Category: Stock Market

The Qantas Airways Limited (ASX: QAN) share price will be one to watch on Friday.

This follows the release of an announcement after the market close this afternoon.

Why is the Qantas share price on watch?

The Qantas share price will be on watch on Friday after it revealed adjustments to its third quarter capacity settings for both the Qantas and Jetstar brands.

According to the release, the airline operator is reducing its flying levels to better match travel demand in light of the sudden growth in COVID-19 cases in Australia.

The Qantas Group now expects domestic capacity for the third quarter of FY 2022 to be at around 70% of pre-COVID levels. This is down from the 102% domestic capacity that had been previously planned.

The release notes that the schedule changes are focused on reducing frequency of services and size of aircraft to minimise inconvenience for passengers as much as possible.

It will be a similar story for its international capacity. Total group international capacity for the same period will fall from 30% to 20% of pre-COVID levels. This reduction is in response to increased travel restrictions in countries including Japan, Thailand, and Indonesia. The main impact is being felt on Jetstar’s leisure routes. Other markets, including London, Los Angeles, Vancouver, Johannesburg and India, continue to perform well.

Qantas also advised that both airlines have (and will continue) to have 100% of their available Australian-based crew stood up. It notes that this has helped to minimise the resourcing impacts of some needing to self-isolate during the summer peak.

What will the financial impact be?

At this stage, the company hasn’t got a clear picture in respect to the impact these changes will have on its earnings. It intends to provide a further update with its half year results next month.

Qantas Group CEO, Alan Joyce, said: “The sudden uptick in COVID cases is having an obvious impact on consumer behaviour across various sectors, including travel, but we know it’s temporary. Thankfully, Australia has one of the world’s highest vaccination rates and the Omicron variant is milder than its predecessors. So, as challenging as this current phase is, we’re optimistic that it is likely to fast track a return to normal.“

Mr Joyce also revealed that Qantas is well-placed to add capacity back if demand improves earlier than expected and reiterated that the company’s “focus on cash positive flying remains, notwithstanding some of the costs that we’ll have to absorb from this sudden drop in demand.”

The post Qantas (ASX:QAN) share price on watch after cutting capacity due to the Omicron outbreak appeared first on The Motley Fool Australia.

More reading

• Is it a buy in 2022? Leading brokers size up the Qantas (ASX:QAN) share price
• Buying ASX shares in 2022? Here’s what you need to know: expert
• How did the Qantas (ASX:QAN) share price perform in 2021?
• Brokers name 3 ASX shares to buy
• Brokers name 3 ASX shares to sell

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.

from The Motley Fool Australia https://ift.tt/34CnhD6

The Archer Materials Ltd (ASX: AXE) share price was on fire today following a technical progress update on the company’s biochip.

At the close of trading, the materials technology company’s shares were swapping hands for $1.36 apiece, a gain of 32.04%.

What did Archer Materials announce?

The Archer Materials share price soared today after the company revealed it had successfully addressed a key nanotech challenge on its biochip technology.

Last month, the company developed its first biochemical reactions for detecting nucleic acid sequences. This allowed small droplets of biological samples to be processed and analysed using graphene-based sensors integrated within the biochip.

Nucleic acid markers are useful for monitoring the various states of a person’s health to see if disease is present. Commonly known techniques that use this method include polymerase chain reaction (PCR) tests.

However, the latest update surrounds the company’s in-house capability of integrating a single-atom-thick graphene on a silicon wafer.

Archer Materials stated that it used an electron beam lithography system to repeatably and reproducibly fabricate the graphene devices. This represents a significant technical achievement for the company as it intends to use graphene as an ultrasensitive sensor.

An advanced material composite, graphene on the nanoscale is highly advantageous for detecting and analysing diseases. It has unique properties such as high electron mobility and chemical stability for sensing the activity of biological molecules.

What did management say?

Commenting on the news driving the Archer Materials share price, CEO Dr Mohammad Choucair said:

Archer’s use of advanced lithography systems to successfully integrate graphene with silicon electronics is a significant step in the Company’s biochip development.

This is the culmination of a lot of strategic planning and coordination involving talented people, world-class facilities, and technology to get to this point. It’s exciting that Archer’s CQ quantum chip development could also benefit from this latest achievement.

