Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) is home to a large number of quality companies with the potential to generate strong returns for investors in the future.

Two that analysts are particularly positive on are listed below. Here’s why they are tipping them as buys right now:

Breville Group Ltd (ASX: BRG)

The first ASX 200 share to look at is Breville. is one of the world’s leading appliance manufacturers. As well as the eponymous Breville brand, it also has the Sage, Kambrook, and Baratza brands.

Breville has been growing at a consistently solid rate for the last decade and looks well-placed to continue this trend over the next decade. This is thanks to the popularity of its brands, its international expansion, acquisitions, favourable consumer trends, and its continued investment in R&D.

Macquarie is very positive on the company’s future and expects further strong growth in the coming years. Last week its analysts retained their outperform rating and $34.37 price target on the company’s shares. The broker notes that rival DeLonghi and one of Breville’s distributors in the US recently reported strong results. It feels this bodes well for Breville’s performance.

ResMed Inc. (ASX: RMD)

Another ASX 200 share that could be a top option is ResMed. It is a medical device company with a focus on the sleep treatment market.

Thanks to its industry-leading products, wide distribution network, and successful acquisitions, ResMed has been growing at a very strong rate over the last few years.

The good news is that thanks to its significant market opportunity, the growing prevalence of sleep disorders, and new product launches, it has been tipped to continue doing so for the foreseeable future. In addition, ResMed’s near term performance is being boosted by a major product recall from rival Philips.

Morgans is a fan of ResMed. Its analysts currently have an add rating and $40.80 price target on its shares. The broker believes ResMed is well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

The post Analysts name 2 fantastic ASX 200 shares to buy appeared first on The Motley Fool Australia.

More reading

• 3 strong ASX growth shares for investors to buy in December
• Analysts name 3 ASX shares to buy now
• Leading brokers name 3 ASX shares to buy today
• Here’s what top brokers say about the ResMed (ASX:RMD) share price forecast
• These ASX growth shares could be strong buys

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ResMed Inc. 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/3xp8d62

The Electro Optic Systems Holding Ltd (ASX: EOS) share price has tumbled 26% over the last 30 days. Does that make the stock a buy?

Motley Fool Australia analyst Andrew Legget spoke with our chief investment officer Scott Phillips earlier this month to discuss whether the tech company is ripe for investors’ picking.

Interested readers can find their conversation in full here, on The Motley Fool Australia’s YouTube channel. Don’t forget, we post a new ‘Stock of the Week‘ video every Wednesday.

Right now, the Electro Optic share price is $2.51.

Here’s a breakdown of what Legget thinks of Electro Optic shares.

But first, what does Electro Optic do?

Electro Optic is a technology company working within the aerospace market.

Most of the company’s revenue comes from its defence division where it produces remotely controlled weapon systems, ancillary products, fire control systems, and sensor units.

It also has a communication department creating terrestrial and space communications technologies.

The company is also developing SpaceLink – a satellite relay solution.

Electro Optic is also working on other exciting up-and-coming technology within its areas of expertise.

The risks surrounding Electro Optic shares

There are some downsides to Electro Optic shares.

Firstly, as Legget notes, there will always be a level of obscurity surrounding its business. Perhaps understandably, many of its defence contracts include classified information and, therefore, investors must trust the company’s management team.

Additionally, due to geopolitical tensions, Electro Optic will likely be hemmed in to working with only a handful of countries.

Further, as Electro Optic has aligned itself with the United States, Australia, Canada, the United Kingdom, and New Zealand, Legget says it will largely be at the whim of “the big dog in that fight” – the United States.

Together with that sentiment, a drop in governments’ defence spending could prove dire for Electro Optic’s revenue streams.

Finally, the company’s fulfilment of orders was delayed by COVID-19. Thus, a backlog of orders has been hindering its short-term performance. Legget commented:

I don’t think [the backlog is] going to be a long-term issue but, again, it just shows when you’re dealing with a concentrated customer base, when something goes wrong, even if it’s not your fault, it’s going to impact your results.

Is it a buy?

Still, Legget believes Electro Optic shares will be market beaters in the long term.

He says he likes how the company found niches that allowed it a jump start on other companies working in the defence sector.

