Category: Stock Market

The Telstra Corporation Ltd (ASX: TLS) share price will be one to watch on Monday.

This follows the release of an acquisition announcement this morning.

Why is the Telstra share price on watch?

All eyes will be on the Telstra share price at the open after it revealed that it is partnering with the Australian Government to acquire the South Pacific-based telco, Digicel.

According to the release, the telco giant and Australian Government have agreed to pay US$1.6 billion upfront and up to an additional US$250 million. The latter is subject to business performance over the next three years.

Although the Digicel business will be owned and operated by Telstra, it will only be contributing US$270 million of equity to the US$1.6 billion purchase price. The Australian Government, through Export Finance Australia, is providing the remaining US$1.33 billion through a combination of non-recourse debt facilities and equity like securities. Telstra will own 100% of the ordinary equity.

“An important milestone”

Telstra’s Chief Executive Officer, Andrew Penn, notes that the partnership represents an important milestone in the company’s relationship with the Australian Government. He also highlights that Digicel Pacific is a commercially attractive asset.

Mr Penn commented: “Digicel Pacific is a commercially attractive asset and critical to telecommunications in the region.”

“Digicel enjoys a strong market position in the South Pacific region holding a strong number one position in all markets other than Fiji where it is the number two.”

The release notes that the combined business generated EBITDA of US$233 million for the financial year ended 31 March, with a strong margin. In light of this, the transaction is expected to deliver an attractive IRR and exceeds all Telstra M&A criteria. This includes being earnings per share accretive, ROIC above WACC, and more accretive than a share buyback.

Mr Penn added: “Telstra provided guidance to the market for FY22 at its recent full year results presentation and it also provided aspirations for FY23. These did not include any allowance for the Digicel Pacific acquisition which will further enhance our outlook depending on the timing of completion.”

Telstra’s CEO also stressed that the acquisition will not distract the company from its goals.

He explained: “The transaction does not distract from Telstra’s T22 or T25 strategies and represents a unique commercial opportunity. It is consistent with the Australian Government’s interest in encouraging quality investment in the Pacific, the financial arrangements make it very attractive for Telstra and it strengthens our relationships with the Australian Government and the Pacific region. The Board unanimously believes the transaction is in the best interests of shareholders and it is on this basis that Telstra has agreed to proceed with the acquisition.”

The Telstra share price is up 24% in 2021.

The post Telstra (ASX:TLS) share price on watch after announcing US$1.6bn Digicel acquisition appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 dividend shares have investors been heavily trading this week?
• These 3 ASX 200 shares are topping the volume charts this Friday
• What’s been happening with the Telstra (ASX:TLS) share price this week?
• These 3 ASX 200 shares are topping the volume charts on Thursday
• 2 top ASX shares with generous fully franked dividend yields

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 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.

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Could the Commonwealth Bank of Australia (ASX: CBA) share price be a good one to consider right now?

At the moment, CBA shares are currently at more than $100. That puts the CBA market capitalisation at around $179 billion according to the ASX.

Whilst it’s one of the largest businesses on the ASX, it is also one that generates one of the biggest profits. In FY21 it made $8.8 billion of statutory profit. The CBA profit is more than the market caps of most businesses on the ASX.

The big bank has been seeing a recovery from the impacts of COVID-19, which were particularly felt during FY20.

FY21’s profit increased by almost 20% to $8.84 billion because of improved economic conditions and outlook resulting in a lower loan impairment expense and a “strong” operational performance.

The loan impairment expense declined by 78% to $554 million. CBA said that it has maintained a “strong” provision coverage ratio of 1.63%, reflecting the economic uncertainty from the continuing impacts of COVID-19.

Whilst the net interest margin (NIM) declined 4 basis points to 2.03% because of higher liquid assets and the ongoing impact of a lower interest rate environment, the balance sheet continued to improve. The common equity tier 1 (CET1) capital ratio, showing a measure of strength of the balance sheet, rose by 150 basis points to 13.1%. The bank pointed out that this is above APRA’s ‘unquestionably strong’ benchmark of 10.5%.

