Category: Stock Market

The Pushpay Holdings Ltd (ASX: PPH) share price has dropped over 20% since the beginning of 2022.

Looking further back, it has sunk even further. The past six months show a decline of almost 50%.

This ASX tech share offers churches a number of useful tools relating to electronic donations and church management.

It’s not too long until investors get an insight into the company’s full-year result, but the market gained a number of insights in the half-year result a few months ago.

Digital giving is here to stay?

During COVID-19, the company experienced a significant increase in the number of people donating electronically in the era of social distancing and lockdowns.

Pushpay provided the tools that churches needed to stay connected with their congregations.

But what about when the US started opening up?

When the company announced its result for the first six months of FY22 it said that it “has not seen any material change in digital giving reverting to non-digital means” and that could mean that customers in the US faith sector “may have undergone a fundamental technological shift as a result of the current environment”.

Pushpay said that digital giving and engagement is now a mission-critical factor within a church’s engagement strategy.

Increasing payment volumes and profitability

Despite the HY22 slowdown of growth compared to prior recent results, Pushpay continued to see growth of the business.

For the first six months of its financial year it said that payment volumes were up by 9% to US$3.5 billion. It’s expecting continued growth over time.

The growth of its top line helped the company’s profit margins.

The ASX tech share reported that its gross profit increased from 68% to 69%.

Whilst there can be various impacts on the net profit after tax (NPAT) from year to year, Pushpay reported another big jump in profit. HY22 NPAT rose by 43% to US$19.1 million. Profit can be a key influence on the Pushpay share price.

Growth plans

Pushpay continues to work on its growth plans.

It wants to win more large and medium churches in its main customer base. The ASX tech share also hopes for more adoption of digital giving by people who attend those churches.

But a new focus is on winning a market share of 25% of the Catholic church management system and donor management system market over the next five years.

The Catholic Church also has connections with education institutions which could unlock more growth avenues.

Pushpay is keeping geographical expansion under consideration as well.

Is the Pushpay share price a buy?

There are a few different brokers that currently rate the business as a ‘hold’ or a similar rating like ‘neutral’.

Macquarie has a price target of NZ$1.70 on the business, though it was disappointed by the half-year growth slowdown. UBS has a price target of NZ$1.90. Ord Minnett has a price target of $1.90.

On Ord Minnett’s numbers, the Pushpay share price is valued at 16x FY23’s estimated earnings.

The post Down 20% in 2022, is the Pushpay (ASX:PPH) share price a clear buy? appeared first on The Motley Fool Australia.

More reading

• Why Macquarie (ASX:MQG) says US will become bank’s ‘biggest earning region’ in 2022
• Broker tips Macquarie (ASX:MQG) share price to rise 13%
• Why the Pilbara (ASX:PLS) share price is a buy right now: expert
• Is the ASX set to welcome yet another BNPL share? Macquarie-backed company gears up for IPO
• Is Macquarie (ASX:MQG) gearing up to ink its next big deal?

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 PUSHPAY FPO NZX. The Motley Fool Australia owns and has recommended PUSHPAY FPO NZX. 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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If you’re looking for some ASX dividend shares to add to your income portfolio, then you might want to look at the ones listed below.

Here’s what you need to know about these highly rated dividend shares:

Centuria Industrial Reit (ASX: CIP)

The first ASX dividend share to consider is Centuria Industrial. It is the largest domestic pure play industrial REIT, with a high-quality portfolio of properties across key metropolitan locations throughout Australia.

These assets include in-demand areas such as distribution centres, cold storage, and transport logistics.

Macquarie is a fan of the company. Its analysts believe its shares are attractively priced and note that its portfolio is well-placed for growth thanks to tailwinds being experienced in the industrial sector.

The broker currently has an outperform rating and $4.27 price target on its shares. And as for dividends, Macquarie is forecasting a 17.3 cents per share distribution in FY 2022 and a 17.8 cents per share distribution in FY 2023.

