Category: Stock Market

The Santos Ltd (ASX: STO) share price has tun out of steam on Thursday.

At the time of writing, the energy producer’s shares are down 2% to $7.32.

Despite this, Santos shares are still up an impressive 13% since this time last month.

Can the Santos share price keep rising?

The good news for investors is that one leading broker believes the Santos share price could run a lot higher.

According to a recent note out of Morgans, its analysts have an add rating and $8.55 price target on the energy producer’s shares.

Based on the current Santos share price, this implies potential upside of 17% over the next 12 months.

In addition to this, the broker is forecasting a fully franked 13.3 cents per share dividend in FY 2022. If we add this into the equation, this brings the potential return to a total of almost 19% for investors.

Why is the broker positive on Santos?

There are a few reasons why Morgans is bullish on the Santos share price.

These includes its growth profile and diversified earnings base. The broker also sees some very big positives from its proposed merger with fellow energy producer Oil Search Ltd (ASX: OSH).

Morgans explained: “We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a continuing broader sector recovery. STO remains our top preference amongst our large-cap energy universe.”

“With early indications supportive of our view that material synergies and enhanced growth plans will result from the OSH merger. While in good shape, we expect STO to continue gaining investor support as it executes on the opportunistic OSH merger,” it added.

The post Top broker tips Santos (ASX:STO) share price to climb 17% appeared first on The Motley Fool Australia.

More reading

• Santos (ASX:STO) share price slumps as CEO flags possible energy crisis
• 2 more of the best ASX share ideas according to this top broker
• How did the Santos (ASX:STO) share price perform in the last quarter?
• ASX 200 energy shares rise amid market sell-off
• 5 things to watch on the ASX 200 on Monday

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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher. The benchmark index is currently up 0.85% to 7,333.3 points.

Here’s what is happening on the ASX 200 today:

HUB24 and Netwealth impress

It has been a very good day for the shares of HUB24 Ltd (ASX: HUB) and Netwealth Group Ltd (ASX: NWL) on Thursday. The shares of both investment platform providers have stormed higher following the release of strong first quarter updates. HUB24 reported net inflows of $3 billion for the three months ended 30 September, whereas Netwealth recorded $4 billion of net inflows for the quarter. Both were first quarter records.

A2 Milk shares surge again

The A2 Milk Company Ltd (ASX: A2M) share price is surging higher again on Thursday. Investors have been scrambling to buy the struggling infant formula company’s shares since the release of a first quarter update from smaller rival Bubs Australia Ltd (ASX: BUB). That update appears to indicate that the worst may be behind the infant formula market, which may have led to short sellers quickly closing positions.

South32 shares rise on acquisition news

The South32 Ltd (ASX: S32) share price jumped to a multi-year high this morning after announcing a new acquisition. South32 has entered into binding conditional agreements with Sumitomo Metal Mining and Sumitomo Corporation to acquire a 45% interest in the Sierra Gorda copper mine in Chile for an upfront cash consideration of US$1.55 billion. Sierra Gorda is an operating mine in the prolific Antofagasta copper mining region in Chile. Management expects the transaction to be immediately earnings accretive.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Netwealth share price with a 14% gain. This follows its record first quarter performance. The worst performer on the ASX 200 has been the NRW Holdings Limited (ASX: NWH) share price with a 2.5% decline on no news.

The post ASX 200 (ASX:XJO) midday update: HUB24 & Netwealth impress, A2 Milk surges again appeared first on The Motley Fool Australia.

More reading

• Why the South32 (ASX:S32) share price is jumping 11% to a multi-year high
• Why did the A2 Milk (ASX:A2M) share price have such a great FY22 first quarter?
• Bubs (ASX:BUB) share price jumps a further 13% on broker upgrade
• Netwealth (ASX:NWL) share price jumps 10% following record quarter
• HUB24 (ASX:HUB) share price on watch after record Q1 performance

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 Hub24 Ltd and Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool Australia has recommended A2 Milk, BUBS AUST FPO, and Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The South32 Ltd (ASX: S32) share price has been a strong performer on Thursday.

