Category: Stock Market

Markets are rangebound this week with the S&P/ASX 200 Index (ASX: XJO) up 156 basis points at 7,527 at the open of trade on Wednesday.

Whilst commodity sectors continue to book record gains in 2022, renewables have somewhat been left on the backburner (emissions free, of course).

Investing in green or renewables based companies has been somewhat of a love affair for investors ever since the theme popped onto the scene a few years ago now.

The theme of Environmental, Social and Governance (ESG) has now become an investment factor to which portfolio and asset managers weight their holdings towards (or not).

With the recent commodities supercycle, it’s no wonder to see some renewables focused shares make a sharp u-turn in 2022, as the market digests a number of macroeconomic factors.

Green is good, yes?

There’s a lot of debate out there, but one argument is that Australia could be a huge benefactor to the shift into renewables.

“We are probably the richest, the most regionally endowed nation in lithium, cobalt, rare earths, palladium, copper and nickel, all of which are somewhere between 200 and 1000 per cent under-supplied,” The Australian reports.

“If you join the dots…the energy transition will be good for us. While our balance sheet’s terrible, it’s better than anyone else in the world,” he added.

Elsewhere, Australia has made “significant strides” in its offshore wind industry in recent weeks, according to analysis from Herbert Smith Freehills LLP.

“On 4 March 2022, the Victorian Government announced Australia’s first offshore wind energy targets of 2GW of offshore wind energy production by 2032,” they wrote.

“According to the Paper, winds off Victoria’s coastline are among the best not only in Australia, but also on a global scale, with the potential for Gippsland and Portland regions to support 13GW of capacity using fixed platforms in shallow waters,” they added.

The Paper indicates a strong intention by the Victorian Government for Victoria to be the leader in the Australian offshore wind market, an industry that is developing rapidly internationally, and for which competition for investment is strong.

Meanwhile, shares in renewable energy companies were a mixed bag during the previous quarter, with several names expanding up to 96%, whilst others lagged substantially.

The post Own ASX renewable energy shares? Here’s why ‘the energy transition will be good for us’ appeared first on The Motley Fool Australia.

More reading

• Why the Flight Centre share price travelled 12% higher in March
• Sell your ASX shares in these sectors now: expert
• 2 buy-rated ASX 200 dividend shares analysts are recommending
• Here’s why the Vanguard Australian Shares Index ETF rose 7% in March
• The CSL dividend is being paid today. Here’s what you need to know

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. 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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If you’re looking for dividend shares to buy, then you may want to look at the two listed below that brokers are recommending.

Here’s what you need to know about these ASX 200 dividend shares:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share to look at is this mining giant. With commodity prices at high levels, the Big Australian looks well-placed to deliver bumper profits in the near term. Particularly given the quality and low costs of its operations across a range of commodities and geographies.

And although the BHP share price has been racing higher this year, the team at Macquarie don’t believe it is too late to invest. Its analysts currently have an outperform rating and $61.00 price target on BHP’s shares.

Macquarie is also forecasting some very generous dividends in the coming years. It expects fully franked dividends per share of ~$5.22 in FY 2022 and then ~$3.61 in FY 2023. Based on the current BHP share price of $51.95, this implies potential upside of 10% and 7%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX 200 dividend share for investors to look at is banking giant NAB. It could be a top option in the banking sector thanks to its strong position in business lending. This side of the sector is performing far better than retail banking and was a key driver in NAB’s 9.1% increase in cash earnings during the first quarter.

NAB has also been boosting its operations through acquisitions. This includes the recently completed acquisition of digital bank 86 400 and the proposed acquisition of Citigroup’s Australian consumer business.

The team at Bell Potter are positive on these deals and expect them to allow the bank to “achieve scale in digital and consumer banking offerings.”

Its analysts are bullish on NAB and currently have a buy rating and $34.50 price target on its shares. As for dividends, the broker has pencilled in fully franked dividends per share of 136.5 cents in FY 2022 and then 134.5 cents in FY 2023. Based on the current NAB share price of $32.18, this equates to yields of 4.25% and 4.2%, respectively.

