takeover. It suggested the second largest of the big four would be the one most likely to put forward an acquisition offer for the $800 million fintech.

NAB’s business and private banking division brought in the majority of its cash earnings over the half year to March. It was responsible for $1.4 billion of the bank’s earnings – a 17.5% increase on that of the prior comparable period.

It’s also aiming to grow its foothold in the sector. Speaking on its most recent results, NAB business and private banking executive Andrew Irvine said:

We’ve established great momentum and are poised for further growth … This is a brilliant time to be in business and an even better time to be the bankers behind Australia’s entrepreneurs.

But, if NAB did consider lobbing a bid at Tyro, it seemingly passed on the fintech. Whether Westpac will push forward with its takeover talks is yet to be seen.

NAB share price snapshot

The NAB share price has been a strong performer so far this year.

It has gained 6.6% since the start of 2022. It’s also currently 8.8% higher than it was this time last year.

Meanwhile, the ASX 200 has dumped 10.6% year to date and 8.1% over the last 12 months.

The post What could a possible Tyro takeover mean for NAB shares? 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
• It’s a good day on the ASX 200. So why is the Woodside share price getting beaten up?
• Why is the Santos share price getting left behind the ASX 200 today?
• Is now the time to start buying cheap ASX 200 shares? Here’s what UBS says
• Is ASX 200 lithium player Lake Resources profitable?

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 Tyro Payments. The Motley Fool Australia has recommended Tyro Payments and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Macquarie Group Ltd (ASX: MQG) share price is up more than 4% at $160.51 in Tuesday afternoon trading.

After eclipsing the $200 per share mark in 2021, the investment bank’s share price has taken a beating over the past 12 months.

As seen on the chart below, Macquarie has tracked the S&P/ASX 200 Banks index (ASX: XBK) and the Vaneck Australian Banks ETF (ASX: MVB) over much of this time.

However, of late, it has broken away from its banking peers to the downside and now trades near 52-week lows.

Is Macquarie a buy?

That’s the question on many ASX 200 investors’ minds right now. As an insight, we’ve looked at some of the numbers.

Compared to its peers, Macquarie stacks up quite well, as seen in the chart below,

Company Name	P/E	ROE %	Debt to Equity %	P/BookÂ	Net Income Margin %
Macquarie Group Ltd	12.53	18.0%	487.6%	1.99	35.9%
Australia and New Zealand Banking Group Ltd	11.40	10.9%	207.9%	1.16	35.2%
Commonwealth Bank of Australia	18.12	12.8%	250.8%	2.29	41.5%
National Australia Bank Ltd	15.38	11.1%	310.2%	1.62	40.2%
Westpac Banking Corp	17.10	7.4%	279.8%	1.17	26.1%
Bendigo and Adelaide Bank Ltd	11.06	7.5%	196.9%	0.72	30.0%
Bank of Queensland Ltd	13.29	6.6%	274.3%	0.74	25.9%
Median	13.29	11%	274%	1.17	35.2%

Macquarie currently trades below the median price-to-earnings (P/E) ratio of 13.3 times.

It also delivered an above-peer return on equity (ROE) of 18% and isn’t too far off the group’s price-to-book (P/B) ratio at 1.99 times.

However, Macquarie’s debt load relative to shareholder equity is particularly high, coming in at more than 487% – almost double that of the banking majors’ median score.

Hence, questions arise on the investment bank’s sensitivity to increasing interest rates and what it is doing to hedge this exposure.

What do the experts say?

Nevertheless, the share has some interesting characteristics and this would likely be why 10 out of the 14 brokers covering Macquarie rate it as a buy right now, according to Refinitiv Eikon data.

As seen in the table below, only four brokers currently rate it as a hold or sell, down from previous months.

The consensus price target is $198 a share, not too far from the consensus valuation in July of $205 a share.

Recommendation	18-Jul-2022	18-Aug-2022	18-Sep-2022	Current
Buy	9	9	9	10
Hold	3	3	3	2
Sell	2	2	2	2
Consensus Price Target [$]	205.15	198.46	199.54	198.29

As a result, it appears sentiment remains bullish on the Macquarie share price, despite its pullback.

Whether or not this translates to a successful outcome, we’ll have to wait and see.

The Macquarie share price is down 22% this year to date.

The post Down 7% in a month, is the Macquarie share price an ASX 200 bargain buy? appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for ASX 200 bank shares in Q2?
• A mortgage ‘battleground’ is coming. UBS names ASX 200 bank shares best placed to win
• Morgans names 2 ASX 200 blue chip shares to buy
• Can the Macquarie share price crack the $200 mark again?
• Is CBA the best ASX 200 bank share to buy for dividend income?

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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 300 (ASX: XKO) is up 1.36% in afternoon trading, but one technology share is soaring higher.

