Category: Stock Market

The Creso Pharma Ltd (ASX: CPH) share price is sliding in afternoon trade today and now trades at 11.3 cents apiece.

Whilst there’s been no market sensitive information released today, Creso Pharma shares are struggling despite the company announcing an update on testing of its new cannabis strains.

Read on for more details.

What did Creso Pharma announce?

Creso advised that its Canadian subsidiary, Mernova, has completed third-party testing of “THC content for four new cannabis strains with a Health Canada certified lab”.

Each new strain demonstrated “a major achievement” and exceeded the industry average THC content of 15% to 20%, recording an average of 19.6–30.1% THC content.

Specifically, the New Miracle Alien Cookies strain showed a 30.1% THC concentration – almost 50% higher than Creso Pharma’s competitors’ products.

This is expected to give Creso a competitive advantage in the Canadian market, increase product demand, and grow market share, per the release.

The release also notes the company has substantially increased the skill and experience levels of its employees, in order to commence advanced grow methods.

Supporting the staff changes are “multiple process improvements and upgrades (that) are currently underway”, each in an effort to increase plant yield and quality.

Aside from this, Creso advises that an additional 4 strains have been started from seed, and will undergo testing to determine sex in the coming months. They are expected to be introduced sometime in 2022.

With this momentum, the company stated that “sales continue to grow, (with) an additional $152,236 in purchase orders secured in the last week”.

That builds on a mix of bulk purchase orders for $800,000 that was announced for Mernova’s cannabis product last week.

Investors aren’t chasing the Creso Pharma share price today, and are instead selling the cannabis company’s shares in afternoon trade, pushing it 2% lower at last check.

Creso Pharma share price snapshot

It’s been a difficult year to date for the Creso Pharma share price, having posted a loss of 37.5% since January 1.

Yet, it has gained over 240% in the past 12 months, even after a 10% decrease this past month.

This result has far outpaced the S&P/ASX 200 index (ASX: XJO)’s gain of around 25% in the last year.

The post Creso Pharma (ASX:CPH) share price struggles despite study update appeared first on The Motley Fool Australia.

More reading

• Creso Pharma (ASX:CPH) share price jumps on new deal
• What’s going wrong for ASX cannabis shares lately?
• Creso Pharma (ASX:CPH) share price lifts following two positive updates
• Creso (ASX:CPH) share price edges 4% higher following export deal

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

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“This investment is only available to sophisticated and wholesale investors’. 

That is a phrase many ASX investors might be familiar with. Here in Australia, we have a plethora of rules and regulations safeguarding our financial system and the investments within it.

One of those rules governs who can invest in what.

For an investment product to be available for general public use, it has to jump through a number of compliance hurdles. These include providing disclosure and risk assessment documentation to investors. Think prospectuses or product disclosure statements. Something I’m sure the managers at Platinum Asset Management Ltd (ASX: PTM) or Magellan Financial Group Ltd (ASX: MFG) could tell us more about.

The idea is that there needs to be a rigorous regulatory framework that protects ordinary ‘retail’ investors, like you or I, from spurious or dubious investment products.

An air of sophistication…

However, not all investment products in Australia have to comply with these rules. If an investor meets the qualifications of being a ‘sophisticated’ or ‘wholesale’ investor, they can be given an exemption.

The federal government’s moneysmart.gov.au website tells us what this means. People who qualify as sophisticated or wholesale investors “can buy financial products without a regulated disclosure document such as a prospectus or product disclosure statement”.

In other words, they are permitted to access a world of investment products that are not available for ordinary investors.

So what does one have to do to qualify as one of these elite investors?

According to the Australian Securities and Investments Commission (ASIC), to become a sophisticated or wholesale investor, one has to obtain a “certificate from a qualified accountant certifying they have a prescribed net asset or gross income level”.

That net asset or income level?

You need either a “gross income of $250,000 or more per annum in each of the previous two years”. Or else have “net assets of at least $2.5 million”.

So why this two-track system for investors?

ASIC tells us the following:

The rationale is that people meeting one of these criteria are more likely to be able to evaluate offers of securities and some financial products (such as interests in managed investment schemes) without needing the protections of a regulated disclosure document.

How many sophisticated or wholesale investors are there?

A lot more than there used to be.

