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  • UAE Says OPEC+ Deal Will Soon Restore Oil Prices to ‘Normal’

    UAE Says OPEC+ Deal Will Soon Restore Oil Prices to ‘Normal’(Bloomberg) — Oil-production limits adopted by a group of major crude suppliers will soon bring prices back to “normal,” according to the energy minister of the United Arab Emirates.When markets were collapsing as the coronavirus pandemic crushed demand in March and early April, the idea that crude could rise again to $40 a barrel was “a dream,” the UAE’s Suhail Al Mazrouei said during a conference call on Monday. That was before the OPEC+ alliance agreed unprecedented cuts in output.Prices could return to “normal” within a year or two as curbs approaching 10 million barrels a day drain excess barrels from the market, Mazrouei said during the call hosted by the Atlantic Council, a Washington-based research institute.“We have seen very good signs of demand picking up,” Mazrouei said. “We have seen numbers of driving vehicles are picking up,” he said, citing demand growth in China, India and Europe.Hinging on LockdownsStill, the direction of oil prices will hinge to a large extent on whether a second round of infections forces economies into lockdowns once again, he said.“Are we going to have a second wave or not?” he said. “I hope not. I hope we’re not going to limit travel and we will go back to at least a consumption level that is reasonable. Now we are back to the consumption level of 2013, believe it or not.”Mazrouei didn’t specify what he meant by “normal” prices. However, benchmark Brent crude averaged about $64 a barrel last year. OPEC+ producers negotiated cuts in April to counter the pandemic’s impact and this month extended the reductions through July.Led by Saudi Arabia and Russia, the group aims to support a rally that’s seen Brent more than double to around $40 a barrel since late April, paring its loss this year to 40%. For that success to continue, all OPEC+ members must adhere to their production quotas, while other suppliers must refrain from resuming output too quickly, Mazrouei said.“In previous deals we had countries cheat because there was no rule. Now there is a rule, so countries are coming and stating their commitments,” Mazrouei said. The OPEC+ agreement has effectively created a “permanent” group of nations — one bigger than the Organization of Petroleum Exporting Countries — that will coordinate to manage crude markets, he said.(Updates from fifth paragraph with quotes.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • 2 ASX healthcare shares to buy for long-term growth

    Doctor with stethoscope in hand and data graph showing upward trend

    I believe that healthcare is an excellent sector to invest in and the ASX is home to a number of exciting healthcare shares.

    The world’s population continues to age, which will help drive growing demand for additional healthcare services over the next few decades. Alongside this, the cost of healthcare services continues to rise.

    Here we look at 2 ASX healthcare shares that I believe have strong long-term growth potential: Ramsay Health Care Limited (ASX: RHC) and ResMed Inc (ASX: RMD).

    Ramsay

    Ramsay has evolved significantly over the past few decades. It has transitioned from a small Australian operation to become Australia’s largest private healthcare provider, with operations in 11 countries including the United Kingdom, France and Italy. The company is also significantly larger than the number two hospital operator in Australia, Healthscope Limited.

    Ramsay’s size and scale enable it to spread its operating costs. This also provides it with a competitive advantage in negotiations with health insurers. Although Ramsay’s overall debt position is relatively high, in my opinion it appears to be manageable.

    This ASX healthcare share has been impacted by the ban on non-essential surgeries.  As a result, its share price was hit hard in the early phase of the crisis. However, elective surgeries are now beginning to recommence in Australia with other markets set to follow. Therefore, Ramsay may emerge from its current issues faster than first anticipated.

    Also, Ramsay has successfully closed a number of key government deals in Australia and the United Kingdom during the pandemic. These deals will ensure that the company’s hospitals do not run at a loss during the current period.

    ResMed

    ResMed manufactures devices and cloud-based software solutions for the treatment of sleep apnoea and other chronic respiratory illnesses.

    ResMed has grown to become one of the world’s leading sleep treatment companies and is now a major US-based global company. The company employs more than 7,000 people worldwide.

    It provides end-to-end connected health solutions that can be used in the home, reducing the financial and resource burden of in-hospital treatment.

    The global potential market for sleep apnea is huge. It is estimated that there are one billion people impacted by sleep apnoea worldwide and more than 80% undiagnosed cased globally.

    New product launches and successful targeted acquisitions have all helped drive revenue growth during the past few years. This growth has continued recently, with Ramsay recording a very strong 47% increase in net income during the third quarter of FY 2020.

    For more shares set for bumper growth, don’t miss the free report below.

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    Motley Fool contributor Phil Harpur owns shares of ResMed Inc. The Motley Fool Australia has recommended Ramsay Health Care Limited and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post 2 ASX healthcare shares to buy for long-term growth appeared first on Motley Fool Australia.

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  • Top brokers just upgraded these ASX 200 shares today

    Man in white business shirt touches screen with happy smile symbol

    The wild gyrations on the market are throwing up some opportunities for ASX investors with leading brokers upgrading a few ASX shares today.

    The S&P/ASX 200 Index (Index:^AXJO) recorded its best gain in two months as it surged by over 4% on Tuesday.

    That’s a marked turnaround from the recent heavy sell-off due to worries of a second COVID-19 wave of infections.

    I doubt we have seen the last of the big swings in the market but those looking to buy well-priced ASX stocks during the turmoil might want to put the following two upgraders on their watchlist.

    More left in the tank

    The first is the Super Retail Group Ltd (ASX: SUL) share price. Never mind that the outdoor and auto accessories retailer’s shares jumped a whopping 9.9% on Tuesday to $8.58.

    Morgans thinks there’s more upside as it upgraded its recommendation on Super Retail to “add” from “hold”.

    The change in rating comes after management’s trading update and a $203 million capital raising.

    “We think SUL can now attract a higher market rating given the resilience its businesses have shown throughout COVID and the restructured balance sheet,” said the broker.

    “Its businesses also look well placed to benefit from some key thematics including: increased domestic tourism and leisure activities, home-based fitness and a general acceleration in online consumption.”

    Morgans upped its price target to $9.25 from $7.84 a share.

    Good medicine

    The Healius Ltd (ASX: HLS) share price also got a boost after Credit Suisse upgraded its call on the stock to “outperform” from “neutral” today.

    The broker’s bullish recommendation comes on the back of the sale of Healius’ medical centres to private equity outfit BGH Capital for $500 million.

    That’s more than what Credit Suisse thought the assets were worth but that isn’t the only thing that got Credit Suisse excited.

    Revenues from the group’s pathology and radiology divisions have also improved significantly in recent weeks.

    The divestment allows management to focus on growing these businesses and to play catch up with rival Sonic Healthcare Limited (ASX: SHL).

    “HLS is currently trading on 10.6x FY21 EBITDA, which is relatively in line with the multiple paid for Medical Centres, the least attractive & lowest return generating business unit,” said Credit Suisse.

    “In our view, Pathology and Imaging deserve to trade at higher multiples.”

    The broker’s 12-month price target on Healius is $3.25 a share.

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    Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended Sonic Healthcare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Top brokers just upgraded these ASX 200 shares today appeared first on Motley Fool Australia.

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