Category: Stock Market

ASX uranium shares are surging across the board for a second day following a tsunami of capital inflow into the sector.

Let’s take a closer look at what’s going on today.

ASX uranium shares extend winning streak

Yesterday, ASX uranium shares rallied double-digits across the board from the largest, most established players like Paladin Energy Ltd (ASX: PDN) all the way through to speculative explorers like 92 Energy Ltd (ASX: 92E).

The bullish performance continues on Thursday, with the Paladin Energy share price opening 5.2% to 91.5 cents this morning.

More advanced explorers such as Boss Energy Ltd (ASX: BOE) and Deep Yellow Limited (ASX: DYL) also opened a respective 5.4% and 2.3% higher at the morning bell.

On the more speculative end of town, ASX uranium shares including Bannerman Energy Ltd (ASX: BMN), Lotus Resources Ltd (ASX: LOT), Peninsula Energy Ltd (ASX: PEN), and Alligator Energy Ltd (ASX: AGE) also jumped on open.

It looks like the ASX uranium shares have since taken a breather after rallying at the morning bell. Many have partially retreated or faded into slightly negative territory at the time of writing.

What’s driving the re-rate for ASX uranium shares?

Uranium ETF jumps again on record volume

On Wednesday, the Global X Uranium exchange-traded fund (ETF) surged 11.65% on the back of its highest volume since inception. Just over 6.1 million shares traded hands, compared to its 10-day average of around 2.3 million shares.

Last night, the uranium ETF extended its gains, adding another 6.84%, closing at a fresh all-time high. This move was driven by another record volume day, with 6.3 million shares traded.

Evidently, the market is waking up to the role that uranium could play in achieving net zero emissions and supporting the energy crisis taking place across China and Europe.

The uranium ETF has a 12.1% allocation towards ASX uranium shares, with exposure to players including Paladin Energy, Boss Energy, Bannerman Energy and more.

Uranium spot prices tick higher

Another factor in the bullish performance of ASX uranium shares is the resurgence of spot prices.

Uranium spot prices surged US$6.00/lb or 14.8% to US$46.5/lb, according to Numerco.

Uranium prices have rebounded strongly after hitting US$50/lb on 17 September.

Sprott’s buying spree continues

Sprott asset management and its physical uranium trust has been pointed out as a major catalyst behind the re-rate for the uranium sector.

Its uranium trust is one of few funds that invests in physical uranium, taking it off the spot market and tightening supply.

Sprott tweeted this morning that it added another 1.15 million pounds of physical uranium. That brings its total holdings to well over 30 million pounds.

Sprott Physical Uranium Trust keeps growing!

1.15MM pounds of physical #Uranium added today! #SPUT $U.UN $U.U $SRUUF #Nuclear #LowCarbon #Energy #ETF #U308

For more information and disclosures, please visit https://t.co/PcaG53VfN5 pic.twitter.com/Nm6ikmsZbH

— Sprott Asset Management (@Sprott) October 13, 2021

https://platform.twitter.com/widgets.js

The post ASX uranium shares are surging this week. Here’s why appeared first on The Motley Fool Australia.

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• Here’s why ASX uranium shares are booming double digits across the board on Wednesday
• Why the Paladin Energy (ASX:PDN) share price is up 8% today
• Why ASX uranium shares are bouncing back on Friday

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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The Bubs Australia Ltd (ASX: BUB) share price is charging higher for a second day in a row.

In morning trade, the infant formula company’s shares are up 13% to 56.5 cents.

This means the Bubs share price is now up 52% in two days.

Why is the Bubs share price charging higher again today?

The catalyst for the rise in the Bubs share price on Thursday has been a very positive reaction to its first quarter update from a leading broker.

In case you missed it, after several disappointing quarters, Bubs returned to form in the first quarter of FY 2022. It reported quarterly gross revenue of $18.5 million, which represents a 96% increase year on year and a 45% quarter on quarter increase.