Based on the current Centuria Industrial share price of $3.83, this will mean yields of 4.5% and 4.6%, respectively

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share that could be in the buy zone right now is NAB.

It has been tipped as a buy by the team at Goldman Sachs. Its analysts like the banking giant due to its position as the largest business bank. The broker believes this will allow NAB to benefit more from the continued economic recovery.

Goldman also highlights that NAB’s cost management initiatives are further progressed relative to most of its peers. This has freed up investment spend to be more directed towards customer experience rather than infrastructure.

All in all, the broker is expecting this to lead to a growing stream of fully franked dividends. It is forecasting 145 cents per share in FY 2022, 154 cents per share in FY 2023, and then 163 cents per share in FY 2024. Based on the current NAB share price of $29.99, this will mean yields of 4.8%, 5.1%, and 5.4%, respectively.

Goldman has a conviction buy rating and $31.33 price target on its shares.

The post 2 excellent ASX dividend shares analysts rate as buys appeared first on The Motley Fool Australia.

More reading

• Is the Westpac (ASX:WBC) share price the cheapest bank to buy right now?
• Own NAB (ASX:NAB) shares? Here’s why the bank is this brokers top pick
• ANZ has the largest ASX big four bank dividend yield right now. What?
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Top broker says NAB (ASX:NAB) share price has 20% upside. Here’s why

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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was a strong performer and stormed higher. The benchmark index rose 1.1% to 7,130.8 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to end the week in the red following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.5%, the S&P 500 is trading 0.6% lower, and the Nasdaq is down 1%.

Oil prices fall

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a subdued finish to the week after oil prices dropped again. According to Bloomberg, the WTI crude oil price is down 1.8% to US$106.87 a barrel and the Brent crude oil price is down 1% to US$110.06 a barrel. Optimism over a potential supply boost is weighing on prices.

Westpac shares given hold rating

The Westpac Banking Corp (ASX: WBC) share price could be close to being fully valued according to analysts at Bell Potter. This morning the broker retained its hold rating and $24.00 price target. Bell Potter has doubts over Westpac’s FY 2024 cost cutting targets.

Gold price rebounds

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent finish to the week after the gold price rebounded. According to CNBC, the spot gold price is up 0.7% to US$2,002.70 an ounce. Weakness in equities and a high US inflation reading boosted the safe haven asset’s appeal.

Tech shares on watch

Tech shares such as Block Inc (ASX: SQ2) and Zip Co Ltd (ASX: Z1P) could have a rough day after US tech stock pulled back on rate hike concerns. This follows news that inflation in the United States has hit its highest level in 40 years. According to CNBC, US inflation reached 7.9% in February due largely to shelter, gasoline, and food costs.

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

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts on Thursday
• Why are ASX 200 oil shares taking such a beating today?
• Has the bottom been and gone? Zip (ASX:Z1P) share price lifts 9% in 2 days
• Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Westpac Banking Corporation. 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 have room for some new portfolio additions, then it could be worth considering the three ASX growth shares listed below.

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

Allkem Ltd (ASX: AKE)

The first ASX growth share to consider is Allkem. It is a top five global lithium miner that is benefiting greatly from sky high lithium prices thanks to its Mt Cattlin and Olaroz operations. In addition, the company has a collection of projects that could come online in the near future and support strong production growth in the coming years. It is for this reason that Allkem is the top lithium pick for analysts at Morgans. The broker currently has an add rating and $14.83 price target on its shares. The Allkem share price ended the day at $10.09.

Lovisa Holdings Limited (ASX: LOV)

Another ASX growth share to look at is Lovisa. It is a fast-fashion jewellery retailer with a growing global store network. Lovisa is another company that Morgans is positive on. Its analysts rate the retailer highly thanks to its significant expansion potential and highly experienced management team leading the charge. All in all, the broker believes Lovisa has the potential to be one of the biggest success stories in Australian retail. And while it accepts that investment will be needed to expand its network in the US and Europe and to take the brand into new markets, it believes the returns could be “stellar.” Morgans has an add rating and $24.00 price target on its shares. The Lovisa share price is currently fetching $18.64.

