Category: Stock Market

The team at Morgans has been busy running the rule over a number of ASX 200 shares again.

We have already covered a few of its best ideas here and here. But the list continues with the three ASX 200 shares listed below:

BHP Group Ltd (ASX: BHP)

This mining giant could be a top option for investors looking for exposure to the resources sector. Morgans currently has an add rating and $51.80 price target on its shares. It likes BHP due to the diversification of its portfolio and balance sheet strength.

Morgans explained: “We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct Covid-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.”

Cochlear Limited (ASX: COH)

Another ASX 200 share to look at is Cochlear. Morgans is a fan of the company due to its leadership position in implantable hearing solutions and the improving demand outlook. Morgans is expecting the latter to underpin strong earnings in the coming years. The broker has an add rating and $233.20 price target on its shares.

It said: “Cochlear maintains a dominant position in the implantable hearing solutions segment. While we continue to believe a full recovery from Covid-based disruptions still has time to play out, improving demand and strong pipeline, coupled with management’s increasing confidence, suggests an improving earnings profile.”

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX 200 share on Morgans’ best ideas list is Treasury Wine. Morgans believes the wine giant’s shares are trading at a very attractive level, particularly given its positive growth outlook. The broker currently has an add rating and $13.93 price target on the Treasury Wine’s shares.

It said: “TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The company recently reported an impressive 1H22 result despite facing a number of material headwinds. The foundations are now in place for TWE to deliver strong double digit growth from 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.”

The post 3 more of the ‘best’ ASX 200 shares to buy this month: Morgans appeared first on The Motley Fool Australia.

More reading

• Why Macquarie says the BHP share price can gain another 19%
• 2 buy-rated ASX 200 dividend shares analysts are recommending
• What sent ASX mining shares flaming higher in March?
• What are the tailwinds behind BHP shares in April?
• Here’s why the performance of ASX 200 shares is smashing the S&P 500

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. owns and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Macquarie Group Ltd (ASX: MQG) share price has surged 15% in a month, so is it still a buy?

The Macquarie share price is currently trading at $201.86, a 1.6% drop. For perspective, the S&P/ASX 200 Financials Index (ASX: XFJ) is falling 0.81% at the time of writing.

Let’s take a look at the outlook for Macquarie.

Is Macquarie a buy?

Analysts have mixed views on the future direction of the Macquarie share price.

WaveStone Capital principal and portfolio manager Raaz Bhuyan says Macquarie shares are a buy.

In an interview with Livewire, Bhuyan said:

It’s definitely a buy for us. We think they’re going to have a cracking result in May when they announce their full-year results. Next year, of course, is another thing, but we like the exposure that they’ve got to infrastructure and the green transition.

However, Perpetual portfolio manager James Rutledge thinks the Macquarie share price is a hold. While he tips that Macquarie will benefit “a lot” from current market volatility, he also has concerns.

Rutledge said:

For a business that is delivering mid to high teens returns, and is being priced at three and a half times price to net tangible assets (NTA), that’s quite a high level for us. And you need to see them deploying more capital to justify those high prices.

Marcus Today portfolio manager Ben O’Leary recently told my Foolish colleague Tony that he would hold Macquarie if the market closed tomorrow for four years. He said, “They just have a track record of making money in almost any environment.”

In other news, Macquarie recently modified its portfolio of ASX shares in response to the Ukraine crisis. The company has positioned its share portfolio “as if it’s a commodity boom”.

Macquarie share price snapshot

The Macquarie share price has soared 33% in the past year but has dropped 4.4% year to date. In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 7.5% in the past year.

Macquarie has a market capitalisation of about $78.7 billion based on its current share price.

Macquarie will report its full-year earnings results on 6 May.

