Category: Stock Market

At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is having a positive day at last. The benchmark index is currently up 1.2% to 6,509.6 points.

Here’s what is happening on the ASX 200 today:

Resources sector rebounds

The resources sector has played a key role in the ASX 200’s strong gain today. The likes of BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) are pushing higher and helping to drive the S&P/ASX 200 Resources index 2.5% higher at lunch. This follows a positive night of trade for most base metals.

GrainCorp’s investor day

The GrainCorp Ltd (ASX: GNC) share price is storming higher today. This follows the release of the grain exporter’s investor day event presentation. At the event, the company reaffirmed its FY 2022 full-year operating profit guidance of $590 million to $670 million.

Westpac rated as a buy

The Westpac Banking Corp (ASX: WBC) share price could be good value following recent declines. That’s the view of analysts at Morgan Stanley, which have retained their overweight rating on the banking giant’s shares. And while the broker has cut its price target to $22.30, this still implies plenty of upside over the next 12 months. Westpac is the only big four bank it rates as a buy currently.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Paladin Energy Ltd (ASX: PDN) share price with a 7% gain. This is despite there being no news out of uranium producer. Going the other way, the City Chic Collective Ltd (ASX: CCX) share price has been the worst performer with a 3.5% decline on no news. This latest decline means the plus sized fashion retailer’s shares are down almost 70% in 2022.

The post ASX 200 midday update: BHP and Rio Tinto rebound, Westpac rated as a buy appeared first on The Motley Fool Australia.

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More reading

• Why is the Core Lithium share price slipping today?
• Why is the Graincorp share price sprouting on Tuesday?
• Why this top broker sees 50%+ upside to the Boral share price
• 5 things to watch on the ASX 200 on Tuesday
• Why did the Paladin Energy share price tumble 13% on Monday?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Corporation. 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.

What happened

It’s perhaps too soon to call today’s rebound in the crypto world sustainable. Indeed, this weekend brought yet another plunge to major cryptocurrencies, with Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) dropping to $17,708 and $896, respectively. For Bitcoin, this was its lowest level since 2020, and for Ethereum, this was the token’s lowest level since early 2021.

However, the story has changed as of 9:30 a.m. ET on Monday. Bitcoin and Ethereum have rebounded 5.5% and 8.7%, respectively, in the past 24 hours. These gains built on the upticks seen yesterday. At the time of writing, these tokens trade for around $20,500 and $1,130 apiece. 

Proof-of-stake blockchain Solana (CRYPTO: SOL) also experienced similar price action. Solana dropped as low as $26.06 this weekend. However, today’s 11.4% 24-hour move (at 9:30 a.m. ET) along with some strong price action yesterday has this token trading above $35, matching its highest level in over two weeks earlier this morning. 

So what

The ongoing fallout from the implosion of Terra (CRYPTO: LUNA) and the more recent collapse of Celsius (CRYPTO: CEL) continue to provide significant headwinds for this sector. Whether algorithmic stablecoins are likely to be a thing of the past is up for debate. However, seeing a centralized exchange such as Celsius fall under the pressure of declining crypto prices is concerning for many investors.

One beacon of light which appears to be buoying top tokens such as Bitcoin, Ethereum, and Solana today is news that Celsius has put forward a recovery plan, and its community is rallying behind this project. This morning, CEL tokens reached their highest levels in more than a month, as investors bank on this recovery plan resulting in a resolution of claims in short order. Experts suggest that claims could be resolved within nine months, saving this exchange from liquidation.

Now what

Bitcoin, Ethereum, and Solana are among the most-traded and most-utilized tokens in the market. The significant declines these top tokens have seen in recent weeks have provided long-term investors with the ability to accumulate at much more attractive prices. We’ve seen some indication of mass retail buying of Bitcoin, for example, with a reported 13,000 new holders of a whole Bitcoin (“whole Bitcoiners”) materializing over the past week. 

That said, it’s also true that the downside pressure on the crypto sector from macro forces appears unrelenting. This has been the worst quarter ever for the crypto sector, which really says something, given the gravity of previous declines. Perhaps we’re not out of the woods yet.

Indeed, concerns around the potential for a recession are pertinent. The Federal Reserve is hiking rates at its fastest rate in nearly two decades, and as more outsized rate hikes materialize, liquidity will continue to be drained from the system. For most cryptos, which have been the beneficiaries of the incredibly cheap liquidity that’s been pumped into the market, this is a tough time to suggest the next bull run is right around the corner.