Xero Limited (ASX: XRO)

A final ASX growth share to consider buying is Xero. It is a leading cloud-based business and accounting software provider. Xero’s successful evolution into a full service small business solution has led to millions of small to medium sized businesses globally subscribing and running their businesses through its platform. This has underpinned strong revenue and profit growth in recent years and, pleasingly, the team at Goldman Sachs expects this trend to continue for a long time to come. This is thanks to its global expansion, the ongoing shift to cloud solutions, and its burgeoning app ecosystem. Goldman Sachs has a buy rating and $135.00 price target on the company’s shares. This compares to the latest Xero share price of $98.56.

The post 3 excellent ASX growth shares analysts believe have huge upside potential appeared first on The Motley Fool Australia.

More reading

• Morgans picks its top 3 ASX retail shares to buy today
• 3 beaten-up ASX tech shares that ‘tick all the boxes’: fundies
• Here’s why the Lovisa (ASX:LOV) share price is sliding 5% today
• Lovisa (ASX: LOV) share price falters 10% but brokers still say buy
• Get ready! The ASX shares set for a decade-long tailwind: expert

Motley Fool contributor James Mickleboro owns Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Lovisa Holdings 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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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So, we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.” 

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Rio Tinto Limited (ASX: RIO) will be terminating all commercial ties with Russia amid the Ukraine invasion.

The Rio Tinto share price dropped 7.73% today to close at $110.61. For comparison, the S&P/ASX 200 Index (ASX: XJO) climbed 1.1% today.

So how will this decision impact Rio Tinto?

Russia boycotted

Rio Tinto confirmed it is cutting ties with Russia, Reuters reported. In an email statement, a company spokesperson said: “Rio Tinto is in the process of terminating all commercial relationships it has with any Russian business.”

The decision has sparked speculation about Rio Tinto’s Queensland Alumina Limited refinery, based in Gladstone. Russian company Rusal has a 20% stake in this business.

Sources told the Sydney Morning Herald the joint venture has been placed “under immediate review”. However, the publication reported Rio may need to buy out Rusal’s stake in this venture.

Rusal is Russia’s largest aluminum producer. An expert predicted Rio’s move could tighten aluminum supply. In a Bloomberg article cited by Yahoo Finance, mining analyst at Shaw and Partners Peter O’Connor said:

Rio’s move could keep things tight in the aluminum market until trade flows can adjust.

Rio is said to not have any operational assets or employees in Russia or Ukraine. The company joins other giants including Shell PLC (NYSE: SHEL), BP PLC (NYSE: BP), and Exxon Mobil Corp (NYSE: XOM) in pulling out of Russia.

Rio Tinto share price snapshot

As my Foolish colleague Aaron reported earlier, Rio Tinto shares were trading ex-dividend today. Anyone who buys shares from today will miss out on the dividend, hence the share price fall.

The Rio Tinto share price has leapt 10% this year to date but has fallen 3% over the past 12 months.

In the past month, Rio Tinto shares have slipped by 5%, while they are down 10% over the past week.

Rio has a market capitalisation of about $41 billion based on its current share price.

The post Rio Tinto (ASX:RIO) is cutting all ties with Russia. What does this mean for the mining giant? appeared first on The Motley Fool Australia.

More reading

• Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Here’s why the Rio Tinto (ASX:RIO) share price is sliding 7% today
• 5 things to watch on the ASX 200 on Thursday
• Record $36bn in dividends could help ASX share market recovery

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 Telstra Corporation Ltd (ASX: TLS) share price was one of the more interesting performers in the ASX today. As of market close, the telco was down by 1.02% at $3.88 a share. That’s after Telstra opened at $3.94 this morning. In stark contrast, the S&P/ASX 200 Index (ASX: XJO) enjoyed a robust day of gains today. The ASX 200 rose by a pleasing 1.1% at over 7,100 points. 