The post 2 buy-rated ASX 200 dividend shares analysts are recommending appeared first on The Motley Fool Australia.

More reading

• Is the NAB share price fully valued in April?
• ASX 200 banks bounce bank in March. Here are the April forecasts from analysts
• 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. 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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The Vanguard Australian Shares Index ETF (ASX: VAS) went up by around 7% over March 2022.

This was an outperformance of other exchange-traded funds (ETFs) such as iShares S&P 500 ETF (ASX: IVV) which only rose by 3.3%.

The VAS ETF is one of the largest ETFs on the ASX. The fund size is currently around $10 billion, according to Vanguard. It has an annual management fee of 0.1% per annum.

Each ETF’s performance is decided by the underlying holdings, less the management fee. Vanguard Australian Shares Index ETF tracks the S&P/ASX 300 Index (ASX: XKO).

Therefore, it’s the biggest positions in the portfolio that can have the most significant influence on the direction of the ASX 300.

VAS ETF holdings

At the end of February 2022, these were the fund’s biggest positions:

BHP Group Ltd (ASX: BHP) was 11% of the portfolio.

Commonwealth Bank of Australia (ASX: CBA) was 7.4% of the portfolio.

CSL Limited (ASX: CSL) was 5.8% of the portfolio.

National Australia Bank Ltd (ASX: NAB) was 4.4% of the portfolio.

Westpac Banking Corp (ASX: WBC) was 3.7% of the portfolio.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) was 3.4% of the portfolio.

Macquarie Group Ltd (ASX: MQG) was 3% of the portfolio.

How did the top 3 perform?

The Vanguard Australian Shares Index ETF’s portfolio only has three positions with a weighting of more than 5% of the portfolio. All the 300 positions were part of the VAS ETF return of approximately 7% in March 2022, but the biggest three could have the most influence.

Over March, the BHP share price increased by almost 11% amid the Russian invasion of Ukraine, which saw both the iron ore price and the oil price increase. BHP produces both of those commodities.

The CBA share price rose by 13% over the month amid further talk and market commentary on inflation and the potential of interest rate rises. Some analysts believe that a rising interest rate environment will positively affect bank net interest margins (NIMs).

The CSL share price rose by 3% last month. That wasn’t as much as BHP and CBA but it was still a gain.

How has April started for the VAS ETF?

The Vanguard Australian Shares Index ETF is down 1.6% in the first few days of April 2022, but there is plenty more of the month left.

Interestingly, senior portfolio manager and principal of Auscap Asset Management Tim Carleton said to Livewire:

There is a massive push to diversify out of Australia, but I think you want to be as overweight Australia as you can possibly stomach for the rest of our lifetimes.

That’s certainly been the right way over the last 100 years, with the Australian market delivering the best returns of any developed market, at around 12% a year, and I see no reason for that to change and if anything, we’re in a better position now than we have been.

Mr Carleton referred to three advantages that Australia supposedly has: its natural resources, its “relatively strong population growth over the medium term”, and its proximity to the high growth and rapidly-developing Asian economies.

The post Here’s why the Vanguard Australian Shares Index ETF rose 7% in March appeared first on The Motley Fool Australia.

More reading

• Vanguard Australian Shares ETF (ASX:VAS) plummets! What’s going on?
• Hoping to bag the next Vanguard Australian Shares Index ETF (ASX:VAS) dividend? Read this
• 3 top ETFs for ASX investors in April
• What kind of dividends does the Vanguard Australian Shares ETF (ASX:VAS) pay?
• VAS is the ASX’s most popular ETF. But where are the tech shares?

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. owns and has recommended CSL Ltd. The Motley Fool Australia has recommended Macquarie Group Limited, Westpac Banking Corporation, and iShares Trust – iShares Core S&P 500 ETF. 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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CSL Limited (ASX: CSL) shareholders will have something to cheer about today as the company pays out its latest dividend.

