Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) has slipped into the red in afternoon trade. At the time of writing, the benchmark index is down slightly to 7,510.9 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are falling:

Karoon Energy Ltd (ASX: KAR)

The Karoon Energy share price is up 6% to $1.89. This morning, analysts at Goldman Sachs suggested that investors buy this energy producer’s shares following weakness this week. It has a buy rating and $2.41 price target on its shares. This implies 28% upside even after today’s gain.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is up 17% to $5.11. Investors have been buying this ecommerce company’s shares after it released a first half update. Although Kogan’s sales were down 5.6% to $445.4 million for the half, its gross profit jumped 42.1% to $89.5 million thanks to margin expansion. Adjusted earnings before interest an tax is expected to be $14 million, up from a loss of $12.7 million.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is up 5% to $12.75. This follows the release of the gold miner’s quarterly update this morning. Northern Star reported gold sold of 412,000 ounces at an all-in sustaining cost (AISC) of A$1,824 an ounce. This puts it on course to achieve its guidance of 1,600,000 to 1,750,000 ounces at an AISC of A$1,730-A$1,790 an ounce in FY 2024.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up 6% to $3.47. This has been driven by the release of a solid quarterly update from the lithium miner this morning. It reported a 22% increase in spodumene concentrate production to 176,000 tonnes and a 9% lift in sales to 146,400 tonnes. And while it also reported a 50% reduction in its realised price to US$1,113 per tonne, it remains very profitable thanks to its low costs.

The post Why Karoon Energy, Kogan, Northern Star, and Pilbara Minerals shares are jumping today appeared first on The Motley Fool Australia.

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More reading

• Kogan share price surges 17% as business strength returns
• Pilbara Minerals shares charge higher on rock solid Q2 update
• Why this ASX 200 energy stock could rise 35%
• 5 things to watch on the ASX 200 on Wednesday
• Why IDP Education, Karoon Energy, Liontown, and Zip shares are falling 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 positions in and has recommended Goldman Sachs Group and Kogan.com. The Motley Fool Australia has recommended Kogan.com. 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 an uninspired day so far for ASX shares and the S&P/ASX 200 Index (ASX: XJO). At present, the ASX 200 has gained an anaemic 0.032% and is hovering just above 7,500 points. But let’s talk about two ASX real estate investment trusts (REITs) that are making news this Wednesday.

If you’ve got a keen interest in Wesfarmers Ltd (ASX: WES), you may be familiar with either the BWP Trust (ASX: BWP) or the Newmark Property REIT (ASX: NPR). Or perhaps both.

Both of these REITs lease land to Wesfarmers.

BWP owns a 73-property portfolio of real estate, with 61 of those properties occupied by Bunnings Warehouses.

Meanwhile, Newmark has a portfolio consisting of nine properties. These are rented out to retailers like JB Hi-Fi Ltd (ASX: JBH), Petstock and Freedom. But 74.1% of the ASX REIT’s income comes from Wesfarmers businesses like Kmart, OfficeWorks and Bunnings.

Why is this significant? Well, the big ASX REIT news today is that these two property trusts are merging.

BWP and Newmark to join in an ASX Bunnings REIT mega-merger

In an announcement put out this morning, both REITs confirmed that Newmark was approached by BWP for a full takeover last month.

Today, those details have become public, along with the news that Newmark’s independent board committee has unanimously recommended that unitholders accept the latest offer.

That offer is an all-scrip one, with Newmark unitholders to receive 0.4 BWP units for every Newmark unit owned. That implies a valuation of $1.39 per Newmark unit. This, Newmark told investors, represents a whopping 43.1% premium to the 97 cents unit price Newmark units closed at yesterday.

As such, it’s no surprise to see Newmark units pop on the share market this Wednesday. At present, the ASX REIT is up a massive 38.66% at $1.34 a unit.

In contrast, the BWP unit price has fallen 1.3% today to $3.42 so far.