About the Archer Materials share price

The Archer Materials share price has surged around 140% in the past 12 months. However, the company’s shares are 56% off their all-time high of $3.08 reached in mid-August 2021.

Based on valuation grounds, Archer presides a market capitalisation of around $305.75 million, with almost 247.57 million shares outstanding.

The post Here’s why the Archer Materials (ASX:AXE) share price rocketed 32% today appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price on watch after cutting capacity due to the Omicron outbreak
• How does the Newcrest (ASX:NCM) dividend stack up against other ASX 200 miners like BHP?
• Here are the top 10 ASX shares today
• Why did the Flight Centre (ASX:FLT) share price slump on Thursday?
• How has the Green Technology Metals (ASX:GT1) share price surged 60% already this year?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

from The Motley Fool Australia https://ift.tt/3qncVPT

ASX 200 mining shares like BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) arguably dominated investors’ attention last year.

The explosive share price appreciation that we saw across the first half of 2021 enthralled ASX investors. As did the subsequent ‘back to Earth’ moves witnessed in the back half of the year.

For investors of gold miner Newcrest Mining Ltd (ASX: NCM), the past year has been a one-way street. And not in the direction shareholders would have liked. At today’s closing share price of $24.70, Newcrest Mining has gone backwards by a nasty 7.4% over the past 12 months.

It’s likely that the rise of BHP and Fortescue last year was, in part, fuelled by the monstrous dividends those miners doled out. And with full franking credits, too.

Based on BHP’s closing share price of $46.85 today, the ‘big Australian’ has an impressive trailing dividend yield of 8.59%. Fortescue has an eye-popping 16.73% trailing dividend yield, based on today’s closing price of $21.40.

So, how does the Newcrest dividend compare to these astronomical metrics?

How does the Newcrest dividend stack up?

Well, unlike those big iron ore miners, Newcrest didn’t enjoy a booming commodities market in 2021. As the largest gold miner on the ASX, Newcrest’s ability to pay out dividends largely rests on the gold price itself. And that has been at a fairly consistent level over the past 12 months.

In 2021, Newcrest paid out two fully-franked dividends. The first was an interim payment of 19.31 cents per share. The second was a final dividend of 55.2 cents per share.

That total of 72.5 cents per share was a marked increase on the 2020 dividend of 35.7 cents. Even so, that tallies the Newcrest dividend yield at 2.9% (or 4.2% grossed up with full franking) based on today’s closing price.

That’s obviously not even in the same league as BHP or Fortescue. But it is the highest yield this gold miner has had on the table for years.

Remember, these numbers are all trailing, which means they reflect the past 12 months, not the future. Who knows what today’s dramatically lower iron ore price will do to BHP and Fortescue’s 2022 dividends.

At the current Newcrest share price, the ASX gold miner has a market capitalisation of $20.20 billion.

The post How does the Newcrest (ASX:NCM) dividend stack up against other ASX 200 miners like BHP? appeared first on The Motley Fool Australia.

More reading

• Fortescue (ASX:FMG) share price up amid rainy days for Brazilian iron ore
• CBA (ASX:CBA) is about to lose the mantle of the ASX’s largest company, here’s why
• Goldman Sachs says buy Rio Tinto and South32 shares but sell Fortescue now
• Why did the BHP (ASX:BHP) share price struggle so much in 2021?
• 5 things to watch on the ASX 200 on Thursday

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

from The Motley Fool Australia https://ift.tt/3qlARDd

Today, the S&P/ASX 200 Index (ASX: XJO) dished up another solid performance. At the end of the session, the benchmark index finished 0.48% higher at 7,474.4 points.

It was a mixed market for investors on Thursday, but the upwards movers prevailed over the laggards. Notably, iron ore companies were in full form today as the price for the steelmaking commodity continues to rebound amid poor weather in Brazil. On the flip side, the Aussie index was held back by a disappointing showing among tech and healthcare shares.

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, Crown Resorts Ltd (ASX: CWN) was the biggest gainer today. Shares in the casino and resorts operator jumped 8.26% after the company received an improved takeover proposal from Blackstone. Find out more about Crown Resorts here.