Electro Optic has also built strong relationships with weapons manufacturers. As a result, it can make sure its products work with other industry offerings.

The company has also grown significantly over the past few years. Legget noted that in 2015, it was generating about $30 million in revenue. But, come 2020, it brought in $180 million.

Electro Optic also currently has an order backlog worth around $397 million. Legget went further to say:

[Electro Optic] do this thing where they risk weight all the potential opportunities based on their likelihood of winning the contract… that risk-weighted figure of potential pipeline in the future, that adds up to $3.1 billion at the moment. So, this is showing that there’s a huge potential market out there which, if it can keep operating as it has, could mean that this company still has a lot of growth ahead of it…

[Electro Optic] is, I think, one of the most innovative businesses on the ASX. It’s operating in a market where there’s a lot of high barriers to entry and it already has an entrenched place in that market. Now, it’s also targeting some really exciting opportunities in the year ahead which, if it can continue executing like it has in the past, means that [the opportunities] should, hopefully, become very lucrative businesses in their own right, and if they do, then I think it’s worth significantly more than what it’s worth right now.

The opinions expressed in this article were as at November 2021 and may change over time.

The post The Electro Optic (ASX: EOS) share price is having a shocker of a month. Is it now a buy? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• Why has the Electro Optic (ASX:EOS) share price sunk 8% in the last week?
• These are the 10 most shorted ASX shares

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings 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/3FIVSws

Today, the S&P/ASX 200 Index (ASX: XJO) decided to end the week in a destructive fashion. At the end of the session, the benchmark index had tumbled 1.73% to 7,279.3 points.

It was a dismal day across the board for ASX shares today. Not a single sector could manage a positive performance. Though the pain was felt most deeply by shares in the energy sector, with a few of the biggest oil and gas companies all falling ~5%.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Today, the list is small to pull from. Only 17 companies out of the 200 in the index moved higher. Without further ado, here are the ten stocks that pulled through:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Zimplats Holdings Ltd (ASX: ZIM) was the biggest gainer today. Shares in the platinum group metals miner gained 3.50% today. This was despite there being no new announcements from the company today. Find out more about Zimplats here.

The next biggest gaining ASX share today was Evolution Mining Ltd (ASX: EVN). The gold mining company climbed 1.72%% to $4.13 on the back of rising gold prices. Uncover the latest Evolution Mining details here.

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

ASX-listed company	Share price	Price change
Zimplats Holdings Ltd (ASX: ZIM)	$22.19	3.50%
Evolution Mining Ltd (ASX: EVN)	$4.13	1.72%
Home Consortium (ASX: HMC)	$7.66	1.06%
Newcrest Mining Ltd (ASX: NCM)	$24.31	1.00%
Chalice Mining Ltd (ASX: CHN)	$9.495	0.69%
Cromwell Property Group (ASX: CMW)	$0.87	0.58%
Latitude Group Holdings Ltd (ASX: LFS)	$2.03	0.50%
Ausnet Services Ltd (ASX: AST)	$2.55	0.39%
Magellan Global Fund (ASX: MGOC)	$2.84	0.35%
Sonic Healthcare Ltd (ASX: SHL)	$41.64	0.29%

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

• Have ASX shares “gone crazy”?
• These 3 ASX 200 shares are topping the volume charts on Friday
• Here’s why the Webjet (ASX:WEB) share price is getting hammered on Friday
• ANZ (ASX:ANZ) share price shrugs off ASIC lawsuit
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Mitchell Lawler owns shares of Sonic Healthcare 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 Sonic Healthcare 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/3r9Bsc4

The Jumbo Interactive Ltd (ASX: JIN) share price has been gradually ascending throughout 2021.

However, the online lottery operator is still nearly 40% below its all-time high. This milestone was set back in October 2019 when shares reached $27 apiece. Soon after this, a reversal in the company’s share price saw it plummet to $8.35 in the space of 5 months.

Now, having reclaimed nearly half of its fall, is the Jumbo Interactive share price a buy?

What’s to like about the Jumbo Interactive share price?

While the Jumbo share price might be lower than where it was in 2019, the lottery operator’s revenue certainly isn’t. For the year ending 30 June 2019, the company reported revenue of $65.2 million. Two years on and Jumbo has grown that amount to $83.3 million.