The post Is the Macquarie share price a buy ahead of next month’s earnings results? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares with impressive management teams
• Be as overweight ‘as you can possibly stomach’ in ASX shares right now: fundie
• Macquarie share price lifts despite ASIC legal action
• ASX 200 (ASX:XJO) midday update: IGO dealt blow, Block’s data breach, Xero jumps
• ASX 200 banks bounce bank in March. Here are the April forecasts from analysts

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 Bruce Jackson.

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One of the hottest areas of the Australian share market in 2022 is the lithium sector again.

Thanks to the shift to electric vehicles and renewable energy, demand for lithium is increasing rapidly and supply simply cannot keep up. This has led to lithium prices continuing to rise to record levels.

The good news for investors is that it may not be too late to jump onboard the lithium train. Listed below are two lithium stocks that have been rated as buys and tipped to climb meaningfully higher from current levels. They are as follows:

Allkem Ltd (ASX: AKE)

The first ASX lithium stock that could be in the buy zone is Allkem. It is the lithium giant that was formed when Galaxy Resources and Orocobre merged last year.

This merger made Allkem a top five player in the industry and brought together a collection of world class operations and projects under one roof.

One leading broker that is bullish on Allkem is Morgans. It recently retained its add rating and lifted its price target to $16.65.

It commented: “We maintain our ADD rating given the strong growth outlook for the company and the potential 24% [now 29%] upside to our valuation. AKE’s diverse products and geographical mix adds opportunities to capture value as the market evolves. There is further potential upside that are not in our numbers such as Olaroz stage 3 and/or another lithium hydroxide plant. Should the lithium market continue to remain strong AKE still has a large amount of untapped growth potential.”

Liontown Resources Limited (ASX: LTR)

Another lithium stock that is rated highly is Liontown Resources. It is the lithium developer behind the 100%-owned lithium projects at Kathleen Valley and Buldania in Western Australia.

The former is the project that has been getting investors most excited. When it commences production in 2024, Kathleen Valley will be producing ~510,000 tonnes per annum of spodumene. Pleasingly, Liontown has already signed deals with LG Energy Solution and Tesla for over half of this offtake.

Bell Potter is very positive on Liontown. It currently has a speculative buy rating and $3.06 price target on its shares.

The broker commented: “LTR is funded for Kathleen Valley’s initial development capital where a definitive feasibility study outlined 658ktpa SC6 production and potential for conversion into 86ktpa lithium hydroxide. LTR is independent and debt free; a strong strategic position in a market for lithium facing supply shortages. Key catalysts are awarding development contracts, final permitting and commencing development. LTR is a mine development company with prospective operations and cash flows. Our Speculative risk rating recognises this higher level of risk and volatility of returns.”

The post 2 hot ASX lithium stocks brokers rate as buys appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Wednesday
• Is a bubble forming for ASX green metals shares?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Allkem (ASX:AKE) share price hits record high on Olaroz and Sal de Vida lithium updates

Motley Fool contributor James Mickleboro owns Allkem Limited. 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 Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) share price is outperforming on Thursday following the completion of a US$1.5 billion (A$2 billion) notes offering.

Of the cash raised through the capital raise, US$800 million will go towards the company’s sustainable projects. The other US$700 million be put to general expenses.

At the time of writing, the Fortescue share price is $21.785, 0.58% higher than its previous close.

While not a huge gain, it sees the iron ore giant outperforming the broader market. Right now, the All Ordinaries Index (ASX: XAO) and S&P/ASX 200 Index (ASX: XJO) have both slipped 0.5%.

Let’s take a closer look at Fortescue’s latest capital injection.

Fortescue announces successful capital raise

The Fortescue share price is in the green after the company completed a notes offering its CEO claims demonstrates its commitment to sustainability.

News of the offering first broke yesterday when the company announced its launch.

It was made up of two tranches – a senior unsecured note for general corporate purposes and a green senior unsecured note.

The latter was issued for eligible projects under the company’s sustainability financing framework.