A key driver of this growth was Bubs’ China business. Sales across the Chinese Daigou, cross border ecommerce, and General Trade channels increased 156% over the prior corresponding period to $9.8 million. This has sparked hopes that the tough times are now behind the infant formula market.

Which broker is positive on Bubs?

According to a note out of Bell Potter, its analysts have upgraded the company’s shares to a speculative buy rating with a 65 cents price target.

Based on the current Bubs share price, this still implies potential upside of 15% even after its gains this week.

The broker commented: “BUB delivered a surprisingly strong 1Q22 sales outcome, which has been driven in large by the infant nutrition business. Improving secular trade flows to China, continued signs of brand traction (5 consecutive quarters of high double digit scan data sales growth) and the potential for BUB to benefit in indirect distribution channels as A2M shifts focus to direct China channels, suggest more optimism is warranted. To this end we upgrade our rating from Hold, Speculative risk to Buy, Speculative risk.”

Bell Potter also provided colour on how it values in the Bubs share price.

It explained: “Our $0.65ps valuation on BUB’s is predicated on: (1) an existing brand value of 5.5-6.5x FY22-23e revenue (ex-processing), which compares to a peer group of emerging FMCG entities at 5.5x EV/T12M revenue and a 6.7x last reported annualised quarterly revenue; and (2) a value for the processing assets at $4-5/tin of capacity and (3) ProForma net cash post settlement of deferred acquisition costs.”

The post Bubs (ASX:BUB) share price jumps a further 13% on broker upgrade appeared first on The Motley Fool Australia.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BUBS AUST FPO. 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 Vulcan Energy Resources Ltd (ASX: VUL) share price won’t be going anywhere on Thursday.

This morning the lithium developer requested that its shares be placed in a trading halt.

Why is the Vulcan share price halted?

Prior to the market open, the company requested that the Vulcan share price be halted whilst it prepares an announcement.

According to the release, the company is planning to make an announcement in relation to a further binding offtake agreement.

Vulcan has requested that the trading halt remains in place until the earlier of the release of the announcement or the commencement of trade on Monday 18 October.

What’s happening?

At this stage it remains unclear what the new offtake agreement entails. However, it is worth highlighting that this is a further binding offtake agreement.

In August, Vulcan signed a lithium offtake term sheet with auto giant Renault for an initial five-year term. That deal is for the commercial delivery of between 6,000 to 17,000 metric tonnes per year of battery grade lithium chemicals from 2026.

The company also has an offtake agreement for lithium supply with LG Energy Solution for up to 10,000 metric tonnes per year for five years from 2026. LG Energy Solution is the world’s largest producer of lithium-ion batteries for electric vehicles.

This compares to the 40,000 metric tonnes per year of battery grade lithium chemicals that the company expects to produce from its Zero Carbon Lithium Project in Germany. Which means that another large offtake agreement has the potential to secure all of its planned production years before the operation has even started.

With demand for lithium as strong as this, it is no wonder the Vulcan share price has been on fire this year.

Vulcan’s shares are up almost 320% in 2021.

The post Why the Vulcan (ASX:VUL) share price is in a trading halt appeared first on The Motley Fool Australia.

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• Vulcan (ASX:VUL) share price falls despite positive lithium plant update
• Why the Vulcan (ASX:VUL) share price is pushing 3% higher 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 Netwealth Group Ltd (ASX: NWL) share price is pushing higher on Thursday. This follows the financial management software company’s September quarterly update.

At present, shares in Netwealth are swapping hands at $15.80, a 10.57% increase.

What’s lifting the Netwealth share price today?

In an announcement released this morning, Netwealth has surpassed all previous quarterly funds under administration (FUA), setting a record in the September quarter.

At 30 September 2021, the company held $52 billion in FUA, representing an increase of 10.2% for the quarter. Notably, this indicates a significant 52.7% increase compared to the prior corresponding period.

