Category: Stock Market

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price fell just over 13% in 2022. But can the ASX bank share turn things around in 2023?

It significantly underperformed the S&P/ASX 200 Index (ASX: XJO) which dropped by around 7%.

Indeed, it also underperformed compared to the other big banks, Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Westpac Banking Corp (ASX: WBC).

What went wrong in 2022?

I’m not sure that anything went particularly wrong last year. But, there were a few elements that could have caused concern.

In mid-2022, when interest rate rises started picking up, investors may have become concerned about how the bank’s loan book was going to perform in a rapidly-rising interest rate environment. Would it lead to higher arrears and bad debts?

How the bank performed in its FY22 result could also have been a factor.

In the 12 months to 30 September 2022, it reported that statutory net profit after tax (NPAT) rose by 16% to $7.1 billion. That’s a strong growth number.

However, the bank said that its core underlying profit actually went backwards. Its continuing operations cash profit before credit impairments, tax and large/notable items fell 3% to $9.1 billion.

But the ANZ board did decide to grow the annual dividend per share by 3% to $1.46.

It also said that its total gross loans and advances (GLAs) increased by 7% to $676 billion. The ANZ CEO Shayne Elliott explained that it has restored momentum with its Australian home loans with application approval times “back in line with industry peers”.

Another factor that could have impacted the ANZ share price in 2022 was the announcement of the proposed acquisition of the banking division of Suncorp Group Ltd (ASX: SUN). ANZ says that this deal will add scale and allow it to challenge the other major banks more effectively.

However, it’s possible that the deal may not be a great move, particularly if the bank focuses on integrating the Suncorp banking division rather than improving its current operations.

Could 2023 be better?

For ANZ shares in 2023, the biggest boost could be the higher interest rates.

A key part of a bank making profit is the net interest margin (NIM). The NIM is the profit margin that the bank makes on its lending compared to the cost of that funding, such as savings accounts and term deposits.

If a saver had $100,000 in a term deposit with a rate of 3%, and $100,000 was lent with a loan rate of 5%, the NIM would be 2%.

The NIM can increase in a rising interest rate environment because the banks are passing on rate increases to borrowers faster than to savers.

In its FY22 result, ANZ said:

We expect the environment will continue to be supportive for margins in the first half, although any change from the exit margin is likely to be more modest.

ANZ indicated that in FY23, it could earn an additional net interest income of $1.5 billion and then in FY25, it could generate $3.2 billion of extra net interest income.

If profit goes higher, investors could decide that the ANZ share price is worth more, along with potentially higher dividends.

Valuation

According to Commsec, the ANZ share price is valued at 10 times FY23’s estimated earnings with a potential grossed-up dividend yield of 9.3%.

At this price, ANZ looks cheap and offers a big yield. With higher lending profit expected, it could be worth looking at, though it’d be wise to think about how the planned Suncorp deal and, possibly, higher loan arrears could affect things.

The post ANZ shares were slaughtered in 2022. Does the new year bring fresh hope? appeared first on The Motley Fool Australia.

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More reading

• Forget gold! Here’s why I’d buy ASX 200 dividend shares to hedge against inflation
• 5 things to watch on the ASX 200 on Wednesday
• Broker tips significant upside for the Woodside share price
• Here are the top 10 ASX 200 shares today
• Hot out the gate: 2 ASX 200 shares kicking off 2023 with new 52-week highs

Motley Fool contributor Tristan Harrison 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 Westpac Banking. 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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S&P/ASX 200 Index (ASX: XJO) mining shares outperformed the broader market last year.

The ASX 200 dropped more than 5% over the 12 months to 31 December 2022 amid soaring inflation, rising interest rates, and the war in Ukraine. But the S&P/ASX 200 Materials Index (ASX: XMJ) dodged the carnage, gaining around 5% in that time.

Perhaps unsurprisingly, it was lithium and coal miners that led the way.

Let’s crown the three biggest share price gains posted among ASX 200 materials and resources shares in 2022.

3 best ASX 200 mining shares of 2022

Taking out gold as the ASX 200’s top-performing mining share of 2022 is – drum roll please – lithium favourite Core Lithium Ltd (ASX: CXO).

After closing 2021 at 59 cents, the share shot up over the course of last year to finish at $1.02 – marking a 72.9% gain for the 12-month period.