The biotherapeutics giant is set to reward eligible investors with an unfranked interim dividend of US$1.04 (AU$1.42) per share.

At Tuesday’s market close, the CSL share price finished 0.31% higher at $268.53.

For context, the S&P/ASX 200 Index (ASX: XJO) also climbed yesterday with a 0.19% gain to 7,527.90 points.

Let’s look at all the details regarding the company’s dividend.

CSL pays out interim dividend

CSL reported mixed numbers across key metrics in its results for the first half of the 2022 financial year.

In summary, total revenue rose 5.3% to US$6,041 million over the prior corresponding period. This was driven by an 18% lift in Seqirus revenue to US$1,592 million, but CSL Behring revenue slightly declined by 2% to US$4,216 million.

On the bottom line, CSL recorded a 2.8% fall in net profit after tax (NPAT) to US$1,760 million. 

Management noted that the result was in line with expectations caused by a challenging environment from the global COVID pandemic.

Nonetheless, the board elected to maintain its interim dividend on the previous year’s first half of US$1.04 per share.

Based on the current share price, CSL is trailing on a forecast dividend yield of 0.59%.

CSL share price snapshot

While the CSL share price has notched up in the past month by 4%, it is still down 7% year to date.

Looking slightly further back, the company’s shares reached a 52-week high of $319.78 in late November before its steep dive.

CSL has a price-to-earnings (P/E) ratio of 52.86 and commands a market capitalisation of roughly $129.35 billion.

The post The CSL dividend is being paid today. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• This ASX share changed me FOREVER: fund manager
• Here’s what $10,000 invested in CSL shares 5 years ago looks like now
• How did the CSL share price perform in March?
• Why is the CSL share price climbing on Wednesday?
• What’s the outlook for the CSL share price in April?

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. owns and has recommended CSL 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 Bruce Jackson.

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Santos Ltd (ASX: STO) shares have been among the top performers on the S&P/ASX 200 Index (ASX: XJO) this year.

Since the closing bell on 31 December, Santos shares are up 28%. That compares to a gain of 1% posted by the S&P/ASX 200 Index (ASX: XJO) over that same period.

And with Brent crude oil prices up another 1.2% overnight Monday to US$109 per barrel, the Santos share price closed up 2.27% on Tuesday.

So why may now be a good time to sell?

Why this fund manager is selling

According to Catapult Wealth’s Timothy Haselum, now is a good time to exit Santos shares “on strength”.

In a note published in the Advertiser over the weekend, Haselum said:

The Ukraine conflict has seen energy prices skyrocket on the speculation of oil and gas sanctions in a time where new energy project approvals are out of vogue with climate conscious countries.

Indeed, skyrocketing energy prices have seen the S&P/ASX 200 Energy Index (ASX: XEJ) leap 30% higher year-to-date, trouncing the ASX 200 benchmark.

With oil and gas trading near multi-year highs, Haselum said: “Energy companies like STO look great at the moment, with net cash positions and strong balance sheets, and we have seen incredibly strong rallies from their lows.”

So why sell Santos shares today?

“You have to think ahead here,” Haselum said. “We know that green/renewables are the future, so what’s the long-term plan? The long-term trend is down, and as green energy gains momentum, the opportunities to exit on strength will get rarer.”

How have Santos shares been tracking longer term?

Santos shares remain down 9% from their five-year highs, posted on 10 January 2020, when Brent crude was worth a mere US$65 per barrel.

The share price cratered in the early months of the global pandemic as energy demand evaporated.

Although the ASX 200 energy giant has rebounded strongly since its March 2020 lows, shares have yet to fully recover despite surging oil and gas prices.

The post Why now is the time to sell Santos shares: fund manager appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here’s what drove the Santos share price 6% higher in March
• 3 ASX shares to buy in the hottest sector right now: experts
• What sent ASX mining shares flaming higher in March?
• 5 things to watch on the ASX 200 on Tuesday

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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If you’re looking for ASX shares to buy, then you may want to add the two shares listed below to your watch list.

