Category: Stock Market

While the ASX moves sideways ahead of the United States June inflation report, the South32 Ltd (ASX: S32) share price is backtracking today.

South32’s shares are in decline amid an announcement by the company regarding the partial acquisition of its portfolio of royalties.

At the time of writing, the mining outfit’s shares are down 2.54% to $3.46.

For context, the S&P/ASX 200 Index (ASX: XJO) is just 0.02% lower to 6,604.8 points.

South32 offloads non-core base metals royalties

Investors are offloading South32 shares on the back of the company’s release to the ASX late Tuesday afternoon.

In its statement, South32 advised it has entered into a binding agreement with the Anglo Pacific Group. This will see the sale of four non-core base metals royalties for an initial amount of US$185 million.

The base metals royalties concern advanced development stage copper and nickel projects in Australia, Chile, and the United States.

South32 stated there are no conditions required to proceed with the transaction which will be completed within five business days.

The fixed consideration includes US$103 million in cash and US$82 million in Anglo Pacific shares to be issued to South32.

However, a further US$15 million is subject to a contingent payment.

Once the transaction is wrapped up, South32 will hold an approximate 16.9% interest in Anglo Pacific.

South32 CEO Graham Kerr commented:

Today’s sale of another non-core royalty package is a further step forward in unlocking latent value from our portfolio.

The proposed transaction will realise an immediate cash payment, while also retaining long-term exposure to these royalties through our shareholding in Anglo Pacific.

Following the sale, we still retain an exciting package of 36 royalties at different stages of maturity, weighted towards base metals.

About Anglo Pacific

Listed on the London Stock Exchange, Anglo Pacific is a global natural resources royalty and streaming company.

With a diversified portfolio of 16 assets, its business model provides investors with a de-risked exposure to the mining sector.

Anglo Pacific has a strong balance sheet and uses its free cash flow to grow its portfolio and pay dividends.

South32 share price snapshot

Regardless of today’s decline, it has been a positive 12 months for South32 shares, climbing close to 18%.

However, in 2022 alone, its share price is down by around 14% following a fall in commodity prices, such as for aluminium and nickel.

South32 has a price-to-earnings (P/E) ratio of 11.59 and commands a market capitalisation of roughly $16 billion.

The post South32 share price backtracks amid sale of royalties appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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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It’s not an easy job to run an ASX-listed company.

You have the financial fate of thousands of investors, creditors and staff in your hands. That’s a massive load of responsibility few of us would ever feel.

But does that justify their high take-home pay?

It’s the perennial “pub test” that the corporate world grapples with.

Many Australians feel that no one’s skill and expertise is worth tens of millions of dollars each year.

But we accept that elite athletes earn huge salaries because they possess a rare skill. So why is the Average Joe so contemptuous about people who use their brains receiving just as much?

Is there a bias towards physical prowess over the intellectual?

While we mull over these issues, the Australian Council of Superannuation Investors this week released its latest annual list of the 10 highest-paid chief executives in the S&P/ASX 100 (ASX: XTO).

The rankings are based on “realised pay” in the 2021 financial year.

Rank	Chief executive	Company	Realised pay
1	Anthony Eisen and Nick Molnar	Afterpay (now Block Inc (ASX: SQ2))	$264,222,249
2	Paul Perreault	CSL Limited (ASX: CSL)	$58,914,531
3	Greg Goodman	Goodman Group (ASX: GMG)	$37,105,490
4	Shemara Wikramanayake	Macquarie Group Ltd (ASX: MQG)	$14,693,343
5	Brad Banducci	Woolworths Group Ltd (ASX: WOW)	$11,788,098
6	Elizabeth Gaines	Fortescue Metals Group Limited (ASX: FMG)	$11,119,309
7	Mike Henry	BHP Group Ltd (ASX: BHP)	$10,464,599
8	Chris Ellison	Mineral Resources Limited (ASX: MIN)	$9,452,857
9	Magnus Nicolin	Ansell Limited (ASX: ANN)	$9,292,432
10	Andrew Barkla	IDP Education Ltd (ASX: IEL)	$9,252,820

Bonuses out of control?