Here’s some of what Newmark chair Michael Doble told investors this morning:

The Proposal represents a highly attractive offer for NPR securityholders. The consideration reflects a material premium to NPR’s trading price and provides an opportunity to participate in a larger merged group with lower gearing, which is particularly compelling given the ongoing elevated interest rate environment and market uncertainty.

After careful consideration, the IBC has concluded that the Proposal is in the best interests of NPR securityholders and unanimously recommends that NPR securityholders accept the BWP takeover offer, in the absence of a superior proposal.

The offer is conditional on 50.1% of Newmark unitholders granting approval for the merger, amongst other conditions. Both ASX REITs have put a ‘mid-March 2024’ deadline for the offer to close and the merger to proceed.

It’s clear who investors think is betting the better deal here, judging by today’s REIT unit price movements on the ASX.

The post This ASX Bunnings REIT is rocketing 40% today. Here’s why appeared first on The Motley Fool Australia.

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More reading

• Why Adriatic Metals, Chrysos, Coronado, and Nanosonics shares sinking today
• Core Lithium share price soars 5% as production increases and costs fall
• Top brokers name 3 ASX shares to buy today
• Woodside share price hesitant on $3.36 billion quarter
• Are Brickworks or Soul Patts shares a better ASX buy? Here’s my take

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Jb Hi-Fi. 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 fighting hard to keep its winning streak alive. At the time of writing, the benchmark index is up a fraction to 7,515.1 points.

Four ASX shares that are weighing on the market today are listed below. Here’s why they are dropping:

Adriatic Metals (ASX: ADT)

The Adriatic Metals share price is down almost 8% to $3.25. This follows the release of the initial production guidance of the Vares Silver Project in Bosnia and Herzegovina. It is forecasting production of 240-300kt for 2024, then 750-850kt for 2025, and finally 800-900kt for 2026 onwards.

Chrysos Corporation Ltd (ASX: C79)

The Chrysos share price is down 6.5% to $7.13. This morning, the mining technology company released its quarterly update. It revealed revenue of $10.1 million for the three months. This represents a 13% increase quarter on quarter and a 57% jump year on year. It seems that some investors were expecting even stronger growth.

Coronado Global Resources Inc (ASX: CRN)

The Coronado share price is down 4% to $1.61. This may have been driven by the release of a broker note out of Ord Minnett. Its analysts have downgraded the coal miner’s shares to a hold rating with a trimmed price target of $1.80.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is down 34% to $2.87. Investors have been selling this infection prevention company’s shares following the release of a disappointing update. Nanosonics revealed that it has continued to experience ongoing uncertainty associated with the impact on the timing of capital unit sales due to hospital capital budgetary pressures. In light of this, its first half profit before tax is expected to be just $4.9 million. This is less than half of what was recorded a year ago.

The post Why Adriatic Metals, Chrysos, Coronado, and Nanosonics shares sinking today appeared first on The Motley Fool Australia.

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More reading

• Here’s why Nanosonics shares are crashing 37% today
• Here are the top 10 ASX 200 shares today
• Miners among the ASX 300 shares surging on quarterly reports
• Here are the top 10 ASX 200 shares today
• The 8 ASX mining stocks Goldman Sachs says are buys in 2024

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 Chrysos and Nanosonics. The Motley Fool Australia has positions in and has recommended Chrysos and Nanosonics. 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 Core Lithium Ltd (ASX: CXO) share price is enjoying a big lift today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed yesterday trading for 19.5 cents. At the time of writing on Wednesday morning, shares are changing hands for 20.5 cents apiece, up 5.2%.

For some context, the ASX 200 is up a slender 0.1% at this same time, with most lithium producers also outperforming.

Here’s what’s happening.

Core Lithium share price lifts on production boost

The Core Lithium share price looks to be getting a boost following the release of the company’s quarterly update for the three months ending 31 December.

