Category: Stock Market

Is travel finally back?

Who knows. But we now have the best chance we’ve had in more than two years.

The world is a different place from early 2020 when the COVID-19 pandemic first started.

The medical experts now know a lot more about how to treat the deadly disease. The majority of Australians are vaccinated. Governments are no longer resorting to lockdowns, regardless of daily infection numbers.

Even unrestricted international travel is back on the cards, according to Montgomery Small Companies Fund portfolio manager Dominic Rose.

“Both the UK and the European Union have scrapped COVID-19 testing requirements for fully vaccinated travellers,” he said on the Montgomery blog.

“While recent commentary from numerous US airlines suggests that North American leisure activity is back at or near pre-pandemic levels with corporate improving to 25% to 30% behind.”

With this in mind, Rose’s team has picked 4 ASX travel shares they love the look of right now:

Acquisition spree takes earnings higher than pre-COVID

Corporate Travel Management Ltd (ASX: CTD) took advantage of lockdown disruptions by raising fresh equity to acquire other businesses.

This ASX share bought out US corporate travel agent Travel & Transport, and the Helloworld Corporate arm of fellow ASX-listed player Helloworld Travel Ltd (ASX: HLO).

“While competitors were scrambling to cut operating costs during the depths of the downturn, mainly headcount which negatively impacts customer service levels and therefore client retention, Corporate Travel Management was strategically expanding through opportunistic M&A,” said Rose.

“The company is now estimated to be the fourth largest global corporate travel manager worldwide with fully recovered EBITDA [earnings before interest, taxes, depreciation. and amortisation] of around $265 million, some 77% higher than pre-COVID levels.”

While Rose acknowledged that post-pandemic work habits may be more home-based, he feels Corporate Travel Management is well-placed to outperform the competition.

“Being predominantly a northern hemisphere business, the trans-Atlantic route remains a key catalyst for the company, along with workers returning to offices — at least partially.”

Corporate Travel Management shares have actually risen more than 4% for the year so far.

This airline is 3.5 times bigger now than before COVID

Alliance Aviation Services Ltd (ASX: AQZ), remarkably, was a rare company in the travel sector that profited from the pandemic.

“Alliance Aviation Services seized the moment when global airline fleets were grounded and airlines offloaded assets at distressed prices to stay liquid,” said Rose.

“In June 2020, the company raised $122 million in equity to purchase a fleet of 32 Embraer E190 aircraft from various vendors, paying just cents in the dollar.”

Then it just waited for other airlines to lease those planes. Indeed, Qantas Airways Limited (ASX: QAN) has taken options on 18 of them already.

The new fleet has increased Alliance’s capacity by a whopping 3.5 times compared to the pre-COVID era.

“In addition to being a much larger business once the expansion assets are fully deployed, we view the company as more diversified with expanded leisure exposure (complementing the FIFO business),” Rose said.

“And we also expect improved unit economics given the higher asset utilisation of the new E190s compared to the older Fokker aircraft.”

The Alliance share price has dipped 10% this year.

Tale of two travel agents 

Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) might have different strengths in physical stores and online sales respectively, but both these ASX travel shares raised huge money during the pandemic just to “keep the lights on”.

“Flight Centre is arguably the most levered play to a rebound in travel activity,” said Rose.

“Management’s response to the initial demand shock was to stand down staff and raise equity capital at deeply discounted prices ($700 million equity raise in April 2020 plus a number of subsequent convertible bond issues) to strengthen the balance sheet and fund the significant working capital unwind (ticket refunds).”

Rose’s team sees a brighter post-COVID era for this ASX share though, as smaller competitors have died out or shrunk even further over the past two years.

“Despite having half the number of shop fronts, management still expects to retain 95% customer reach,” said Rose.

“As such, Flight Centre should retain its dominant market position in the Australian leisure travel market with potential to take further share from weakened competitors as conditions improve.”

Flight Centre shares have gained more than 6% so far in 2022, although they are still 19% down from their October high. 