Afterpay co-founders Anthony Eisen and Nick Molnar set a joint record, taking home more than $100 million each. This massive payday happened after they exercised their $1 options when the actual share price was almost $90 last year.

“Even without their windfall, a new record high would have been set by CSL’s Paul Perrault (who also set the last record in FY20) with realised income of $58.9 million.”

The take-home pay for CEOs has ballooned significantly after an initial COVID-19 pandemic dip, according to ACSI.

The organisation attributed this to a return of large bonuses. The proportion of bonuses out of total pay increased from 31% to 76.7%, setting a new record.

“After their lowest year on record, big bonuses have… hit new heights,” said ACSI executive manager Ed John.

“That’s why investors, and ACSI, will be scrutinising closely the results-reporting season to see if this concerning trend of bonus ‘catch-up’ continues.”

John insisted that bonuses should not be awarded for business-as-usual performance but be a genuine reward.

“Payments to senior executives have to be aligned with value created for shareholders and reflect true outperformance,” he said.

“This year’s outcomes will be judged against a backdrop of difficult financial markets and an uncertain economic outlook.”

The post $264 million! The 10 highest-paid CEOs on the ASX appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has positions in CSL Ltd. and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., CSL Ltd., and Idp Education Pty Ltd. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Ansell Ltd. and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s easy to become hyper-focused on bad times, but investors in Wesfarmers shares might want to look at the company’s strong long-term performance instead. While this year has been rough on the Wesfarmers share price, the S&P/ASX 200 Index (ASX: XJO) stock has been dutiful over the last five years.

In fact, investors who have held the retail-focused conglomerate’s stock for that time have been rewarded in spades.

Not only have they watched the Wesfarmers share price grow 50%, but the company has also handed out nearly a quarter of its current share price in dividends.

At the time of writing, Wesfarmers shares are trading for $45.23.

Read on to find out how much of the company’s earnings it has handed back to shareholders over the last five years.

Wesfarmers shares offer $10.49 in dividends over 5 years

Yes, you read that right. Wesfarmers has handed investors $10.49 per share in dividends over the last half-decade.

Here’s a breakdown of all the dividends paid by Wesfarmers shares in that time:

Wesfarmers dividends	Amount offered
August 2017 (final)	$1.20
February 2018 (interim)	$1.03
August 2018 (final)	$1.20
February 2019 (interim and special)	$1 and $1
September 2019 (final)	78 cents
February 2020 (interim)	75 cents
August 2020 (final and special)	77 cents and 18 cents
February 2021 (interim)	88 cents
September 2021 (final)	90 cents
February 2022 (interim)	80 cents

The largest dividend offered by the company in that time was $1.20. It handed investors such an amount twice — first at the end of financial year 2017 and again at the end of financial year 2018.

It also offered two special dividends worth $1 and 18 cents respectively. The latter was offered in 2020 and included proceeds from the sale of a significant stake in Coles Group Ltd (ASX: COL).

It’s also worth mentioning that each of Wesfarmers’ payouts have been fully franked, meaning they could save some shareholders some extra coin at tax time.

As of Tuesday’s close, Wesfarmers’ shares were trading with a 3.8% dividend yield.

The post How much have Wesfarmers shares paid in dividends over the last 5 years? appeared first on The Motley Fool Australia.

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• Broker names 2 more blue chip ASX 200 shares to buy in July
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• What’s the outlook for ASX 200 dividend shares in FY23?

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 positions in and has recommended COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Evolution Mining Ltd (ASX: EVN) share price was among the worst performers on the ASX 200 during the 2022 financial year.

The gold miner’s shares lost 47% of their value during the 12 months.

Why did the Evolution share price get crushed?

Interestingly, the majority of this decline came in the final month of the financial year following the release of an abject update.

Investors were selling down the Evolution share price in June after the company revealed that it expects to record a decline in production in FY 2022 with higher than expected costs.

Evolution is forecasting total production of 640,000 ounces with an all-in sustaining cost (AISC) of approximately $1,250 an ounce.

This compares to 680,788 ounces and an AISC of $1,215 an ounce a year earlier.

What are brokers saying?