According to a report in today’s Australian Financial Review (AFR), there are now more than 3 million Australians who meet the qualifications. The report quotes modelling from the Australian National University (ANU). This found that “1.09 million households (or 3.25 million individuals) meet the legal definition for a sophisticated or wholesale investor”.

There were only 104,000 households that met this definition back when this system was introduced in 2002. That means this number has ballooned by roughly 10 times over the past 2 decades. And the report reckons that this number could hit 6.78 million adults by 2031. And 11.5 million by 2041. The ranks are being further swelled by the rapidly rising property market, as the family home is not exempt from the asset test.

Associate professor from the ANU’s Centre of Social Research and Methods Ben Phillips called this situation the result of an “oversight” by policymakers:

Clearly the share of Australians earning $250,000 in gross income over two consecutive years, or those with more than $2.5 million in net assets, has changed dramatically over the last two decades because of income and asset price inflation…

These changes arise as a result of the failure of the legislation to index the… wealth tests in the Corporations Act’s sophisticated investor definition… to the increase in both income and wealth over the 20 years since the definition was introduced.

However, if you’re one of the lucky investors who now qualify as sophisticated or wholesale, don’t get too carried away. Dr Phillips warns that “meeting the requirements of the sophisticated investor definition is unlikely to guarantee that an investor is immune to poor investment choices or being misled by shady deals”.

Something to keep in mind if you are aiming to be, or already are, an official sophisticated or wholesale investor.

The post 3 million Aussies now qualify as sophisticated investors. Do you? appeared first on The Motley Fool Australia.

More reading

• Ampol (ASX:ALD) share price zooms higher on NZ$2.8bn Z Energy acquisition
• Why the Nexus Minerals (ASX:NXM) share price just leapt to an all-time high
• ASX 200 energy shares rise amid market sell-off
• Own Bank of Queensland (ASX:BOQ) shares? Here’s what to expect from its FY21 results
• Aurizon (ASX:AZJ) share price struggles amid $2b deal speculation

Motley Fool contributor Sebastian Bowen 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 Ampol Ltd (ASX: ALD) share price is fuelled up and zooming higher on Monday.

In afternoon trade, the fuel retailer’s shares are up over 3% to $30.08.

Why is the Ampol share price charging higher?

Investors have been bidding the Ampol share price higher today after it announced that it has entered into a binding scheme implementation agreement to acquire Z Energy Ltd (ASX: ZEL).

According to the release, the two parties have agreed on a price of NZ$3.78 cash per share. This represents an enterprise value of NZ$2.8 billion.

In addition, Z Energy shareholders will be entitled to a NZ$0.05 per share interim dividend for FY 2022 that won’t impact the cash offer price.

But it doesn’t stop there. Depending on how long the transaction takes to complete, the offer price could increase. The release explains that if the transaction has not been implemented by 31 March 2022, the final cash consideration will be progressively increased to reflect Z Energy’s FY 2023 performance. This allows for an increase of up to NZ$0.10 per share.

Is this a good deal?

Judging by the Ampol share price performance today, it appears as though the market believes this is a good deal.

And it’s not hard to see why. Z Energy is the market leader in New Zealand with a 40% share of all fuel volumes. As a result, Ampol believes that acquiring Z Energy will create a “Trans-Tasman fuel champion.”

Management is also forecasting significant transition and synergy opportunities totalling NZ$60 million to NZ$80 million. These are expected to be achieved via fuel procurement and overhead cost reductions.

This is expected to lead to the transaction being double digit earnings per share accretive and +20% free cash flow accretive in 2023.

The Ampol share price is now up 22% over the last 12 months.

The post Ampol (ASX:ALD) share price zooms higher on NZ$2.8bn Z Energy acquisition appeared first on The Motley Fool Australia.

More reading

• Z Energy (ASX:ZEL) share price leaps 6% on Ampol takeover news
• Ampol (ASX:AMP) share price on watch after Z Energy takeover agreement

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 Nexus Minerals Ltd (ASX: NXM) share price is pulling back after surging to an all-time high today. This comes after the company announced positive results in regards to its drilling campaign at the Templar Prospect.

During morning trade, the gold explorer’s shares reached a record high of 49.5 cents. However, profit-taking has led its shares in negative territory, down 2.3% to 42.5 cents at the time of writing.

High-grade gold mineralisation

In a statement to the ASX, Nexus advised it has received high-grade assay results from its drilling operations.