The Appen Ltd (ASX: APX) share price has gained 5.36% at the time of writing and is currently trading at its intraday high of $2.75.

So why is Appen having such a good day?

Tech shares rise

The Appen share price is on the rise today, but it’s not the only ASX technology share in the green. The Megaport Ltd (ASX: MP1) share price is also up 5.6% today while Wisetech Global Ltd (ASX: WTC) shares are up 3.09%. Meantime, the Block Inc (ASX: SQ2) share price is surging an impressive 8.57% today.

ASX technology shares are following in the footsteps of their US counterparts. The Nasdaq Composite Index lifted 3.43% in the US overnight. Apple Inc (NASDAQ: AAPL) shares rose 2.91%, while the Microsoft Corporation (NASDAQ: MSFT) share price jumped 3.92%.

The US market lifted after big names, including Bank of America Corp (NYSE: BAC), reported better-than-expected results. CNBC noted many technology names including Netflix, Tesla, and IBM are due to report this week.

The S&P/ASX All Technology Index (ASX: XTX) is up 3.2% at the time of writing.

Appen updated the market on its outlook for the rest of 2022 last week. The company advised there has been “no improvement” in trading conditions over August and September. Appen CEO Mark Bryan said:

Despite the challenging operating conditions, we remain committed to our long-term strategy including investments in New Markets to diversify revenue and products to improve productivity.

Share price snapshot

The Appen share price has sunk nearly 76% year to date, while it is down 72% in the past year.

For perspective, the ASX 300 has dropped almost 10% in 2022 so far and 9% over the past 12 months.

Appen has a market capitalisation of about $339 million based on the current share price.

The post Why is the Appen share price smashing the ASX 300 today? appeared first on The Motley Fool Australia.

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More reading

• Why Appen, GQG, Paradigm, and Talga shares are tumbling lower
• Why Appen, De Grey Mining, Magellan, and Zip shares are dropping today
• Appen share price crashes 18% on ‘ongoing uncertainty’ update
• Why 5E Advanced Materials, Appen, Core Lithium, and Infomedia shares are dropping
• Why has the Appen share price just dropped to a new 5-year low?

Bank of America is an advertising partner of The Ascent, a Motley Fool company. 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 Appen Ltd, Apple, MEGAPORT FPO, Microsoft, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Apple and MEGAPORT 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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It’s been a very pleasant day overall for ASX shares and the S&P/ASX 200 Index (ASX: XJO) this Tuesday. As it currently stands, the ASX 200 has gained a healthy 1.35%, putting it well back over 6,700 points. But we can’t say the same for the Woodside Energy Group Ltd (ASX: WDS) share price.

In stark contrast to the ASX 200, Woodside shares are having a clanger. The ASX 200 oil share is currently sitting at a loss of 1.09% at $32.77 a share.

So what’s going on here? Why are investors shunning this energy share?

Why is the Woodside share price lagging behind the ASX 200 today?

Well, oil shares, like Woodside, tend to take most of their pricing influences from the price of crude oil itself. That’s because this is the single largest factor that influences their overall profitability.

And, lo and behold, oil prices have had a tough 24 hours. As my Fool colleague James flagged this morning, Brent crude is currently down by 0.17% at US$91.46 a barrel, while West Texas Intermediate (WTI) crude has lost 0.22% at US$85.27.

With the price of oil stalling, it’s perhaps no wonder oil shares like Woodside are on struggle street today.

It’s not just Woodside either. The energy sector is currently the only ASX 200 sector to have recorded a loss today. As it currently stands, the S&P/ASX 200 Energy Index (ASX: XEJ) is nursing a loss of 0.97%.

Other ASX oil shares like Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT) have also been significantly sold off. Santos shares are presently down 1.39% at $7.465, while Beach shares have lost 1.17% so far at $1.527 a share.

Oil may be known as black gold. But few investors would be throwing that name around this Tuesday.

The post It’s a good day on the ASX 200. So why is the Woodside share price getting beaten up? appeared first on The Motley Fool Australia.

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More reading

• Why is the Santos share price getting left behind the ASX 200 today?
• Is now the time to start buying cheap ASX 200 shares? Here’s what UBS says
• Is ASX 200 lithium player Lake Resources profitable?
• The Telstra share price is still trading at less than half its record highs. Time to pounce?
• 3 ASX 200 lithium shares that turned a $10,000 investment into $500,000

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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No-one rings a bell at the top of a bull market or at the bottom of a bear market.

In hindsight, any of us (like me), who were holding onto fast-growing yet loss-making growth stocks as inflation started spiking upwards, wished they could turn back the clock and sell at the (now) obviously inflated valuations.

Fast forward to now, where the S&P/ASX 200 Index (ASX: XJO) is down 10% year to date and the S&P/ASX Small Ordinaries Index (ASX: XSO) has lost 25% over the same period. In the US, it’s worse, with the Nasdaq off 33% so far this year.