They include the 150-megawatt solar generation component of Fortescue’s Pilbara Energy Connect Project, its acquisition of Williams Advanced Engineering, and its hydrogen mobility project at Christmas Creek.

Fortescue CEO Elizabeth Gaines commented on the green notes, saying:

Fortescue’s sustainability financing framework recognises the global growth in sustainability and green sources of capital.

The successful completion of Fortescue’s inaugural green financing offering demonstrates the company’s passion and commitment to integrate sustainability into all aspects of our business, as we take a global leadership position in the green energy transition.

The funds earmarked for general spend will help fund Fortescue’s Iron Bridge project, together with the balance of the Pilbara Energy Connect project.

Previously, free cash flow has funded the projects.

Fortescue chief financial officer Ian Wells said the transaction highlights the ongoing support for the company’s decarbonisation targets.

He also noted it has further optimised the company’s capital structure. That has helped it maintain its strong balance sheet underpinned by investment-grade credit metrics.

Fortescue share price snapshot

The Fortescue share price has been performing well through 2022 so far.

It has gained 9% year to date. It’s also 6% higher than it was this time last year.

For context, the ASX 200 has fallen 1.8% year to date. It has also gained 7.5% over the last 12 months.

The post Fortescue share price lifts amid $2b cap raise appeared first on The Motley Fool Australia.

More reading

• Iron ore just passed US$160 per tonne. So why is the Fortescue share price slipping?
• What’s the outlook for the Fortescue (ASX:FMG) share price in April?
• The Fortescue share price doubled the return of the ASX 200 in March
• The ASX 200 just had its longest winning streak since 2017. What’s doing?
• Fortescue share price jumps 4% higher

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 Bruce Jackson.

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Shares in Flight Centre Travel Group Ltd (ASX: FLT) have been trading up this week and are now 14% higher over the past month. That’s more than twice the upwards movement of the S&P/ASX 200 Index (ASX: XJO) over the same period.

The Flight Centre share price is lower in early morning trade today though, down 4.79% to $19.46.

What’s in store for the Flight Centre share price in April?

Analyst sentiment is mixed on Flight Centre. For instance, JP Morgan is bearish on the stock and rates it a sell at a $15 per share valuation. Its analysts say that lines of revenue tied to leisure and international travel are likely to be worst hit in Australia and New Zealand.

The broker also says that because Flight Centre’s income is so tied up with these markets – 50% of 1H20 group total transaction value (TTV) to be exact – ongoing restrictions will continue to be a thorn in the company’s side.

Meanwhile, analysts at Goldman Sachs take the opposite side of the coin. They’re bullish on the Flight Centre share price moving forward.

Curiously, it recently mentioned that travel “appears to be relatively protected” amid ongoing COVID-19 restrictions. Primarily, it says this is due to pent-up demand, based on projections for Flight Centre’s Webbeds division.

Goldman mentioned that its travel expectations for Australia are for “consumption to remain robust at circa 6.7% compound annual growth rate (CAGR) over FY22-24 on a nominal basis”. It notes that leisure lines should see the highest run rate.

What’s the consensus on Flight Centre?

More than 57% of brokers covering Flight Centre have it as a hold right now. Just 14% recommend a buy, according to Bloomberg data. There are also four sell ratings (28% of coverage).

The consensus price target on Flight Centre is $18.97 per share. This suggests a small amount of downside potential using the ‘wisdom of the crowd’.

 

The post The Flight Centre share price is diving 5% today. What’s next in April? appeared first on The Motley Fool Australia.

More reading

• ASX travel shares have been flying higher over the past month. Here’s why
• Why the Flight Centre share price travelled 12% higher in March
• Why this broker thinks the Webjet share price can fly 26% higher
• Here’s why the Flight Centre share price is taking off today
• These are the 10 most shorted ASX shares

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Goldman Sachs. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It was a rather uninspiring quarter for the All Ordinaries Index (ASX: XAO) during the first three months of the year. For those holding ASX tech shares, the stretch of time was particularly disappointing.