Meanwhile, Webjet turned its focus to its wholesale WebBeds division during the pandemic.

“WebBeds is looking to take advantage of the changed competitive landscape and become the No. 1 travel wholesaler globally (currently No. 2),” said Rose.

“Additionally, Webjet, which commanded a 50% share of domestic online bookings pre-pandemic, is aiming to outperform the market recovery by 1.5x as the structural migration towards online accelerates and underpinned by superior technology.”

The Webjet share price has headed up almost 4% for the year, although it’s still almost 15% below its November peak.

The post Finally! 4 travel ASX shares ready to take off appeared first on The Motley Fool Australia.

More reading

• Do Flight Centre shares pay dividends?
• Despite the COVID crash, here’s what $10,000 invested in Webjet (ASX:WEB) shares 10 years ago would be worth now
• Flight Centre share price edges lower despite ‘important step’
• These are the 10 most shorted ASX shares
• Why is the Flight Centre share price soaring today?

Motley Fool contributor Tony Yoo owns Corporate Travel Management Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alliance Aviation Services Ltd. and Helloworld Limited. The Motley Fool Australia owns and has recommended Alliance Aviation Services Ltd. and Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. 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) had a great day and stormed higher. The benchmark index rose 0.7% to 7,464.3 points.

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

ASX 200 expected to rise

It looks set to be another good day for the Australian share market on Wednesday following a positive night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.45% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.8%, the S&P 500 is up 1.2%, and the Nasdaq is up a sizeable 1.9%.

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices dropped again. According to Bloomberg, the WTI crude oil price is down 1.5% to US$104.37 a barrel and the Brent crude oil price has fallen 1.9% to US$110.28 a barrel. Promising signals from Russia-Ukraine peace talks weighed on prices.

Federal Budget

Last night the Federal Government delivered its pre-election budget with a focus on two key themes: the cost of living and national security. Some ASX 200 shares that look set to benefit include JB Hi-Fi Limited (ASX: JBH) and Xero Limited (ASX: XRO) from a “go digital” incentive and toll road operator Transurban Group (ASX: TCL) from a 22 cents per litre fuel excise reduction for six months.

Gold price down again

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor day after the gold price continued to fall. According to CNBC, the spot gold price is down 1.1% to US$1,921.5 an ounce. This has been driven by Russia-Ukraine peace talks reducing safe haven asset demand.

Dividends being paid

It’s a very big day for dividend payments on Wednesday with a number of popular ASX 200 dividend shares rewarding their shareholders today. This includes energy company AGL Energy Limited (ASX: AGL), banking giant Commonwealth Bank of Australia (ASX: CBA), iron ore miner Fortescue Metals Group Limited (ASX: FMG), and conglomerate Wesfarmers Ltd (ASX: WES).

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

More reading

• Buy or sell? ASX experts rate the CBA share price for April
• Leading brokers name 3 ASX shares to sell today
• Global poster child? Why this fundie is bullish on the Santos share price
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Why Beach, Melbana, St Barbara, and Tietto shares are dropping

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 Xero. The Motley Fool Australia owns and has recommended Wesfarmers Limited and Xero. 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 interested in adding some S&P/ASX 200 Index (ASX: XJO) shares to your portfolio in April, then the three listed below could be worth considering.

These ASX 200 shares have been named as buys and tipped to generate strong returns for investors. Here’s what you need to know about them:

NextDC Ltd (ASX: NXT)

The first ASX 200 share to look at is NextDC. It is a leading data centre operator with a collection of world class centres across key capital city locations throughout Australia. The company is also aiming to grow its network with edge centres in regional areas and expand overseas. All in all, this appears to have positioned NextDC perfectly to capture the increasing demand for data centre capacity thanks to the structural shift to the cloud.

Citi is bullish on the company’s outlook. It has a buy rating and $14.55 price target on NextDC’s shares. This compares to the latest NextDC share price of $11.44.

SEEK Limited (ASX: SEK)

Another ASX 200 share to look at is this leading job listings company. It appears well-positioned for growth in the coming years thanks to its leadership position, pricing power, and exposure to Australia’s recovery from the pandemic.