Meanwhile, the funds under management (FUM) portion of the business also experienced reasonable growth in the latest quarter. Specifically, FUM at the end of the period stood at $12.6 billion, increasing 56.9% from the prior corresponding period. The distinct surge in funds has investors bidding up the Netwealth share price today.

However, the fastest-growing segment was Netwealth’s managed account balance. At the end of September, managed accounts totalled $10.7 billion, increasing 63.6% from the prior corresponding period.

As a result, the financial platform has retained its spot as the sixth largest and fastest-growing platform provider by net funds flows in Australia. Currently, the company holds a market share of 4.9%, while Macquarie (in the fifth spot) holds an 11.2% market share.

Outlook

Shifting our gaze to the future of the company, Netwealth shared a positive outlook for its market potential. This is thanks to the ongoing structural changes within the financial services industry.

Consequently, the company believes this will support further increases in its addressable market and growth opportunities. Building on that, Netwealth mentioned its pipeline for new business remains very strong across all market segments.

Finally, as a result of the stellar record net inflows in the September quarter, the company has upgraded its FUA net inflow guidance for FY2022. Now Netwealth forecasts FUA net inflows of $12.5 billion for the financial year, as opposed to its previous $10 billion guidance.

Despite these achievements, the Netwealth share price is still down approximately 20% over the past year.

The post Netwealth (ASX:NWL) share price jumps 10% following record quarter appeared first on The Motley Fool Australia.

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• Why Alumina, Aurelia Metals, Netwealth, & Piedmont Lithium are storming higher

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. 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 Adore Beauty Group Ltd (ASX: ABY) share price is on the move on Thursday morning.

At the time of writing, the online beauty retailer’s shares are up 4% to $5.15.

Why is the Adore Beauty share price rising?

Investors have been bidding the Adore Beauty share price higher on Thursday following the release of a trading update.

That update reveals that the company has started the new financial year in a very positive fashion and has delivered strong first quarter growth in revenue and customer numbers.

According to the release, Adore Beauty reported a 25% increase in revenue to $63.8 million during the first quarter. This was underpinned by a 24% jump in active customers to 874,000 and returning customer growth of 63%.

Management advised that it continues to benefit from the ongoing structural shift to online, which has been further accelerated by the recent COVID-19 lockdowns. This is supporting Adore Beauty as it executes on its growth strategy to cement its online market leadership, scale its native mobile app, grow its loyalty program, and expand its product range.

Management commentary

Adore Beauty’s CEO, Tennealle O’Shannessy, was pleased with the strong start to the new financial year.

She said: “Adore Beauty has continued to deliver strong growth in sales revenue, active customers and returning customer numbers during the quarter. Over the last 12 months our loyal returning customers grew 63 per cent, providing a strong foundation for future growth. Our returning customers become more valuable each year they spend on the platform, increasing both their basket size and order frequency over time.”

“We continue to leverage our content strategy to drive brand awareness and discovery, and we are reinvesting in the business to accelerate our growth trajectory within a large and growing $11 billion market. It has been a pleasing start to FY22 and we look forward to continuing to execute on the exciting initiatives that will see Adore cement our online market leadership in the beauty category,” she added.

The post Adore Beauty (ASX:ABY) share price up 4% on Q1 update appeared first on The Motley Fool Australia.

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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. has recommended Adore Beauty Group 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 Collins Foods Ltd (ASX: CKF) share price is pushing higher again on Thursday.

In early trade, the quick service restaurant operator’s shares are up 1.5% to $13.57.

Why is the Collins Foods share price rising?

The Collins Foods share price is pushing higher this morning after investors responded positively to the release of an announcement.

According to the release, the company has entered into a share purchase agreement with RDK Holding and MDK Holding to acquire nine KFC restaurants in the Netherlands for 10.25 million euros. This will be funded from Collins Foods’ existing debt facilities.