This amount could be set to increase with one fund manager expecting a change to the Oz Lottery to result in bigger jackpots. As Arden Jennings from Ausbil Investment Management points out, Jumbo holds a leveraged exposure to bigger jackpots.

Furthermore, the company’s efforts to expand internationally in recent years have placed it into the UK and Canadian lottery markets. Jennings is eager to see Jumbo dip its toes into the United States market in the next year or two with a US state lottery acquisition. At the end of June, the company held $63.1 million in cash and cash equivalents on its books.

Jennings is not the only one finding the ASX lottery provider an appealing proposition at the moment. In addition, the team behind Wavestone Capital has picked Jumbo as its entry into the “The Golden Bull” stock picking competition for 2022.

The Sydney-based fund manager likes the potential in the Jumbo Interactive share price now that it has resigned its licensing. From here, the investing team thinks the company will be able to retain its newly acquired customers and beat earnings expectations.

Shares in the company have rewarded investors, returning 22% so far this year.

The post The Jumbo Interactive (ASX:JIN) share price is still almost 40% lower than its all-time high. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• Fundies reveal their 2 top ASX shares for 2022
• Why Jumbo, Link, News Corp, and REA shares are storming higher

Motley Fool contributor Mitchell Lawler owns shares of Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive 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/3rbIwVQ

Some experts are warning that ASX shares have rallied beyond logic and that returns in 2022 will be relatively dismal.

Cheap money from loose monetary policy and quantitative easing (QE) have pushed global asset prices to irrational levels.

That’s the view of global fund manager Schroders, according to the Australian Financial Review.

ASX shares gone wild

“All of this liquidity is starting to drive up prices, housing markets have boomed everywhere, and stockmarkets have gone crazy,” the AFR quoted Martin Conlon, head of Australian equities for Schroders.

“[This is] not exactly what you think would happen when we have just come out of a pandemic with decimated economies.”

“A lot of areas of the stockmarket have degenerated into gambling now…. There are plenty of danger signs that would suggest that we are absolutely in a bubble market now.”

Poor returns in 2022 for ASX shares?

The concern about the overvaluation of ASX shares and the waning monetary tailwinds have prompted JPMorgan to warn investors to expect paltry returns in the new year.

The broker is forecasting returns of just 4% in 2022 for a typical portfolio that consists of 60% ASX shares and 40% bonds, reported the AFR.

It’s shares that will be doing the heavy lifting as JPMorgan is expecting this asset class to deliver 5% returns. This is significantly below the 8% average return on the S&P/ASX 200 Index (Index:^AXJO) over the last 10 years.

Tailwinds turning into headwinds

Central banks around the world, including ours, have pared their QE programs. This is where central banks purchase select assets, like government bonds, from the secondary market.

The purchases keep bond yields (and borrowing costs) down and pump trillions of dollars through the global financial system.

Record low interest rates added fuel to the fire. You only need to look at record breaking surge in Australian residential prices to see the effects of low rates and QE.

But interest rates are moving higher and this tailwind will soon turn into a headwind for ASX shares.

Where to get better returns

JPMorgan believes investors will have to look outside of traditional asset classes to get better returns.

These include investing in real assets, such as infrastructure and transport. This means instead of buying ASX shares like Qube Holdings Ltd (QUB) or Transurban Group (ASX: TCL), they should invest directly in a port or a toll road.

Of course, most retail investors won’t be able to do this directly themselves. They will need to invest via a fund – not that I am accusing JPMorgan of talking up their own book.

The post Have ASX shares “gone crazy”? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Friday
• Here’s why the Webjet (ASX:WEB) share price is getting hammered on Friday
• ANZ (ASX:ANZ) share price shrugs off ASIC lawsuit
• 5 things to watch on the ASX 200 on Friday
• 2 high quality ASX shares for a retirement portfolio

Motley Fool contributor Brendon Lau 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/3xCEKpH

The Macquarie Group Ltd (ASX: MQG) share price finished the day in the red on Friday.

At the closing bell, shares in one of Australia’s largest financial institutions were down 3.22% to $195.28. The weakness follows reports shared by ABC News that Macquarie has found itself at the heart of an investigation into an $80 billion scandal.