Profitability and the balance sheet can have an impact on the CBA share price.

Large shareholder returns

When CBA unveiled its FY21 result, it decided that it would reward shareholders very handsomely after a difficult FY20.

The board decided to increase the full year dividend by 17% to $3.50 per share. CBA’s leadership decided on that level of a dividend because it was supported by the bank’s strong capital position.

But on top of that, CBA also announced a $6 billion off-market share buy-back.

Regarding the buy-back, the big four bank said that:

The group’s strong capital position and our progress on executing our strategy mean we are well placed to support our customers and manage outgoing uncertainties, while also returning a portion of excess capital to shareholders.

CBA referenced that strategic divestments have generated $6.2 billion in excess capital since 2018. The bank explained that it was the most efficient and appropriate way to commence the return of surplus capital, as shareholders will benefit from a lower share count that will support return on equity and dividends per share.

Is the CBA share price an opportunity?

There are lot of sell, or equivalent, ratings on CBA at the moment.

One of the latest ratings is from Morgan Stanley, which rates CBA as a sell with a price target of $90. That implies the broker thinks that CBA shares are going to fall by more than 10% over the next 12 months.

The broker notes that the tougher lending standards set by APRA could mean less Australian loans compared to if there had been no changes. That could be impactful on CBA in-particular because of how much of its profit comes from the Australian residential market.

Using Morgan Stanley’s FY22 numbers, the CBA share price is valued at 21x FY22’s estimated earnings with a forward grossed-up dividend yield of 5.4%.

The post Is the CBA (ASX:CBA) share price a great deal right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 last 18 months have been outstanding for Australian shares, with the S&P/ASX 200 Index (ASX: XJO) gaining more than 53% since the March 2020 COVID-19 trough.

But this also means there are a lot of expensive shares out there. It’s not really a buyer’s market, one could say.

But one expert reckons it’s found a reliable large-cap ASX stock that’s going for substantially cheaper than the rest of the market.

“We estimate Seven Group Holdings Ltd (ASX: SVW) is trading on a P/E multiple of sub 14x FY22 earnings, which is about a 25% discount to the S&P/ASX 200, and in our mind an undemanding valuation,” said Airlie Funds analyst Joe Wright in a memo to clients.

Seven Group Holdings is a conglomerate that owns multiple industrial businesses, as well as its better-known namesake, free-to-air television channel Seven West Media Ltd (ASX: SWM).

Shares for Seven Group closed down 1.95% on Friday, selling for $21.12. The stock has lost around 9.5% this year so far.

“In listed equities ‘conglomerate’ is a dirty word,” Wright said.

“It can imply complexity, opacity and bloat, where the corporate structure of the company sits at odds with interest of the shareholders, and many investors choose to avoid conglomerates for these reasons.”

So why is Airlie Funds bullish on Seven Group shares?

Two gems floating in a sea of mediocrity

Two of Seven Group’s arms are mining services brand WesTrac and equipment rental provider Coates.

According to Wright, these types of business are “often unloved” by investors because of their “volatile returns and capital intensity”.

But Airlie Funds sees gems in these two subsidiaries.

“In our mind, WesTrac and Coates are quality businesses sitting within mediocre industries, pushed further out of sight by the conglomerate structure of Seven,” said Wright.

“While investors digest the highly publicised on-market takeover of Boral Limited (ASX: BLD) or lament the decline of the namesake free-to-air TV business, WesTrac and Coates quietly demonstrate their quality and form the majority of our valuation of Seven.”

Seven’s ‘sum of parts’ are bigger than current share price

Wright reckons the strength of WesTrac and Coates makes the total worth of the Seven conglomerate higher than what the current market capitalisation suggests.

This is provided management successfully implements the promised transformation program and “unlocks additional value in the non-core property portfolio”.

“In our ‘sum of the parts’ analysis of the business, we see upside to the current share price when taking a more mid-cycle view of the earnings of WesTrac and Coates, and before including any material valuation upside to the Boral business.”

