Category: Stock Market

The Webjet Limited (ASX: WEB) share price has taken off so far this week.

The travel company’s shares have lifted 12.9% since market open on Monday. Today alone, Webjet shares have gained 7.44%.

Let’s take a look at what might be buoying the company’s share price lately.

Travel share recovery

Webjet may be in the green but it wasn’t the only ASX travel share taking off today. However, Webjet performed a little better than its ASX travel share peers.

Today, the Flight Centre Travel Group Ltd (ASX: FLT) share price jumped 6.71% while Qantas Airways Limited (ASX: QAN) shares climbed 1.11%.

Helloworld Travel Ltd (ASX: HLO) gained 3.53% while Corporate Travel Management Ltd (ASX: CTD) rose 4.27%.

This follows Prime Minister Scott Morrison revealing yesterday that Australia’s international borders will open to tourists and visa holders from 21 February. Investors appear to be reacting positively to this news.

Today, the New South Wales government said the international border opening would create tourism and international investment opportunities.

The state’s Tourism Minister Stuart Ayres said:

Tourism and hospitality operators will welcome the opening of international borders after two incredibly difficult years. This means more jobs, stronger businesses and a faster economic recovery across NSW.

The world is moving quickly and this is another critical step towards NSW getting back to normal and us living with the virus.

Webjet is an online travel agency enabling customers to compare flights, hotel accommodation, and car hire deals around the world.

The company has not made any price-sensitive announcements to the market since November. It’s due to report its FY22 results at the end of May.

As my Foolish colleague Aaron reported recently, the company is growing its domestic offering along with expanding its presence in the North American B2B market.

The Webjet share price has soared nearly 28% since market close on 27 January, less than two weeks ago.

Webjet share price snap shot

Over the last 12 months, the Webjet share price has gained almost 15%. In the past week alone, it has surged nearly 22%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 4.45% over the past year.

Webjet has a market capitalisation of $2.25 billion based on its current share price

The post On a roll. Why is ASX 200 travel share Webjet (ASX:WEB) skyrocketing? appeared first on The Motley Fool Australia.

More reading

• Why are ASX travel shares Flight Centre (ASX:FLT), Qantas and Webjet lifting off today?
• These are the 10 most shorted ASX shares
• Here’s why the Webjet (ASX:WEB) share price is up 10% in a week
• Are ASX travel shares finally emerging from the COVID storm?
• Could the Webjet (ASX:WEB) share price be about to get a boost?

The author has no holdings in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended 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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ASX energy shares have been clear beneficiaries of energy prices trading at multi-year highs.

Take oil, for example.

You have to go back to 2014 to find West Texas Intermediate (WTI) crude oil trading at these levels.

WTI is currently fetching US$91.27 per barrel, down just a touch from yesterday’s US$92.31 per barrel.

Now turn the clock back to 1 January and that same barrel was trading for US$75.21. And go back a full year, to 8 February 2021, and WTI was selling for $58.26 per barrel.

In other words, oil has surged 22% in 2022, helping propel some big gains for leading ASX energy shares.

S&P/ASX 200 Index (ASX: XJO) listed Santos Ltd (ASX: STO), as one example, has gained around 15% year-to-date.

Rival ASX 200 energy share Woodside Petroleum Limited (ASX: WPL) has done even better, up by more than 19%.

This, as the benchmark index itself has lost 5.3% in the calendar year.

But oil prices could be set for a significant retrace as the year unfolds.

Tailwinds ahead for ASX energy shares?

Crude oil prices have been driven higher as demand ramped back up following pandemic re-openings while new supply levels have failed to keep pace.

OPEC+, while opening the taps by another 400,000 barrels per day earlier this month, still has restrictions in place. And even so, many of its members aren’t currently able to even meet their production caps.

New investments in oil exploration and production have also lagged, while COVID continues to hamper labour availability.

But there could be a flood of new crude oil supply hitting the markets in 2022 yet.

According to Citi analysts, output from the United States could lift by as much as 1 million barrels per day this year, which could pose concerns for ASX energy shares.