Lithium was the talk of the town last year and Core Lithium was there to capitalise. The company is working to kick off production at its Finniss Project in the Northern Territory. It’s set to ramp up in the current half.

The next best-performing ASX 200 mining share of 2022 was coal producer Coronado Global Resources Inc (ASX: CRN).

It rose from $1.24 at the final close of 2021 to end last year at $1.99 – a whopping 60.5% gain.

Much of its rise was seemingly driven by its soaring earnings, a result of sky-high coal prices. The black rock’s value soared in 2022 as Russia’s invasion of Ukraine sparked an energy crisis in Europe.

Finally, taking out bronze is another lithium favourite, Sayona Mining Ltd (ASX: SYA). The mining share was added to the ASX 200 in September.

Its shares closed 2021 at just 13 cents before leaping to exit last year at 19 cents – a 46.1% gain.

The company holds assets in Canada and Australia and is expected to restart its North American Lithium operation this quarter.

The post The 3 best performing ASX 200 mining shares of 2022 appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 lithium shares running on empty today?
• Why has the Core Lithium share price fallen 26% in a month?
• Here are the 10 most shorted ASX shares
• Here’s what I think could impact the Core Lithium share price in 2023
• These were the best-performing ASX 200 shares of 2022

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

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While recent market volatility has been disappointing for investors, every cloud has a silver lining.

The silver lining right now is the potential for investors to uncover cheap ASX shares following the volatility.

But as we have seen in the past, the window of opportunity is never open too long. As a result, I’m looking to buy cheap shares before the market rebounds and valuations return to normal again.

It’s what legendary investor Warren Buffett has been doing for decades to great effect. He famously quipped:

Be fearful when others are greedy and greedy when others are fearful.

But if you want to be greedy, how do you find out if an ASX share is cheap or not? One way is the classic price-to-earnings (P/E) ratio.

Price and earnings

I like to look at a company’s P/E ratio to decide if it is cheap. This ratio is the result of dividing a company’s share price by its earnings per share. As a guide, at present, the S&P 500 index on Wall Street trades with an average P/E ratio of 19.89.

It is admittedly a very simple valuation metric and not suitable for all ASX shares. For example, I wouldn’t use it on miners like BHP Group Ltd (ASX: BHP), banks like Westpac Banking Corporation (ASX: WBC), or fledgling tech shares like Life360 Inc (ASX: 360). Instead, I would use valuation methods such as net asset value, book value, and discounted cash flow, respectively, for them.

However, for ASX shares where the P/E ratio is applicable, generally speaking, the lower the P/E ratio the better.

Accent Group Ltd (ASX: AX1) could be a great example right now. This footwear retailer’s shares are currently trading at $1.69. And with Goldman Sachs forecasting earnings per share of 12 cents in FY 2023, this means that its shares trade at 14 times forward earnings.

Notice that I am looking at forward earnings here. This is an important distinction because an ASX share could look cheap based on last year’s earnings. But if there’s no chance of those earnings being repeated the following year, you could be falling into a value trap.

In light of this, I want to buy cheap ASX shares that face no obvious structural issues, are growing, and will continue to grow long into the future.

So, with Accent priced at 14 times forward earnings, which is lower than average, I would argue that this makes its shares cheap today. Especially given how Goldman Sachs is forecasting an earnings compound annual growth rate of 30.3% between FY 2022 and FY 2025.

Time will tell if it is the case, but I believe this is a cheap ASX share that offers a compelling risk/reward for investors over the medium to long term.

The post I’d start loading up on cheap ASX shares while I can appeared first on The Motley Fool Australia.

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More reading

• 23 ASX shares to buy in 2023 – brokers
• Brokers say these top ASX dividend shares are buys for 2023
• Bell Potter names the best ASX shares to buy in 2023
• These quality ASX dividend shares are buys: Goldman Sachs
• Need a passive income boost? Experts say these ASX dividend shares are buys

Motley Fool contributor James Mickleboro has positions in Life360 and Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has recommended Accent Group and Westpac Banking. 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 Piedmont Lithium Inc (ASX: PLL) share price is in the red in early trade, down 0.76%.

The ASX lithium stock closed yesterday trading for 66 cents per share and is currently trading at 65 cents per share.