So what went on with Telstra shares?

Well, one possible cause might be the news that the telco is facing a class action. As my Fool colleague Tony covered today, the company is facing legal action from a former employee. Former staffer Jodi Wruck has reportedly filed a case in the Federal Court against Telstra after she was fired in December following a refusal to get a COVID-19 vaccine, as per the company’s vaccination policy. Wruck has also claimed that “at least seven” staff members have signed on as plaintiffs, which is the legal minimum to be classified as a class action. 

Telstra told the Motley Fool that “state and territory public health orders also required those performing essential telco work to be vaccinated”.

It’s unclear if this development did impact the Telstra share price today, but it is possible.

Telstra share price snapshot

Telstra shares have had a pretty miserly time of it over the year so far. In 2022, Telstra is still down by a notable 8.06% as it currently stands. It’s also down by close to 10% from the 52-week high of $4.31 per share share that we saw back in January. However, zooming out, the picture looks a lot brighter. Telstra remains up close to 27% over the past 12 months, and up almost 45% since October 2020.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $45.58 billion, with a dividend yield of 4.12%.

The post Why was everyone talking about the Telstra (ASX:TLS) share price today? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Own Telstra shares? Here’s why the telco faces new legal action
• These 3 ASX 200 shares are topping the volume charts on Thursday
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Warning: Only 4 ASX shares just added to ASX 300 are profitable

Motley Fool contributor Sebastian Bowen owns Telstra Corporation 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 Telstra Corporation 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 Paladin Energy Ltd (ASX: PDN) share price surged 11% into the green today to close at 85.5 cents.

That marks a 22.14% jump in the past two days as uranium shares such as Paladin benefit from record-high uranium prices spurred on by a number of macro-undertones.

Uranium supply shock sends Paladin share price north

Uranium futures rallied hard in late February from a four-month low of US$44 per pound stretching up to US$54 per pound at the time of writing.

That’s a 10-year high for the chemical element that supplies energy for hundreds of thousands of individuals and companies around the world.

European conflict has sent uranium prices in the elevator as Russia responded to US-imposed sanctions on oil imports by placing a ban on exports of raw materials overnight, according to Trading Economics.

Some experts even believe uranium could reach US$100 a pound, as Russia accounts for roughly 10% of global exports for the metal.

The supply shock has market pundits nervous and has countries that use uranium for energy scrambling to try and find other means of energy production to make up the shortfall.

“The US nuclear energy sector produces 20% of the country’s electricity, and relies on Russia for 16% of its imports,” according to Trading Economics.

As Paladin’s share price closely traces the path of uranium with just a minor tracking error (shown below), investors were sure to be piling into the company today.

What else is weighing in?

Additionally, skyrocketing commodity markets could be impacting the Paladin share price today.

“…Skyrocketing oil prices prompted nations to shift to alternative energy sources,” Trading Economics also said, suggesting the jump is impacting demand–supply curves.

As a result of tension being wound at both ends, uranium futures have climbed more than 95% in the past year and are up 24% in the past month after staying on trend today.

In fact, the Bloomberg Commodities Index (BCOM), a proxy to gauge the strength of the overall sector, has soared to 10-year highs as well just recently.

It remains to be seen what will happen with the flow of various commodities from this trade battle. Regardless, uranium players like Paladin are on the receiving end of some serious capital gains.

The Paladin share price has spiked hard this week and is now up 110% for the past year. However, it is down almost 3% this year to date.

The post Why has the uranium rally got this ASX share blasting 22% higher in 2 days? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts on Thursday
• Why are ASX uranium shares having such a stellar day?
• Why Block, Myer, Paladin Energy, and Qantas shares are storming higher
• Here are the top 10 ASX shares today

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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Shares in Volpara Health Technologies Ltd (ASX: VHT) finished trading on Thursday up 4.51% in the green at 70 cents.