However, Macquarie is not alone in the hot water, being one of 100 banks and financial institutions under the microscope. The scandal stems from a German tax loophole believed to have been exploited between 2001 and 2012.

What is the German tax scandal?

On Friday, the Macquarie share price fell as the tax scandal deepened. The scheme that has been dubbed the “biggest bank scandal in history” essentially involved the double-dipping of a tax refund. To do this, financial institutions engaged in rapid trading of shares in the European Union.

In short, to tax authorities, it appeared as though there were two simultaneous owners of the shares with and without dividend rights. Even foreign investors were able to claim tax reimbursements on shares that weren’t actually owned by them.

Macquarie’s involvement involves the lending of money to carry out an increased volume of such trades. In October 2010, the board of Macquarie convened to discuss a proposal to provide hundreds of millions to overseas funds. In return, the investment bank would receive up to $30 million for each lending agreement.

Despite the company’s legal team giving it the go-ahead, there was a sense of haziness around the legalities of the trades. For instance, a memo to the board for deliberation read:

The risk of reputational damage remains should the German authorities take action against the funds. lt is difficult to quantify the reputational risk associated with this transaction and we suggest [the Executive Committee] weigh this against the anticipated returns.

A blow to the Macquarie share price

Today’s revelation involves new documents found through a joint investigation between the ABC and German news outlet, Correctiv.

These documents indicate that Macquarie engaged in the German tax scheme, overlooking the risks it was presented with of reputational damage and legal issues.

For example, an email detailing the risk of transactions being classed as tax fraud was received by current CEO Shamara Wikramanayake. After forwarding to colleagues, the concerns were dismissed. Soon after the board approved the proposal to fund such trades.

It is believed Macquarie has since paid back roughly $150 million. The loophole was removed by the German government in 2012.

A Macquarie spokeswoman issued a statement to the ABC saying the bank continued to “cooperate constructively with German authorities”. However, it was “unable to comment further”.

For shareholders, the concern may lay in what the total costs could amount to with the investigation ongoing. Ironically, earlier this week the Macquarie share price had pipped another ASX bank to become one of the big four.

The post Macquarie (ASX:MQG) share price dips amid leaked emails surrounding German tax scandal appeared first on The Motley Fool Australia.

More reading

• Own ANZ (ASX:ANZ) shares? Here’s how the bank just got booted out of the big four
• Macquarie (ASX:MQG) is now a big four bank
• Macquarie shares are very well placed for the long term: fund manager
• ASX 200 (ASX:XJO) midday update: Lithium miners jump, Flight Centre tumbles
• Three quality ASX shares likely to outperform in 2022: fund manager

Motley Fool contributor Mitchell Lawler owns shares of 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 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/3FPOH5I

The Boral Ltd (ASX: BLD) share price has dropped into the red these last few weeks. At the time of writing, shares in the construction materials supplier are down around 2.8% since the start of November. They are now trading at $6.23 apiece.

For comparison, the benchmark S&P/ASX 200 index (ASX: XJO) has lost 1.27% over the same timeframe.

Let’s take a look a what’s been weighing the Boral share price down lately.

Sentiment is low right now

Analysts at several investment firms aren’t too rosy on the outlook for the Boral share price. For instance JP Morgan thinks earnings for Boral’s local construction materials business are at “trough” levels.

It also questioned if management can deliver on its $200 million – $250 million transformation programme in Australia. The firm also notes Boral’s language on an approximate $16 million hit from enforced lockdowns in July.

JP Morgan is also uncertain if Boral can recover lost volumes from these enforced lockdowns, given this is expected to have a drag of around $50 million in Q1.

Fellow investment bank UBS believes Boral might face challenges regaining its core margins until there is a rebound in the NSW housing market.

UBS also notes Boral has made several divestments of late, saying growth of its underlying business might suffer as a result of the slimmer operations.

Jefferies feels the same way and reckons Boral needs to do a double-check on its debt portfolio. The firm notes Boral has US$1.25 billion in debt across 8 US senior notes, with expiries ranging from November 2022 to November 2030.

Don’t forget Boral has to pay the 3% to 4.58% coupon (interest) on these bonds on each date over the next 8 years when the payments fall due.