This comes after the company reported on an amended agreement with Tesla Inc (NASDAQ: TSLA).

Here’s what investors are mulling over.

What’s the new agreement with Tesla?

The Piedmont Lithium share price is in the red following the announcement the company has amended its agreement to supply United States EV giant Tesla with spodumene concentrate (SC6) from its co-owned North American Lithium project (NAL).

Piedmont Lithium has a 25% interest in NAL, located in the province of Quebec in Canada. Sayona Mining Ltd (ASX: SYA) owns the other 75%.

The new agreement is binding for a three-year term and includes the option to renew for an additional three years. Piedmont has agreed to deliver approximately 125,000 tonnes of SC6 to Tesla beginning in the second half of 2023 and initially running through to the end of 2025.

The price Piedmont Lithium receives for its SC6 will be determined by market prices at the time of each shipment. The miner’s offtake agreement with Sayona entitles it to purchase 113,000 tonnes per year or 50% of SC6 production, whichever is greater.

The company expects to restart spodumene concentrate production at NAL in the first half of 2023. It forecasts that the first commercial shipments will commence in the third quarter of 2023.

Commenting on the amended agreement that’s so far failed to lift the Piedmont Lithium share price today, CEO Keith Phillips said:

We are pleased to be able to partner with Tesla to supply lithium resources produced in North America. The electric vehicle and critical battery materials landscape has changed significantly since 2020 and this agreement reflects the importance of – and growing demand for – a North American lithium supply chain.

This agreement helps to ensure that these critical resources from Quebec remain in North America and support the mission of the Inflation Reduction Act to bolster the US supply chain, the clean energy economy, and global decarbonisation.

Piedmont Lithium share price snapshot

As you can see in the chart below, the Piedmont Lithium share price has struggled over the past 12 months, down 15%. Longer term, however, the ASX lithium stock is up 198% over five years.

The post Piedmont Lithium share price dips on amended Tesla agreement appeared first on The Motley Fool Australia.

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More reading

• Sayona Mining share price higher on North American Lithium news
• Why are ASX 200 lithium shares taking a lashing today?

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 Tesla. 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 market may be pushing higher in morning trade, but the same cannot be said for the energy sector.

At the time of writing, the S&P/ASX 200 Energy index is down 1.5% after energy shares dropped at the open.

Here’s a summary of how they are performing:

• The Beach Energy Ltd (ASX: BPT) share price has fallen 1.5%.
• The Santos Ltd (ASX: STO) share price is down 1.5%.
• The Woodside Energy Ltd (ASX: WDS) share price has dropped 3%.

Why are ASX 200 energy shares falling?

Investors have been hitting the sell button on Wednesday after a very poor night of trade for oil prices.

According to Bloomberg, the WTI crude oil price is down 4.2% to US$76.90 a barrel and the Brent crude oil price has tumbled 4.4% to US$82.10 a barrel. Traders were selling oil amid concerns over Chinese demand and global economic growth.

Commenting on energy markets, courtesy of CNBC, Mizuho analyst Robert Yawger, said:

There is plenty of reason for concerns here – the China COVID-19 situation and the fear of recession in the foreseeable future is putting pressure on markets

This follows the release of poor economic data out of China and news that the Chinese government has raised its export quotas for refined oil products in the first part of 2023. The latter is being seen as a sign that the government is expecting poor domestic demand as the world’s largest crude importer battles waves of COVID-19 infections.

In respect to global economic growth, IMF Managing Director Kristalina Georgieva spoke bleakly on Sunday about the year ahead. She highlights that the US, European, and Chinese economies were all slowing simultaneously, which is expected to make 2023 a tougher year than 2022 for the global economy.

The post Why are ASX 200 energy shares falling today? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Broker tips significant upside for the Woodside share price
• 5 things to watch on the ASX 200 on Tuesday
• How I’d invest $1,000 in ASX 200 shares for rising inflation
• These were the best-performing ASX 200 shares of 2022

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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Are you looking for ASX dividend shares to buy? If you are, then you may want to check out the two listed below that have recently been named as buys.

Here’s why brokers rate these dividend shares highly right now:

Stockland Corporation Ltd (ASX: SGP)

The first ASX dividend share that has been rated as a buy is Stockland.