Investors appeared to be reacting positively to a company announcement from Volpara today. Even though the release wasn’t price-sensitive in any way, it did cover some interesting progress with respect to the company’s VolparaDensity software.

Not only that, but brokers are constructive on the company this year, noting it has potential for outsized returns, Let’s take a look.

Is Volpara a buy in 2022?

According to the analysts at Bell Potter, Volpara could be a speculative buy this year. The broker recently retained its buy rating whilst slicing its price target to $1.30 per share.

Bell Potter reckons there is a disconnect between Volpara’s share price, that’s been stuck in a downward trend, and the company’s fundamentals, which have been growing.

The dislocation has its analysts excited, noting there is a potential buying opportunity before the market recognises the gap.

“Volpara has an expanding revenue base and appears to be on a pathway to cash flow breakeven over the course of calendar years 2022/2023”, it said.

“We conclude that the company is well funded in the short term and will continue to expand its revenue footprint both from existing clients and newly business opportunities”.

Morgans is also constructive on the company, valuing it at $1.87 per share back in January.

A figure of $1.58 arises after taking the average of these two valuations.

What did Volpara announce today?

Today Volpara announced the release of new screening recommendations by the European Society of Breast Imaging (EUSOBI) regarding the company’s software.

The EUSOBI made the recommendations for women with extremely dense breast tissue as a direct result of
findings from a 10-year long trial, that used VolparaDensity breast density assessment software.

“The new recommendations represent a significant shift from the biannual mammography exams currently advocated by most European screening organisations and offer further clinical and commercial validation of Volpara’s technology, designed to improve women’s health outcomes through personalised mammographic care”.

Micro-simulations that were modelled from the study’s findings suggest that “adding biannual MRI to biannual
mammography” – as was done in the trial – “would save 8.6 additional lives per 1,000 women invited, at a cost of 150,000 Euro per life, or 22,500 Euro per quality-adjusted life-year (QALY), indicating a cost-effective method”.

With these kinds of results, it doesn’t come as a surprise to why investors might have looked favourably on the company today, despite the announcement being deemed non-sensitive.

Those wanting to see the full version of the EUSOBI’s recommendations can do so by clicking here.

Volpara share price snapshot

The Volpara share price has been beaten down the last 12 months. During that time it has collapsed more than 43% and is down 33% this year to date.

During the past month, shares have continued the downtrend and traded 16%.

This kind of downbeat market sentiment is exactly what has brokers chomping at the bit on Volpara, as mentioned above.

The post Down 33% in 2022, is this ASX healthcare share a buy following the company’s latest trial result? appeared first on The Motley Fool Australia.

More reading

• 4 ASX healthcare shares at 52-week lows
• Down over 30% in 2022: 2 compelling ASX tech shares
• 2 ASX shares every growth investor needs to know about

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 VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended VOLPARA FPO NZ. 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 received your paycheque in crypto, it would be worth a good bit more today than it was yesterday. Though a good bit less than it was worth at the beginning of the year.

The Bitcoin (CRYPTO: BTC) price, still down 14% year-to-date, leapt 8% overnight.

Ethereum (CRYPTO: ETH) surged higher too, gaining more than 5%.

Now it’s unlikely that you’re currently getting paid in Bitcoin or Ethereum.

But a new survey from global online market research firm Dynata reveals a surprising number of Aussies are very interested in receiving their paycheque in crypto rather than the Australian dollar.

21% of Aussie respondents have already invested in crypto

The survey results released by Dynata this week are part of the company’s Global Consumer Trends Report, The New Experience Economy.

Dynata collected a total of 11,000 responses between 4 and 10 February, spanning 11 countries.

Sticking to the Australian results, the survey indicates that 21% of Australians have already invested in Bitcoin or another digital token. That number skyrockets when we narrow it down to Millennial men, with 59% saying they’d invested in crypto.

Those figures drop to 28% for Gen X males. And women remain underrepresented, with only 12% of Gen X females having invested in digital assets.