At one stage, the mining giant’s shares were up as much as 11% to a multi-year high of $4.07.

The South32 share price has pulled back since then but remains up 4% to $3.80 at the time of writing. 

Why is the South32 share price charging higher?

Investors have been bidding the South32 share price higher today after it announced a new acquisition.

According to the release, South32 has entered into binding conditional agreements with Sumitomo Metal Mining and Sumitomo Corporation to acquire a 45% interest in the Sierra Gorda copper mine in Chile.

The release advises that the parties have agreed an upfront cash consideration of US$1.55 billion for the stake. In addition, South32 has agreed to provide the sellers with a contingent price-linked consideration of up to US$500 million. This is payable at threshold copper production rates and prices in the years 2022-25.

What is Sierra Gorda?

Sierra Gorda is an operating mine in the prolific Antofagasta copper mining region in Chiles. It is expected to produce 180kt of copper, 5kt of molybdenum, 54koz of gold, and 1.6Moz of silver in 2021 on a 100% basis.

Today’s acquisition provides South32 with joint control alongside 55% joint venture partner KGHM Polska Miedz. It is a global miner listed in Poland.

Management notes that the transaction is expected to be immediately earnings accretive, with the upfront purchase consideration benchmarking favourably to historical investment, production and valuation multiples of 3.3x FY 2021 Underlying EBITDA.

The deal will be funded via a combination of cash on hand and an underwritten US$1 billion acquisition debt facility. This will maintain the company’s balance sheet strength and flexibility.

At the end of September, South32’s unaudited net cash balance stood at US$660 million.

Management commentary

South32’s Chief Executive Officer, Graham Kerr, commented: “We are actively reshaping our portfolio for a low carbon world and the acquisition of an interest in Sierra Gorda will increase our exposure to the commodities important to that transition.”

“Copper is a critical metal in the decarbonisation of the world’s energy networks and has strong long-term market fundamentals. Adding Sierra Gorda further improves our portfolio and is expected to immediately lift Group margins and earnings, supporting future shareholder returns while retaining strength and flexibility in our Balance Sheet,” he added.

The post Why the South32 (ASX:S32) share price is jumping 11% to a multi-year high appeared first on The Motley Fool Australia.

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• Why the South32 (ASX:S32) share price reached a 2-year high today
• 2 ASX 200 dividend shares to buy next week
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• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Brokers name 3 ASX shares to buy today

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

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The Swoop Holdings Ltd (ASX: SWP) share price isn’t going anywhere on Thursday. This comes after the telecommunications company placed its shares in a trading halt before market open.

At the time of writing, Swoop shares are frozen at $2.09 apiece.

Why is Swoop in a trading halt?

The Swoop share price was placed in a trading halt this morning pending results in regards to a capital raise.

While no details have been given by the internet provider, several media outlets have indicated what’s happening behind the curtain.

According to the Australian Financial Review, Swoop is raising $40 million in an underwritten capital raise. It is believed fund managers received presentations by the company, detailing its intentions to support a number of acquisitions.

Should these deals be completed, it is estimated up to $15 million in additional earnings before interest, tax, depreciation and amortisation (EBITDA) would be added to Swoop.

The capital raise is likely to be offered at a discount of around 10% on the last closing price.

It’s worth noting the company has the backing of Fortescue Metals Group Limited (ASX: FMG) boss Andrew ‘Twiggy’ Forrest.

In addition, Airtasker Ltd (ASX: ART) chair James Spenceley also sits as an independent non-executive chair for Swoop.

Australia’s largest wealth management firm, Morgans is said to be the broker and underwriter of the capital raise.

Swoop advised its shares will remain in a trading halt until the release of the announcement or by 18 October, whichever comes first.