The next biggest gaining ASX share today was Nickel Mines Ltd (ASX: NIC). The nickel producer rallied 4.84% despite there being no announcements from the miner. Uncover the latest Nickel Mines details here.

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

ASX-listed company	Share price	Price change
Crown Resorts Ltd (ASX: CWN)	$12.59	8.26%
Nickel Mines Ltd (ASX: NIC)	$1.625	4.84%
Rio Tinto Ltd (ASX: RIO)	$111.74	4.17%
Liontown Resources Ltd (ASX: LTR)	$1.695	3.99%
BHP Group Ltd (ASX: BHP)	$46.90	3.95%
South32 Ltd (ASX: S32)	$4.25	3.91%
Pilbara Minerals Ltd (ASX: PLS)	$3.72	3.91%
Champion Iron Ltd (ASX: CIA)	$6.39	3.90%
TPG Telecom Ltd (ASX: TPG)	$6.36	3.58%
Chalice Mining Ltd (ASX: CHN)	$8.71	3.44%

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

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why BrainChip, Crown, Objective, and South32 shares are racing higher
• Here’s why the Crown (ASX:CWN) share price jumped 9% today
• ASX 200 (ASX:XJO) midday update: Crown jumps, miners rally, Sonic sinks
• Crown (ASX:CWN) share price on watch after Blackstone ups takeover bid

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 recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3qpnIJD

The Flight Centre Travel Group Ltd (ASX: FLT) share price suffered on Thursday despite the broader market trading in the green. Though, it wasn’t alone in its fall. Many of its ASX travel peers also slipped today.

As of Thursday’s close, the Flight Centre share price is $18.13, 2.37% lower than it was at the end of Wednesday’s session.

For context, the S&P/ASX 200 Index (ASX: XJO) gained 0.48% today, while the All Ordinaries Index (ASX: XAO) finished 0.45% higher.

Let’s take a look at what might have contributed to ASX travel stocks’ dive today.

What weighed on the Flight Centre share price today?

The Flight Centre share price was one of the worst performing ASX travel shares on Thursday.

It was joined in the red by the Helloworld Travel Ltd (ASX: HLO) share price. It slipped a notable 2.51%.

Meanwhile, shares in Corporate Travel Management Ltd (ASX: CTD), Qantas Airways Limited (ASX: QAN), and Webjet Limited (ASX: WEB) each slumped 2.19%, 2.35%, and 0.55% respectively.

That’s despite no news having been released by any of the ASX travel majors. However, today marks one of the worst days of the COVID-19 pandemic for Australia so far.

While the changing COVID-19 situation likely hasn’t directly weighed on any particular share price, it could have impacted sentiment for the sector.

Both Queensland and New South Wales recorded a record number of new cases on Thursday, while Western Australia shut its border entirely.

The state has now officially banned travel from the Northern Territory, leaving it without a single open border.

However, Queensland Premier Annastacia Palaszczuk announced that the sunshine state will drop all border requirements for domestic arrivals from 1 am on 15 January.

Today’s drop sees the Flight Centre share price 2.9% lower year to date. Though, it has gained 4% since this time last month.

The post Why did the Flight Centre (ASX:FLT) share price slump on Thursday? appeared first on The Motley Fool Australia.

More reading

• Why did the Flight Centre (ASX:FLT) share price have such a volatile year in 2021?
• These are the 10 most shorted ASX shares
• Buying ASX shares in 2022? Here’s what you need to know: expert
• 5 best ASX 200 travel shares of 2021
• 2 ASX travel shares that flew higher than Flight Centre (ASX:FLT) in 2021

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 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.

from The Motley Fool Australia https://ift.tt/3Gspzmy

The Green Technology Metals Ltd (ASX: GT1) share price continued its impressive run today despite no news from the lithium company.

At the closing bell, the company’s shares were swapping hands for 83 cents, up 1.84%. However, in earlier trade, they hit 95 cents, a 16.5% gain on yesterday’s closing price.

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

Lithium exploring

The Green Technology share price has been on a roll since the start of the year. Since the market closed on 31 December, the explorer’s shares have exploded by 59.6%. They have finished in the green every day this week, including soaring by 13.77% on Tuesday.