As Bloomberg reports, Citi said, “Oil executives tempted by the prospect of the highest crude prices in seven years are showing all the signs of abandoning pledges to hold the line on drilling budgets.”

Citi analyst Scott Gruber expects US shale explorers will increase spending by some 40% in 2022. Citi had previously forecast a 30% increase in spending. Meanwhile, it expects overseas spending levels to increase by 32% this year, up from its previous expectation of a 17% rise.

According to Gruber:

E&P managements will be hard pressed to abandon their commitments. But we foresee an increasing number beginning to lean into the market as the challenge of managing supply in a market as disaggregated as the global oil market becomes increasingly clear.

Should the US pump an extra million barrels of oil per day, crude prices will likely retrace. And ASX energy shares could see their prices come under pressure.

The post Own ASX energy shares? Citi issues stark oil production warning appeared first on The Motley Fool Australia.

More reading

• These 3 ASX energy shares just hit 52-week highs
• Is the Woodside (ASX:WPL) share price a smart buy for dividends?
• Is now the time to rid your ASX share portfolio of COVID losers?
• ‘100 million tonnes’: Santos (ASX:STO) share price steady on world-first carbon storage deal
• 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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The GUD Holdings Limited (ASX: GUD) share price will be one to watch on Wednesday.

This follows the release of the diversified products company’s half year results after the market close.

GUD share price on watch following mixed half

• Revenue up 32% to $332 million
• Underlying net profit after tax (excluding Job Keeper) up 14.7% to $35.2 million
• Underlying earnings per share down 15.6% to 30.4 cents
• Fully franked interim dividend down 32% to 17 cents per share
• Cash conversion down 30.1% to 63.3%

What happened during the first half?

For the six months ended 31 December, GUD reported a 32% increase in revenue to $332 million. This was driven by a record performance from its Automotive segment, which benefited from acquisitions. Group organic revenue growth was a more modest 5.7%.

On the bottom line, GUD reported a 14.7% increase in underlying net profit after tax to $35.2 million excluding Job Keeper. This is a touch short of the market consensus estimate of $35.8 million.

As for earnings per share, it fell 15.6% to 30.4 cents due to its increased share count following a capital raising to fund the AutoPacific Group (APG) acquisition.

GUD’s cash conversion of 63.3% fell short of its mid-term targets. However, there was a good reason for this. Management advised that this reflects the strategic commitment to increase inventories to address supply chain disruptions. Cash conversion is expected to improve in the second half despite elevated inventory levels as the seasonal spike for Chinese New Year unwinds.

Management commentary

GUD’s Managing Director, Graeme Whickman, commented: “It was pleasing to see such solid organic growth in Automotive sales and Underlying EBIT considering Q1 was the most locked down period since the pandemic commenced. In addition, Automotive was coming off an extraordinarily strong pcp due to a COVID‐19 sales recovery phase experienced in that half.”

“It was also exciting to announce and complete the Vision X acquisition and announce the APG acquisition. Both are critical steps in achieving the Group’s Portfolio Vision and will be important contributors to GUD’s long‐term success.”

Outlook

Management has reiterated the guidance it provided in December. It continues to expect FY 2022 underlying EBITA of $112 million to $116 million before contributions from the Vision X and APG acquisitions.

Including these acquisitions, EBITA is forecast to be in the range of $155 million to $160 million. Though, management has warned that short term challenges remain.

Mr Whickman commented: “Short term challenges remain. The recent spread of Omicron has seen capacity to produce and deliver against sales orders diminished in January, but we remain confident this will be a deferral of demand rather than a loss in sales. If that scenario proves to be correct, we remain on track to deliver on FY22F EBITA guidance of $155 to $160 million.”

The post GUD (ASX:GUD) share price on watch after reporting 32% revenue growth appeared first on The Motley Fool Australia.

More reading

• ASX shares set to conquer the carnage: expert
• Top brokers name 3 ASX shares to buy next week
• 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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The AnteoTech Ltd (ASX: ADO) share price embraced February with arms wide open.