Both of these shares are rated as buys by Goldman Sachs with huge upside potential over the next 12 months.

Here’s what you need to know about these growing ASX shares:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX share to look at is Hipages. It is a leading online platform and software as a service (SaaS) provider that connects consumers with trusted tradies.

The Hipages platform helps tradies grow their business by providing job leads from homeowners and organisations looking for qualified professionals, while also enabling them to optimise their business through its SaaS product.

Goldman Sachs is a very big fan of Hipages. It believes that “HPG presents a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia.”

The broker currently has a buy rating and $3.60 price target on its shares. So, with the Hipages share price currently fetching $1.96, this suggests potential upside of 84% for investors over the next 12 months.

Nitro Software Ltd (ASX: NTO)

Another ASX share that is highly rated is Nitro Software. It is the document productivity software company behind the Nitro Productivity Suite that is aiming to drive digital transformation in organisations around the world.

Goldman Sachs is very positive on Nitro’s long term growth potential. It said: “The market [is] currently pricing in long-term growth and margin assumptions that understate Nitro’s potential, in our view. We are positive on Nitro’s structural growth opportunity, reflected in our DCF scenario analysis implying an attractive asymmetric risk/reward skew.”

It currently has a buy rating and $2.60 price target on its shares. Based on the current Nitro share price, this implies potential upside of 77% for investors.

The post Broker names 2 exciting ASX shares to buy with 80% upside potential appeared first on The Motley Fool Australia.

More reading

• Here are 3 growth shares analysts are tipping to rocket higher
• Why the Nitro (ASX:NTO) share price is jumping 10%
• Why is the Nitro Software (ASX:NTO) share price rocketing 9% higher?
• 2 ASX tech shares to buy now for DIRT CHEAP: experts
• Analysts name 2 exciting small cap ASX shares to buy with huge upside

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 Hipages Group Holdings Ltd. The Motley Fool Australia owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Nitro Software 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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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Atlas Funds Management chief investment officer Hugh Dive humbly names his biggest mistake in investing and how it changed him forever.

The ASX share for a comfortable night’s sleep

The Motley Fool: If the market closed tomorrow for four years, which stock would you want to hold?

Hugh Dive: We don’t own it in the property fund, but we own it in the equity fund: CSL Limited (ASX: CSL). 

Absolutely, totally inelastic demand for their products. No real alternatives. Very hard to pirate… they don’t face the issues that, say, Cochlear Limited (ASX: COH) or ResMed CDI (ASX: RMD) face, with China trying to pirate your devices. 

It’s based on blood, clean blood — high tech but lowest cost producer in the industry. Biggest collection of centres around the United States, and they have a product that demand’s totally inelastic. Their customers need to take that product on a daily basis just to live. 

It’s hard to be pirated, hard to run out of business when you’re selling a life-saving product, with a high-quality management that has had an exceptional acquisition record over the years. 

I’d be happy, if the market was shut for four years, to turn the screens off. I would be very certain that CSL would be around in four years’ time. Doesn’t work with every company. 

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

HD: Every single fund manager would have one to five of these, and any fund manager who’s been in the market for more than 10 years would be lying to you if they didn’t have a couple where they were just, even now, years later you think about, sort of head in hands, going, “What was I thinking?” 

For me, it’s a company that hasn’t been around for a while, but caused me an enormous amount of pain, and it’s also changed the way I’ve invested money [since]. 

The company in question was Gunns Limited (ASX: GNS). They owned a range of land, about 250,000 hectares of timberland, mainly in Tasmania. 

I bought this based on companies that had NTA [net tangible assets] — potential assets per share that were much greater than their market value. So effectively using that strategy of buying a dollar in cash for 80 cents. And this particular strategy is very seductive for value investors, because it leads you to try to buy some of these asset-rich companies. 

So I invest in Gunns, attracted by this sort of big land bank, owning $500 million dollars worth of land and trees. And that was at quite a premium to the prevailing share price. 

