Author: openjargon

It’s been a rather pleasant day for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 stocks so far this Wednesday. At the time of writing, the Index has gained a healthy 0.37% and is back above 7,765 points.

But let’s talk about one ASX 200 stock that’s faring even better.

That stock is employment classifieds share Seek Ltd (ASX: SEK). Seek shares closed at $22.68 each yesterday afternoon. But this morning, those same shares opened at $23.10 and are currently up an eye-catching 4.7% at $23.74.

It appears investors are excited about the announcement Seek just made to the ASX.

Before market open this morning, Seek released an update for investors to digest. This update informed the markets that the company would be in line to receive a US$85 million ($130 million) windfall. That’s thanks to the sale of some of its assets.

ASX 200 stock in line for $130 million payday

Seek has reportedly entered into a binding agreement to offload 98.2% of its stake in OCC Mexico and 100% of its stake in Catho Online. The buyer is the Spanish employment company Red Arbor Holding, S.L.

Red Arbor has agreed to pay Seek US$85 million for these assets. That’s in addition to “customary working capital and other adjustments”.

US$20 million of that sum will be held in an escrow account as “security against certain representations and warranties given by SEEK in connection with the transaction”.

Interestingly, Seek noted that “this is a negotiated sum and is not an estimate of SEEK’s future liability in relation to those matters”.

Seek estimates that this transaction can be completed by the end of this month, June 2024. The proceeds have been earmarked for the reduction of Seek’s debt load.

The company has told ASX 200 stock market investors that these sales are expected to result in a $15-35 million net loss on sale after tax. This is a result of factors like tax impacts, transaction costs, and foreign currency losses.

Saying that, Seek reassured investors that there has been no material change to the company’s earnings guidance for the 2024 financial year as a result of these sales.

As we mentioned above, it seems that ASX 200 stock market investors are approving of today’s announcements. That’s going off the decisive movements of the Seek stock price.

Seek stock price snapshot

Despite today’s move higher, Seek shares have had a rough time on the ASX boards of late. The ASX 200 stock remains down by almost 11.5% year to date. However, shares have risen by 1.45% over the past 12 months.

Even so, long-term investors have endured a 33% drop or so from Seek’s last all-time high of over $35 a share. That came back in late 2021.

At the current Seek share price, this ASX 200 stock has a market capitalisation of $8.46 billion. The company is currently trading with a dividend yield of 1.77%.

The post This high-profile ASX 200 stock is soaring on a $130 million windfall appeared first on The Motley Fool Australia.

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

With the All Ordinaries Index (ASX: XAO) up a healthy 0.3% in afternoon trade on Wednesday, we turn our attention to three ASX All Ords shares that were just rerated by leading brokers.

Two received upgrades, while one was downgraded.

(Broker data courtesy of The Australian.)

Two ASX All Ords shares getting broker upgrades

The first ASX All Ords shares earning a broker upgrade today is Infomedia Ltd (ASX: IFM), a software-as-a-service (SaaS) provider for the auto parts and servicing industry.

The Infomedia share price has been on a downward trend since 10 April but remains up 9.0% in 2024.

Shares are down 1.75% today, trading for $1.57 apiece. At that price, Infomedia shares trade on a fully franked trailing dividend yield of 2.6%.

Bell Potter sees significant upside potential for the company. The broker raised Infomedia shares to a buy rating with a $1.90 price target. That’s 21% above current levels.

The second ASX All Ords share getting a broker upgrade is Cooper Energy Ltd (ASX: COE).

Shares in the oil and gas stock are getting hammered today, down 8.2%, trading for 20 cents apiece.

This follows a 4.4% fall yesterday when Cooper Energy released an investor briefing.

On the positive front, the company reaffirmed its FY 2024 guidance. Management is forecasting production of 60.5 TJe/d to 64.0 TJe/d, with production expenses to fall between $57 million and $63 million. Capital expenditure is expected to be $240 million to $280 million.

Canaccord appears to believe the big two-day sell-off is unwarranted. The broker raised Cooper Energy to a buy rating with a 28-cent price target. That represents a potential 40% upside from current levels.