The release notes that the sellers are the second largest KFC franchisee in the Netherlands behind Collins Foods with its existing 35 restaurants. Once the transaction completes, this acquisition will increase the Collins Foods KFC network in the Netherlands to 44 restaurants. This represents 55% of the market in the country.

But management isn’t stopping there. Last week Collins Foods signed a Corporate Franchise Agreement (CFA) with KFC owner Yum! Brands for KFC Netherlands. This means Collins Foods has the rights to develop, manage, and operate the KFC business in the country. The agreement provides a framework for the development of up to 130 new KFC restaurants over a 10-year period.

It is also worth noting that the new acquisitions will not count towards its 130 new restaurants target.

Management commentary

Collins Foods’ Managing Director and CEO, Drew O’Malley, appeared to be very pleased with the deal.

He said: “Today’s acquisition marks another exciting step forward for Collins Foods’ European growth strategy. The restaurants we are acquiring are from one of Netherlands’ top KFC operators. It provides us with an opportunity to bring an additional quality network of restaurants into our European business and adds further capability to our team and increased scale to our operations in the Netherlands. The acquisition of these nine restaurants increases our presence to 44 KFC restaurants in the Netherlands and going forward, facilitates further growth opportunities.”

“In tandem with our new Corporate Franchise Agreement, it demonstrates our commitment toward making KFC Netherlands an essential component of Collins Foods’ global growth strategy. We see exciting opportunities for the Netherlands market to grow over the medium term as KFC’s market penetration increases to be more in line with other Quick Service Restaurant operators, and as we further innovate product, marketing and customer experience under our new Corporate Franchise Agreement,” the CEO concluded.

The Collins Foods share price is now up 42% in 2021.

The post Here’s why the Collins Foods (ASX:CKF) share price is pushing higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of Collins Foods 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 Collins Foods 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 FFI Holdings Ltd (ASX: FFI) share price is plummeting this week for no apparent reason.

Interestingly, the same week has been full of news of another FFI. That is, the unlisted, hydrogen-focused, green energy leg of Fortescue Metals Group Limited (ASX: FMG), Fortescue Future Industries.

Could the chaos experienced by FFI Holdings’ shares have been driven by a case of mistaken identity?

FFI Holdings – operator of Fresh Food Industries – saw its stock soar 21% on Friday despite the company’s silence. It has since handed its gains back, plunging 17.97% over the course of this week.

At the time of writing, the FFI Holdings share price is $6.94, having fallen 7.9% on Wednesday.

Let’s take a closer look at what might have spurred the food manufacturer and distributor’s recent surge and fall.

Why is the FFI Holdings share price falling?

The FFI Holdings share price has had an unexplainably odd week on the ASX while a barrage of announcements has kept Fortescue Future Industries, often abbreviated to FFI, in the spotlight.

The latter acquired a 60% stake in Dutch-based High yield Energy Technologies (HyET) Group last Thursday. The HyET Group houses HyET Solar and HyET Hydrogen.

It then teamed up with the Queensland Government to announce its plan to double global output of electrolysers on Sunday. Electrolysers are the equipment needed to produce hydrogen from water.

It also partnered with Australian fertiliser supplier Incitec Pivot this week. Fortescue Future Industries will help swap Incitec’s ammonia-production facility’s feedstock from natural gas to renewable hydrogen.

Finally, Fortescue Future Industries’ chair, Andrew ‘Twiggy’ Forrest, stood beside NSW’s Premier Dominic Perrottet and Treasurer and Energy Minister Matt Kean to launch the state’s $3 billion green hydrogen strategy yesterday.

Kean told those present that NSW’s hydrogen industry will be as big as its coal industry by 2050 and Twiggy stated it will “dwarf the scale of iron ore”.

Simultaneous to the barrage of news from Fortescue Future Industries, the FFI Holdings share price has been experiencing turbulence and, not to mention, popularity.