The team at Morgan Stanley is positive on SEEK. Its analysts currently have an overweight rating and $36.00 price target on its shares. This compares to the most recent SEEK share price of $29.33.

TechnologyOne Ltd (ASX: TNE)

A final ASX 200 share to look at is enterprise software provider TechnologyOne. It is currently transitioning to become a software-as-a-service (SaaS) focused business and is delivering strong results. Pleasingly, management expects this to continue and is targeting annual recurring revenue (ARR) of over $500 million by FY 2026. This is almost double its current base ARR of $257.5 million.

The team at Bell Potter is a very positive on the company’s growth outlook. The broker has a buy rating and $15.00 price target on its shares at present. This compares to the latest TechnologyOne share price of $11.48.

The post Analysts name 3 ASX 200 shares that could generate strong returns appeared first on The Motley Fool Australia.

More reading

• Worried about how the federal budget might impact your ASX shares? Here’s what Goldman says
• 3 ASX shares primed to bounce back: expert
• Growth will be back! Expert picks 7 ASX shares to buy now
• 3 ASX shares I own myself that will rise again soon: expert
• Why this top broker tips 30% upside for the NextDC (ASX:NXT) share price

Motley Fool contributor James Mickleboro owns NEXTDC Limited and SEEK 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 recommended SEEK 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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Are you looking for some exchange traded funds (ETFs) to add to your portfolio next month? If you are, it could be worth taking a closer look at the three ETFs listed below.

Here’s what you need to know about these top ETFs:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first ETF to look at for April is the BetaShares Global Energy Companies ETF. It provides investors with access to a number of the largest energy companies outside Australia. BetaShares notes that these are larger, more geographically diversified, and more vertically integrated than their Australian peers. Among its holdings are energy giants including BP, Chevron, ExxonMobil, and Royal Dutch Shell.

iShares S&P 500 ETF (ASX: IVV)

Another ETF for investors to consider in April is the iShares S&P 500 ETF. This popular ETF gives investors access to the top 500 listed U.S. companies. BlackRock, which operates iShares, believes this ETF is a good way for investors to diversify internationally. The fund manager also notes that it offers long-term growth opportunities for a portfolio. Among the companies included in the fund are Amazon, Apple, Disney, Facebook, JP Morgan, Johnson & Johnson, Microsoft, Tesla, and Visa.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A final ETF for investors to look at for next month is the VanEck Vectors Morningstar Wide Moat ETF. This Warren Buffett inspired ETF gives investors access to a group of companies with sustainable competitive advantages or moats. The fund is currently invested across almost 50 attractively priced shares boasting these qualities. This includes the likes of Alphabet, Altria, Boeing, Coca Cola, Kellogg Co, Walt Disney, and even Warren Buffet’s own Berkshire Hathaway. Given how successful Buffett’s style of investing has been over multiple decades, this ETF could be a top option for long term focused investors.

The post 3 top ETFs for ASX investors in April appeared first on The Motley Fool Australia.

More reading

• Are these 2 top ETFs buys in April?
• Here are 4 popular ETFs for ASX investors to check out
• Are these 2 top ASX growth shares buys right now?
• 3 top international ETFs for ASX investors to look at this month
• Here are 3 top ETFs for ASX investors to watch

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 BetaShares Global Energy Companies ETF – Currency Hedged. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF 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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The CSL Ltd (ASX: CSL) share price may have suffered since early 2020, but can it recover in the near future?

CSL shares have dropped 21% since 21 February 2020, close to the onset of the COVID-19 pandemic. In today’s trade, the company’s shares climbed 1.43% to $265.60 apiece.

So what is the outlook for the CSL share price?

Where is the CSL share price heading?

Citi analysts have recently upgraded CSL to a buy with a $335 price target. That’s 27% higher than its current value. Citi’s price would take the share very close to its five year high of $336.40 on 21 February 2020. The broker is optimistic plasma collection improvements will have a positive impact on the company’s shares.