This update didn’t go down well with analysts at Credit Suisse. In response, the broker reiterated its underperform rating and slashed its price target by 28% to $2.70.

Elsewhere, analysts at Citi responded by retaining their neutral recommendation (now with a high risk rating) and cutting their price target by 28% to $3.30.

Citi appears to believe the company’s outlook is extremely cloudy and isn’t expecting any cash generation for a few years.

Citi explained:

There’s a lot to unpack after today’s higher-cost, lower ounce outlook including read-through to the rest of our coverage. In Nov’21, EVN had expected to do +900koz in FY24 @ A$1050/oz vs today’s 800koz @ $1240/oz. We’ve cut our TP from $4.60/sh to $3.30/sh trimming EBITDA by almost 20% next year.

After today’s +21% sell off vs XGD -7%, EVN is now trading on ~0.90x P/NAV. EVN’s usually hefty valuation premium is gone. On our gold deck and including debt repayments, we’re not expecting EVN to make any cash until FY25, and that hinges on Red Lake. We thus assign a High Risk rating; without conviction on the Red Lake turnaround, Mungari plus our sideways tracking gold price it’s hard to be more positive here.

All in all, it looks set to be a tough few years for the company. In light of this, it isn’t overly surprising to have seen the Evolution share price fall so hard over the last 12 months.

The post Why did the Evolution share price crash 47% in FY22? 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 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

One of the more dramatic stories of 2022 is closing — Elon Musk is terminating his deal to buy Twitter (NYSE: TWTR). News of this sent Twitter’s stock about 6% higher after hours to $34, still well short of the $54.20 per share Musk was offering.

While Musk may be through, is this an opportunity for investors to take a position in Twitter? After all, Twitter is one of the most popular social media companies.

Shaky user data

First, it may be good to understand why Musk terminated the deal. The biggest sticking point for the deal was Twitter’s refusal to provide complete data on fake or spam bots. This data is critical, as it determines how many of its users can be monetized. Most of Twitter’s revenue is derived from advertising (93% during the first quarter). If Twitter can’t guarantee that most ad viewers are humans, then the price companies are willing to spend on ads is substantially reduced.

Twitter has long claimed the number of bots is less than 5% of total users, but Musk wanted to confirm those numbers for himself.

In the first quarter, Twitter reported monetizable daily active users (mDAU) of 229 million. However, they also had to revise previously stated mDAUs for the last five quarters due to an error in how they were calculated. This mistake instils less confidence in management’s ability to report mDAUs accurately. 

Throw in their refusal to provide Musk with the data he wants, and it makes investors wonder what they can trust.

Twitter fires back

Twitter’s management isn’t just going to let a $54.20 per share offer walk away (especially when there’s a $1 billion breakup fee Musk is claiming he wouldn’t need to pay). It responded by issuing a letter that claimed Twitter had not violated any of the obligations under its agreement. It also stated that Musk and his party “knowingly” and “willingly” breached the terms of the initial contract.

This breakup will get ugly and will likely end up in court.

While not legally required to do so, the letter did not disclose if Twitter had actually given Musk the user data he was requesting. Whether this was intentionally left off or not, it does leave outsiders wondering what is really going on.

What’s next?

As mentioned above, this acquisition will likely end up in court. This battle would incur significant legal fees and consumer time from Musk and Twitter executives. A few ways it could shake out:

• Musk (or Twitter) pays the $1 billion breakup fee, and each entity goes its separate ways without the long, drawn-out court battle.
• The courts force Twitter to disclose the data Musk wants, which still leaves the question open if management was truthful or not, leaving Musk a door to still back away.
• The courts side with Twitter, and Musk would need to decide if he wants to continue his acquisition.

None of these options are ideal, and with the growing animosity between the two parties, each may want to prove that they are right.

However, with the stock now trading well below its buyout price, is this a prime opportunity to make an even larger arbitrage gain?

Should you use this opportunity to buy Twitter stock?

Unlike user data, financials are much easier to audit. However, they also aren’t much better.

In Q1, revenue rose 16% YOY (year-over-year) to $1.2 billion. But, expenses rose faster at a 35% clip. This increase was primarily driven by an astounding 60% increase in stock-based compensation, diluting shareholders.