Despite the recent retrace, the ASX All Ords share remains up 57.7% in 2024.

And one stock downgraded

Which brings us to the ASX All Ords share getting a broker downgrade, Whitehaven Coal Ltd (ASX: WHC).

Shares in the ASX coal stock are taking a beating today, down 2.9% to $8.01 apiece.

Longer-term, the Whitehaven share price is up an impressive 37.8% over 12 months. The coal miner also pays some juicy dividends. At the current price, this ASX All Ords share trades on a fully franked dividend yield of 6.1%.

While CSLA cut Whitehaven to an accumulate rating, the broker’s $9.70 price target represents a 21% potential upside from current levels.

As always, if you’re unsure of how or where to invest your money, seek expert advice.

The post 3 ASX All Ords shares just rerated by top brokers 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 positions in and has recommended Infomedia. The Motley Fool Australia has recommended Infomedia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Medibank Private Ltd (ASX: MPL) shares have taken a hit in trading on Wednesday after the company announced the Australian Information Commissioner (OAIC) has commenced civil penalty proceedings against it in Federal Court.

The proceedings are in relation to the 2022 “cybercrime event”, the company says, and relate to the Commissioner’s own investigation into the event.

Medibank shares are currently trading at $3.69 apiece, down nearly 2%. Let’s take a look at what this means for the insurer.

Medibank shares hit over huge potential fines

The 2022 cyber attack on Medibank and its subsidiary AHM resulted in the exposure of sensitive customer data.

Hackers released information on the dark web, including details about names, addresses, dates of birth, phone numbers, and email addresses.

Other compromised data included Medicare numbers and, in some cases, passport numbers for international students. Medibank, following federal government advice, chose not to pay the ransom demanded by the hackers.

Maurice Blackburn Lawyers lodged a representiative complaint against Medibank, which the OAIC accepted on March 30, 2023.

In its latest submission, the OAIC alleges that Medibank “seriously interfered” with the privacy of 9.7 million Australians by “failing to take reasonable steps to protect their private information”, according to reporting by The Australian.

The OAIC is seeking penalties for each of the 9.7 million affected customers, with each contravention carrying a maximum fine of $2.22 million, The Australian Broadcasting Corporation reports.

Tallied up, this totals a staggering maximum amount of $21.5 trillion, the ABC says. However, the actual fines will be determined by the Federal Court. It is unsure how the Court will decide proceedings if ruling in favour of the Commonwealth.

Implications for Medibank shares

In today’s announcement, the ASX healthcare share stated its intent to defend the OAIC’s claims. Still, the breach has placed Medibank under scrutiny. If unsuccessful in its defence, who knows what the financial and reputational outcome of this will be.

Whilst there are no specific fine amounts listed, a maximum of $21.5 trillion is a staggering amount, more than the entire Australian GDP of US$1.7 trillion in 2023.

Medibank’s revenues were up 1.3% to $3.65 billion in H1 FY 2024. The company reported a net profit after tax (NPAT) of $233.3 million, up 6% year over year.

This was after “cybercrime costs” of $17.6 million for the period, adding to the $26.2 million the prior corresponding period.

What does this mean for investors? Well, given it is still early days, we are yet to find out. The market has yet to fully digest the news as well. Safe to say however – this is one to keep a close eye on.

Conclusion

Medibank investors have taken the news reasonably well today. The Medibank share price is down around 2% at the time of writing. In the last 12 months, the stock is up around 4%. It has climbed 4% this year to date as well.

While the exact financial impact remains uncertain, investors would be wise to stay informed about the proceedings and their potential implications for Medibank’s future performance.

The post Medibank shares dip as huge potential fines loom from 2022 data breach appeared first on The Motley Fool Australia.

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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.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to the release of a number of broker notes this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

Evolution Mining Ltd (ASX: EVN)

According to a note out of UBS, its analysts have retained their buy rating on this gold miner’s shares with an improved price target of $4.60. The broker feels that gold is going through a structural shift that could drive its price to A$4,000 per ounce. In light of this, the broker believes that previously flagged risks around FY 2025 guidance and medium-term cost profiles are now insignificant. Overall, it thinks that the sector is looking undervalued based on its updated gold price forecasts. The Evolution Mining share price is trading at $3.83 today.