That said, 2022 will likely shape up to be a year where fortunes are made or lost. Depending on one’s view on the sector (and time horizon), I think both are possible, given the volatility we’ve seen of late. 

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

The post The key driver behind the recovery in Bitcoin, Ethereum, and Solana today appeared first on The Motley Fool Australia.

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More reading

• Ethereum price collapses 35% in a week. Are crypto sharks to blame?
• Bitcoin price rockets 14% but experts say cryptos aren’t out of the woods yet
• Why US$19,500 is a line in the sand for the Bitcoin price
• Why tech billionaire Bill Gates is ‘not involved’ in crypto or NFTs
• Why Bitcoin, Ethereum, and Dogecoin dropped and popped in the last 24 hours

Chris MacDonald has positions in Ethereum and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Ethereum, and Solana. The Motley Fool Australia owns and has recommended Bitcoin, Ethereum, Solana and Terra. 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 Core Lithium Ltd (ASX: CXO) share price is edging lower today amid a positive announcement from the company.

At the time of writing, Core Lithium shares are down 0.47% to $1.07 each.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is recovering lost ground after consecutive falls, up 1.1% to 6,504 points.

Core Lithium advances Finniss Lithium Project

Investors are bidding up the Core Lithium share price after the company provided an update on its wholly-owned Finniss Lithium Project in the Northern Territory.

According to its release, Core Lithium advised that mining rates have accelerated at the Grants Stage 1 open pit. This is due to the arrival of the dry season and the commissioning of an additional excavator and trucks to the site.

Previously, the Grants open pit was affected by higher-than-average rainfall and an extended wet season. Ultimately, this led to an increase in fuel consumption for its trucks as well as delays in open-pit mining.

Now crushing contractor CSI Mining Services (CSI) has begun mobilisation to the site as planned.

The company’s Dense Media Separation (DMS) plant has been handed over to Primero which has commenced construction activities. The structural steel is being imported from China and is now, along with all DMS components, being shipped to Australia.

Core Lithium also noted it has completed the Finniss site administration and IT complex. This will allow staff to relocate from their temporary facilities to the site-based administration building.

Finally, the company received initial environmental approval for its BP33 mine and submitted the BP33 Mining Management Plan (MMP).

Despite being a two-stage process, it’s anticipated the Northern Territory government will give approval during the September 2022 quarter.

The Finniss project is on track for its first production of spodumene concentrate by the end of the 2022 calendar year.

Management commentary

Core Lithium chair Greg English said:

The Finniss project is progressing well with Lucas, CSI and Primero all on site. Practical completion of the new administration and IT complex will allow staff to spend more time at the operation and should lead to productivity improvements in simply reducing travel time alone.

The submission of the BP33 Underground Mine MMP was a great achievement with formal approval anticipated from the NT Government in the coming months.

Core Lithium share price summary

Regardless of tumbling 17% in the past month, the Core Lithium share price has surged by 83% in 2022.

When looking further back, its shares are up an astonishing 369% over the last 12 months.

Based on today’s price, Core Lithium has a market capitalisation of approximately $1.87 billion.

The post Why is the Core Lithium share price slipping today? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: BHP and Rio Tinto rebound, Westpac rated as a buy
• Why this top broker sees 50%+ upside to the Boral share price
• 5 things to watch on the ASX 200 on Tuesday
• Will Westpac shares really pay a 9.6% dividend yield next year?
• Why are ASX 200 bank shares having such a cracking start to the week?

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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Owners of this ASX mining share, rejoice! The company has uncovered a major high-grade silver discovery. The Lode Resources Ltd (ASX: LDR) share price more than doubled shortly after opening this morning on the back of the news.

At the time of writing, the Lode Resources share price is swapping hands for 27 cents, 80% higher than its previous close.

However, at its intraday high, stock in the ASX mining share – worth approximately $12 million at Monday’s close – was swapping hands for 34 cents apiece, representing a 124% gain.

Let’s take a closer look at the find that’s sent the ASX small cap rocketing higher on Tuesday.

ASX mining share more than doubles on major find

ASX mining share Lode Resources is leaping upwards today following a major discovery at the company’s Webbs Consol Project.

Exploration at the project’s Tangoa West prospect has intercepted high-grade silver-lead-zinc-copper mineralisation over a thick drill intercept at shallow depths.