About the Swoop share price

Since the company’s listing in May 2021, the Swoop share price has accelerated by around 400% from its initial public offering price of 50 cents. Its shares reached a high of $2.46 in September before slightly pulling back.

Swoop has a market capitalisation of roughly $238.73 million, with approximately 171.18 million shares on its books.

The post Why is the Swoop (ASX:SWP) share price frozen today? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Swoop (ASX:SWP) share price is up 11% on Wednesday

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 recommended Airtasker Limited. 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 Qantas Airways Limited (ASX: QAN) share price is slightly higher this morning, up 0.54% and changing hands at $5.58 in early trade.

Zooming out, Qantas shares have rallied 2.76% in the past month as the broader travel industry gets ready for the impending restart of domestic and international travel penned in for later this year.

What’s been fuelling the Qantas share price lately?

Qantas shares popped back in August after the company revealed it is planning to restart international flights from December.

Around that time, some destinations including Singapore, the US, UK, Japan and Canada will be reachable by air for the first time since COVID-19 forced the closure of the Australian international border.

The airline carrier is wagering that Australia will reach its 80% double-vaccination target set by the National Cabinet earlier this year.

According to the Department of Health, 64.4% of all eligible people have now been immunised against the SARS-CoV-2 virus.

Investors appear bullish on Qantas shares in a “reopening play” that is gaining steam as vaccination numbers creep up.

As this momentum builds, one leading broker has weighed in and presented their outlook for the Qantas share price.

Can Qantas continue its recovery?

Investment banking giant Citibank certainly believes so and likes the timing of the company’s capital expenditure cycle and the restarting of long-haul international flight routes.

The broker reckons that Qantas’ capital expenditure cycle will eventually peak in FY24, judging by the timing of incoming plane deliveries and the airline’s intention to start non-stop flights to the US in 2022.

Curiously, Citi also believes that Qantas may benefit from more favourable pricing from aircraft manufacturers Boeing (NYSE: BE) who are on the quest to regain both market share and credibility after a few horror years.

City says Boeing may tighten its pricing to become more competitive, thereby helping Qantas’ operating profit margins.

Not only that, the bank likes Qantas’ financial health, and reckons it will only need to make periodic payments to service liabilities on its incoming aircraft, hence avoiding the need to raise more capital and dilute investors’ shareholdings.

Given this view, Citi is bullish on Qantas shares and maintains its buy rating and a $5.93 price target. This implies an upside potential of 7.4% on the current share price.

Fellow broker JP Morgan is also bullish on Qantas shares and recently increased its price target by 10 cents to $5.80.

The Qantas share price has managed to claw back some of its 2020 losses and is 13.75% in the green since January 1.

The Qantas share price is up 32.6% over the past 12 months.

The post Why this top broker is bullish on the Qantas (ASX:QAN) share price appeared first on The Motley Fool Australia.

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• NSW cash splash, business confidence up, Qantas (ASX:QAN) down on Bonza news. Scott Phillips on Nine’s Late News
• Qantas (ASX:QAN) share price lifts despite Clive Palmer sell-off
• Qantas (ASX:QAN) share price falls amid new budget airline competition
• Will the Qantas (ASX:QAN) share price follow Ryanair’s surge on reopening?
• Top brokers name 3 ASX shares to buy next week

Citigroup is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 Douugh Ltd (ASX: DOU) share price is on the rise this morning after the company announced a partnership to launch an integrated crypto offering.

At the time of writing, the Douugh share price is up 16.4% to 7.8 cents.

Douugh app to feature crypto wallet and trading features

Douugh has partnered with leading crypto-as-a-service provider Zero Hash, in the United States to integrate a cryptocurrency wallet and trading capabilities into its core Douugh app.

The partnership will initially allow US customers to buy, hold and sell crypto directly through the Douugh app’s Crypto Jar feature.

The Crypto Jar offering will allow consumers to directly participate in digital asset investing, commission-free. As well as spend with the cryptocurrency of their choice through the Douugh Mastercard debit card.