Among the biggest news, was management’s decision to temporarily suspend operations of its open pit mining operations at Finniss as part of the company’s Q2 Strategic Review. The Core Lithium share price closed down 11.5% on 5 January, the day of that announcement.

“With the rapid shifts in lithium market pricing, Core moved quickly to undertake a strategic review, resulting in the temporary suspension of mining and BP33 early works to conserve cash, and preserve the value of the underlying business,” CEO Gareth Manderson said.

Atop conserving cash, Core reported a 39% quarter on quarter increase in spodumene concentrate production to 28,837 tonnes.

Lithia recoveries for the three months averaged 60%, up 20% from the prior quarter.

And the 30,718 tonnes of spodumene concentrate shipped was up 31% from last quarter.

The miner also prepared for the wet season, with 289,000 tonnes of ore stocks at the end of the quarter, up 56% from Q1.

With mining temporarily halted, Core reduced its capital spend guidance and cash operating cost guidance.

Commenting on the quarterly performance that looks to be offering a lift for the Core Lithium share price, Manderson said, “There is no doubt we have seen strong operational improvement at Finniss as it has ramped up throughout the year.”

Manderson added:

The work undertaken ahead of the wet season has successfully established ore stockpiles that will see us produce concentrate for the next 5-6 months at a lower overall cash cost, due to the suspension of mining.

This approach will preserve Finniss’ long-term value and ensure we are prepared to move quickly to restart mining in a more favourable pricing environment.

As at 31 December, Core has a cash balance of $125 million.

How has the ASX 200 lithium miner been performing?

It’s been a rough year for the Core Lithium share price amid a crashing lithium price and the suspension of the company’s mining operations.

Despite today’s welcome lift, shares in the ASX 200 miner remain down 81% over the past 12 months.

The post Core Lithium share price soars 5% as production increases and costs fall appeared first on The Motley Fool Australia.

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More reading

• Here’s the lithium price forecast through to 2027
• Mineral Resources shares tumble 9% on unfavourable broker rating
• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• Is Core Lithium stock a good buy after falling 80% in a year?

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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

CSL Ltd (ASX: CSL)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $334.00 price target on this biotechnology company’s shares. The broker has been looking at the plasma collection market and was pleased with what it saw in respect to collections and the company’s network rollout. In light of this, it remains as positive as ever on the company’s outlook. The CSL share price is trading at $293.11 today.

Elders Ltd (ASX: ELD)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this agribusiness company’s shares with an improved price target of $9.50. This follows favourable weather conditions which it believes will be supportive of Elders’ business. And while the broker is forecasting an earnings decline in FY 2024, it then expects strong earnings growth in both FY 2025 and FY 2026. It appears to believe that this makes its shares great value at current levels. The Elders share price is fetching $8.48 this morning.

Liontown Resources Ltd (ASX: LTR)

Another note out of Bell Potter reveals that its analysts have retained their speculative buy rating on this lithium developer’s shares with a reduced price target of $1.60. While the broker has slashed its valuation to reflect Liontown’s disappointing update this week, it still sees plenty of value on offer for investors with a high risk tolerance. This is because it believes Liontown’s Kathleen Valley lithium project is highly strategic in terms of its stage of development, long mine life, and location. The Liontown share price is trading at 95 cents on Wednesday.

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

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More reading

• Buy this ASX 300 share for 13% upside and a 4% dividend yield
• Is now the right time to buy CSL shares? Here’s my take
• Why IDP Education, Karoon Energy, Liontown, and Zip shares are falling today
• Here’s the lithium price forecast through to 2027
• Broker tips 70% return for Liontown shares after selloff

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL and Elders. 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 Woodside Energy Group Ltd (ASX: WDS) share price is barely oscillating on Wednesday morning following the release of its fourth-quarter report.

Shares in the oil and gas producer opened at $31.15, appearing unsure which way to whip amid the latest update. At the time of writing, the Woodside share price sits at $31.09, putting it 8% above its 52-week low.