So far, the new month has treated the biotechnology company much better than January. A month that saw AnteoTech shares plunge 36% as the Therapeutic Goods Administration (TGA) saught more information from the company for its EuGeni Reader and COVID-19 Rapid Diagnostic Test (RDT).

Since the beginning of February, the AnteoTech share price has climbed 30%. For context, the S&P/ASX 200 Index (ASX: XJO) is only up 3.1% over the same period.

At market close, ASX-listed AnteoTech finished the day up 13.04% to 26 cents apiece.

Although, investors might be scratching their heads wondering what could be behind this recovery. It’s time to take a closer inspection of what’s been happening.

ASX investors’ change directions on AnteoTech

Market sentiment towards AnteoTech was impacted in January. The disruptions to the company’s study timeline created by the Omicron outbreak depressed the share price.

In addition, the market was unimpressed with its quarterly business update. Upon the release of its update, AnteoTech shares continued to sell-off.

Fortunately, AnteoTech shareholders have been treated to a few news items that have been well received this month. Firstly, reports suggested the Federal Government might allow the use of unapproved rapid antigen tests for personal use in Australia.

Secondly, the government unveiled it would make COVID-19 tests tax-deductible. Several ASX-listed companies, including AnteoTech, experienced a jump in share prices on the news. A caveat is that the deduction only applies to COVID-19 tests used for work-related purposes.

Lastly, rapid antigen tests (RATs) are now compulsory for anyone arriving at Western Australia hospitals as of yesterday. Health Minister Amber-Jade Sanderson revealed that the screening process will be a requirement before entering hospitals.

Perhaps AnteoTech investors are viewing this as a positive for RAT demand.

AnteoTech share price snapshot

ASX-listed AnteoTech has been riding a rollercoaster over the past 12 months. In fact, shareholders have needed to grit their teeth through violent swings between 50 cents and 16 cents. Nonetheless, AnteoTech shares have provided a 49% return over the last year.

Despite the rise to prominence, the company continues to be a loss-making operation. Additionally, AnteoTech’s revenue for the trailing 12-months as of 30 June 2021 was $2.3 million. This is typically considered to not be a meaningful amount.

The post Rats! How have AnteoTech (ASX:ADO) shares already gained 30% in February? appeared first on The Motley Fool Australia.

More reading

• Why are ASX COVID test shares climbing today?
• AnteoTech (ASX:AD) share price surges 15% as COVID-19 RAT race continues
• Why did the AnteoTech (ASX:ADO) share price tumble 13% on Monday
• Why Ansell, AnteoTech, Dubber, and NIB shares are dropping
• Why AnteoTech, Newcrest, Nitro, and ResMed shares are falling

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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Today, the S&P/ASX 200 Index (ASX: XJO) was in a good mood as iron ore prices continued to recover. At the end of the session, the benchmark index finished 1.07% higher at 7,186.7 points.

Investors maintained their optimism throughout Tuesday’s performance. In turn, the majority of sectors across the index experienced a green rush. However, this wasn’t the case for tech shares, with the sector suffering a 1.4% fall. In contrast, the best performing sector was materials amid iron ore miners receiving a bump on stronger prices.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Magellan Financial Group Ltd (ASX: MFG) was the biggest gainer today. Shares in the funds management company rallied 7.24% despite Mogan Stanley retaining their underweight rating and $17.20 price target. Find out more about Magellan Financial Group here.

The next biggest gaining ASX share today was Flight Centre Travel Group Ltd (ASX: FLT). The travel management company gained 7.23% after CEO Graham Turner shared optimism towards the planned international border reopening. Uncover the latest Flight Centre Travel Group details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Magellan Financial Group Ltd (ASX: MFG)	$17.62	7.24%
Flight Centre Travel Group Ltd (ASX: FLT)	$20.31	7.23%
Suncorp Group Ltd (ASX: SUN)	$12.07	5.88%
Viva Energy Group Ltd (ASX: VEA)	$2.39	4.83%
Skycity Entertainment Group Ltd (ASX: SKC)	$2.86	4.76%
AVZ Minerals Ltd (ASX: AVZ)	$0.795	4.61%
Corporate Travel Management Ltd (ASX: CTD)	$23.03	4.59%
Macquarie Group Ltd (ASX: MQG)	$202.37	4.30%
Champion Iron Ltd (ASX: CIA)	$7.03	4.15%
The Star Entertainment Group Ltd (ASX: SGR)	$3.72	3.91%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Why are Sydney Airport (ASX:SYD) shares such hot property today?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Leading brokers name 3 ASX shares to sell today
• ‘On the way back’: Flight Centre (ASX:FLT) share price takes off on border reopening
• Why Flight Centre, Macquarie, Super Retail, and Suncorp shares are racing higher