FNArena founder Rudi Filapek-Vandyck also predicts the CSL share price will rise again soon. The analyst believes CSL “will find its mojo again”. Filapek-Vandyck added:

I recently bought some extra shares in CSL. The business model was disrupted because of COVID… If I look forward to the next two to three years, I see an environment where CSL will again come to the fore.

Looking to the near future, CSL could also be one of the companies to benefit from onshore manufacturing of pharmaceuticals, announced in the lead up to the federal budget. My Foolish colleague Zach reported today Bloomberg’s Jackie Edwards believes this manufacturing push could put CSL in the spotlight. The federal budget will be delivered this evening at 7.30 pm.

JP Morgan analysts have also put an overweight rating on CSL, valuing the company at $295 per share. This is 11% more than the current share price.

CSL recently made the cut for a list of one of the greatest ASX listed companies of all time. QVG Capital included CSL in a list of its ASX “hall of famers”.

Share price snapshot

The CSL share price has dropped nearly 9% year to date while it is up a slim 0.08% in the past year.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has gained nearly 10% in the past 12 months.

CSL has a market capitalisation of around $128 billion based on its current share price.

The post What’s the outlook for the CSL share price in April? appeared first on The Motley Fool Australia.

More reading

• Expert reveals 3 ASX shares to watch following tonight’s federal budget
• Why the CSL (ASX:CSL) share price will ‘find its mojo again’: expert
• 3 ASX shares I own myself that will rise again soon: expert
• Top brokers name 3 ASX shares to buy next week
• 2 blue chip ASX 200 shares analysts are urging investors to buy

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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The Coles Group Ltd (ASX: COL) share price has been a positive performer over the last 12 months.

Since this time last year, the supermarket giant’s shares are up 14%.

Can the Coles share price keep rising?

Unfortunately, one leading broker believes the Coles share price has peaked for the time being.

According to a note out of Goldman Sachs, its analysts have initiated coverage on the company’s shares with a neutral rating and $16.40 price target.

Based on the current Coles share price of $17.93, this implies potential downside of approximately 8.5% for investors over the next 12 months.

What did the broker say?

Goldman has been looking at the food & beverage (F&B) sector and given its verdict on the major players.

While it rates Endeavour Group Ltd (ASX: EDV) and Woolworths Group Ltd (ASX: WOW) as buys (here and here), it can only muster up a neutral rating for Coles due to its lagging digital and data capabilities and valuation.

Goldman said:

“Coles Group is the 2nd largest supermarket in Australia. We view Coles as being less advanced in digital and data capabilities than Woolworths. In the short term, we expect Coles to be more defensive in an inflationary environment and see it as more protected from global supply chain disruptions given higher local sourcing for fresh. We initiate on Coles group with a Neutral rating.”

In respect to its data capabilities, the broker fears that Coles’ lower quality consumer data assets could result in further market share gap.

It explained:

“COL’s primary sources of consumer data are its own sales transaction records and Flybuys loyalty program. Contrasting with WOW’s Everyday Rewards, Flybuys is ~8mn members vs Everyday Rewards [EDR] ~13mn members and while EDR is wholly owned by WOW, Flybuys is an independent JV, 50/50 owned with Wesfarmers. This implies that WOW is able to access a larger pool of consumer insights in EDR more freely, whereas the terms of COL’s access would need to be negotiated with Flybuys and Wesfarmers – i.e. they potentially may have less and more costly access.

The direct relationship with consumers also lies with Flybuys and not COL. We acknowledge that Flybuys does have a broader coverage of businesses including most recently Bunnings and Officeworks but these are shared on a grouped, attribution basis only (i.e. 3rd party data) where the exact impact on business remains to be proven. Net net, we expect an opening of market share leadership between WOW and COL, which we forecast to expand from 8.8pts in 2022 to 10.3pts by 2024.”

All in all, the broker believes investors should be buying Woolworths shares and waiting for a better entry point with the Coles share price.