At the individual stock level, some of the falls have been absolutely brutal so far in 2022…

City Chic Collective Ltd (ASX: CCX) – down 79%

EML Payments Ltd (ASX:EML) – down 79%

Kogan.com Ltd (ASX:KGN) – down 64%

Megaport Ltd (ASX:MP1) – down 58%

If I were a betting man, I’d wager, over the next 12-24 months, small companies will out-perform the ASX 200 index. 

And although the bell isn’t ringing for the bottom of this bear market, I think now will prove a good time to steadily put money to work in stocks that I think have asymmetric upside potential. 

An asymmetric bet, trade, or investment is when the potential upside of a position is much greater than its potential downside.

Rather than investing now in coal producers Whitehaven Coal Ltd (ASX: WHC) and New Hope Corporation Limited (ASX: NHC), up 314% and 208% respectively so far this year, I’d far rather be betting on some ASX micro-cap stocks who, from ultra-depressed levels, have the potential to rise three to five times in value in the coming years. 

Putting my money where my mouth is

I’m putting my money where my mouth is, investing in a portfolio of companies that generally have little to no debt, are growing quickly, are either on the cusp of profitability or are indeed profitable, yet their share prices have fallen up to 70% in this brutal sell-off.

I’m not stupid enough or confident enough to say some won’t fall in a screaming heap. These are often very small companies operating in very competitive markets. A diversified portfolio is essential – 15 to 30 stocks – as is lashings of patience and the ability to withstand short to medium term volatility.

It’s worth reminding readers that a company that has already seen its share price fall 70% can easily see it halve again, especially in a market that’s incredibly nervous, and one where liquidity for many micro-cap stocks has virtually disappeared.

But that’s the stock picking game, right? Otherwise, we just stick with low-cost index-tracking Exchange Traded Funds (ETF), like the Vanguard Australian Shares Index ETF (ASX: VAS) and/or the Vanguard MSCI Index International Shares ETF (ASX: VGS).

In return for enduring the volatility and the uncertainty, you have the opportunity to earn out-sized returns by picking your own stocks. 

Yet heed this warning from legendary investor Charlie Munger from 2009, also a period of high uncertainty and volatility…

“… if you’re not willing to react with equanimity to a market decline of 50% two or three times a century you’re not fit to be a common shareholder and you deserve the mediocre result you’re going to get compared to the people who do have the temperament…”

Two ASX stocks with asymmetric upside potential 

The Plenti Group Ltd (ASX: PLT) share price has slumped 64% so far this year as the online auto and personal lending business has been buffeted by a re-rating of tech stocks, higher interest rates and the threat of increasing bad debts in a slowing economy as those interest rates start to bite.

The risks are very real. Yet, the company is growing like gangbusters as it and other “challenger” lenders take market share from the less nimble big four banks. Its loan portfolio at 30th June 2022 was $1.44 billion, up 90% from the prior year, with ambitions to grow it to $5 billion in 2025.

The Bluebet Holdings Ltd (ASX: BBT) share price is down 70% so far this year as the online bookmaker has largely been a victim of the vicious sell-off in tech stocks. 

Bluebet is growing quickly, has plenty of cash and no debt, and cash from operations is running around breakeven, despite its up-front investment in marketing and in the nascent yet lucrative US market.

With a market cap of just $86 million, and its cash balance providing downside protection. For me, Bluebet is an asymmetric bet on its ‘Capital Lite’ US strategy, starting in four states. Macquarie expects online sports betting to be available to 96% of the US population by 2025.

In a diversified portfolio, with plenty of large-cap ballast and a healthy cash balance, I hold modestly sized positions in both Plenti and Bluebet, amongst other small and microcap stocks I think offer asymmetric outcomes.

The post Two ASX microcap stocks with asymmetric upside potential in today’s market appeared first on The Motley Fool Australia.

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More reading

• It’s a good day on the ASX 200. So why is the Woodside share price getting beaten up?
• Why is the Santos share price getting left behind the ASX 200 today?
• Citi says CSL share price is great value amid large iron therapy opportunity
• Why Hub24, Sezzle, Telix, and Westpac shares are rising
• Is the A2 Milk share price a buy ahead of next month’s AGM?

Motley Fool contributor Bruce Jackson has positions in BlueBet Holdings Ltd and Plenti Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended BlueBet Holdings Ltd and Vanguard MSCI Index International Shares ETF. 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 Santos Ltd (ASX: STO) share price isn’t joining the broader market rally today.

In afternoon trading, the S&P/ASX 200 Index (ASX: XJO) is up 1.24% while Santos shares are down 1.59% to $7.45 apiece.

But it’s not just the Santos share price that’s lagging the benchmark today.

With other big name energy stocks also in the red, the S&P/ASX 200 Energy Index (ASX: XEJ) is down 1.06%.