55,702 of the company’s shares were traded on Monday, 19,600 on Tuesday, while another 23,351 swapped hands on Wednesday.

For context, over the last 4 weeks, the average day sees around 6,500 FFI Holdings shares traded.

Whether FFI Holdings’ dramatic movements have been caused by investors mistaking the company for Fortescue Future Industries is impossible to say. Though, it could help to explain the ASX-listed stock’s strange week.

The post The FFI Holdings (ASX:FFI) share price has lost 18% this week. Could this be a case of mistaken identity? appeared first on The Motley Fool Australia.

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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 Redbubble Ltd (ASX: RBL) share price could be a mover on Thursday after the company released its first quarter trading update.

How did Redbubble perform in Q1?

It has been a wild ride for the Redbubble share price, especially following its FY21 full-year results. Today, the company was pleased to announce that its trading performance in the first quarter came in line with expectations.

The global marketplace was continuing to retain the majority of the accelerated revenue growth that it experienced during FY21.

Redbubble said that it saw an improved performance from July to September, and reiterates the FY22 outlook statements it provided in August.

Despite the company’s positive commentary, its financial performance may appear discouraging at face value, which could weigh on the Redbubble share price.

Its first quarter financial highlights include:

• Gross transaction value of $142 million, down 21% on the prior corresponding period (pcp)
• Marketplace revenue of $106 million, down 28%
• Gross profit of $42 million, down 34%
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $3.9 million, down 85%
• Operating cash inflow of $11 million, compared to $27 million in 1Q21
• Cash balance of $109 million at 30 September

Redbubble advised that excluding masks and on a paid basis, underlying 1Q22 marketplace revenue was down 6%.

Encouragingly, as the quarter progressed, underlying marketplace revenue improved from negative 11% in July to negative 2% in September.

From an operational perspective, the company continued to deliver initiatives to drive growth.

During the quarter, Redbubble successfully launched Afterpay Ltd (ASX: APT) services for its customers in the United States, Canada, United Kingdom and Australia.

The company was also driving a number of ‘experiments’ to drive customer retention and improve the discoverability of new artists. As well as the introduction of new products and line extensions including dad hats, baseball caps, desk mats, mousepads and iPhone 13 cases.

What’s next for Redbubble?

The Redbubble share price has been moving in a volatile fashion as it adjusts to lower growth expectations.

Looking ahead, the company said that its marketplace revenue growth in the first half of FY22 will likely be negative year-on-year. In the second half, the company believes there will be a steady return to year-on-year growth rates.

As previously stated, the company’s targeted investments will weigh on gross margins, with EBITDA margins as a percentage of marketplace revenue expected to be in the mid-single digit range of FY22.

Redbubble share price snapshot

The Redbubble share price is down 23% year-to-date, largely driven by a 23% single-day selloff on 22 April.

In recent weeks, the Redbubble share price has managed to find its footing around the low-mid $4 level.

The post Redbubble (ASX:RBL) share price on watch after first quarter update appeared first on The Motley Fool Australia.

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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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The Flight Centre Travel Group Ltd (ASX: FLT) share price travelled 45% higher in the first quarter of FY22. The positive shift comes as the long-awaited travel agenda comes back to Australian lives.

At the end of Wednesday’s market session, Flight Centre shares closed at $22 apiece.

Travel plans restart

While overseas holidays are expected to soon be a reality, the Flight Centre share price has taken off in recent times.

Clearer visibility surrounding the resumption of travel has led the company to target a return in leisure and corporate profitability. In particular, sales revenue increased month-on-month in the United States buoyed by a return to normal life.

Corporate transaction numbers were at 50% of pre-COVID levels, representing around 40% of Flight Centre’s total transaction value (TTV).

In addition, accelerated vaccination programs have resulted in restrictions being either relaxed or removed in key travel markets. This gives more freedoms to passengers who wish to travel internationally.