Woodside share price stoic amid result

Here are the main takeaways from the quarter ended 31 December 2023:

• Record full-year 2023 production up 18.7% to 187.2 million barrels of oil equivalent (MMboe)
• Quarterly production down 6.8% to 48.1 MMboe
• Quarterly revenue of $3,355 million, down 35% versus prior corresponding period
• Sales down 7% quarter-on-quarter to 49.5 MMboe
• Average realised price of $66.8 per barrel of oil equivalent

Pumping out 187.2 MMboe, it ended up being a record year of production at Woodside. However, the fourth quarter witnessed a decline in production versus Q3 due to reduced volume from the Bass Strait during planned maintenance works and weaker gas demand in the summer.

Additionally, production at the North West Shelf fell to 7.8 MMboe from 9.6 MMboe due to ‘natural field decline’.

What else happened in Q4?

Several Woodside projects continued through development in the quarter. The Scarborough and Pluto Train 2 project reached 55% completion at the end of the fourth quarter. Woodside is currently targeting first LNG cargo for 2026.

Meanwhile, phase one of the Sangomar project was 94% complete at the end of 2023. Management is eyeing mid-2024 to produce its first barrel of black gold.

Another big item of the quarter was confirmed merger talks between Woodside and Santos Ltd (ASX: STO).

Providing an update in today’s announcement, Woodside CEO Meg O’Neill stated, “The talks are still at an early stage and there is no certainty that the transaction will progress. Woodside will be disciplined, conduct thorough due diligence, and will only pursue a transaction that is value-accretive for shareholders.”

What’s next?

Charting course for 2024, Woodside provided full-year guidance for the year ahead. Production is expected to land between 185 MMboe and 195 MMboe, representing a 1.5% increase at the midpoint.

Furthermore, Woodside provided a production split by product type as follows:

• LNG – approximately 45%
• Pipeline gas – approximately 20%
• Crude and condensate – approximately 30%
• Natural gas liquids – approximately 5%

The company expects to outlay between US$5 billion and US$5.5 billion in capital expenditure in 2024. At roughly 40%, the Scarborough project is anticipated to soak up the largest portion of funds.

Woodside share price snapshot

Shares in Australia’s largest listed energy company are down 16% over the last 12 months. Much of this weakness manifested between September and December last year — a time when crude oil prices retreated from US$91 per barrel back to US$70.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.5% compared to a year ago. Perhaps a fairer comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) is down 7%.

Due to the Woodside share price falling, the company’s price-to-earnings (P/E) ratio has diminished to 6 times earnings. Yet, this is still mostly in line with the Australian oil and gas industry average multiple.

The post Woodside share price hesitant on $3.36 billion quarter appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• At under $31, should I be rushing to buy Woodside shares?
• Down 31%: Buy the dip on these ‘attractive’ ASX 200 dividend shares
• 5 things to watch on the ASX 200 on Monday
• Which had the better year in 2023: Telstra, Woodside or Wesfarmers shares?

Motley Fool contributor Mitchell Lawler 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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Nanosonics Ltd (ASX: NAN) shares are on the slide on Wednesday morning.

At the time of writing, the ASX 200 stock is down 37% to a 52-week low of $2.76.

Why are Nanosonics shares sinking?

Investors have been selling the infection prevention company’s shares today in response to the release of a trading update after the market close on Tuesday.

According to the release, the company has continued to experience ongoing uncertainty associated with the impact on the timing of capital unit sales due to hospital capital budgetary pressures. Management explained:

During the first half of FY24, the pipeline for new installed base and upgrades continued to grow however timeframes to conclude sales increased resulting in lower capital sales than expected. In particular, this saw the Company experience softer than anticipated upgrade sales with customers extending the use of their existing trophon equipment, delaying the trophon2 upgrade capital purchase.

What does this mean for sales and profits?

Nanosonics is expecting total revenue for the half year is expected to be approximately $79.6 million. This represents a 2.4% (4.3% in constant currency) decrease compared with prior corresponding period.