Linking to what UBS said, Jefferies notes there will likely be no hedge against this debt, given Boral will likely make the full exit from North America.

None of this suggests good news for the Boral share price. However, the broad sector is behind as well. Just as Boral has copped it, it’s also been a bumpy ride these past 3 months for the S&P/ASX 200 Materials Index (ASX: XMJ).

The index has fallen by 14% since mid-August, although it has been recovering somewhat in recent weeks. Nonetheless, this performance indicates that investors aren’t exactly diving into the sector either.

Boral share price snapshot

Despite the headwinds this past month, over the past year Boral shares have returned around 22%. The Boral share price has also gained 26% this year to date.

This is ahead of the benchmark index’s return of around 10% in the last 12 months.

The post Why is the Boral (ASX:BLD) share price having such a lousy month? appeared first on The Motley Fool Australia.

More reading

• Why are these top brokers bearish on the Boral (ASX:BLD) share price?
• Top brokers name 3 ASX shares to sell next week
• Why UBS just downgraded its rating on Boral (ASX:BLD) shares
• Here are the top 10 ASX shares today
• Why is the Boral (ASX:BLD) share price climbing today?

The author Zach Bristow 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/3HUEqHq

This expert believes S&P/ASX 200 Index (ASX: XJO) companies will be reining in their dividend payouts next year, but those belonging to one sector might not.

Tribeca Investment Partners portfolio manager Jun Bei Liu thinks ASX 200 retailers will be boasting strong cash balances in 2022, leading to larger than average dividend returns.

Will 2022’s dividends to lag 2021’s?

Liu’s prediction comes after the total dividends paid by ASX shares in financial year 2021 were found to have increased 126% on a headline basis to $41.9 billion.

As my Foolish colleague Mitchell reported, the dividend surge was supported by strong returns from ASX 200 banks and miners.

But that might be about to change. Here’s why Liu believes that those who hold retail shares might be receiving impressive dividends in 2022.

ASX 200 retailers might lead 2022 dividends

Liu told The Age that she is looking to retailers to lead the dividend push in 2022 as they bank their cash from the pandemic. The publication quoted Liu as saying:

So far, we haven’t seen significant cash return from retailers – we’ve seen some – but there will be more… We think by February-March, you should start seeing retailers talking about it, and by August next year we’ll see pretty strong dividend returns.

However, she believes geopolitical tensions might weaken payouts. Such tensions might harm already rocky supply chain disruptions, increasing volatility, Liu commented:

The minute the market becomes more volatile, corporations will try to hold on to cash. They won’t pay it out.

It’s only prudent. So, this is something that will weigh on corporates’ intention of paying out dividends.

ASX 200 retail shares with strong dividend yields include:

• Adairs Ltd (ASX: ADH). According to Commsec, the home furnishings retailer has a dividend yield of 6.1%.

• JB Hi-Fi Limited (ASX: JBH), which Commsec states has a dividend yield of 5.3%.

• Harvey Norman Holdings Limited (ASX: HVN). Commsec lists the furniture retailers dividend yield at 6.4%.

The post Could ASX 200 retail shares deliver some dividend surprises in 2022? appeared first on The Motley Fool Australia.

More reading

• Why Adairs, EML, Fisher & Paykel Healthcare, and NRW are storming higher
• ASX retail shares in focus as CBA forecasts bumper Black Friday weekend
• Here’s why the Adairs (ASX:ADH) share price is rocketing 8% this morning
• Analysts rate these 2 ASX dividend shares as buys
• Harvey Norman (ASX:HVN) share price falls as profit before tax sinks 35.5%

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 shares of and has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO and Harvey Norman Holdings 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/3latOu5

The S&P/ASX 200 Index (ASX: XJO) seems to be intent on finishing the week on a sour note. At the time of writing, the ASX 200 is currently down by a nasty 1.97% at 7,261 points, falling steadily all day so far.

But rather than dwelling on the market’s attempts to ruin our weekend, let’s instead check out the ASX 200 shares that are currently topping the trading volume charts today, according to investing.com.