Motley Fool contributor Mitchell Lawler owns Macquarie Group 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 Corporate Travel Management Limited, Flight Centre Travel Group Limited, and 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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Tuesday proved to be an excellent day to own these ASX energy shares. They each raised the roof on their 12-month performances.

Shares in Origin Energy Ltd (ASX: ORG), Woodside Petroleum Limited (ASX: WPL), and South32 Ltd (ASX: S32) broke through their respective ceilings to record their best prices in more than a year on Tuesday.

Shares in Origin recorded an intraday high of $6.13 – representing a 1.4% gain on its previous close.

Those of Woodside reached $27.19 – 1.6% higher on the day.

Finally, the South32 share price surged 3.1% in intraday trade to hit $4.28.

So, what pushed this motley crew of energy producers to hit new 12-month highs? Let’s take a look.

These ASX energy shares hit 52-week highs on Tuesday

The share prices of Origin, Woodside, and South32 raised the roof on Tuesday despite the companies’ collective silence.

Making their surge more interesting is the fact each of the 3 companies operates in vastly different spaces.

Origin works to provide electricity to Australia with exploration, production, and retail legs while Woodside produces oil and gas. Finally, South32 is a diversified metals and mining company with business in coal production.

So, what boosted the ASX energy shares consecutively higher? Well, it seems they were likely moving in reaction to energy commodity prices.

While Origin and Woodside operate in separate spheres, their businesses overlap when it comes to oil.

Both companies’ profits tend to keep in step with the price of the black liquid which has been hitting multi-year highs lately. That might have helped boost sentiment around their share prices today.

In fact, Origin recently announced the rising oil prices helped its Australia Pacific LNG venture record a 33% increase in profits over the December quarter.

At the time of writing, West Texas Intermediate oil is trading at US$91.15 a barrel, according to data from CNBC. Meanwhile, barrels of Brent crude oil are going for US$92.41 a pop.

It was likely a similar story – albeit, of a different commodity – for the South32 share price.

Yesterday, the Sydney Morning Herald reported the price of coal – a major income source for the ASX share – is taking off amid a global energy shortage.

Additionally, the price of aluminium – another of the company’s income sources – approached its 4 month high today, according to Reuters.

The post These 3 ASX energy shares just hit 52-week highs appeared first on The Motley Fool Australia.

More reading

• Why is the South32 (ASX:S32) share price surging to all-time highs today?
• Is the Woodside (ASX:WPL) share price a smart buy for dividends?
• 5 things to watch on the ASX 200 on Tuesday
• These ASX 200 shares can beat inflation: expert
• 5 things to watch on the ASX 200 on Monday

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

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If you’re looking for some new ASX 200 shares to buy, then you may want to check out the ones listed below.

These two ASX 200 shares are rated so highly by the team at Goldman Sachs, that its analysts have put them on the broker’s conviction list. They are as follows:

Lifestyle Communities Limited (ASX: LIC)

Goldman Sachs is a big fan of this retirement communities company. It believes Lifestyle Communities has a huge runway for growth over the long term.

The broker currently has a conviction buy rating and $24.25 price target on its shares. Based on the current Lifestyle Communities share price of $18.33, this suggests there is 32% upside for its shares over the next 12 months.

Goldman commented: “In our view the market is not capturing the long-term opportunity for this business to continue to grow its long-term annuity-style earnings with limited incremental capital. We believe the current share price is not pricing in the higher new home settlement potential of the group. 500-600 settlements (~2-3 communities) per year is very achievable with the company’s current resources land pipeline.”