The find includes an aggregate 5.9 metres at 1,074 grams per tonne of silver equivalents within the
broader intercept of 26.7 metres at 399 grams per tonne of silver equivalents.

That highlights potential mineralisation outside the subsurface below the project’s old workings. It also outlines potential mineralisation in surface targets with no previous mining.

Additionally, newly identified vertical mineralisation and alteration zonation could be good news for the current drilling program as previous programs seem to have only tested upper portions of mineralised lodes.

All that has excited the ASX mining share’s managing director, Ted Leschke.

“The high-grade silver-base metal discovery at Tangoa West … extends the high-grade Webbs Consol mineral system to three kilometres,” Leschke said.

“In addition, the newly recognised vertical mineralisation and alteration zonation identified in drilling to date has strong implications for mineralisation at depth at Webbs more broadly”.

Tangoa West is one of several drill targets being tested at the project.

Lode Resources share price snapshot

Perhaps unsurprisingly, the ASX mining share has been performing well recently.

It has gained 22% in 2022 so far. It’s also currently nearly 93% higher than it was this time last year.

The post Guess which ASX mining share just rocketed 120% on a major discovery appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: BHP and Rio Tinto rebound, Westpac rated as a buy
• The key driver behind the recovery in Bitcoin, Ethereum, and Solana today
• Why is the Core Lithium share price slipping today?
• Here’s why the Weebit Nano share price is rocketing 19% today
• Why is the Bega share price on the nose this week?

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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The Weebit Nano Ltd (ASX: WBT) share price is charging higher today, gaining 19% in early trade to $2.33.

It’s now settled at $2.22, up 13.27% on yesterday’s closing price.

Shares in the company – which develops next-generation memory technologies for the global semiconductor industry – closed yesterday at $1.96 each.

So, why are investors bidding up the ASX tech share’s price today?

A maiden public demonstration

The Weebit Nano share price is off to the races after the company reported today it will hold the first public demonstration of its ReRAM IP module.

That demonstration is intended to show the technology’s real-world capability as a “non-volatile memory (NVM) integrated into an actual subsystem”. It will take place at the three-day Leti Innovation Days event, currently underway in France.

According to the release, the interactive presentation will demonstrate its Weebit ReRAM functioning as an NVM memory block. The module will be fed live images and should retain that data while powered off, then display the data separately.

The Weebit Nano share price could also be getting a boost from the company reporting it expects its ReRAM module to publicly demonstrate its faster write speed compared to typical flash memory technology.

Commenting on the demonstration, CEO of Weebit Nano Coby Hanoch said:

This is the first time we are publicly demonstrating our ReRAM embedded in silicon, less than a year after taping out the module. The demo of our ReRAM technology represents yet another key technical milestone as we progress toward full productisation. The demo will be a great asset for use in our sales activities with potential customers.

Weebit Nano share price snapshot

Faced with fast-rising interest rates that have hit almost every growth share, the Weebit Nano share price has struggled in 2022, down 20% after factoring in today’s gains. By comparison, the All Ordinaries Index (ASX: XAO) is down 16% year-to-date.

Longer term, Weebit Nano shares are outperforming, up 44% over the past 12 months compared to an 11% loss posted by the All Ords.

The post Here’s why the Weebit Nano share price is rocketing 19% today appeared first on The Motley Fool Australia.

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More reading

• Weebit Nano share price rockets 7% today. Here’s why
• 3 ASX All Ordinaries shares defying the sell-off to surge higher

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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The Bega Cheese Ltd (ASX: BGA) share price is trading down again on Tuesday and is now 3.5% in the red at the time of writing.

Shares have taken a nosedive this week, in continuation of a downtrend started from 10 June. Since then, the Bega share price has sunk from $4.65 to $3.86 in early trade on Tuesday.

In wider market moves, the S&P/ASX 200 Index (ASX: XJO) has started in the green today and now trades 1% higher at 6,502.

What’s up with the Bega share price?

There’s been no market-sensitive news out of Bega’s camp lately.

However, the share did cop a downgrade from the analyst team at UBS last week. The broker reckons higher milk prices and other cost pressures are likely to pull Bega’s earnings lower in FY23.

“Input cost pressures mainly relate to increased milk supply costs, but also material increases in packaging, freight, labor and electricity,” the broker said.