Twitter was profitable in the quarter, but only because it sold MoPub (a mobile ad publishing platform) for $1.05 billion. Without that, it would have lost about $128 million in the quarter.

However, many companies are likely reading the termination letter sent by Musk and noting Twitter’s refusal to provide relevant user data. This refusal will likely have long-term damaging effects on Twitter’s advertising brand. If management can’t provide a suitor the data he needs to close a deal, what makes prospective customers believe the 5% spam account figure is accurate?

As an investor, I don’t have a lot of faith in management. This sentiment was echoed by Musk and former CEO and co-founder Jack Dorsey. So if these two have no confidence, why would I?

There are plenty of better investments available in the market, and I think investors should appreciate the entertainment value of this acquisition more than the potential investment value.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post What’s next in the Elon Musk and Twitter saga? appeared first on The Motley Fool Australia.

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More reading

• 2 reasons Elon Musk’s Twitter break-up is destined to lose in court
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Keithen Drury 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 Twitter. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

Apple (NASDAQ: AAPL)‘s stock, like most other technology stocks, has taken investors on a rollercoaster ride this year. While the company’s share price was volatile in the first few months of 2022, a significant downward trend began after the company reported second-quarter results in late April. 

The stock hasn’t recovered since. Year to date, Apple is down 17%, according to data provided by S&P Global Market Intelligence. This is mostly because investors are concerned that Apple won’t escape the effects of supply chain shortages and a potentially slowing economy. 

So what 

Investors fell into a pessimistic mode in late April after Apple released its second-quarter financial results. Apple beat analysts’ consensus estimates for both top and bottom lines, but investors latched on to comments made by the company’s management.

On the company’s earnings call, CEO Tim Cook said that Apple was “not immune” to supply chain problems caused by COVID-19, chip shortages, and the war in Ukraine. 

Apple’s chief financial officer, Luca Maestri, spoke more specifically about the company’s supply chain problems and said they could hurt Apple’s sales in the third quarter by as much as $8 billion. 

“Supply constraints caused by COVID-related disruptions and industrywide silicon shortages are impacting our ability to meet customer demand for our products. We expect these constraints to be in the range of $4 billion to $8 billion, which is substantially larger than what we experienced during the March quarter,” Maestri said. 

Clearly, investors didn’t want to hear that Apple’s sales could be affected to this degree and sent the stock on a downward path. 

Now what 

Apple investors will want to keep a close eye on the company’s third-quarter results, which will be released on July 28. The results should shed some light on how bad supply chain difficulties have become for Apple and if the company has experienced any pullback in consumer demand. 

With inflation still at its highest level in nearly 40 years and the Federal Reserve focused on hiking the federal funds rate in order to bring it back down, it’s likely that Apple investors could experience some more short-term volatility from the stock as the market reacts to a potential economic slowdown. 

But long-term investors should also consider that while temporary supply constraints could affect the company, Apple still has the potential to be a great investment. First off, the company still generates tons of cash — $28 billion in operating cash flow in the recent quarter — which will help it weather any potential economic slowdown better than other companies. 

And while Apple’s stock isn’t necessarily cheap right now, its shares trading at 23 times the company’s forward earnings, the recent stock sell-off does give investors an opportunity to add some shares of this immensely profitable company at a relative discount. 

Lastly, Apple continues to both add value to shareholders through buybacks and invest in new products. The company added $90 billion to its share repurchase program in the most recent quarter and could enter a new product segment within the next year. 

With Apple’s shares down this year — and the company still in a very strong financial position — investors may want to consider snatching up some shares of Apple right now.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Apple stock is down 17% so far this year appeared first on The Motley Fool Australia.

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More reading

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Chris Neiger has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Xero Limited (ASX: XRO) share price has had a rough time over 2022, falling by over 40%. However, according to experts, the ASX tech share could be a leading opportunity for the next year.

Xero is one of the biggest technology businesses on the ASX, with a market capitalisation of $12.6 billion.

Like many other businesses, the Xero share price has sunk amid rising interest rates and strong inflation.

While a lower price doesn’t automatically make a business a better investment, it can certainly give a bigger margin of safety.