True adoption

According to Dynata, “Many analysts consider that true adoption will be when people chose to get their salary in crypto as opposed to their own country’s fiat currency.”

And the survey results show we may be well underway to that point. At least among Aussie Millennial men.

Asked whether they were “extremely” or “very interested” in receiving their paycheque in crypto, 39% said they were.

While only limited numbers of Aussie retailers currently accept digital tokens, 13% of Australian respondents reported they’ve used crypto to make purchases. Not surprisingly, that figure comes in significantly higher, at 26%, for Millennial men.

The post Fancy getting your paycheque in crypto? You’re not alone appeared first on The Motley Fool Australia.

More reading

• The Bitcoin price is rocketing 8% today. What’s going on?
• Will soaring commodity prices hold back the Bitcoin price in 2022?
• 52% of Aussies will never put money in this investment
• How might Visa and Mastercard’s Russia ban impact the Bitcoin price?
• Why Ethereum, Solana, and Cardano dropped today

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.

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There is speculation swirling around what might be the next move for tech billionaire Mike Cannon-Brookes, and whether it could involve Origin Energy Ltd (ASX: ORG) shares.

Yesterday, the $10 billion energy giant published a strategy refresh which puts an acceleration in renewables at the front of its plans.

Its ambitions of leading the net-zero transition turned up only two days after an $8.25 per share bid for AGL Energy Ltd (ASX: AGL) from a consortium led by Cannon-Brookes’ private investment was turned down.

Now, another door might be open for Cannon-Brookes to steer Australia towards decarbonisation.

Could Cannon-Brookes provide the financial fodder?

While Origin Energy has proposed a more swift exit from coal-fired power than AGL, it still might have a reason for the Atlassian (NASDAQ: TEAM) co-founder to get involved.

As previously announced, Origin wants to bring forward the closure of Eraring power station to August 2025. Meanwhile, AGL’s less ambitious deadline of 2035 provided ample motivation for Cannon-Brookes to take action.

Ultimately, the $20 billion set aside by the billionaire and Canadian investment firm Brookfield to transition AGL away from coal is now dead in the water. However, the capital might be able to find a different home.

As outlined, ASX-listed Origin Energy plans to develop multi gigawatts worth of renewable assets this decade. In addition, it is open to partnering with third-party capital to bring these objectives into the real world. Origin Energy shares lifted on Wednesday on the news.

Origin chief financial officer Lawrie Tremaine was asked whether the company would take a $10 billion to $20 billion investment. In response, Tremaine said:

[…] an ambition that has some scale attached to it. And so would we partner with one party across a range of opportunities? Yes, we would consider that for sure.

Similarly, Origin CEO Frank Calabria shared in openness towards third-party funding, stating:

If there was a large source of funds that wanted to go on that journey with Origin, we would certainly be open to that and that may be the appropriate way to execute that strategy by the introduction of one partner that could go on that journey to all the development of those renewables.

How have Origin Energy shares performed?

Since the beginning of the year, the Origin Energy share price has moved upwards, rising 8.2%. For context, the S&P/ASX 200 Utilities Index (ASX: XUJ) is up 3.7%, suggesting it is performing better than its peers.

However, the AGL share price is outperforming Origin, with multiple takeover bids supporting its valuation. Cannon-Brookes has said the latest offer was the last from him.

The post Could Origin Energy (ASX:ORG) shares be next on the investment agenda for Mike Cannon-Brookes? appeared first on The Motley Fool Australia.

More reading

• Soul Patts urges AGL (ASX:AGL) board to give ‘more thought’ to takeover bid
• ASX 200 (ASX:XJO) midday update: Origin’s $250m buyback, Nickel Mines smashed
• Origin (ASX:ORG) share price higher on $250m buyback and refreshed strategy
• ASX 200 (ASX:XJO) midday update: AGL rejects new takeover offer, Appen makes strategic investment
• AGL (ASX:AGL) share price on watch amid improved takeover offer

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

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