The partnership with Zero Hash commences immediately, for an initial 3-year term.

The launch of Douugh’s crypto service is subject to approval from the company’s banking partner on the flow of funds.

Douugh said that it intends to launch the Crypto Jar offering and functionality in Q322.

About Zero Hash

Zero Hash is a digital asset settlement and custody platform that is registered in the United States with the Financial Crimes Enforcement Network.

The company can operate in 51 US jurisdictions as a money service business, money transmitter or virtual currency business.

Management commentary

Douugh founder and CEO Andy Taylor commented on the upcoming features, saying:

Cryptocurrency is now at the maturity point that it has become a favored investment for millennials and gen-z who are hungry for yield and access to liquidity. The key for us is facilitating this activity responsibly.

For the next generation of investors, cryptocurrency is becoming an essential component of one’s overall diversified investment portfolio, and we are excited to partner with one of the largest and most regulated exchanges in the digital asset space to provide our customers with the ability to grow their cryptocurrency savings over the long term.

Douugh share price has a long way to go

Despite Douugh’s exciting growth story, its share price is down 54% year-to-date.

This comes off the back of an explosive initial public offering last year, where it surged to all-time highs of almost 50 cents from a listing price of just 3 cents.

The Doough share price has a mountain to climb to breakeven for the year, let alone re-test its previous record highs.

The post Douugh (ASX:DOU) share price rockets 18% on crypto update appeared first on The Motley Fool Australia.

More reading

• Here’s why the Douugh (ASX:DOU) share price is rocketing 18% today

Motley Fool contributor Kerry Sun 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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Here on the Fool, we’ve recently been taking a look at how some of the major S&P/ASX 200 Index (ASX: XJO) shares have gone over the most recent quarter. That would be the first quarter of the 2022 financial year (FY22), which ran from 1 July to 30 September. Over this period, the ASX 200 had a rather lacklustre performance but still managed to eke out a gain of roughly 0.26%. So how did the A2 Milk Company Ltd (ASX: A2M) share price go over this period? That’s what we’ll be checking out today.

How did the A2 Milk share price perform over the quarter?

So A2 Milk started off FY22 at a share price of $6 on the dot. By the time September wrapped up, this dairy company finished the quarter at a price of $6.24 a share. That means this company officially recorded a gain of 4% for the quarter in question. That represents a significant outperformance against the broader ASX 200.

Of course, that metric tells us little about the experience A2 Milk shares actually had over the quarter. On the above number, it appears, this company had a very successful 3-month period.

But over this period in question, we saw A2 Milk shares reach highs of $7.20 a share in early July, as well as lows of $5.36 a share by mid-September. That gap represents a difference of almost 35%, so it’s safe to say this company had a wild ride, despite the bookend figures.

So where to start with what happened for A2 over the quarter just passed? There was a lot going on with this share, as you might gather from the volatility we discussed earlier.

Brokers, results and a takeover…

It’s worth pointing out that brokers have been particularly divided when it comes to A2 Milk. We saw a wide range of brokering views come out over the quarter just gone. These ranged from an ‘underperform’ rating and a 12-month share price target of $5.50 from Credit Suisse, to a ‘buy’ rating and a price target of $7.70 from Bell Potter. This might have been influencing investor sentiment over the quarter.

But we also had a veritable deluge of other news. Firstly, we had rumours that the global food giant Nestle was potentially considering an acquisition bid for the company, possibly due to its depressed share price. As we covered at the time, Nestle was reportedly “taking a close look at A2 Milk”, but was waiting to see what the company’s FY21 results looked like. This gave the company’s shares a boost.

Then there were A2’s FY21 full-year results, which came out back in late August. These initially were not well-received by the market, with the A2 share price falling 10% or so on the morning of their release.

All of these events may have contributed to the wild ride A2 Milk shares had over the quarter just gone. We will have to wait and see what this quarter brings us. So far at least, it’s been more of the same.