Lovisa Holdings Ltd (ASX: LOV)

A note out of Bell Potter reveals that its analysts have retained their buy rating and $36.00 price target on this fashion jewellery retailer’s shares. This follows news that its CEO, Victor Herrero, will be leaving the company next year. Bell Potter notes that he will be replaced by John Cheston, who is the current CEO of Smiggle. While the broker sees leadership transition risk, it believes the CEO appointment aligns well to drive the next leg of growth and lift the penetration of a global business built by Herrero. Its analysts anticipate a smooth transition over the next 12 months and expect Cheston’s background to assist continued execution in Lovisa’s ~40 markets globally. The Lovisa share price is fetching $29.56 on Wednesday.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Goldman Sachs have reiterated their buy rating and $13.00 price target on this wine giant’s shares. This follows the release of a business update and a Treasury Americas investor presentation. The broker highlights that its business update revealed that management has reiterated its guidance for FY 2024. It was pleased with this and believes it alleviates recent concerns of a US-led downgrade. In addition, the broker notes that its investor presentation provided a Luxury Strategy deep dive that was encouraging. Goldman points out that it leans into the continued premiumisation trend in the US and provides scaled synergies of both the Treasury Wine and DAOU luxury portfolios. The Treasury Wine share price is trading at $12.12 this afternoon.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Lovisa and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Lovisa. The Motley Fool Australia has recommended Lovisa and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Commonwealth Bank of Australia (ASX: CBA) share price is at it again.

And by ‘it’, I mean breaking into new all-time high territory.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock are up 0.9% in early afternoon trade on Wednesday, trading for $123.53 apiece.

If CBA stock closes in the green, as looks likely, this will mark the fourth consecutive trading day of gains for Australia’s biggest bank.

It will also mark yet another record closing high.

This flies in the face of a growing chorus of bearish analysts’ assessments.

Many analysts have recently said they believe all the big four ASX 200 bank shares are overvalued. And with a lofty price-to-earnings (P/E) ratio north of 21 times, CBA tends to catch the most flak.

But as witnessed by the new record high CBA share price today, investors don’t appear to share those concerns.

The big four bank looks to be getting some support amid expectations that the level of bad loans may remain subdued. That’s in part thanks to a range of cost-of-living relief measures contained in the federal budget, which should help stressed mortgage holders meet their payments.

Today’s tepid quarterly GDP growth figures released by the ABS at 11:30am AEST have also upped the odds of earlier interest rate cuts from the Reserve Bank of Australia.

The CBA share price is up 0.25% since the GDP data hit the wires and up 26.7% in a year.

Take that bears!

The post Unstoppable! CBA share price smashes yet another record high 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.

Looking to add high-quality ASX healthcare shares to your portfolio? The Australian share market is home to some of the most disruptive, innovative health companies on the planet.

ASX healthcare shares have traded flat as a group in the last three months. The S&P/ASX 200 Health Care Index (ASX: XHJ) has moved less than 1.5% since 5 March.

However, two standouts among the crowd are ResMed Inc (ASX: RMD) and CSL Ltd (ASX: CSL). Both companies are leaders in their fields and could offer attractive opportunities for growth and income, in my view.

Why ResMed is a top ASX healthcare share

ResMed is a leading player in the sleep disorder treatment market. With the rising prevalence of obstructive sleep apnoea (OSA), experts say ResMed is well-positioned for significant growth.

According to analysts at Bell Potter, the OSA market is huge. The broker says more than a billion people globally suffer from OSA, and many more remain undiagnosed.

Bell Potter reckons this massive underpenetration presents a large growth opportunity for ResMed. The broker has given the company a buy rating with a $36.00 price target. The broker cited the sleep company’s competitive edge as a tailwind, which is boosted by the ongoing recall of competitor Philips’ respiratory devices.

My colleague James reported that Macquarie analysts are also bullish on ResMed, with an ASX healthcare share valuation of $34.85. If correct, both price targets represent an upside potential of 15% and 12%, respectively.