It revised its FY23 earnings before interest, tax, depreciation and amortisation (EBITDA) to $214 million, down from a previous $245 million.

The UBS team now values Bega at $4.75 per share.

Following the downgrade, those at Bell Potter also cut recommendations to a hold at a $4.20 price target.

Meanwhile, Macquarie followed suit and cut its price target by 12% to $4.75 per share as well.

Despite the shift in sentiment, support remains behind Bega, with several brokers still constructive on its outlook.

Out of all analysts covering the share, almost 64% rate Bega a hold right now, versus 27% saying it’s a buy, according to Bloomberg data.

The consensus price target is $4.86 per share, per this list.

This year to date, shares are down more than 30%, as seen on the chart below.

The post Why is the Bega share price on the nose this week? appeared first on The Motley Fool Australia.

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More reading

• Why Bega, Fortescue, Santos, and Silver Lake shares are tumbling lower

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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.

There’s no denying that it’s been an uphill climb for Wall Street and investors since the year began. Remember that fabled walk to and from school in three feet of snow, uphill, both ways, which your parents told you about as a kid? This is the stock market equivalent of it.

Since the three major U.S. indexes hit their all-time closing highs between mid-November and early January, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and technology-focused Nasdaq Composite (NASDAQINDEX: ^IXIC), have respectively tumbled by 19%, 24%, and 34%, as of June 16. More importantly, it firmly places the Nasdaq and S&P 500 in a bear market. The S&P 500 is often viewed as the best barometer of U.S. stock market health.

This indicator has correctly predicted five S&P 500 bear markets

Although some investors might be surprised by the S&P 500 losing nearly a quarter of its value in just over five months, one telltale signal with an impeccable track record correctly predicted this tumble. That indicator is the Shiller price-to-earnings (P/E) ratio, which is also referred to as the cyclically adjusted price-to-earnings ratio, or CAPE ratio.

Whereas traditional P/E ratios compare the price of a security to its trailing12-month earnings or its forecast earnings for the current or coming year, the Shiller P/E ratio is based on average inflation-adjusted earnings from the previous 10 years.

The telltale bear market warning has occurred anytime the Shiller P/E has crossed above and sustained 30. Aside from the fact that the average Shiller P/E since 1870 is just 16.95, pushing above 30 has a notoriously bad track record: 

• 1929: Following the Black Tuesday crash, the broader market went on to lose most of its value during the Great Depression. The Dow Jones ultimately shed 89% of its value.
• 1997-2001: The S&P Shiller P/E ratio would hit an all-time high of 44.19 immediately prior to the dot-com bubble bursting. Following the market’s peak, the S&P 500 lost about half its value.
• Q3 2018: During the second half of 2018, the Shiller P/E ratio found its way, briefly, above 30. During the fourth quarter of 2018, the S&P 500 lost 19.8% of its value, or 20% on a rounded basis. A decline of 20% is the accepted threshold for a bear market.
• Q4 2019-Q1 2020: In the six months leading up to the 33-calendar-day coronavirus crash, the S&P Shiller P/E ratio was, again, north of 30. The COVID-19 crash erased 34% from the S&P 500.
• Q3 2020-Q2 2022: Finally, the S&P Shiller P/E topped 40 prior to the S&P 500 rolling over in early January 2022. Thus far, the index is down 24%.

S&P 500 Shiller CAPE Ratio data by YCharts.

A few caveats to take into consideration

To recap, that’s five instances since 1870 where the Shiller P/E ratio has topped 30, and five subsequent bear market retracements totaling 20% to 89%. It’s simply never been wrong.

However, there are a number of caveats that should be understood before proclaiming this the greatest bear market telltale signal of all time.

For example, valuation “norms” have changed significantly over the past century. Prior to the mid-1980s, computers weren’t exactly commonplace on Wall Street. It took quite a bit of time to disseminate information from businesses to Main Street, which allowed rumors to perpetuate. In other words, the environment wasn’t conducive to supporting lofty valuations.

Since the mid-1980s, the information barrier between businesses, Wall Street, and Main Street, has gradually disappeared. Today, John and Jane Q. Investor can access income statements, balance sheets, and management commentary at the click of a button. This ease of access to information drives more investor risk-taking and has, therefore, inflated the Shiller P/E ratio over the past 25 years.