Broker ratings

Citi currently has a buy rating on Xero, with a price target of $108. This implies a potential rise of around 28% over the next year. A key reason for that optimism is the company’s plans to increase prices for subscribers in New Zealand, Australian and United Kingdom markets.

As I reported in June, these increases are for high-single-digit to mid-teen increases in percentage terms.

With these increases, Citi believes the average revenue per user (ARPU) will increase by high single digits, which will help grow operating revenue. The broker notes that Xero is increasing prices more regularly, which could suggest Xero believes it has a strong market position.

Morgans is another broker with a positive outlook. The broker has an add rating on Xero and a price target of $90.25. Ongoing growth of subscribers and ARPU could help things.

Latest growth numbers

The latest that investors have heard is Xero’s FY22 result. Many of its numbers went the right way.

Operating revenue rose by 29% to NZ$1.1 billion. Total subscribers rose by 19% to 3.3 million. And annualised monthly recurring revenue (AMRR) rose 28% to NZ$1.2 billion. The ARPU increased 7% to NZ$31.36. Xero’s gross profit margin went up 1.3 percentage points to 87.3%. It also said that the total lifetime value of subscribers jumped 43% to NZ$10.9 billion. Further growth of these statistics could be supportive for the Xero share price.

Xero CEO Steve Vamos spoke of why the company is seeing growth and what it’s planning to do:

The value Xero brings to our small business customers and the trust they place in us is illustrated by this result. Our strong revenue and subscriber growth gives us confidence to continue to invest for growth consistent with our long-term strategy.

Our performance reflects the quality of our customer and partner relationships as more people realise the benefits that cloud accounting and digital tools provide.

We are committed to delivering the world’s most insightful and trusted business platform by focusing on driving cloud accounting adoption, growing the small business platform and building for global scale and innovation. We continue to prioritise investment in building products and growing partnerships by investing cash generated to help deliver our strategy, drive long-term growth and meet customer needs.

Xero share price snapshot

Over the past month (since market close on 14 June), the Xero share price has risen by nearly 3%.

The post This broker sees 30% upside for the Xero share price over the next year appeared first on The Motley Fool Australia.

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More reading

• Here’s why Goldman Sachs sees lots of value in the Xero share price
• Down 40% in 2022: Is the Xero share price a buy today?
• Here are the top 10 ASX shares today
• Why are ASX 200 tech shares sprinting higher today?
• How did Xero shares do in the 2022 financial year?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 last 12 months have been reasonably positive for ASX uranium shares.

As we recently covered here, many uranium shares outperformed the market during the 2022 financial year. This includes Boss Energy Ltd (ASX: BOE) and Paladin Energy Ltd (ASX: PDN), which recorded strong gains over the period despite broad sector weakness in April.

But that was then. What about the future? Let’s take a look and see what may lie ahead for ASX uranium shares in FY 2023.

What is the outlook for ASX uranium shares?

The team at Bell Potter has been looking at the uranium sector and believes that weakness since April has created “selective opportunities.”

It commented:

ASX Uranium equities are on average down 44%, vs the ASX300 Resources Index of 19%. The sell-off, in our opinion, has been indiscriminate in the case of BOE and PDN and completely irrespective of 1) broader uranium market fundamentals and 2) company specific situations. The April sell-off has created an interesting opportunity to build/establish positions in either of these two companies.

Valuations for BOE and PDN 40% off from April highs – BOE and PDN are now trading at ~40% discounts to their April high, on a Market Value/ Resource pound metric. In addition to this, we believe there is further upside for both businesses as per our stated valuations.

However, the broker does acknowledge that “shorts continue to build,” with both companies experiencing rising short interest despite the selloff.

Nevertheless, Bell Potter has reiterated its speculative buy ratings on both companies. It has a $3.32 price target on Boss Energy’s shares and a $1.06 price target on Paladin Energy’s shares.

Overall, the broker remains positive on uranium due to its belief that reach net zero ambitions would be difficult with nuclear power.

The post Will ASX uranium shares be market-beaters in FY23? appeared first on The Motley Fool Australia.