At the time of writing, the A2 Milk Company share price is sitting at $6.96, up a very healthy 5.78% for the day so far. At this share price, A2 Milk has a market capitalisation of $4.31 billion.

The post Why did the A2 Milk (ASX:A2M) share price have such a great FY22 first quarter? appeared first on The Motley Fool Australia.

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• Why A2 Milk, EOS, GUD, & PointsBet shares are charging higher
• Star Entertainment (ASX:SGR) share price surges despite police probe
• ASX 200 (ASX:XJO) midday update: BOQ results, A2 Milk shares jump

Motley Fool contributor Sebastian Bowen owns shares of A2 Milk. 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 A2 Milk. 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 Harmoney Corp Ltd (ASX: HMY) share price is rocketing in early trade, up 7.94% to $1.84 per share.

Below we take a look at the consumer credit company’s results for the quarter ending 30 September (Q1 FY22) that look to be driving ASX investor interest.

What results did Harmoney report for Q1 FY22?

The Harmoney share price is soaring after the company reported the biggest quarterly lift in new customer originations in its history.

Australian new customer originations of $31 million increased 885% year-on-year and were up 17% on the previous quarter.

The company’s proforma loan book climbed to $517 million. The book yielded a net interest margin of 11% and a net lending margin of 7%.

Its Australian receivables book also showed strong growth, up 58% on the prior quarter to $155 million.

Commenting on the results, Harmoney’s CEO, David Stevens said:

Harmoney continues to deliver on its growth strategy with another outstanding quarter despite COVID lockdowns in Australia and New Zealand…

Harmoney’s Group loan book, at just over half a billion dollars, is already cash NPAT breakeven on a proforma basis. The company’s 100% consumer-direct model and innovative Libra lending platform enables over two thirds of loan applications to be completely automated, providing significant operational leverage and driving profitability as our income grows noticeably faster than our cost base.

Expounding on the company’s technology-focused offerings, Stevens added, “Harmoney’s consumer-direct marketing technology is world class and generates approximately 10,000 new customer accounts per month across Australia and New Zealand.”

Looking ahead

The Harmoney share price may also be getting a boost after the company reaffirmed its market guidance for the full 2022 financial year.

The guidance includes:

• Group proforma loan book of at least $600 million
• Group proforma revenue of at least $92 million
• A net lending margin of at least 7%

Harmoney share price snapshot

Harmoney is a relative newcomer to the ASX. The company’s initial public offering (IPO) was on 19 November 2020.

So far in 2021, the Harmoney share price has struggled, down 36.5%. That compares to a gain of 9.76% posted by the All Ordinaries Index (ASX: XAO).

Over the past month, the Harmoney share price has dropped by 2.39%.

The post Why the Harmoney (ASX:HMY) share price is up 8% today appeared first on The Motley Fool Australia.

More reading

• Why did the A2 Milk (ASX:A2M) share price have such a great FY22 first quarter?
• Own Sydney Airport (ASX:SYD) shares? Here’s the latest development on the takeover bid
• Top broker tips Mineral Resources (ASX:MIN) share price to jump 80%
• ASX uranium shares are surging this week. Here’s why
• Bubs (ASX:BUB) share price jumps a further 13% on broker upgrade

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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Those with Sydney Airport (ASX: SYD) shares in their portfolio might soon be jumping for joy.

The consortium looking to acquire the airport is reportedly preparing to put forward a formal offer over the next few days.

According to reporting by The Australian, the Sydney Aviation Alliance consortium plans to put down a binding $23.6 billion offer in the coming days. That would see the group paying $8.75 per share.

At the time of writing, the Sydney Airport share price is $8.37, 1.33% higher than its previous close.

Let’s take a closer look at the reportedly imminent offer.

A quick refresher

Sydney Airport has been faced with numerous takeover offers from the Sydney Aviation Alliance consortium over the last few months.