The other ace up Seven’s sleeve is the concentrated ownership.

“Seven remains 60% owned by the Stokes family, with Kerry Stokes in the chairman role and his son Ryan as CEO,” said Wright.

“In our view this gives shareholders significant alignment with the board and management, and we have found that through time founder-led businesses tend to consistently outperform the broader index.”

The post Why this quality ASX 200 share is seriously cheap: expert appeared first on The Motley Fool Australia.

More reading

• Why has the Boral (ASX:BLD) share price jumped 5% since the start of this month?

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

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On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a mildly positive note. The benchmark index rose slightly to 7,415.5 points.

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

ASX 200 expected to rise

The Australian share market looks set to have a positive start to the week. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.4% higher this morning. This is despite a mixed ended to the week on Wall Street, which saw the Dow Jones rise 0.2%, the S&P 500 fall 0.1%, and the Nasdaq drop 0.8%.

Oil prices rise

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a solid start to the week after oil prices pushed higher on Friday night. According to Bloomberg, the WTI crude oil price is up 1.5% to US$83.76 a barrel and the Brent crude oil price has risen 1.1% to US$85.53 a barrel. Prices rose amid tightening US supply.

Elders named as a buy

The Elders Ltd (ASX: ELD) share price could be great value according to analysts at Goldman Sachs. This morning the broker put a conviction buy rating and $15.65 price target on the agribusiness company. This implies potential upside of ~37%. Goldman believes it is a compelling growth opportunity underpinned by strong fundamentals.

Gold price rises

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could start the week strongly after the gold price stormed higher on Friday night. According to CNBC, the spot gold price rose 0.8% to US$1,796.30 an ounce. A softening US dollar boosted the price of the precious metal.

Iron ore price rebounds

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares could rise today after the spot iron ore price pushed higher on Friday night. According to Metal Bulletin, the benchmark iron ore price rose 2.2% to US$119.52 a tonne. The low grade iron ore price climbed 3.7%, which will be good news for Fortescue shareholders.

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

More reading

• Can the Northern Star (ASX:NST) share price hit $13 by Christmas?
• The Woodside (ASX:WPL) share price fell 8% this week. But there is some good news
• Top brokers name 3 ASX shares to buy next week
• These were the best performing ASX 200 shares last week
• Can the Newcrest (ASX:NCM) share price hit $32 by the end of 2021?

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 Elders 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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Might it be possible that the Northern Star Resources Ltd (ASX: NST) share price could rise to $13 by Christmas?

Brokers regularly update their price targets for businesses. That is where a broker believes that the share price of the company will be in 12 months.

Recently, some brokers updated their price targets for the Northern Star share price.

Price target on the Northern Star share price

The brokers at Macquarie Group Ltd (ASX: MQG) have a price target on the business of $13. That suggests that the analysts believe that the gold miner’s shares could rise by around 37% over the next year. That’s not necessarily where the broker thinks the Northern Star share price will be at Christmas, though it does indicate the direction Macquarie thinks that Northern Star shares are headed.

This current price target was decided in reaction to the gold miner’s latest quarterly update.

FY22 first quarter

Northern Star said in the first three months of FY22, to September 2021, it said that the gold sold total was 386,160 ounces at an all-in sustaining cost (AISC) of A$1,594 per ounce (or US$1,180 in US dollar terms).

The company broke this down into three separate areas.

Kalgoorlie saw 232,324 ounces of gold sold at an all-in sustaining cost of A$1,533 per ounce.

Yandal saw 109,844 ounces of gold sold at an all-in sustaining cost of A$1,345 per announce.

Pogo saw 43,992 ounces of gold sold at an all-in sustaining cost of US$1,751 per ounce.

The group all-in cost (AIC) was A$1,933 per ounce.

Northern Star said that, as it had previously told the market, the planned FY22 production is weighted towards the second half, driven by increasing grades at Yandal and increasing mining rates at Pogo. The AISC is expected to fall over the year.