The invasion of Ukraine by Russia, paired with increased expectations of higher interest rates, led to a dismal 0.1% return during the period for the All Ords. Meanwhile, the information technology sector suffered a near 14% blow.

Nonetheless, there were some tech names that were able to expunge the negativity. So, let’s peer into the top five ASX tech shares in the All Ords of the last quarter.

Which 5 ASX All Ords tech shares stayed positive?

Data#3 Limited (ASX: DTL)

With it being such a challenging month for tech shares across the board, it didn’t take much to make the top five tech shares in the All Ords this time around. That being said, IT solutions provider Data#3 scraped in with a flimsy 0.34% gain during the quarter.

The company’s share price was saved from a lacklustre quarter in February when it released its first-half results for FY22. A 16% bump in revenue to $999.3 million and a 32% increase in net profit after tax (NPAT) gave investors renewed hope.

Rubicon Water Ltd (ASX: RWL)

A new entrant to the ASX All Ords tech share club, Rubicon Water managed to give shareholders some sunshine. The water technology solutions company bounced off its February low of $1.14 to finish the quarter 1.4% higher at $1.50.

At a quick glance, there were two notable items for the $250 million company between January and March. Firstly, Rubicon found itself being added to the ASX All Ords after debuting on the market in August last year. Secondly, the company released its FY22 first-half results. However, most figures represented a decline from the previous corresponding period.

Hansen Technologies Limited (ASX: HSN)

Making the podium as one of the best ASX All Ord tech shares during the quarter is Hansen Technologies. This billing solutions provider crept 7.3% higher to $5.74 per share while much of the tech category suffered.

It seems shareholders’ optimism was fortified by the company’s solid first-half results. A 13% lift in underlying NPAT and a retained FY2022 guidance will do that. Additionally, Hansen announced it signed a master agreement with Fortune 100 Energy giant Exelon Corporation on 15 March.

Computershare Limited (ASX: CPU)

Stock transfer company Computershare gave its investors something to celebrate in the last quarter. With a share price gain of 23.5% over the three-month period, the ASX All Ords tech share makes the leaderboard.

Overall, sentiment continued to improve for the Aussie company following its first-half results in February. Positively, management revenue increased 4.6% to US$1.2 billion. However, a 2% to 9% improvement in full-year guidance might have been the real star of the show.

BrainChip Holdings Ltd (ASX: BRN)

Finally, the MVP of ASX All Ords tech shares at the end of the quarter is none other than BrainChip Holdings. Despite falling from a new all-time high set in January of $1.76, the artificial intelligence chip developer posted a quarterly gain of 41.9%.

It was a fast-paced period for BrainChip, notching up an extra couple of patents and gaining Depository Trust Company approval. However, the company’s widening losses of $19.5 million for FY21 took some of the gusto out of its sails.

The post Let’s get technical! 5 best All Ords tech shares of the quarter revealed appeared first on The Motley Fool Australia.

More reading

• These were the best and worst performing ASX sectors in March
• These were the best performing ASX 200 shares in March
• This ASX 200 tech share has inked 3 all-time highs this week
• 3 ASX All Ordinaries shares smashing 52-week highs on Wednesday
• 3 ASX 200 shares smashing multi-year highs on Tuesday

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. owns and has recommended Hansen Technologies. 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 Bruce Jackson.

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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 

The cryptocurrency market had a bad start to the day Wednesday and values dropped across the board. A broad sell-off caught almost every cryptocurrency and volatility continues to be normal for the industry. 

As of 12:05 p.m. ET, the value of Solana (CRYPTO: SOL) was down 10.5% over the last 24 hours, Polkadot (CRYPTO: DOT) had fallen 8.9%, and Cardano (CRYPTO: ADA) had fallen 7.6%. 