Though, the airport’s board only accepted the most recent, $8.75 per share bid, posted on 13 September. Now, the consortium is undertaking due diligence on the airport.

The consortium’s made up of IFM Investors, Global Infrastructure Management, AustralianSuper, and QSuper.

The Sydney Airport share price is currently 44% higher than it was before the consortium posed its first takeover offer.

Today’s news

According to The Australian, it understands the Sydney Aviation Alliance consortium will officially slap its $23.6 billion takeover offer on the table tomorrow or Monday.

The publication states that, following an official acceptance of the offer, the deal would have to be given the green light by the Foreign Investment Review Board and the Australian Competition and Consumer Commission.

The watchdogs might be looking very closely at Sydney Airport’s proposed ownership structure. Particularly, as some members of the consortium reportedly own significant stakes in other Australian airports.

Under Australian law, any one company is restricted from owning large chunks of more than one airport. The Australian states that forming a consortium is an attempt to avoid breaking such ownership rules.

Sydney Airport share price snapshot

The Sydney Airport share price has gained 30% since the start of 2021. It is also 37% higher than it was 12 months ago.

The post Own Sydney Airport (ASX:SYD) shares? Here’s the latest development on the takeover bid appeared first on The Motley Fool Australia.

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• Why did the Sydney Airport (ASX:SYD) share price have such a great FY22 first quarter?
• Up 7%, the Flight Centre (ASX:FLT) share price is surging. Here’s why
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• September has been a good month so far for the Sydney Airport (ASX:SYD) share price

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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The Mineral Resources Limited (ASX: MIN) share price is pushing higher on Thursday morning.

At the time of writing, the mining and mining services company’s shares are up 1% to $42.67.

Despite this, the Mineral Resources share price is still down a disappointing 19% since this time last month.

Is this a buying opportunity?

While the last 30 days have been very disappointing for shareholders, one leading broker appears to believe it could be a buying opportunity for non-shareholders.

According to a note out of Macquarie Group Ltd (ASX: MQG) from the end of last month, the broker has an outperform rating and $77.00 price target on the company’s shares.

Based on the current Mineral Resources share price, this implies potential upside of 80% over the next 12 month.

Macquarie likes the company due partly to its bullish view on lithium. Mineral Resources has exposure to the battery making ingredient through the Mt Marion Lithium Project and the Wodgina Lithium Project. The latter is one of the largest known hard rock lithium deposits in the world with a production life of over 30 years.

The broker has also been pleased with recent updates on the Lockyer Deep-1 well. While it is early days, it notes that the company has successfully encountered gas in the Perth Basin. Macquarie sees decarbonisation opportunities for the company by switching to LNG from diesel fuel at its mining operations in Western Australia.

Is anyone else bullish on the Mineral Resources share price?

Another leading broker also sees a lot of value in the Mineral Resources share price at the current level.

A note out of Bell Potter from last week reveals that its analysts have a buy rating and $54.25 price target on the company’s shares.

This implies potential upside of 27% for the Mineral Resources share price over the next 12 months.

It commented: “Prior to the end of CY21, we anticipate Government decisions on approvals for MIN’s iron ore development projects. The successful development of these iron ore projects would result in a step-change to both the scale and commodity- price sensitivity of MIN’s iron ore business. On balance, we consider that short-term downside risks of iron ore price volatility are more than compensated for by our risked valuations for the iron ore projects.”

“Longer-term, there is the potential of MIN’s energy investments to add another dimension to the existing services and commodities businesses. Changes to our earnings estimates with this update include a 41%, 19% and 10% decreases to CY22e, CY23e and CY24e respectively, resulting primarily from changes to our forecast commodity prices and our iron ore grade and quality discounts,” it added.

The post Top broker tips Mineral Resources (ASX:MIN) share price to jump 80% appeared first on The Motley Fool Australia.

More reading

• Broker names 2 ASX dividend shares to buy
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• Broker tips Mineral Resources (ASX:MIN) share price to rise 46%

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 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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