News Corp (ASX: NWS)

Another ASX 200 share that makes Goldman Sachs’ conviction list is News Corp. Its analysts are confident that the media giant’s solid growth can continue over the next 18 months.

In light of this, the broker has put a conviction buy rating and $42.20 price target on its shares. Based on the current News Corp share price of $32.51, this implies potential upside of 30% for investors over the next 12 months.

Goldman commented: “With the business continuing to invest and grow its audience, we expect continued strong revenue growth in 2H22/FY23 (+8%/+10%) and increasingly grow earnings. Although some incremental News Media investment was flagged (particularly UK) and REA faces a tough 4Q listings comp, we still expect continued earnings momentum into the 2H (GSe +30% EBITDA growth).”

The post Goldman Sachs names 2 ASX 200 shares as conviction buys appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Why Carnaby Resources, News Corp, Piedmont Lithium, and PointsBet shares are pushing higher
• Read all about it: News Corp (ASX:NWS) share price leaps on record quarter
• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Boral plummets
• 4 reasons to buy these ASX media shares this month: UBS

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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The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price closed higher today, ending the day’s session up 1.91% at $9.05.

For perspective, Bank of Queensland Limited (ASX: BOQ) shares also finished in the green, up 1.38%, while Australia and New Zealand Banking Group Ltd (ASX: ANZ) climbed 1.47%. Westpac Banking Corp (ASX: WBC) rose 1.35%, National Australia Bank Ltd (ASX: NAB) elevated 0.58% and Commonwealth Bank of Australia (ASX: CBA) edged 0.32% higher.

Let’s take a look at what’s happening at the bank.

New finance invoice agreement

Bendigo and Adelaide Bank has signed an agreement with Melbourne-based fintech Timelio. Timelio has acquired a $50 million small business loan book from the bank, the Australian Financial Review reported today.

Existing customers of the bank will be shifted onto Timelio’s platform for invoice finance needs from March 1. However, Bendigo and Adelaide Bank will continue to provide all other banking services to the customers, a media release from Temelio stated.

Bendigo and Adelaide bank head of specialist solutions Brian Buckle said:

Timelio’s strong technical solution, expert industry knowledge and customer-focused culture make it an ideal partner for Bendigo and Adelaide Bank.

Our agreement is part of a strategic move that aligns with our commitment to simplify our business, reduces complexity and demonstrates our shared commitment with Timelio to ensure that our valued customers are well supported to achieve their financial goals.

Timelio founder and CEO Charlotte Petris added:

The agreement will double the size of our business to $100 million in funding and enables both Timelio and Bendigo and Adelaide Bank to leverage our respective strengths to enhance outcomes for customers.

In early February, Bendigo and Adelaide Bank announced its business bank and rural bank divisions would combine. A new role will be created in its executive team.

The bank will release its half-year financial results on Monday 14 February.

Bendigo Bank share price snapshot

The Bendigo Bank share price has slumped around 8% in the past 12 months, dropping 0.5% year to date. In the past month, the company’s shares have fallen 1.3% but they have climbed more than 5% in the past week.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned 4.6% in the past year.

Bendigo Bank has a market capitalisation of roughly $5 billion based on the current share price.

The post ‘Ideal partner’: Bendigo Bank (ASX:BEN) share price lifts amid new fintech deal appeared first on The Motley Fool Australia.

More reading

• What’s boosting the Bendigo Bank (ASX:BEN) share price today?
• Can the Bendigo Bank (ASX:BEN) 8% dividend yield make up for its share price correction?
• What’s happening to ASX bank shares today?
• The Bendigo Bank (ASX:BEN) dividend is smashing the big four right now
• Could this impact the performance of ASX 200 banks more than interest rates in 2022?

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 Bendigo and Adelaide Bank Limited. 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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Why are Sydney Airport (ASX: SYD) shares such hot property today?

Well, you wouldn’t think it from a glance at the Sydney Airport share price. The company finished trading at $8.71 a share, up just 0.11%. It hasn’t swung too dramatically either. It opened at $8.71 a share this morning and went as high as $8.72 a share, and as low as $8.70 over the course of the trading day. Nothing one would write home about, you would think.