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• The ups and downs for ASX uranium shares in the 2022 financial year
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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 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 was a strong performer during the first six months of 2022. So, can the company do it again in the next six months?

A lot has happened over the last 12 months for the oil and gas giant. It may not be a surprise that Woodside shares have gone up by around 30% over the past year.

As Australia’s biggest ASX oil and gas share, changes in commodity prices can have sizeable impacts on what happens to a company’s profit and investor sentiment. Energy prices jumped after the Russian invasion of Ukraine.

However, a business can achieve things operationally that can also help.

Let’s look at one of the biggest changes that has happened to the business recently, which will have a significant impact on the following months (and years).

Merger with BHP business

As a result of the merger between Woodside and BHP’s oil and gas business, Woodside is now a top 10 global energy company by hydrocarbon production and the largest listed energy company on the ASX.

Woodside expects the larger, more diversified portfolio to deliver “significant cash flow to help fund committed projects, Woodside’s participation in the energy transition and shareholder returns”.

The ASX oil and gas business has started activities to integrate the two organisations.

Woodside’s CEO Meg O’Neill said that completing this merger was one of the most significant events in the company’s 67-year history:

The merger delivers a diverse portfolio of quality operating assets, plus a suite of growth opportunities across oil, gas and new energy that promises ongoing value for our shareholders.

We believe the completion of the merger will enable Woodside to play a more significant role in the energy transition that is imperative as we respond to climate change while ensuring reliable and affordable supplies of energy to a growing and aspirational global population.

We are focused on unlocking pre-tax annual synergies of more than $400 million as we merge the two businesses.

Those synergies alone could be quite beneficial for the Woodside share price.

Projects

Woodside continues to make progress on projects that can help grow profit in the future.

For example, it said that in the first three months of FY22 work on the Scarborough and Pluto Train 2 projects began to ramp up, with Bechtel (the engineering, procurement, construction and commissioning contractor for Pluto Train 2) beginning major civil works.

Manufacture of the Scarborough pipeline has also commenced.

Progressing and completing these projects could be helpful for the Woodside share price over the rest of 2022 and beyond.

Broker ratings on the Woodside share price

A price target is where a broker has estimated a share price will be in 12 months from that date.

UBS recently upgraded its rating on Woodside to a buy, with a price target of $34.25. That implies a possible upside of around 10%.

However, Macquarie is neutral on Woodside with a price target of just $29.25, implying a mid-single-digit decline.

Citi is also neutral on the business, though the price target is $33.40. That suggests a possible mid-single-digit rise.

The post Can the second half of 2022 be even better for the Woodside share price? appeared first on The Motley Fool Australia.

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

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The IDP Education Ltd (ASX: IEL) share price has fallen hard in 2022.

Since the start of the year, the language testing and student placement company’s shares are down 30%.

Is the IDP Education share price in the buy zone?

While the pullback in the IDP Education share price this year is disappointing for shareholders, it could be a buying opportunity for non-shareholders.

That’s the view of the team at Goldman Sachs, which believe the company’s shares could rise materially from current levels.

According to a note, the broker has reiterated its buy rating and $35.50 price target on its shares.

Based on the current IDP Education share price of $24.35, this implies potential upside of 46% for investors over the next 12 months.

Why is Goldman bullish?

Goldman notes that the latest student visa data out of Australia reveals that international student arrivals have now reached 74% of pre-pandemic levels. Goldman is expecting this momentum to continue and for pre-pandemic levels to be achieved in FY 2023. This bodes well for IDP Education’s student placement business.

Outside this, the broker has named four reasons for its positive view. It explained:

We see a compelling long-term growth opportunity with a number of drivers:

1. Structural growth in multi-destination student placement markets; supplemented by ongoing recovery in the Australian market;
2. Ability to grow market share in highly fragmented Canadian and UK SP markets;
3. Reinvestment in digital capabilities to increase competitive advantage and strengthen relationships with tertiary institutions and;
4. Consolidation of IELTs business and ability to supplement organic growth with bolt-on acquisitions.

All in all, in light of this positive growth outlook, the broker appears to believe the IDP Education share price is trading at a very attractive level today.

The post Why this broker says the IDP Education share price can rise almost 50% appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today
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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 Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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