Guidance for the whole financial year can have an impact on the Northern Star share price. The large gold miner said that it’s on track to meet FY22 guidance of between 1.55 million to 1.65 million ounces at an AISC of between A$1,475 per ounce to A$1,575 per ounce.

In terms of the financial numbers, the three months to September saw an average realised price of A$2,345 per ounce, leading to sales revenue of A$848 million. This helped the business generate cash earnings of between A$165 million to A$175 million.

At the end of September 2021, it had cash and bullion of A$756 million after paying A$110 million in dividends and investing A$123 million in net growth capital and exploration.

The corporate bank debt reduced to A$262 million, using funds that were received from the Kundana asset sale (for $400 million).

Its hedge book was 839,819 ounces at an average price of A$2,347 per ounce at 30 September 2021.

In terms of the growth projects, it said that it’s progressing in line with its strategy to become a 2 million ounces per year producer by FY26, Kalgoorlie Consolidated Gold Mines (KCGM) open put development and Thunderbox mill expansion in Yandal.

Macquarie thinks that Pogo could be a driver for Northern Star.

Northern Star share price valuation

On Macquarie’s numbers, Northern Star shares are valued at 58x FY23’s estimated earnings with a grossed-up dividend yield of 3.3%.

The post Can the Northern Star (ASX:NST) share price hit $13 by Christmas? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Northern Star (ASX:NST) share price wanes as quarterly production falls
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• Could renewed inflation fears rekindle these ASX 200 gold shares?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Last week was a reasonably disappointing one for the CSL Limited (ASX: CSL) share price.

Despite releasing its research and development (R&D) update for 2021, the biotherapeutics company’s shares ended the period with a weekly decline of 0.5%.

What was the reaction to the R&D update?

The team at Goldman Sachs looked through the update and have given their verdict.

According to the note, one of the products under development that the broker is most positive on is CSL112. This is a potential treatment for early recurrent cardiovascular events following an acute myocardial infarction.

Goldman commented: “Across the pipeline, we believe CSL112 represents the most material opportunity, and remains the primary focus amongst the investor base.”

It notes that CSL112’s final phase three interim analysis is now targeted before July 2022 instead of September/October 2022.

What else?

Goldman also spoke positively about its EtranaDez product candidate.

It said: “EtranaDez offers potential for functional cure in hemophilia B. In May-2021, CSL acquired global rights from UniQure to EtranaDez, a first-in-class and potentially best-in-class gene therapy targeting hemophilia B.”

The broker has previously spoken about how this product could be a significant contributor to revenue in the future if all goes to plan.

Is the CSL share price good value?

Goldman concluded: “Based on today’s update, we update our pipeline valuation framework, primarily reflecting: 1) the incorporation of EtranaDez for the first time (leading heme B gene therapy); 2) a modest increase in PoS for CSL112 (from 10% to 15%), reflective of successful navigation of second futility analysis.”

“However, we also factor several clinical delays across the pipeline (largely reflective of challenges associated with Covid-19). Incorporating these changes, we upgrade our risk-adjusted pipeline valuation to A$57/share, from A$44 (non risk-adjusted: A$205, from A$200).”

This ultimately led to the broker retaining its neutral rating but lifting its price target on the CSL share price to $305.00.

Based on the current CSL share price of $295.86, this suggests there is just modest upside of 3.1% for investors at present.

The post What Goldman Sachs is saying about the CSL (ASX:CSL) share price after its R&D update appeared first on The Motley Fool Australia.

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• The CSL (ASX:CSL) share price is up just 3% so far in 2021. Here’s why
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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 shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Wesfarmers Ltd (ASX: WES) share price has been a solid performer this year.

Since the start of the year, the conglomerate’s shares have risen just over 11% to $57.31.

Where next for the Wesfarmers share price?

Unfortunately for shareholders, one leading broker believes the Wesfarmers share price is overvalued now.

According to a note out of Citi, its analysts have retained their sell rating and $49.00 price target on the company’s shares.