So what 

The stock market is down sharply today and growth stocks are tumbling as well. Cryptocurrencies have been correlated with growth stocks for most of the last year and so when there’s a big sell-off it’s not surprising to see cryptocurrencies drop. 

One of the reasons the stock market is down is because interest rates are rising. In the U.S., the 10-year Treasury rate is up 5 basis points today to 2.59% and rates in developing countries are up even more. Brazil’s 10-year rate was up 18 basis points to 11.54% and Mexico was up 6 basis points to 8.49%. Cryptocurrencies are traded globally, so the increases around the world will cause investors to flee to “safer” assets. 

There’s also news that the Securities and Exchange Commission (SEC) has proposed expanding its definition of an exchange and may require more traders and businesses to register with the agency. The industry has been in regulatory limbo for years and at times there are signs regulations will be light and at other times it seems like burdensome regulations are coming. This news would fall in the latter camp and for now it’s causing cryptocurrencies to lose value overall. I wouldn’t be surprised to see regulation be a cause of volatility throughout the year.

Now what 

There are a lot of macro factors driving cryptocurrencies today but fundamentally I don’t see any major changes to the long-term investment thesis. The disruptive nature of crypto and blockchains still exists and money is flowing into the industry. 

What also hasn’t changed is that cryptocurrencies remain extremely volatile, especially on the interest rate and economic news. With rates on the rise and the economy uncertain for the next year it’s understandable that there’s a pullback in valuations. 

What I will point out about each of these cryptocurrencies is that they’re utility cryptocurrencies that enable developers to build functionality in decentralized finance, non-fungible tokens, and other markets. Long-term, this should be the best place for investors and as development grows the value of cryptocurrencies should rise as well. 

For now, uncertainty has taken hold of the market and that’s what’s causing today’s pullback. But it’s nothing to be concerned about long-term because the crypto industry is maturing and becoming more valuable everyday. 

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

The post Why Solana, Polkadot, and Cardano are down big today appeared first on The Motley Fool Australia.

More reading

• Why Solana jumped again today
• Why Solana Stock jumped 10% today
• Why this lesser-known crypto left Bitcoin in the dust this week
• Why Ethereum, Solana, and Dogecoin are surging higher today
• 3 rising cryptos that are up more than 10% over the past week

Travis Hoium owns Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Solana. 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 Bruce Jackson. 

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

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Last month was a rough one for most ASX buy now, pay later (BNPL) shares.

While the broader market ended the month in the green – the All Ordinaries Index (ASX: XAO) and S&P/ASX 200 Index(ASX: XJO) each gained 6.3% in March – nearly all ASX-listed BNPL stocks slipped lower.

In fact, the market’s favourite pureplay BNPL stock, Zip Co Ltd (ASX: Z1P), recorded the biggest tumble of the month.

So, what dragged on some of the sector’s biggest players in March? Let’s take a look.

What drove ASX BNPL shares lower in March?

While ASX BNPL shares might have been hit with talk of inflation and interest rate rises, there were plenty of concrete happenings that weighed many down last month.

Firstly, shares in Zip and Sezzle Inc (ASX: SZL) both entered March fresh from the freezer after the former made a takeover bid for the latter.

The all-scrip deal – quickly accepted by Sezzle’s board – will see investors receiving 0.98 shares in Zip for each Sezzle stock they own.

The Zip share price tumbled 6% on 1 March, while that of Sezzle gained almost 10%.

Zip also underwent a $148.7 million institutional placement to strengthen its balance sheet last month. Finally, it opened a share purchase plan that could raise $50 million.

Additionally, Sezzle made more headlines in March when it announced it would dump 20% of its workforce to save around US$10 million annually.

Over the course of last month, the Zip share price tumbled 32.5% while that of Sezzle fell 24.1%.

Block Inc (ASX: SQ2) was one of the only ASX BNPL shares to record a gain last month. It is, of course, the owner of former market favourite, Afterpay.