Investors may be reacting to strong demand for lithium and a tightening supply. Lithium carbonate prices in China have soared 10% from 277,500 yuan per tonne to 306,500 yuan per tonne since the start of the year.

Bloomberg reported on Wednesday supplies of the battery commodity are at risk, while demand is increasing due to growing electric vehicle uptake. Plant maintenance and Winter Olympic restrictions in China and labour shortages in Australia were cited as reasons for the supply issue.

Additionally, Liontown Resources CEO Tony Ottaviano on Wednesday played down concerns by some analysts over a lithium supply glut. He noted the difficulties for smaller companies entering the lithium space. 

Positive broker notes on the lithium sector may also be weighing on investors’ minds. As my Foolish Colleague Brooke reported on Tuesday, multiple brokers are optimistic about the commodity. JP Morgan expects the lithium market will grow 24% by 2030, while S&P Global Platts predicts a supply shortfall of 5,000 megatons of lithium carbonate in 2022.

In December Green Technology advised it had commenced drilling at the Seymour lithium asset in Ontario, Canada. Drilling is expected to be completed by March 2022. Results from the drilling are not yet available.

Also, on 4 January, the company provided a response to a price query from the ASX. Green Technology confirmed it is complying with the listing rules and is not aware of any information not released to the market that could explain recent trading of its shares.

That day, Green Technology shares hit a new record high of 68 cents amid optimism over the impending drilling results.

Green Technology share price snapshot

The Green Technology share price has soared 140% in the past months and 33% in the past week.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned 1.6% in the past month.

The company commands a market capitalisation of roughly $160.9 million based on the current share price.

The post How has the Green Technology Metals (ASX:GT1) share price surged 60% already this year? appeared first on The Motley Fool Australia.

More reading

• The Green Technology Metals (ASX:GT1) share price jumped 30% to a record high today

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.

from The Motley Fool Australia https://ift.tt/3qnakW9

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

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

Tesla‘s (NASDAQ: TSLA) shareholders have endured some stomach-turning volatility in recent months. After surging to new all-time highs above $1,200 in early November, the electric vehicle (EV) company’s stock price plunged below $900 by late December. 

Tesla’s shares have clawed back most of those losses in recent weeks. Yet after seeing its stock whipsaw, many investors are still struggling to find the answer to an important question: Is the stock a buy today?

Two analysts put forth that it is. Here’s why.

Goldman Sachs analyst Mark Delaney is bullish on Tesla’s shares. On Monday, he reiterated his buy recommendation on the EV giant’s stock and boosted his price forecast from $1,125 to $1,200, or roughly 8% above its current price near $1,106.

Delaney believes Tesla’s stock represents the best way for investors to profit from the long-term growth of the electric vehicle market. He points to the EV titan’s strong fourth-quarter deliveries of over 308,000 vehicles as a sign that Tesla will continue to enjoy strong demand for its cars in the coming years. He also expects the company’s profit margins to improve as it scales its production.

Morgan Stanley analyst Adam Jonas is another Tesla bull. He sees the EV maker’s shares rising roughly 18%, to $1,300.

Like Delaney, Jonas cautioned investors to not overlook Tesla’s impressive fourth-quarter delivery figures. Instead, he believes two powerful takeaways can be gleaned from the report: Tesla is the undisputed EV leader, and it’s widening its lead over its rivals.

So, is Tesla a buy?

If Delaney and Jonas are correct, Tesla stands to benefit from the global shift to electric vehicles more than any other company. That would make its stock an attractive buy, and one that could reward investors handsomely in the coming decade. 

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

The post Tesla stock is back above $1,100. Is the EV leader a buy? appeared first on The Motley Fool Australia.

More reading

• Top 5 stocks mentioned on Reddit’s WallStreetBets right now
• Why Tesla shares jumped 50% last year
• Why Tesla stock just keeps falling
• Could Tesla deliveries double this year?
• Here’s why the Tesla (NASDAQ:TSLA) share price soared 13% overnight

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

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

from The Motley Fool Australia https://ift.tt/3FhJ7IM

The Afterpay Ltd (ASX: APT) share price has failed to build on Wednesday’s gains.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are down 1.5% to $75.80.