But looking at the S&P/ASX 200 Index (ASX: XJO) trading volume data so far today, we see something quite remarkable. As we covered earlier this afternoon, Sydney Airport is currently the most traded ASX 200 share on the market. And by a mile too.

Today, a whopping 69.75 million Sydney Airport shares have been traded on the markets. That’s more than triple the next company BHP Group Ltd (ASX: BHP) with just over 20 million shares traded.

As such, we can effectively call Sydney Airpot shares ‘hot property’ today.

So why might this company be experiencing such an elevated level of trading volume? Especially when its share price is so lethargic?

Why are Sydney Airport shares such hot property today?

Well, the answer might be a simple one. Tomorrow is officially Sydney Airport’s last day on the ASX boards. And that means it is the last day that most ASX investors can own this company’s shares. At the end of tomorrow’s trading day, Sydney Airport will be delisted from the ASX 200 Index and the ASX boards.

This follows the long process of a consortium known as the Sydney Aviation Alliance (SAA) taking over the Airport in its entirety. The SAA is made up of IFM Investors and a few other super funds, including AustralianSuper and QSuper.

Its bid to acquire Sydney Airport at a price of $8.75 a share has now received the green light from regulatory authorities and Sydney Airport shareholders (as of last week). As such, the deal is going full-steam ahead and will effectively conclude at the end of tomorrow’s trading day.

Sydney Airport has been listed on the ASX for 20 years, so this marks the ‘end of an era’ as it were. So the red-hot trading volumes we see this Tuesday are a likely consequence of investors making their final preparations for the shares to be taken off-market tomorrow.

At the current Sydney Airport share price, this company has a market capitalisation of $23.48 billion.

The post Why are Sydney Airport (ASX:SYD) shares such hot property today? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Is the Woodside (ASX:WPL) share price a smart buy for dividends?
• ASX 200 (ASX:XJO) midday update: Macquarie and Suncorp impress
• This is how we’ll know the share market has bottomed
• 2 ASX shares at a golden buying opportunity right now

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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The Wesfarmers Ltd (ASX: WES) share price was out of form again on Tuesday.

In late trade, the conglomerate’s shares are down 1% to $52.55.

This means the Wesfarmers share price is now down 11% since the start of the year and 22% from its 52-week high.

Is the Wesfarmers share price in the buy zone?

While the weakness in the Wesfarmers share price is disappointing for shareholders, it could be a buying opportunity for non-shareholders.

That’s the view of the team at Morgans, which recently upgraded the company’s shares to an add rating with an improved price target of $60.80.

Based on the current Wesfarmers share price, this implies potential upside of almost 16% over the next 12 months.

In addition, the broker is forecasting a fully franked $1.51 per share dividend in FY 2022. This represents a 2.9% yield, which lifts the total potential return to over 18.5%.

What is the broker saying?

Morgans sees a lot of value in the Wesfarmers share price following recent weakness.

At the time of its upgrade, the broker commented: “We continue to see WES as a high-quality company with its share price down 6% over the past month and 15% versus its peak of A$64.98 on 20 August 2021. While not cheap based on FY22 forecasts (30.3x PE and 2.7% yield), the stock looks more attractive on FY23 forecasts (26.7x PE and 3.1% yield). We expect the market will turn its focus to FY23 estimates over the coming months.”

“We see WES as a high-quality company with a healthy balance sheet and well-regarded management team. Despite short term challenges related to COVID, we think the recent pullback in the share price provides a good entry point for longer-term investors,” it added.

The post Is Wesfarmers (ASX:WES) share price in the buy zone after recent weakness? appeared first on The Motley Fool Australia.

More reading

• 2 fantastic ASX 200 shares to buy right now
• Could this be the biggest issue faced by ASX retail shares heading into earnings season?
• Do any ASX lithium shares pay dividends?
• Morgans names 4 more of the best ASX shares to buy in February
• The Wesfarmers (ASX:WES) share price is 20% off its all-time high. Is it a buy?

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 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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