ECP Asset Management likes ResMed as well. In April, portfolio manager Sam Byrnes told the Australian Financial Review that he believed the company was undervalued.

The ASX healthcare share “derated due to the frenzy” surrounding GLP-1s weight loss drugs, Byrnes said. “This raised concerns about the future of ResMed’s sleep apnoea treatment”.

But, even with the market’s strength in 2024, ECP still finds ResMed’s valuation “very appealing”.

CSL remains a favourite ASX healthcare share

Biotech giant CSL has long delivered attractive capital gains and dividends for its shareholders. But it has traded flat for the last two to three years.

Despite this period of sideways movement, CSL’s future looks bright, according to leading fund managers and analysts.

ECP’s Sam Byrnes is positive about CSL’s prospects as well. He highlights the company’s volume growth and reduced cost of plasma collections as key drivers of future performance.

Byrnes – along with investment bank Macquarie – has set an eye-popping share price target of $500 over the next three years.

In the short-term, Macquarie has set a price target of $330 per share (next 12 months), driven by strong earnings growth in CSL’s Behring business. This is expected to account for around 90% of CSL’s profits over the next five years.

This, it says, can drive earnings higher and push the stock price to $500 per share. Analysts at Morgans and UBS are also optimistic, with the former adding CSL to its best ideas list and setting a price target of $315.40, indicating a potential upside of 11.17%.

Putting it all together, CSL could potentially trade back above $300 per share.

Two of the best?

Both ResMed and CSL could offer compelling opportunities for ASX investors. I think ResMed’s growth potential in the sleep disorder market and CSL’s fundamentals outlook make them two of the best ASX healthcare shares that money can buy.

It pays to remember that investing comes with a degree of risk and that past performance – or price targets – are no predictors of future performance.

The post Are these 2 ASX healthcare shares the best that money can buy? appeared first on The Motley Fool Australia.

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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 positions in and has recommended CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is back on form on Wednesday and pushing higher. In afternoon trade, the benchmark index is up 0.4% to 7,768.7 points.

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

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down a further 5% to 23.25 cents. Investors have been hitting the sell button this week after competition in the artificial intelligence chip market intensified significantly with both AMD and Nvidia announcing their latest releases. Given how much these companies (and others) are pouring into their research and development, some investors may now be thinking that Brainchip doesn’t have a hope in competing with these giants. Brainchip shares have lost more than 50% of their value since late February.

Immutep Ltd (ASX: IMM)

The Immutep share price is down almost 8% to 41.5 cents. This follows the successful completion of its institutional placement and the institutional component of its entitlement offer. The biotechnology company raised gross proceeds of approximately $89.6 million at an offer price of $0.38 per new share. Management notes that the placement attracted strong demand from existing institutional shareholders and also introduced several new institutional investors to the Immutep register. Dr Russell Howard, Chairman of Immutep, said: “We’re delighted to have such strong and unwavering support from our shareholders who share our belief in efti and have continued to invest in Immutep through this financing.”

Liontown Resources Ltd (ASX: LTR)

The Liontown Resources share price is down 5% to $1.22. This is despite there being no news out of the lithium developer on Wednesday. However, it is worth noting that most ASX lithium stocks are trading lower today. This follows a reasonably poor session for their counterparts on Wall Street overnight. This latest decline means that Liontown’s shares are now down by 55% since this time last year.

Xero Ltd (ASX: XRO)

The Xero share price is down 4.5% to $125.85. This has been driven by the cloud accounting platform provider launching a new convertible notes offering. Xero was aiming to raise US$850 million (A$1.28 billion) through fixed coupon guaranteed senior unsecured convertible notes due in 2031. It eventually successfully priced US$925 million 1.625% senior unsecured convertible notes. Xero’s CFO, Kirsty Godfrey-Billy, said: “We’re pleased with the response and the very strong demand for this offer. This will provide us with flexibility as we continue to execute our strategic priorities.”

The post Why Brainchip, Immutep, Liontown, and Xero shares are tumbling today appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.