Why is the Afterpay share price falling?

The Afterpay share price is under pressure today following a pullback in the Block (previously named Square) share price overnight.

Yesterday Block received the final approval required to implement its takeover of Afterpay. This means that in a matter of days the Afterpay share price will no longer exist and will instead be absorbed into the payment giant.

The combined company will then have a secondary listing on the Australian share market under the SQ2 ticker code. It is due to commence trade on the ASX on 20 January on a deferred settlement basis before trading normally from 2 February.

Should you buy Afterpay shares before they convert to SQ2 shares?

One leading broker that appears to believe that investors should buy Afterpay shares now is Macquarie Group Ltd (ASX: MQG).

The note, courtesy of the Australian, reveals that its analysts feel there’s a buying opportunity here for investors. This is due to their belief that the Square share price is undervalued at the current level.

Macquarie commented: “APT’s share price should trade in line with SQ going forward and whilst the story is a bit more complicated now vs when the proposed acquisition was initially announced in terms of the BNPL operating environment, the potential impact to Cash App from waning government payments, and tech multiples coming in on higher rate expectations, SQ shares are still quite undervalued in our view.”

US growth slows

Though, it is also worth highlighting that Morgan Stanley estimates that the company’s growth in the key US market is slowing.

Yesterday’s note reveals that the broker estimates that Afterpay’s app downloads grew 10% year on year in December in the US. This was notably lower than its rivals. The broker estimates that Affirm’s app downloads grew 90% and Klarna’s grew 70%.

However, if Block integrates the Afterpay BNPL service into its Cash App in 2022, which has over 40 million active users, these lagging download rates won’t be much of a problem.

The post Are Afterpay (ASX:APT) shares a buy before they convert into SQ2 shares? appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX 200 tech shares (ASX:XTX) outperformed today
• Why Afterpay, Appen, Liontown, and Nickel Mines shares are surging higher
• ASX 200 (ASX:XJO) midday update: Afterpay-Block deal approved, Fortescue downgraded
• Afterpay-Block takeover approved: Here’s what happens to your shares
• 5 things to watch on the ASX 200 on Wednesday

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 Afterpay Limited and Block, Inc. The Motley Fool Australia owns and has recommended Afterpay Limited. 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.

from The Motley Fool Australia https://ift.tt/3qlLxBS

Shares in Australia and New Zealand Banking Group Ltd (ASX: ANZ) are inching higher and now trade less than 1% in the green at $28.29.

After trading sideways for the best part of a year, the ANZ share price gathered support in December in line with broad sector strengths and fund flows into ASX financial shares.

Despite this, analysts covering the ASX financials universe at JP Morgan reckon that ANZ will deliver the weakest credit growth amongst all the banking majors in 2022.

In its report covering the outlook of the ASX financials sector in 2022, the broker highlighted that ANZ might be in for some challenges with this key growth metric. Here are the details.

Will ANZ lag its peers in credit growth?

Firstly, in its assessment of the market mechanics for 2022, JP Morgan expects that overall Australian housing credit growth should slow in 2022, given “building headwinds” and a shifting interest rates regime.

The broker notes that most banks have already begun increasing their fixed lending rates. Not only that, but the firm says that APRA is likely to apply more macro-prudential authority, which it thinks “will likely target highly indebted borrowers (i.e. debt-to-income > 6x)”.

Not only that, but housing affordability seems “increasingly stretched” given the level of house price growth in 2021, placing further stress on first-home-buyer demand.

Yet, despite these challenges to the sector, JP Morgan anticipates the majors will “grow their housing books at 5.5% in FY22 (based on system growth of ~7%), while non-housing will be slightly weaker at ~4%”.

Yet, it also notes that credit growth rates between the banking majors are unlikely to be even in FY22. The firm reckons that Commonwealth Bank of Australia (ASX: CBA) will lead the pack in terms of credit growth, forecasting circa 7-8% in housing and non-housing credit growth for FY22, followed by National Australia Bank Ltd. (ASX: NAB) at around 5–6%.