Based on the current Wesfarmers share price, this implies potential downside of 14.5% over the next 12 months.

What did the broker say?

Citi notes that the company released an update at its annual general meeting last week.

In response to the release, the broker saw no reason to change its rating on the Wesfarmers share price, believing it is overvalued at the current level.

Citi commented: “While no quantitative trading update has been provided, AGM commentary on how the businesses are performing was similar to that provided at the FY21 result and therefore there were no real surprises.”

“Online is naturally lifting to partially offset the loss of sales from store closures. Bunnings has also seen strong commercial sales, but combined with online has not fully offset the impact of store closures. Kmart and Target were most impacted by store closures while Officeworks continues to benefit from customer demand for technology and furniture, though is margins dilutive.”

“The non-retail businesses appear to be performing well with Wesfarmers noting strong demand for ammonium nitrate and favourable LPG pricing. We make no changes to our earnings estimates and maintain our Sell rating on the basis of valuation with a $49.00 target price,” the broker concluded.

The post Why Citi has a sell rating on the Wesfarmers (ASX:WES) share price appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Own Wesfarmers shares? Here’s why the company is shifting with the times
• 5 things to watch on the ASX 200 on Thursday
• Here’s why the Wesfarmers (ASX:WES) share price is down 4% in a month
• What’s up with the Wesfarmers (ASX:WES) share price 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 owns shares of 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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The AMP Ltd (ASX: AMP) share price was on form last week and pushed 3% higher following its quarterly update.

This means the financial services company’s shares are now up 21% since the time last month.

Can the AMP share price keep rising?

One leading broker has been looking at the company’s third quarter update and given its verdict on the AMP share price.

According to a note out of Citi last week, its analysts have retained their high risk neutral rating and $1.25 price target.

Based on the current AMP share price of $1.17, this implies potential upside 6.8% for investors. Or 11% including Citi’s FY 2022 dividend estimate of 5 cents per share.

What did the broker say?

Citi notes that the company’s third quarter update was a little mixed.

It commented: “Overall AMP’s 3Q cashflows are a little weaker than we expected with a modest deterioration in flows for AWM removing the early release of super impact in pcp and sizeable outflows from AMP Capital, albeit a large proportion of this was previously flagged. North flows, however, rebounded. Bank loan growth was also a bit better than expected, while NZ also saw modest net outflows. Factoring this in sees very little change to our estimates, although we have also reassessed AWM’s likely margins etc, reducing our EPS by 4% in FY22E & 2% in FY23E.”

And while it sees value in the AMP share price, it isn’t enough for a change of rating due to high levels of uncertainty. Though, this could change after its investor day event next month.

Citi concluded: “AMP may be offering value but it remains too hard to tell currently with so many moving parts. We are, however, hopeful that the upcoming 30th Nov investor day may help to clarify some of these. In the meantime, we retain our Neutral/High Risk call and A$1.25 TP.”

The post What this broker thinks of the AMP (ASX:AMP) share price after its update appeared first on The Motley Fool Australia.

More reading

• Why AMP, Aristocrat, Brainchip, and Healius shares are racing higher
• AMP (ASX:AMP) share price gains 3% despite FUM falling by $7b
• Can the AMP (ASX:AMP) share price hit $1.25 by Christmas?
• Here’s what happened to the AMP (ASX:AMP) share price in the FY21 third quarter
• AMP (ASX:AMP) share price lifts amid new board appointments

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 Woodside Petroleum Limited (ASX: WPL) share price slid this week despite the company reporting increased quarterly revenue on Thursday.

While the week was a struggle for the oil and gas producer’s stock, its United States subsidiary had exciting news.

It’s decided to work with Bill Gates-backed renewable energy technology company Heliogen to create a commercial scale artificial intelligence (AI)-enabled concentrated solar energy system.

The Woodside Petroleum share price slumped 7.59% over the course of this week. It finished Friday’s session at $23.27, 2.8% lower than it ended Thursday’s trade.