What’s happening in the oil markets?

International benchmark Brent crude oil is currently trading for US$91.95 per barrel.

That’s up 0.3% overnight. But it’s down 2.8% since Friday.

Analysts are divided over the outlook for crude prices. And that uncertainty looks to be pressuring the Santos share price and other ASX 200 oil stocks today.

The twin forces pit a rather tight global crude supply outlook against the potential of falling demand, should some of the world’s biggest economies slip into recession.

Commenting on the oil markets, head of commodities strategy at ING Groep Warren Patterson said (quoted by Bloomberg):

The market is in somewhat of a limbo at the moment with a negative macro backdrop and a tighter supply outlook. At the moment, I suspect the market is more worried about what implications a slowdown will have on demand.

Atop the concerns that reduced demand will bring down oil prices, investors are also keeping an eye on US president Joe Biden.

Why?

Because Biden controls the taps on the US Strategic Petroleum Reserve (SPR).

The US government had previously announced it would tap into 180 million barrels of oil from the SPR. Much of that oil has already been released into the markets.

Now, investors are eyeing the possibility that the Biden administration, irked by the latest production cuts from OPEC+, may release another 100 million barrels. That would likely send crude prices lower and further pressure the Santos share price.

According to founding partner and chief oil analyst at Energy Aspects Amrita Sen (quoted by Markets Insider), “They are also weighing an emergency release of potentially as much as 100 million barrels [from the SPR]. You just don’t know given the volume of uncertainty.”

Santos share price snapshot

Despite underperforming today, the Santos share price has handily beaten the benchmark in 2022, up 13%. That compares to the 11% year-to-date loss posted by the ASX 200.

The post Why is the Santos share price getting left behind the ASX 200 today? appeared first on The Motley Fool Australia.

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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 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 is underperforming on Tuesday.

In afternoon trade, the biotherapeutics giant’s shares are down almost 0.5% to $275.84.

Should you buy the dip in the CSL share price?

One leading broker that appears to believe investors should buy the dip in the CSL share price is Citi.

According to a note this morning, the broker has responded positively to the company’s update on its new CSL Vifor business.

So much so, its analysts have retained their buy rating with a lofty $340.00 price target.

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

What is the broker saying about CSL?

While there were no surprises from the inaugural CSL Vifor investor day, Citi was happy with what it heard and believes it demonstrates why the company made the blockbuster acquisition.

The broker commented:

The inaugural Vifor investor day was largely as anticipated. CSL gave investors a better appreciation for the rationale behind the deal: Vifor has the most extensive suite of products available in a large underpenetrated market, with a limited number of competitors, and unique industry partnerships.

The medium-term revenue growth target of >10% will likely help support medium-term consensus, but questions will remain around the durability of the iron therapy franchise beyond the end of exclusivity period for Ferinject (~40% of Vifor revenue) in FY27.

Near term, the FY23 guidance was largely as anticipated although FX is a $200m headwind, and the accretion timeline seems to have been pushed out. Whilst these are negative, they were somewhat expected by the market. We are constructive on the iron and CKD markets longer-term. The main earnings driver for CSL remains Behring (>70% of group EBIT). Maintain Buy, $340 TP.

The post Citi says CSL share price is great value amid large iron therapy opportunity appeared first on The Motley Fool Australia.

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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 CSL Ltd. 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 back on form on Tuesday. In afternoon trade, the benchmark index is up 1.3% to 6,749.4 points.

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

Hub24 Ltd (ASX: HUB)

The Hub24 share price is up 14% to $25.20. Investors have been buying this investment platform provider’s shares following the release of its quarterly update. According to the release, Hub24 recorded platform net inflows of $3 billion for the three months. This took its total funds under administration to $52.4 billion. This was driven by continued growth in the number of advisers on its platform.

Sezzle Inc (ASX: SZL)

The Sezzle share price is up over 7% to 51 cents. This morning the buy now pay later (BNPL) provider announced that it has entered into a new $100 million credit facility. Management notes that the facility provides Sezzle with greater capacity, improved flexibility, and extends its funding into 2024.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price is up 9% to $6.09. Investors have been buying this biopharmaceuticals company’s shares after it released promising preliminary data from two separate investigator-initiated studies. These studies were for TLX250-CDx in triple negative breast cancer and non-muscle invasive bladder cancer.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is up almost 2% to $23.87. This morning Westpac confirmed that it is interested in acquiring payments processor Tyro Payments Ltd (ASX: TYR). The banking giant believes that acquiring Tyro would boost its small business offering. Though, it has warned that there’s no guarantee that a deal will be reached.

The post Why Hub24, Sezzle, Telix, and Westpac shares are rising appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in TELIXPHARM DEF SET and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 Ltd. The Motley Fool Australia has positions in and has recommended Hub24 Ltd. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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