The Block share price gained 19.3% in March despite no news being released by the company. However, it was removed from the S&P/ASX 20 Index (ASX: XTL).

Speaking of index movements, shares in Latitude Group Holdings Ltd (ASX: LFS) entered the All Ords last month. Meanwhile, those of Splitit Ltd (ASX: SPT) were booted from the benchmark index.

Novatti Group Ltd (ASX: NOV)’s stock also went through an index shakeup – it was dumped from the S&P/ASX All Technology Index (ASX: XTX).

The share prices of Latitude, Novatti, and Splitit fell 5.7%, 4.1%, and 11.1% respectively last month.

Finally, ASX BNPL shares Humm Group Ltd (ASX: HUM) and IOUPay ltd (ASX: IOU) also slipped lower last month. They fell 2.2% and 5.5% respectively.

The post March was a lousy month for ASX BNPL shares. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why Andromeda Metals, Block, Paladin Energy, and Zip shares are dropping
• Zip share price sinks following share purchase plan results
• ASX 200 (ASX:XJO) midday update: Block and Zip sink, Paladin Energy raises $200m
• ASX 200 (ASX:XJO) midday update: IGO dealt blow, Block’s data breach, Xero jumps
• Why are ASX tech shares having such a stellar day?

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. owns and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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

The price of several of the most popular cryptocurrencies fell today as investors evaluated moves by the Federal Reserve, which is desperately trying to rein in surging inflation.

The price of the world’s largest cryptocurrency, Bitcoin (CRYPTO: BTC), has fallen roughly 3.5% over 24 hours as of 10:46 a.m. EST. Meanwhile, the price of the world’s second-largest cryptocurrency, Ethereum (CRYPTO: ETH), has fallen 5.4%, Dogecoin (CRYPTO: DOGE) is down 6.8%, and Shiba Inu (CRYPTO: SHIB) is down roughly 6.2%. 

So what

Bond yields on U.S. Treasury bills continued to tick up this morning as the market awaits minutes from the Federal Reserve’s March meeting, where the Fed for the first time since 2018 increased its benchmark overnight lending rate, the federal funds rate. Those minutes are due out at 2 p.m. today. The market is currently expecting the Fed to raise its benchmark rate at each of its next six meetings this year.

In the Fed’s minutes, investors, analysts, and investors will also be looking for hints at how aggressively the Fed plans to shrink its balance sheet, which has ballooned to close to $9 trillion. 

Yesterday, the market sold off after Fed governor Lael Brainard said publicly that the Fed needs to move fast on balance sheet reduction, which would effectively remove liquidity from markets. The statements came as a surprise because Brainard normally favors a low federal funds rate and loose Fed policy.

“The [Federal Open Market Committee] will continue tightening monetary policy methodically through a series of interest rate increases and by starting to reduce the balance sheet at a rapid pace as soon as our May meeting,” said Brainard.

She added, “Given that the recovery has been considerably stronger and faster than in the previous cycle, I expect the balance sheet to shrink considerably more rapidly than in the previous recovery, with significantly larger caps and a much shorter period to phase in the maximum caps compared with 2017-19.”

The broader crypto market had been rallying last week, and many see Bitcoin as a hedge against inflation, but since last October cryptocurrencies have not fared well amid a hawkish Fed. This may in part be because surging inflation, a higher cost of debt, and removing liquidity from the market simply leave investors less money for highly speculative investments like cryptocurrencies. 

Now what

Cryptocurrencies are all quite volatile, as evidenced in recent years and weeks. While I don’t know if Bitcoin is truly a hedge against inflation, I generally like Bitcoin and Ethereum in the long term. Bitcoin is the pioneer of cryptocurrencies, which continue to get more and more ingrained into the financial system every day.

Ethereum is essentially the pioneer for smart contract capabilities and decentralized applications. Furthermore, the network has been in the midst of a massive set of upgrades over the last two years, which are supposed to make the network more scalable and secure. The official transition to the new network is scheduled for this year, an event that analysts say could lead to a rally for Ethereum. 