For context, the S&P/ASX 200 Index (ASX: XJO) gained 0.7% over the same week. Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) fell 4.3%.

Let’s take a closer look at the partnership between Heliogen and Woodside.

Woodside share price falls despite Heliogen agreement

As the Woodside share price fell, Heliogen announced the companies will create a 5-megawatt demonstration facility for Heliogen’s “breakthrough technology” in California.

The solar technology aims to provide renewable power nearly 100% of the time.

The facility will use computer vision software to align an array of mirrors. Those mirrors will reflect sunlight into a target atop a solar tower. Therefore, it will be able to provide low-cost storage in the form of high-temperature thermal energy.

Customers of the technology can choose to add additional technology to their systems. Examples of such would be thermal energy storage systems, a turbine for power generation, and electrolysers for green hydrogen production.

Additionally, the companies have agreed to jointly market Heliogen’s technology in the United States and Australia.

Under the marketing agreement, the companies are considering building more renewable energy projects and, potentially, replicating the demonstration facility internationally.

They’re also talking about designing and selling industrial-scale, cost-competitive, integrated renewable energy and hydrogen solutions in the United States.

Excitingly, Woodside would take on the marketing rights for Australia.

What did management say?

Woodside’s CEO Meg O’Neill commented on the company’s collaboration with Heliogen. She said it demonstrated Woodside’s focus on developing innovative technologies for low-cost, lower-carbon energy:

Heliogen’s innovative technology could play a key supporting role in development of Woodside’s zero-carbon hydrogen and ammonia business, which would rely on access to abundant and reliable renewable power.

We are also excited about the marketing rights for Heliogen’s technology in Australia, where our abundant solar energy resources support application of this technology in remote power generation and other industrial processes.

Heliogen CEO and founder Bill Gross also commented:

Heliogen’s AI-enabled concentrated solar technology has the potential to transform heavy industry by turning sunlight into a zero-carbon source of heat, power and hydrogen that is nearly always available… As the energy sector is ripe for applications of green hydrogen fuels and decarbonisation strategies, Woodside is an ideal collaborator for our breakthrough solar technology, which will support the operational characteristics of heavy industry.

The Woodside share price is up less than 1% this year to date, but has climbed 25% over the past 12 months.

The post The Woodside (ASX:WPL) share price fell 8% this week. But there is some good news appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 energy shares take a breather, broker sees “lot of upside risk” for oil
• Woodside (ASX:WPL) share price dips despite quarterly revenue lift
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

BHP Group Ltd (ASX: BHP)

According to a note out of Morgans, its analysts have upgraded this mining giant’s shares to an add rating with an improved price target of $46.05. The broker believes the recent weakness in the BHP share price could be a buying opportunity for investors. Particularly given how it feels the current share price implies an iron ore price almost half the current level. In addition, the broker expects a double-digit dividend yield in FY 2022 despite the iron ore price pullback this year. The BHP share price ended the week at $37.65.

NEXTDC Ltd (ASX: NXT)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this data centre operator’s shares to $16.10. Macquarie believes that the company has a big opportunity with edge data centres and sees them as a way to boost margins. In addition, the broker notes that with borders reopening, NEXTDC could start to focus on its overseas opportunities. The NEXTDC share price was fetching $11.80 at Friday’s close.

Transurban Group (ASX: TCL)

Analysts at Credit Suisse have retained their outperform rating and lifted their price target on this toll road operator’s shares to $15.15. According to the note, the broker was pleased with the company’s first quarter update. Although traffic volumes were down year on year, they were not down as much as it was expecting. Combined with an earlier than forecast reopening of Melbourne and Sydney, the broker has upgraded its earnings and dividends estimates meaningfully. In respect to the latter, Credit Suisse expects a dividend of 41.5 cents per share in FY 2022 before growing to 61.5 cents per share in FY 2023. The Transurban share price ended the week at $13.75.

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Motley Fool contributor James Mickleboro owns shares of NEXTDC 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.

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