However, the firm expects that ANZ is poised to deliver the weakest credit growth in FY22 across both divisions, “particularly given its issues in Australian housing”.

The firm forecasts around 3% housing credit growth in FY22 for the bank and around 2% non-housing credit growth for the same period.

But it’s not all doom and gloom for the banking giant, says JP Morgan. The broker reckons the compressed growth should shift and then “build towards improved growth in FY23 as it focuses on turnaround times”.

It notes ANZ’s language from 2021 on relevant guidance for the upcoming year, where the bank says “at some point in the second-half, we should be growing in line with our major bank peers”.

Looking out to FY23 and FY24, the broker sees a mild recovery in ANZ’s credit growth, but still lagging most of its peers in that regard.

JP Morgan remains neutral on the direction of the ANZ share price but values the company at $30 per share.

ANZ share price snapshot

In the last 12 months, ANZ has gained 17% after climbing another 3% in the past month alone.

Shares have started the year well and have pushed 3% higher since January 1.

The post ANZ (ASX:ANZ) will lag other majors on this key growth metric in 2022 says top broker appeared first on The Motley Fool Australia.

More reading

• Is Westpac (ASX:WBC) going to be the best big 4 bank for dividends in 2022?
• Could this impact the performance of ASX 200 banks more than interest rates in 2022?
• These were the top 5 ASX 200 bank shares in 2021
• Why is the ANZ (ASX:ANZ) share price having such a fab Friday?
• Here’s why CBA (ASX:CBA) shares have the lowest big four bank dividend right now

The author has no positions 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.

from The Motley Fool Australia https://ift.tt/3GqI3DF

The Fortescue Metals Group Limited (ASX: FMG) share price is continuing its rebound on Thursday.

At the time of writing, shares in the iron ore behemoth are swapping hands for $21.40, up 2.47%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.34% higher in afternoon trade.

The Fortescue share price is still a long way off its 52-week high of $26.58. The share price reached this level in late July when iron ore prices were touching record highs of US$220 per tonne.

Let’s take a closer look at what could be behind the optimism for ASX-listed Fortescue today.

Bad weather constrains Brazil’s iron ore supply

Like any other commodity, the price of iron ore is the product of a supply and demand equation. To the delight of Fortescue shareholders, the output of that equation is looking more favourable for suppliers today.

After retreating to nearly US$90 per tonne in November 2021, iron ore prices have sprung back to life. At present, the price of the steel-making commodity is fetching about US$131.60 per tonne. This places iron ore at a 3-month high — but what’s behind this new momentum?

According to S&P Global, torrential rainfall across Minas Gerais in southeastern Brazil has disrupted iron ore mining operations. Moreover, miners — including iron ore giant Vale — have announced halts across their sites.

Considering Brazil is China’s second-largest iron ore supplier, its production can have significant implications for the iron ore price.

The potential benefit to Fortescue has ASX investors bidding up the iron ore juggernaut today.

Notably, Fortescue’s Pilbara-based mines are continuing their operations, which means the company can capture the higher commodity pricing.

However, commodity analysts are closely monitoring the other side of the pricing equation — demand. The Omicron COVID-19 variant could still impact demand for iron ore in China. Although, Mysteel Research & Consulting is forecasting China’s demand to hold firmly.

Broker’s take on Fortescue share price on the ASX

Recently, analysts over at Citi downgraded Fortescue based on its valuation. In a note, the broker placed a sell rating on Fortescue with a share price target of $17.20. This would suggest a potential downside of nearly 20%.

The Fortescue share price has performed strongly already this year. Fortescue shares are up 7.8% on a year-to-date basis.

The post Fortescue (ASX:FMG) share price up amid rainy days for Brazilian iron ore appeared first on The Motley Fool Australia.

More reading

• Goldman Sachs says buy Rio Tinto and South32 shares but sell Fortescue now
• Why Domino’s, Fortescue, Medibank, and Metcash shares are falling
• Leading brokers name 3 ASX shares to sell today
• ASX 200 (ASX:XJO) midday update: Afterpay-Block deal approved, Fortescue downgraded
• Why this top broker says the Fortescue (ASX:FMG) share price is overinflated

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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.

from The Motley Fool Australia https://ift.tt/3FoL9XN