The post Top broker gives its verdict on the Coles (ASX:COL) share price appeared first on The Motley Fool Australia.

More reading

• Could these ASX shares get a boost from tonight’s federal budget?
• Is the Coles (ASX:COL) share price a top buy for dividends?
• Brokers name 3 ASX shares to buy today
• Broker: The Coles (ASX:COL) dividend will keep rising
• Analysts name 2 ASX 200 dividend shares to buy now

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 owns and has recommended COLESGROUP DEF SET. 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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Commonwealth Bank of Australia (ASX: CBA) shares have proven to be one of the better ASX 200 blue chips to have owned in recent times. While the S&P/ASX 200 Index (ASX: XJO) is still down around 1.65% year to date in 2022 so far, the CBA share price has put on a market-beating 3.8%. That includes today’s gain of 0.22% to $106.37.

Over the past 12 months, CBA shares are also up a very pleasing 24.6%, again comparing favourably to the ASX 200’s far more modest 10.8%.

But now that Commonwealth Bank shares have got those gains under the belt, and are now only a few dollars off the ASX banking giant’s all-time high of $110.19 a share, could it be time to reconsider owning CBA? Or are CBA shares still a buy today? Let’s see what some ASX investing experts reckon.

Is the CBA share price a buy or a sell for April 2022?

Citi is an ASX broker that, perhaps unfortunately for CBA investors, lies in the latter camp. Earlier this week, we covered how Citi retained a sell rating on CBA shares. This came with a 12-month share price target of $90.75. If that turned out to be accurate, it would result in the CBA share price losing close to 15% over the next 12 months.

Citi reckons CBA’s chances of continuing to outperform the other ASX big four banks into the future are remote due to the lack of potential growth opportunities. It also sees the current CBA share price as a little overvalued, especially compared to the other big four ASX banks.

But Citi isn’t the only broker who doesn’t see much in the current CBA share price. Earlier this month, we also looked at fellow ASX broker Morgan Stanley’s views on CBA. Like Citi, Morgan Stanley is sell rated on CBA shares. It has a not too dissimilar 12-month share price target of $92 for the bank. It also sees the CBA share price as overvalued right now.

So the view is widespread among the ASX broker community on CBA, it seems. Perhaps not what investors are looking to here right now. But only time will tell if buying or selling CBA shares today will turn out to be a good idea.

At the current CBA share price, this ASX 200 bank has a market capitalisation of $181.1 billion, with a dividend yield of 3.52%.

The post Buy or sell? ASX experts rate the CBA share price for April appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Why international investors are flocking to ASX shares right now
• Do Flight Centre shares pay dividends?
• 2 ASX shares to guide you through a turbulent 2022: expert
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen 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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Yesterday we looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Evolution Mining Ltd (ASX: EVN)

According to a note out of UBS, its analysts have downgraded this gold miner’s shares to a sell rating with an improved price target of $4.23. Although the broker has bumped its gold price forecasts higher and lifted its valuation for Evolution accordingly, it isn’t enough for a more positive rating. The broker has downgraded the miner’s shares on valuation grounds. The Evolution share price was trading at $4.41 on Tuesday.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on this iron ore giant’s shares to $15.95. Although the broker expects Fortescue to benefit from stronger than previously expected iron ore prices, it can’t look beyond the company’s valuation. It feels Fortescue’s shares are overvalued and also has concerns with costs relating to its Fortescue Future Industries business. The Fortescue share price was fetching $19.49 today.

Premier Investments Limited (ASX: PMV)

Analysts at Goldman Sachs have retained their sell rating but lifted their price target on this retail conglomerate’s shares to $24.30. While Goldman acknowledges that Premier Investments’ first half result was solid and its gross margin was strong, it suspects the consumer environment will soften over the next year. In light of this and the significant premium that it trades on compared to its peers, the broker believes its shares are expensive at current levels. The Premier Investments share price was trading at $28.32 on Tuesday.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy today
• Why Evolution, Fisher & Paykel Healthcare, St Barbara, and Zip shares are falling
• What is the outlook for ASX 200 mining shares in April?
• How big will the Fortescue (ASX:FMG) dividend be in 2022?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments 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 Magellan Financial Group Ltd (ASX: MFG) share price launched higher on Tuesday despite no news being released by the company.