It is a residential and land lease developer and retail, logistics and office real estate property manager.

Goldman Sachs is positive on the company. And while it acknowledges that trading conditions aren’t easy right now, the broker believes “the potential headwinds are factored into the share price” and sees it as “attractively valued.”

In respect to dividends, Goldman is forecasting dividends per share of 27.6 cents in FY 2023 and 28.3 cents in FY 2024. Based on the current Stockland share price of $3.60, this will mean yields of 7.65% and 7.9%, respectively.

The broker has a buy rating and $4.50 price target on Stockland’s shares.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share that has been named as a buy is this conglomerate.

Wesfarmers is the company behind a range of businesses such as Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.

The team at Morgans thinks Wesfarmers could be a good option in the current environment due to its value offering. It highlights that “Kmart is well-placed to benefit with the average price of an item at around $6-7.”

As for dividends, its analysts are forecasting fully franked dividends per share of $1.82 in FY 2023 and $1.89 in FY 2023. Based on the current Wesfarmers share price of $45.46, this will mean yields of 4% and 4.15%, respectively.

Morgans has an add rating and $55.60 price target on Wesfarmers’ shares.

The post These are the ASX dividend shares to buy now: brokers appeared first on The Motley Fool Australia.

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More reading

• 2022 was brutal for Wesfarmers shares. What now?
• Here’s how I’ll be investing my money in ASX shares in 2023
• 3 ASX shares under $5 with 7%+ dividend yields
• Boost your passive income with these buy-rated ASX dividend shares: experts
• How to swap your job for $75,000 in retirement income using ASX dividend shares

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. 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 2022 year was a mixed one for ASX 200 gold shares, but three shares were standout performers.

The Capricorn Metals Ltd (ASX: CMM), Perseus Mining Ltd (ASX: PRU) and Northern Star Resources Ltd (ASX: NST) share prices all soared in 2022. In this piece, we are looking at three shares with a market capitalisation of more than $100 million that are part of the S&P/ASX 200 Index (ASX: XJO).

Let’s take a look at these three ASX 200 gold shares in more detail.

Capricorn Metals

Capricorn Metals shares soared by 35.3% in 2022. The company is developing the Karlawinda Gold Project and the Mount Gibson Gold Project in Western Australia.

Capricorn Metals shares exploded by 78% between market close on 26 September and 30 December. Gold futures rose 12% from US$1633.40 an ounce at market close on 26 September to US$1830.10 on 30 December, CNBC data shows.

In late October, Capricorn advised ore reserves at the Karlawinda project had lifted 12% to 1.34 million ounces. Capricorn shares leapt nearly 5% on this day. Meanwhile, on 7 November Capricorn announced the Mineral Resource Estimate at the Mt Gibson project had soared by 32% from 2,755,000 ounces. Capricorn shares soared 10% on this day alone.

Commenting on this news, executive chairman Mark Clark said:

Our exploration team has made a strong start to FY23, advancing some exciting early-stage prospects across our global tier-1 portfolio as well as expanding beyond known areas of mineralisation.

Perseus Mining

The Perseus share price surged by 30.2% in 2022. Perseus operates three gold mines in Africa. Perseus shares had a bumper end to the year, soaring 57% between market close on 26 September and 30 December amid higher gold prices.

In October, Perseus advised of a maiden ore reserve of 2.2 Mt 3.58 grams per tonne for 259koz at the Yaouré Gold Mine in Côte d’Ivoire. Commenting on the news, Perseus managing director and CEO Jeff Quartermaine said:

Having attained the goal of producing gold at a rate of 500,000oz per year across our three gold mines, we are now working to maintain, and where possible, exceed that level of production over the next decade and beyond.

Northern Star

Northern Star shares leapt by 15.9% in 2022. The company has a market capitalisation of nearly $13 billion. Northern Star outperformed ASX gold giant Newcrest, which fell 15% during the calendar year.

Like Perseus and Capricorn, Northern Star shares soared nearly 57% between market close on 26 September and 30 December. The higher gold price likely helped Northern Star recover losses in the first nine months of the year.

On 15 November, Northern Star provided an exploration update. The company advised of progress on its FY23 exploration program. Managing director Stuart Tonkin said:

Our exploration team has made a strong start to FY23, advancing some exciting early-stage prospects across our global tier-1 portfolio as well as expanding beyond known areas of mineralisation.