As more countries are accepting to live with the virus, a number of international routes are restarting. Australia is set to open up to selected counties from November onwards, with destinations including the United Kingdom and the United States. Other countries such as Fiji, Japan, Singapore, New Zealand and others are anticipated to be available at a later date.

Late last month, Flight Centre managing director, James Kavanagh highlighted the light at the end of the tunnel is getting nearer. He said:

The first day after Qantas’s announcement regarding international flight coming back, we saw a dramatic spike in both bookings and searches – with locations ranging from Los Angeles to Delhi – and over a quarter of these bookings were for business travel.

Flight Centre share price snapshot

Up until late August, Flight Centre shares were trading mostly sideways. However, since then, its shares have skyrocketed almost 60% in less than 2 months. When looking at the larger picture, the company’s share price is up around 40% for the calendar year.

Flight Centre has an attractive price-to-earnings (P/E) ratio of 7.07 and commands a market capitalisation of roughly $4.49 billion.

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

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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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There are a number of ASX dividend shares that could be options for income.

The businesses in this article have been rated as buys by brokers, meaning they think they are good value.

A business isn’t automatically worth owning just because it pays a dividend. But these two are rated as worth owning:

Deterra Royalties Ltd (ASX: DRR)

As the name suggests, this business owns royalties. Mining royalties to be precise. It has the MAC royalty, the Doral royalty interests, the Sheffield royalty interest and the Cable Sands royalty interest.

In FY21, the MAC royalty (the key asset) performed “strongly” thanks to a strong iron ore price environment.

This company has a dividend policy of paying out 100% of net profit after tax (NPAT), franked to the maximum extent possible. It has low debt and low costs, allowing for opportunistic investment and a highly scalable corporate structure, according to the company.

The ASX dividend share is looking to increase its scale and diversification with complementary value-adding acquisitions.

It’s currently rated as a buy by the broker Morgan Stanley, with a price target of $4.55. That suggests a potential 20% increase of the Deterra Royalties share price over the next 12 months, if the broker is right.

In terms of the dividend, Morgan Stanley thinks Deterra Royalties will pay a dividend of 23.8 cents per share in FY22, which translates to a grossed-up dividend yield of 9%.

Charter Hall Retail REIT (ASX: CQR)

This is a real estate investment trust (REIT) that is operated by the property management business Charter Hall Group (ASX: CHC) to own and manage retail properties.

It has around 350 properties that are worth a total of $3.6 billion, with an occupancy rate of 98.3% and a weighted average lease expiry (WALE) of 7.5 years. This gives the business a high level of income visibility for the next few years.

COVID-19 certainly impacted the value and rental profit of this business. That may explain why the Charter Hall Retail REIT share price is still 17% lower than the level it was at just before the COVID-19 crash.

However, the business is expecting that specialty sales and traffic will rebound strongly after lockdowns finish, after seeing this pattern with previous lockdowns.

It’s going to pay FY22 distributions based on its cashflow.

In FY21 the ASX dividend share paid a distribution of 23.40 cents per unit (which was down 4.6% on FY20).

The brokers at Macquarie Group Ltd (ASX: MQG) rate this REIT as a buy, with a price target of $4.24. They think that Charter Hall Retail REIT is going to pay a FY22 total distribution of 24.9 cents per unit and a FY23 total distribution of 26.80 cents per unit, which equates to yields of 6.1% and 6.6% respectively.

Whilst the net rental profit has been impacted, it has seen its valuation per unit increase for investors. Over FY21, the net tangible assets (NTA) increase by 6.9%, compared to FY20, to $4.01. That means the current Charter Hall Retail REIT share price is now roughly in line with its NTA.

Its portfolio look-through gearing is 33.1%, with balance sheet gearing of 25.7%. But it still has available investment capacity of $308 million, consisting of cash and undrawn debt facilities.

The post 2 ASX dividend share opportunities rated as buys by brokers 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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