Shares in the embattled funds management business tumbled 9.78% last week and another 1.34% on Monday. Hence, today’s gains might be a simple market correction after the selloff.

At market close, the Magellan share price finished at $15.01, 7.14% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) closed up 0.7% while the All Ordinaries Index (ASX: XAO) gained 0.75%.

Let’s take a closer look at Magellan’s performance today and how the company tracked compared to its sector’s movements.

What’s going on with the Magellan share price on Tuesday?

The Magellan share price took off on Tuesday, reaching an intraday high of $15.08, representing a 7.6% increase.

That’s a significantly better performance than that of the S&P/ASX 200 Financials Index (ASX: XFJ). It closed up 0.57%, with Magellan its best performing stock.

The funds management company was trailed closely by Zip Co Ltd (ASX: Z1P) which gained 4.76% on Tuesday.

The Pinnacle Investment Management Group Ltd (ASX: PNI) was the sector’s third-best performer. Its share price closed 4.14% higher today.

Today marks a rebound for the Magellan share price. It has been mostly in the red since the company announced its founder and former chair Hamish Douglass had resigned from its board last week.

Douglass stepped away from his role as chair and chief investment officer for a period of medical leave in February.

Unfortunately, today’s gains haven’t been enough to boost the Magellan share price back into the green.

It is still 29% lower than it was at the start of 2022. It has also fallen 66% since this time last year.

The post Why did the Magellan (ASX:MFG) share price soar 7% on Tuesday? appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• 3 high-yield ASX dividend shares trading near 52-week lows
• Why Adairs, Betmakers, Magellan, and Northern Star shares are dropping
• Magellan (ASX:MFG) share price higher despite Hamish Douglass resignation news
• Down 80%, what’s gone so wrong for Magellan (ASX:MFG) shares?

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 PINNACLE FPO and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended PINNACLE FPO. 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 Liontown Resources Limited (ASX: LTR) share price is having a positive day on Tuesday.

In afternoon trade, the lithium developer’s shares are up 3% to $1.89.

This latest gain means the Liontown share price is up 340% since this time last year.

Can the Liontown share price keep rising?

The good news for shareholders is that one leading broker believes the Liontown share price still has a long way to run.

According to a note out of Bell Potter, its analysts have retained their speculative buy rating and $3.06 price target on the company’s shares.

Based on the current Liontown share price, this implies potential upside of 60% for investors over the next 12 months.

What did the broker say?

Bell Potter notes that Liontown has reported positive drilling results which confirm the growth potential of the Buldania Lithium Project. The broker commented:

“Buldania is LTR’s early stage lithium exploration project where a maiden Indicated and Inferred Mineral Resource Estimate of 14.9Mt at 0.97% Li2O and 44ppm Ta2O5 was identified in late 2019.

LTR see Buldania as complementary to its advanced Kathleen Valley Lithium Project and having the potential to provide additional spodumene concentrate to future downstream processing capacity.”

“We now expect further extension and infill drilling to be completed before LTR updates the current Buldania Mineral Resource Estimate.”

In the meantime, though, Bell Potter is very positive on the company’s Kathleen Valley Lithium Project. The broker believes it leaves Liontown well-placed to benefit from a lithium market which is booming thanks to demand outstripping supply.

Its analysts 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.”

The post Lithium boom: Top broker tips Liontown (ASX:LTR) share price to jump 60% appeared first on The Motley Fool Australia.

More reading

• Experts name 3 of the best ASX lithium stocks to buy now
• These 3 ASX 200 shares are topping the volume charts this Monday
• Why Block, Core Lithium, Liontown, and Qube shares are rising
• ‘Exciting’ results: Here’s why the Liontown (ASX:LTR) share price is climbing 6% today
• Brokers name 3 ASX shares to buy today

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

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