I’ve never really been a fan of Dogecoin or Shiba Inu because they don’t seem to have any kind of unique competitive advantage among the thousands of cryptocurrencies in existence. However, there is no denying the innate interest in these two cryptocurrencies, so they tend to move up and down with the broader crypto markets. 

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

The post Why Bitcoin, Ethereum, Dogecoin, and Shiba Inu are down today appeared first on The Motley Fool Australia.

More reading

• Why this crypto is the most resilient to inflation: experts
• Can the Bitcoin price really top US$500,000?
• The Ethereum price just ended a stellar month. Expert panel predicts what’s next
• Why the price of Dogecoin is rising today
• What’s the outlook for the Bitcoin price in April?

Bram Berkowitz owns Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

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

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The first few months of 2022 have been volatile for the S&P/ASX 200 Index (ASX: XJO). But what is the outlook for the Bank of Queensland Limited (ASX: BOQ) share price?

Recent history has been a strange period for BOQ shares. The past month shows an 11% rise for the challenger bank. However, it’s only up by 2% since the start of 2022. Looking further back, the BOQ share price has fallen 13% in the past six months.

At the time of writing, it is down 0.35% in early trade today to $8.44.

What next for the BOQ share price?

It’s impossible to know what’s going to happen in any given week, month, or even year for an investment. Just look at how COVID-19 turned the world upside down over the past two years.

However, two brokers recently downgraded their ratings on the bank. Ord Minnett downgraded its rating to a hold, and Macquarie downgraded its rating to neutral. The Ord Minnett price target is $8.90, and the Macquarie price target is $9.

Those two brokers suggested that BOQ’s net interest margin (NIM) could come under pressure. Competition continues to be strong in the lending space and is expected to remain like that. Macquarie doesn’t think the upcoming result will impress the market due to the NIM challenges.

However, one positive note from a broker about BOQ this month came from Morgan Stanley. The broker believes the bank can achieve the ‘positive jaws’ that it has been aiming for. It has a price target of $10.20 on the business.

BOQ is now a larger business after the acquisition of ME Bank.

The bank recently said that it was revising its accounting policy in relation to costs relating to software-as-a-service arrangements. The change led to a $25 million decrease in retained earnings as of 1 September 2021.

BOQ share price valuation and dividend expectations

Based on Morgan Stanley’s numbers, the Bank of Queensland share price is valued at 12x FY22’s estimated earnings with a potential FY22 grossed-up dividend yield of 7.8%.

Looking further ahead to FY23, Morgan Stanley’s estimate put the BOQ share price at 11x FY23’s projected earnings. The FY23 grossed-up dividend yield is expected to be 8.6%.

Interestingly, Macquarie actually thinks BOQ will generate more profit in FY22 than what Morgan Stanley has pencilled in. Macquarie’s estimates put the BOQ share price at under 12x FY22’s estimated earnings. The projected FY22 grossed-up dividend yield could be 7.6%.

Macquarie has also estimated some numbers for FY23 for the bank. The BOQ share price is valued at 11x FY23’s estimated earnings with a possible grossed-up dividend yield of 8.1%.

New chief financial officer

BOQ announced this morning that it has appointed Racheal Kellaway as its new chief financial officer (CFO). She will succeed the current CFO on 1 July 2022.

The bank said this transition period would ensure a smooth handover of responsibilities.

Kellaway has been the deputy CFO for the past three years. BOQ said Kellaway has been instrumental in BOQ delivering sustainable, profitable growth. She will become the first female CFO in the bank’s 148-year history.

The bank said the appointment and transition period positions the bank to maintain momentum in executing its transformation plan, strengthening the balance sheet, and managing costs.

The post What’s the outlook for the Bank of Queensland share price in April? 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 Bruce Jackson.

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