3 most active ASX 200 shares by volume this Friday

Telstra Corporation Ltd (ASX: TLS)

Blue chip telco Telstra is our first share to look at today. This ASX 200 giant has had a hefty 13.57 million of its shares swap hands so far this Friday. There have been no major news or announcements out of Telstra today. As such, we can probably place this elevated volume at the feet of the 1.24% slide to $4.03 a share that this company has endured so far. As we mentioned yesterday, Telstra is also continuing to conduct share buybacks, so this might be adding to these volumes as well.

Spark Infrastructure Group (ASX: SKI)

The renewables company Spark Infrastructure is next up today. Spark has watched a chunky 13.75 million of its shares bought and sold so far this Friday. This comes as the company announced this morning that it has received approval from the Supreme Court of New South Wales for the takeover offer from a consortium of institutional investors to acquire Spark in full. It now looks more likely than ever that Spark will soon be leaving the ASX boards for good. It’s this move that might have… sparked… so many shares trading this Friday.

Pilbara Minerals Ltd (ASX: PLS)

And our third, final and most traded ASX 200 share so far today goes to lithium producer Pilbara with a sizeable 14.37 million shares finding new owners on the markets so far. Again, there’s no official news out of Pilbara today, so this high volume is probably the result of the beating that Pilbara shares are going through as well. The company is currently down a depressing 2.3% so far today at $2.55 a share. It’s this slide that is probably the cause behind Pilbara making second place on this list.

The post These 3 ASX 200 shares are topping the volume charts on Friday appeared first on The Motley Fool Australia.

More reading

• Here’s why the Webjet (ASX:WEB) share price is getting hammered on Friday
• The Telstra (ASX:TLS) share price is having a good month. Here’s why these top brokers are expecting more of the same
• ANZ (ASX:ANZ) share price shrugs off ASIC lawsuit
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today

Motley Fool contributor Sebastian Bowen owns shares of 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 shares of 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.

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

The Commonwealth Bank of Australia (ASX: CBA) share price is in the red today, down 1.1% in afternoon trading.

That’s less than the 1.9% loss posted by the S&P/ASX 200 Index (ASX: XJO). Many blue-chip shares – particularly ASX 200 travel shares – have come under pressure from news of a new COVID variant emerging and spreading out of South Africa.

That’s today’s price action.

Below we take a look at what put CommBank in the news this week.

Brokers take bearish view on the CBA share price

The CBA share price is down 3% since last Friday’s closing bell. This was mostly driven by a 2.1% fall on Monday.

On Monday, the Motley Fool reported on what a number of leading brokers think about CommBank’s valuation. And most, as my Foolish colleague Zach Bristow reported, were bearish on the CBA share price.

Goldman Sachs recently cut its price target for CommBank to $81.74. That’s almost 14% below the current $94.72 per share. The broker aired concerns that Australia’s largest bank could lose market share in its mortgage business to increased competition from the other big banks.

Morgan Stanley and Macquarie Group Ltd (ASX: MQG) also believe the CBA share price is in for some headwinds, with both brokers having a price target of $87.50. Morgan Stanley lists CommBank’s shares as underweight while Macquarie gave the bank an underperform rating, citing, among other issues, the rock-bottom interest rate environment impacting the bank’s margins.

What’s in store for the Black Friday weekend?

If you’re wondering how retail sales might come off over the weekend, CBA had some encouraging news for ASX retail shares yesterday.

According to CommBank’s head of consumer and diversified industries in CBA’s Business Banking division, Jerry Macey:

The increase in sales in 2020 in comparison to 2019 bodes well for the Black Friday sales this coming weekend. Shoppers across the country are increasingly taking advantage of the recent move towards pre-Christmas discounting and we would expect this trend to continue this year.

CBA share price snapshot

The CBA share price hit all-time highs of $110.13 per share on 8 November. Since then it’s retraced by almost 14%, currently trading for $94.72.

Even with that retrace, CBA shares remain up around 15% year-to-date, compared to a 2021 gain of 10% posted by the ASX 200.

The post What’s happening with the CBA (ASX:CBA) share price this week? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• ASX retail shares in focus as CBA forecasts bumper Black Friday weekend
• Macquarie (ASX:MQG) is now a big four bank
• Is the CBA (ASX:CBA) share price premium relative to other big banks justified?
• Leading brokers name 3 ASX shares to sell 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 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/3nPYFy2