The post 3 best ASX 200 gold shares of 2022 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Why ASX 200 gold shares top my 2023 investment radar
• Is the gold price weighing down ASX 200 gold shares today?
• Why are ASX 200 gold shares having such a top run today?

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

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The Wesfarmers Ltd (ASX: WES) share price had a tough time in 2022 – can things improve this year?

For investors that haven’t heard of this company, it’s the owner of a number of different Australian businesses such as Bunnings, Kmart, Target, Priceline and Officeworks. It also has a chemical, energy and fertiliser division (called WesCEF) and an industrial and safety segment.

In 2022, the Wesfarmers share price dropped by over 22%, compared to the S&P/ASX 200 Index (ASX: XJO) which fell by around 7%.

What went wrong in 2022?

Aside from the FY22 result and the important numbers within that, the biggest company-specific thing that happened during 2022 was the completion of the acquisition of the Australian Pharmaceutical Industries (API) business.

This API business, which owns Priceline, Soul Pattinson Chemists and Clear Skincare Clinics, will “form the basis of a new healthcare division of Wesfarmers and a base from which to invest and develop capabilities in the health and wellbeing sector.”

Wesfarmers says that its capabilities in retail distribution, a strong balance sheet and willingness to invest in businesses for growth over the long term can help.

In terms of the FY22 report, Wesfarmers said that revenue grew by 8.5% to $36.8 billion and underlying net profit after tax (NPAT) dropped 2.9% to $2.35 billion. While Kmart Group saw earnings before tax (EBT) plunge 39.7% to $418 million, Bunnings EBT grew 0.9% to $2.2 billion and WesCEF EBT jumped 40.6%.

The company noted that the first half of FY22 was affected by COVID-19, with almost half of the stores subject to trading restrictions or closed. This was a key factor in Kmart Group earnings.

How could 2023 play out?

The company has said that the Australian economy is starting from a “strong base” with low unemployment and high levels of household savings, but the “effects of inflation and higher living costs are placing pressure on parts of the economy, including household budgets.”

Management believes that the company’s retail businesses are “well positioned” as cost of living pressures impact household budgets and value becomes “increasingly important to customers.” Management believes that Kmart and Bunnings can excel during this period as a key part of their offering is providing good value products.

While the first half of FY23 was the last six months of 2022, we won’t learn about it until February 2023, so the Wesfarmers share price could be influenced by that.

Management said that Australian retail trading conditions have remained “robust” and the managing director said at the annual general meeting (AGM) that he had been “pleased” with sales in FY23 to date. Consumers are becoming more price sensitive.

Bunnings’ overall sales growth in FY23 to October had been “resilient”. Kmart and Target sales growth has been “pleasing”, even when adjusting for lockdown impacts.

However, the company warned that “elevated supply chain costs, rising wages and the higher cost of utilities, together with the lower Australian dollar, will impact the Group’s businesses in the 2023 financial year.”

But, Wesfarmers suggested it’s well placed compared to its competitors to manage costs and “will continue to leverage the benefits of scale, sourcing capabilities and employment brand.”

Foolish takeaway

While it’s impossible to say for sure what the Wesfarmers share price will do in 2023, I think the 24% fall over the past year means it’s now noticeably better value. Commsec profit projections put the company at under 21 times FY23’s estimated earnings.

The post 2022 was brutal for Wesfarmers shares. What now? appeared first on The Motley Fool Australia.

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More reading

• Here’s how I’ll be investing my money in ASX shares in 2023
• Boost your passive income with these buy-rated ASX dividend shares: experts
• How to swap your job for $75,000 in retirement income using ASX dividend shares
• Seeking passive income in 2023? These ASX 200 dividend shares could help – analysts
• 3 reasons to buy Wesfarmers shares before 2023

Motley Fool contributor Tristan Harrison 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. 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was well and truly out of form and dropped into the red. The benchmark fell 0.6% to 7,107.7 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to rebound on Wednesday despite a very volatile night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 49 points or 0.7% higher this morning. In late trade on Wall Street, the Dow Jones is down 0.8%, the S&P 500 is down 1.1%, and the Nasdaq is 1.3% lower. The latter was up over 1% at one stage.