Something else to consider is that, even though the Shiller P/E ratio has a perfect track record of predicting an eventual bear market once valuations become extended, there’s no telling how far above 30 it’ll climb, or how long the Shiller S&P 500 will stay above 30. If you’d bet against the benchmark S&P 500 when it first crossed 30 during the third quarter of 2020, you’d still be underwater today, even with a 24% decline in the index.

Also, take note that valuation isn’t always the reason a bear market takes shape. The COVID-19 pandemic that cratered the S&P 500 over the course of five weeks in 2020 had little to do with the perception of extended valuations.

Bear markets are a surefire buying opportunity for the patient

Although it may not seem like it at the moment, bear markets are, historically, the perfect time to invest.

When looking at the long-term performance of the S&P 500, one thing that’s abundantly clear is that bull markets last considerably longer than corrections (that is, declines of at least 10% from a recent high). Since the beginning of 1950, the aggregate number of days spent in a bull market outweighs days spent in correction by roughly 2.6-to-1. This means every sizable correction is an opportunity for patient investors to strike.

If you’re wondering where to invest, there are plenty of great ideas.

For instance, dividend stocks have a proven track record of outperformance. According to a 2013 report from J.P. Morgan Asset Management, a division of JPMorgan Chase, income stocks averaged a hearty 9.5% annual return between 1972 and 2012. By comparison, publicly-traded stocks that didn’t pay a dividend gained an average of only 1.6% annually over the same time frame. Because dividend stocks are almost always profitable and time-tested, they make a good case to increase in value over time.

Interestingly, growth stocks can be smart investments when the U.S. economy weakens and the S&P 500 enters a bear market. A Bank of America/Merrill Lynch study published in 2016 found that over a 90-year period (1926-2015), value stocks outpaced growth stocks in the return column (17% to 12.8%, based on average annual return). But during periods of weakness, growth stocks performed considerably better than value stocks.  

Investors can also buy an S&P 500 tracking index. According to data from Crestmont Research, if you, hypothetically, were to have bought an S&P 500 tracking index and held for 20 years at any point since 1900, you would have generated a positive total return, including dividends. There isn’t a single point on the S&P 500’s rolling 20-year timeline where this statement doesn’t hold true.

Patience can pay off handsomely on Wall Street.

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

The post This telltale bear market signal for stocks has never been wrong appeared first on The Motley Fool Australia.

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More reading

• Here’s why the Weebit Nano share price is rocketing 19% today
• Why is the Bega share price on the nose this week?
• Why is the Graincorp share price sprouting on Tuesday?
• Why no news could be good news for the Altium share price
• Why these top brokers are forecasting high-speed gains for the Telstra share price

Sean Williams has positions in Bank of America. Bank of America is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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.

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

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The Graincorp Ltd (ASX: GNC) share price is firmly in the green after releasing an investor presentation.

In early trading, shares in the integrated grains company are getting a boost. At the time of writing, the share price is 3.3% higher at $9.39. For context, the S&P/ASX 200 Index (ASX: XJO) is also up a lively 1.11% this morning.

Benefitting from a positive reaction to the contents of its latest presentation, Graincorp is leading the consumer staples sector out of the gates on Tuesday.

What’s growing the Graincorp share price today?

The grain logistics and storage company is getting extra attention on the ASX today. Typically, an investor presentation covers information already known by the market. However, today’s presentation has been marked as price-sensitive, indicating there are likely some important details hidden within it.

Before we dive deeper, here are a few main points that could be influencing the Graincorp share price:

• Reaffirmed prior FY22 full-year guidance of $590 million to $670 million in underlying EBITDA
• Dividend payout ratio target of 50% to 70% with “optionality to pay special dividends in years” ahead
• Well-positioned amid global supply chain disruptions
• Potential for third consecutive bumper crop across Australian east coast

Possibly the biggest takeaway from Graincorp’s presentation to shareholders is its insulation from some of the strongest pressures faced by other companies at the moment. For example, it touted its end-to-end supply chain along the east coast. This includes seven bulk grain port terminals and approximately 160 storage sites.

At a time when grain prices are at multi-year highs, the ability to deliver the product to ports and get it shipped is enabling the company to capitalise on the situation.

What else?

Importantly, the retained EBITDA guidance indicates Graincorp remains largely unaffected by the conflict in Ukraine. This is despite Europe and Ukraine exports making up 85 million tonnes of global exports.

Notably, the company highlighted its global footprint which has given the company some optionality. For example, Graincorp earmarked Canada as a “key part” of its multi-origin strategy.