Also heading in the wrong direction was the ASX 200 stock’s operating expenses, which are expected to be approximately $60.8 million for the half. This represents an increase of 12% compared with prior corresponding period. Though, this includes investments being made in preparation for the commercialisation of its new endoscope reprocessing platform, CORIS.

The sum of the above will be a profit before tax of approximately $4.9 million. This is less than half of the $11.4 million recorded in the prior corresponding period..

FY 2024 guidance

Looking further ahead, management revealed that it is currently reviewing its second half sales outlook. However, it anticipates revenue growth in second half over the first half, as well as revenue growth for the full year.

It plans to provide more detail on its guidance with its half year results late next month.

In the meantime, the ASX 200 stock warns:

All guidance is subject to ongoing uncertainty in relation to hospital capital budgetary pressures as well as broader economic and geopolitical conditions. All the forward looking information included is inherently uncertain, and the Company cautions against reliance on any forward-looking statements.

Nanosonics shares are now down almost 45% over the last 12 months.

The post Here’s why Nanosonic shares are crashing 37% today appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• The top 10 ASX shares I’m picking for a prosperous 2024

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 Nanosonics. The Motley Fool Australia has positions in and has recommended Nanosonics. 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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Pilbara Minerals Ltd (ASX: PLS) shares are charging higher on Wednesday.

In morning trade, the lithium miner’s shares are up 4% to $3.41.

Why are Pilbara Minerals shares rising?

Investors have been buying the company’s shares today after responding positively to its quarterly update.

According to the release, Pilbara Minerals delivered a 22% quarter on quarter increase in spodumene concentrate production to 176kt during the three months. This was achieved through improved processing plant availability with one less shut down in the December quarter compared to the prior quarter.

Also heading in the right direction were its sales volumes, which increased 9% quarter on quarter to 146.4kt.

However, heading very much in the wrong direction was the price of its lithium. Pilbara Minerals reported a 50% decline in its realised price to US$1,113 per tonne.

The good news is that it was able to reduce its unit operating costs (FOB) to US$416 per tonne, which means it is still generating plenty of cash flow despite the lower prices. Unit cost reductions were underpinned by higher sales volumes that were enabled by increased production volume.

Management revealed that it had a cash margin from operations of $176 million. Though, due largely to tax payments, its cash balance had declined almost $900 million to $2,144 million at the end of December.

In light of this, the company has warned that it is unlikely to pay a dividend for the first half of FY 2024.

Cost and capital investment review

Pilbara Minerals believes that the strength of its balance sheet is a significant competitive advantage. As a result, it is focused on preserving that advantage through rationalising non-essential spend that does not impact on expansion or further improve unit operating costs.

With that in mind, management has increased its focus on unit-cost efficiency and conducted a review of capital spend.

Based on this review, it is decreasing its FY 2024 capital expenditure guidance range from $875 million to $975 million to a new range of $820 million to $875 million. This reflects a number of non-essential new projects and enhancements being deferred.

Pleasingly, this reduction in capital expenditure is not expected to impact the timing of the P680 or P1000 expansion projects, which remain on schedule. All other FY 2024 guidance has been reaffirmed.

Outlook

Management remains very positive on the company’s long term outlook thanks to the its low costs and the strength of its balance sheet.

The long-term outlook for lithium remains strong based on compounding growth in EV production and other energy storage applications. However, as with many emerging sectors, the industry has seen pricing volatility including periods of lower pricing.

With a low unit-cost structure and strong balance sheet position, Pilbara Minerals is uniquely placed relative to many of its competitors in the lithium sector to withstand and capitalise on a period of lower prices that could rationalise the market. With increasing production capacity, the Group is also uniquely positioned to take advantage of an improvement in market conditions when the pricing cycle turns.

Pilbara Minerals shares are down 30% over the last 12 months.