Oil prices sink

It could be a difficult day for energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after a very poor night for oil prices. According to Bloomberg, the WTI crude oil price is down 4.2% to US$76.90 a barrel and the Brent crude oil price has tumbled 4.4% to US$82.10 a barrel. Concerns about Chinese demand and the global economy led to the selling.

Growth shares on watch

ASX 200 growth shares such as Brainchip Holdings Ltd (ASX: BRN) and Pilbara Minerals Ltd (ASX: PLS) will be on watch on Wednesday after a tough night on Wall Street. Interest rates and recession concerns, Tesla’s deliveries miss, and the market’s aversion to growth stocks put pressure on this side of the market.

Gold price hits six-month high

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good day after the gold price pushed to a six-month high overnight. According to CNBC, the spot gold price is up 1% to US$1,844.3 an ounce.

ANZ shares return to normal

ANZ Group Holdings Ltd (ASX: ANZ) shares will begin trading under the ANZ ticker code again on Wednesday after completing its switch to a non-operating holding company model. The banking giant’s shares have been trading under the ANZDA ticker code since late last year. ANZ chair, Paul O’Sullivan, explained: “The restructure is about making our banking business more efficient by creating a better structure for investing in our non-bank partners. It will provide greater strategic and operational flexibility.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Broker tips significant upside for the Woodside share price
• Here are the top 10 ASX 200 shares today
• Hot out the gate: 2 ASX 200 shares kicking off 2023 with new 52-week highs
• What’s going on with ANZ shares on Tuesday?
• Why are ASX 200 lithium shares running on empty today?

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

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The Woodside Energy Group Ltd (ASX: WDS) share price could keep lifting higher, according to one global asset management company.

Woodside shares closed 0.28% lower today to finish at $35.34 apiece. However, the S&P/ASX 200 Index (ASX: XJO) fell 1.31% today.

Let’s take a look at what could be ahead for the Woodside share price.

What’s ahead for the Woodside share price?

Analysts at AllianceBernstein have lifted the price target on Woodside shares to $46 apiece, the Australian Financial Review reported.

This implies a 27% upside based on today’s closing price.

Analysts are optimistic gas and oil prices can go higher. In comments cited by the publication, AllianceBernstein said:

[Woodside may] further benefit from a potential spike in gas prices on lower Russian gas exports to Europe and a recovery of oil prices on a China reopening.

Woodside is a major global oil and gas producer. The Brent crude oil price is currently down 0.31% to US$85.64 a barrel, according to Bloomberg. WTI crude oil has fallen 0.26%.

Meantime, natural gas prices have tumbled a massive 7.84% to US$4.12/MMBtu amid milder weather in Europe.

The gas price caps in Australia may be another factor weighing on the Woodside share price this year. Woodside has gas projects in Australia and overseas.

In December, Woodside raised concerns about the federal government’s plan to “intervene in the Australian gas market”. Prices on new domestic wholesale gas contracts by east coast producers are set to be capped at $12/GJ for 12 months.

Commenting on the government’s gas plans, Woodside CEO Meg O’Neill said:

We need to unlock gas supply now. For example, Woodside has been looking at options to increase supply, including through new LNG import terminals, exploration spending and further development on the east coast. Unfortunately, the proposed market intervention will make it very difficult for industry to economically invest to increase supply.

Woodside supplies about 20% of domestic gas on the east coast of Australia, the Australian Financial Review reported. Commenting on the impact of the changes on Woodside, O’Neill said (as cited by the AFR):

One of the things that is important to us is fiscal stability, so if a government changes the rules even for six or 12 months, what it says to us is the government is likely to change the rules again, so it’s a black mark.

It would make investing in Australia riskier than other jurisdictions where you’ve got confidence in the stability of the fiscal regime for the long haul.

Share price snapshot

The Woodside share price has soared 61% in the last year.

Woodside has a market capitalisation of about $67 billion based on its current share price.

The post Broker tips significant upside for the Woodside share price appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Hot out the gate: 2 ASX 200 shares kicking off 2023 with new 52-week highs
• 2022 was strong for the NAB share price. What’s next?
• Here’s how I’d invest $5,000 in ASX 200 shares to earn a second income
• Bought $1,000 of AGL shares 10 years ago? Here’s how much dividend income you’ve received

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

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