Ultimately… when we had the combination of the GFC in 2008 and ’09 and a rising Aussie dollar, dramatically reduced wood sales to China, and the company had insufficient cash flows to service their debt. 

So Gunns became this asset-rich, cash flow poor company that ultimately couldn’t control its destiny. They couldn’t sell their assets off quickly enough to pay their current liabilities in an extremely stressed market in 2008 and subsequently went into administration. 

I only think about that every three or four days now, but it changed the way [I invest]. It made me focus much more on the cash flow statement and much less on a company’s profit and loss and balance sheet statements. 

Because you need that — cash flow is the lifeblood of a company. 

MF: When a company descends into administration, it’s going to zero for the investors, isn’t it? 

HD: Yeah. We were sold out at 70 cents, so it was a big loss. It didn’t hold its debt. It was a very poor outcome. When a company goes into administration there, if you don’t sell out just before the debt, often a company will go into a share trading freeze. 

Sometimes you end up with a couple of cents in a dollar, but as an equity holder, you’re the last in the queue. The bond holders, the hybrid holders, their hands are out first, and then you’re left… Rarely [do] you get anything. So you’re left holding worthless pieces of paper in that situation. 

MF: Creditors always come above shareholders, don’t they? 

HD: Yeah. There’s a long line of hands with their hands out. That’s the risk you take as an equity investor, and that’s why you get compensated when things go right, above the bond holders, who often get their interest coupon and their money back.

The post This ASX share changed me FOREVER: fund manager appeared first on The Motley Fool Australia.

More reading

• Here’s what $10,000 invested in CSL shares 5 years ago looks like now
• How did the CSL share price perform in March?
• Why is the CSL share price climbing on Wednesday?
• What’s the outlook for the CSL share price in April?
• Expert reveals 3 ASX shares to watch following tonight’s federal budget

Motley Fool contributor Tony Yoo owns CSL Ltd., Cochlear Ltd., and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. and Cochlear Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was a positive performer again. The benchmark index rose 0.2% to 7,527.9 points.

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

ASX 200 expected to sink

The Australian share market looks set to sink on Wednesday following a poor night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.7% lower this morning. On Wall Street, the Dow Jones fell 0.8%, the S&P 500 dropped 1.25%, and the Nasdaq tumbled 2.3%. This was driven by concerns that US Fed hikes will slow the economy.

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor day after oil prices dropped. According to Bloomberg, the WTI crude oil price is down 2.6 % to US$100.58 a barrel and the Brent crude oil price has fallen 2.1% to US$105.25 a barrel. This follows concerns that COVID lockdowns in China could impact demand.

Wesfarmers sells down Coles stake

The Coles Group Ltd (ASX: COL) share price will be on watch today amid reports that Wesfarmers Ltd (ASX: WES) has sold a $500 million stake in the supermarket giant. According to the AFR, after the market close, Wesfarmers sold 28.2 million shares via a block trade at $17.75 per share. This represents a 1.8% discount to the Coles close price.

Gold price drops

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price fell. According to CNBC, the spot gold price is down 0.45% to US$1,925.6 an ounce. Rising U.S. Treasury yields and expectations for more aggressive monetary policy tightening by the US Federal Reserve offset put pressure on demand for safe haven assets.

Allkem remains a buy

The Allkem Ltd (ASX: AKE) share price may have been charging higher this year but one leading broker still sees plenty of upside ahead. According to a note out of Bell Potter, its analysts have retained their buy rating and $18.05 price target on the lithium miner’s shares. The broker said: “AKE is in a strong position to both generate significant free cash flow in the current market strength and to benefit from what we expect to be supply deficits in lithium markets over the medium to long term.”

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

More reading

• What is the highest the ASX 200 has ever been?
• Why has the Northern Star (ASX:NST) share price gained 23% in 2 months?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• High voltage! Origin (ASX:ORG) share price up 3% to new 52-week high
• Here’s why ASX 200 shares still have ‘a pretty good growth outlook’

Motley Fool contributor James Mickleboro owns Orocobre 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 owns 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 Bruce Jackson.