The post Pilbara Minerals shares charge higher on rock solid Q2 update appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why is the Pilbara Minerals share price rebounding on Tuesday?
• Here’s the lithium price forecast through to 2027
• Why has the Pilbara Minerals share price just tanked 6%?
• Mineral Resources shares tumble 9% on unfavourable broker rating

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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If you’re on the lookout for exposure to the banking sector, then it could be worth looking outside the big four.

Especially when one ASX 300 bank stock has been tipped to rise 50% from current levels by analysts at Goldman Sachs.

Why ASX 300 bank stock is a buy?

The bank stock in question is small business lender Judo Capital Holdings Ltd (ASX: JDO).

Earlier this week, it released its unaudited half year results and revealed a significant jump in earnings.

Judo posted an unaudited profit before tax (PBT) of $67 million for the first half, which was up 24% on the prior corresponding period. This was underpinned by continued above-system lending growth, strong net interest margins, continued investment in growth, and minimal write offs.

Looking ahead, it is forecasting a second half PBT of $40 million to $45 million, resulting in FY 2024 PBT of $107 million to $112 million.

This strong update caught the eye of analysts at Goldman Sachs. They commented:

JDO has pre-released its 1H24 results, with net profit before tax of A$67 mn, up from A$54 mn in 2H23, and 32%/20% above prior GSe/company compiled consensus (CCC). The beat was driven by lower-than-expected expenses and higher revenues (we expect non-interest income). BDDs were broadly in-line with GSe — but lower than CCC — and as such 1H24 PPOP was 19%/6% higher than GSe/CCC.

And while the broker acknowledges that the update didn’t provide much information on its outlook beyond FY 2024, it is feeling confident about the future and feels that the market is being too negative. It summarises:

While the update will be positive for sentiment, we think it contained very little new information in relation to our outer year earnings, which remain broadly unchanged. With valuations still pricing in too negative an outcome around the sustainable profitability of the business model, our Buy rating is unchanged.

Goldman has a buy rating and $1.63 price target on the ASX 300 bank stock’s shares. This implies potential upside of approximately 50% for investors over the next 12 months.

The post This dirt cheap ASX 300 bank stock has 50% upside: Goldman Sachs 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 Goldman Sachs Group and Judo Capital. 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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If you’re looking for a combination of capital gains and attractive dividend yields, then look no further.

That’s because analysts at Bell Potter have just named an ASX 300 share that offers both as a buy.

Buy this ASX 300 share

The share in question is agribusiness company Elders Ltd (ASX: ELD).

According to the note, the broker believes that the good times are almost here for the ASX 300 share. It commented:

Our Buy rating is unchanged. Since reporting FY23 results in Nov’23 soil moisture profiles in key summer cropping regions have improved (with NOAA long range forecasts shifting to ENSO neutral by April-June) and livestock prices have firmed, with volumes generally continuing to demonstrate high single-to-double digit YOY gains in both cattle and sheep/lamb markets.

While the broker doesn’t expect this to lead to earnings growth in FY 2024, it is forecasting strong growth in the next two financial years.

It expects earnings per share to fall 13% this year before rebounding 22% in FY 2025 and then 11.5% in FY 2026.

Big returns ahead

The note reveals that Bell Potter has retained its buy rating on Elders’ shares and increased its price target to $9.50 (from $8.35).

Based on where this ASX 300 share currently trades, this implies potential upside of more than 13% for investors over the next 12 months.

In addition, the broker is forecasting a 34 cents per share partially franked dividend in FY 2024. This represents a 4.1% dividend yield at current prices, which boosts the total potential return comfortably beyond 17%.

And thanks to that forecast earnings rebound in FY 2025, the broker expects a dividend increase to 41 cents per share next year. This equates to a generous 4.9% dividend yield for investors to look forward to receiving.

The post Buy this ASX 300 share for 13% upside and a 4% dividend yield appeared first on The Motley Fool Australia.

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• A 5.8% yield but down 21%! Time for me to buy more of this ASX gem?
• Here are the top 10 ASX 200 shares today

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