More than anything, the presentation has likely provided reassurance to the Graincorp share price today. The company currently holds a market capitalisation of $2.14 billion.

The post Why is the Graincorp share price sprouting on Tuesday? appeared first on The Motley Fool Australia.

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• 3 ASX 200 shares stretching higher on Wednesday
• These were the best performing ASX 200 shares last week
• Why is the GrainCorp share price racing higher today?
• Why GrainCorp, New Hope, Tabcorp, and Woodside shares are pushing higher

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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The Altium Limited (ASX: ALU) share price is pushing higher on Tuesday.

In morning trade, the electronic design software company’s shares are up 1.5% to $25.84.

Why is the Altium share price pushing higher?

As well as getting a boost from a rebounding share market, the Altium share price was given a lift from a broker note out of Bell Potter.

According to the note, the broker has reiterated its buy rating but cut its price target by 18% to $34.00.

Despite this cut, based on the current Altium share price, this suggests potential upside of over 31% for investors over the next 12 months.

What did the broker say?

With just nine days remaining in the current financial year, Bell Potter believes that “no news is good news” in respect to the company’s guidance.

It commented:

Altium has undertaken various marketing initiatives this quarter which, while slightly different to years gone by, suggests the company is again targeting subscriber over revenue growth in H2. This is worth highlighting as Altium has provided both revenue and EBITDA margin guidance for FY22 – US$213-217m and lower end of 34-36% – so there is the potential that these initiatives put at least the revenue guidance at some risk.

We do not, however, believe this is the case as: 1. 1HFY22 revenue growth was strong; 2. Altium narrowed the revenue guidance range towards the upper end in late February knowing it would implement these marketing initiatives in Q4; 3. The strong momentum in Octopart in 1HFY22 is likely to continue into 2HFY22 and offset any weakness in China (due to lockdowns) and Russia (due to the war in Ukraine); and 4. No update has been provided to market.

In light of this, its analysts “believe the company is on track to achieve its FY22 guidance.”

Why did Bell Potter cut its price target?

Bell Potter advised that it has cut its target on the Altium share price to $34.00 to reflect “a material decrease in the relative valuations.”

Outside this, nothing else changes. It continues to forecast strong revenue and EBITDA growth through to FY 2024.

The post Why no news could be good news for the Altium share price appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Tuesday
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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 Altium. 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 S&P/ASX 200 Index (ASX: XJO) has started the week poorly, continuing its sudden downturn in June.

Following Monday’s session, the benchmark had fallen more than 7% over the past five trading days, marking its worst week since the March 2020 COVID-19 selloff.

Despite the weakness, several brokers are bullish on the Telstra Corporation Ltd (ASX: TLS) share price. Shares in the telco have been volatile this year to date yet they are also trading back around pre-pandemic highs.

These brokers are bullish

According to the team at JP Morgan, Telstra is a buy right now. It values the telco at $4.80 and, in a recent note, says planned increases to FY23 mobile prices are a key driver for the share.

The broker lifted its revenue forecasts on Telstra and notes many customers are “down shifting to lower priced plans which now all include 5G”. JP Mogan said:

We believe the [revenue] increases were necessary to achieve the FY2025 targets Telstra outlined at the company’s 2021 Investor Day.

After factoring in the impact of the pricing increases into our model we now forecast Telstra will achieve targeted mid-single digit Mobile services revenue growth to FY2025 with a 5.2% [annualised] growth rate.

Morgans is also positive on the share, highlighting sector tailwinds and Telstra’s potential to unlock further shareholder value.

The Morgans team is forecasting a 16 cents per share dividend payment in FY22 and FY23.

Both brokers make up the 57% coverage that rates Telstra a buy right now, according to Bloomberg data. The remainder are split to hold, with Barclay Pearce saying the company was a sell back in February.

From that list, the consensus price target is $4.48 per share, translating to around 17.5% return potential at the time of writing.

In the last 12 months, the Telstra share price has held a 9% gain after sliding around 8% into the red this year to date.

The post Why these top brokers are forecasting high-speed gains for the Telstra share price appeared first on The Motley Fool Australia.

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• Here are the 3 most heavily traded ASX 200 shares on Friday
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• Despite recent volatility, brokers are predicting big things for the Telstra share price. Here’s why
• Here are the 3 most traded ASX 200 shares on Wednesday

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