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The Panoramic Resources Ltd (ASX: PAN) share price shot up on Tuesday on the back of a positive drilling update.

The ASX nickel share finished the day at 36.5 cents, a 10.61% gain. In contrast, the S&P/ASX 200 Index (ASX: XJO) climbed 0.19% today.

Let’s take a look at why this ASX nickel share had such a stellar day.

‘Standout’ drill results

Panoramic reported promising drill results from the company’s Savannah Nickel Project in Western Australia.

The company said the “standout” drill result was drill hole KUD1891. This returned an upper and lower mineralisation lens intersection of 40.55m at 1.96% Nickel, 0.75% copper, and 0.15% cobalt.

Drill hole KUD1871 returned upper mineralisation lens intersection of 16 metres at 2.08% nickel, 0.8% copper, and 0.16% cobalt. Meanwhile, drill hole 1874 delivered an intersection of 1.93% nickel, 1.01% copper, and 0.14% cobalt.

The company said these intersections were both thicker and higher grade than predicted.

Managing director and CEO Victor Rajasooriar said the results provide strong confidence in the company’s life of the mine plan and the future of the Savannah Nickel Operation. He added:

The continued success of drilling in the new Upper Splay in the Eastern Zone of Savannah North may also add to our mining inventory which is also very pleasing.

We look forward to announcing more drill results from both areas in due course.

Share price snapshot

The Panoramic share price has soared 170% in the past year while it is up 35% year to date.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 10% in the past year.

Panoramic has a market capitalisation of about $748.6 million based on its current share price

The post Why did this ASX nickel share surge 11% today? appeared first on The Motley Fool Australia.

More reading

• Four ASX nickel shares are in the green today. Here’s why
• The price of nickel is soaring and these ASX mining shares are cashing in

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 National Australia Bank Ltd. (ASX: NAB) share price has risen by 9% in 2022 to date.

It has gone through volatility over the last few months, like many businesses. But NAB shares show ongoing growth over longer time periods.

In the past six months, the NAB share price has gone up by 16%. In the last 12 months, the NAB share price has risen by around 22%. 

But after outperforming the S&P/ASX 200 Index (ASX: XJO) over each of the above time periods, is the big four ASX bank now fully valued or is it still an opportunity?

Broker opinions on the NAB share price

Lots of analysts now think that the bank offers very little capital growth upside. A few have price targets that are lower than where NAB is today.

For example, both Morgans and Citi have a price target of $30.50. That implies a decline of around 5% over the next year if the brokers are right. However, they have ratings of a hold and neutral on the big four ASX bank.

Morgan Stanley is another broker that doesn’t think the NAB share price will do much over the next 12 months. It has a price target of $31.50 on the bank. That suggests a possible decline of around 2% over the next 12 months.

Credit Suisse is a broker which has a slightly positive outlook for the bank, which is also neutral, with a price target of $32.40. This broker thinks that banks are going to benefit once the Reserve Bank of Australia (RBA) starts increasing the interest rate. The broker thinks the net interest margin (NIM) will increase over the next year.

One of the most positive brokers is Ord Minnett. It has a NAB share price target of $33.50. That implies a potential rise of 4.3% in the next year.

Share buyback 

One of the things that brokers have noticed is the bank’s recent share buyback.

NAB recently completed a $2.5 billion on-market buyback and announced a further on-market buyback of up to $2.5 billion.

This will allow the bank to continue managing its common equity tier 1 (CET1) capital ratio towards its target range of between 10.75% to 11.25% over time.

The NAB CEO Ross McEwan said:

Our capital management strategy reflects the importance of maintaining a strong balance sheet through the cycle while allowing us to continue to support growth and deliver improved shareholder returns.

The further $2.5 billion on-market buy-back announced today supports our ambition to reduce share count and increased sustainable ROE (return on equity) benefits to our shareholders.

NAB share price snapshot

After the 0.3% increase on Tuesday, NAB has a market capitalisation of $103 billion according to the ASX.

The post Is the NAB share price fully valued 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 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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