Strong gold mineralisation has been detected from one diamond hole and two RC holes within the company’s Wallbrook gold project.

Diamond hole #3 yielded the following intercept result:

• 4.61 meters at 5.78 grams per tonne of gold (within 18.38 meters at 2.40g/t Au from 123.72 meters).

Both diamond drill holes #3 and #4 were tested from the surface to a depth of 600 meters, intersecting mineralisation. While the results for drill hole #3 have been collected, assays are still pending for drill hole #4.

The two RC drill holes (#199 and #201) are highlighted below, respectively:

• 4 meters at 4.13 grams per tonne of gold (within 12 meters at 1.72g/t Au from 200 meters); and
• 8 meters at 1.99 grams per tonne of gold (within 40 meters at 0.82g/t Au from 44 meters).

While these holes indicated promising mineralisation, five other RC holes were halted due to poor drilling conditions. As such, Nexus will now use diamond tails to extend the five holes to their desired depth.

No timeline has been given by the company of when it expects to complete the remaining holes to be tested.

Nexus managing director, Andy Tudor commented:

These broad high- grade results received from DDH#3 at Templar are in line with our expectations. What has significantly exceeded our expectations is the alteration style and mineralisation observed in both DDH#3 and the recently completed deeper diamond hole #4. They exhibit the same style that hosts the multi-million-ounce Karari deposit 30km to the south.

This has now linked the Crusader-Templar alteration and mineralisation style with that of Karari, providing confidence in the potential for the Crusader- Templar Prospect to evolve into a very large mineralised system.

About the Nexus Minerals share price

Over the last 12 months, Nexus shares have accelerated by more than 220%, with year-to-date also up 220%.

Based on today’s price, Nexus commands a market capitalisation of roughly $104.2 million and has approximately 245.16 million shares outstanding.

The post Why the Nexus Minerals (ASX:NXM) share price just leapt to an all-time high appeared first on The Motley Fool Australia.

More reading

• Why is the Nexus Minerals (ASX:NXM) share price rocketing 28% today?
• The Nexus Minerals (ASX:NXM) share price is up 34% today and 340% in a month

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

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ASX 200 energy shares are collectively one of the few brights spots on Monday, following a broad-based market sell-off.

The S&P/ASX 200 Index (ASX: XJO) reversed last Friday’s gains, sliding 0.45% to 7,286. Most sectors are in red, with heavy selling taking place across information technology, healthcare and real estate sectors.

By comparison, the S&P/ASX Energy (ASX: XEJ) index is trading 0.81% higher, with most of its constituents in positive territory.

The Woodside Petroleum Limited (ASX: WPL) share price has managed to eke out a small gain of 0.28% to $25.42. Shares in the largest ASX-listed oil and gas player are currently hovering around 7-month highs.

Santos Ltd (ASX: STO) is up 0.95% to $7.45, a price not seen for 3 months.

The Oil Search Ltd (ASX: OSH) share price is trading 1.77% higher to $4.59, its highest level since March 2020.

Beach Energy Ltd (ASX: BPT) is perhaps the best performing ASX 200 energy share. In early morning trade today Beach Energy shares rallied 3.8% to a 5-month high of $1.50.

What’s driving ASX 200 energy shares?

Oil prices continue to gather momentum, rallying to fresh 7-year highs.

The United States benchmark, West Texas Intermediate (WTI), has cracked the US$80 a barrel mark. While the global benchmark, Brent Crude, is trading 0.51% higher at a 3-year high of US$83 a barrel.

Oil prices rallied last Friday after the US Department of Energy spokesperson said that the agency had no plans to tap into strategic petroleum reserves to help ease tight supplies.

“An acceleration in gas-to-oil switching could boost crude oil demand used to generate power this coming northern hemisphere winter, however, the US may be heading into winter with its lowest stockpiles of heating oil for decades,” ANZ research analysts said, according to S&P Global.

Market dynamics for oil are expected to remain tight after the Organization of the Petroleum Exporting Countries and Russia (OPEC+) decided to stick to its existing plan to increase output by 400,000 barrels a day last week.

This is amid the recent supply-side disruptions caused by Hurricane Ida. Not to mention rising demand amid an energy crisis in China and gas shortage in Europe.

The post ASX 200 energy shares rise amid market sell-off appeared first on The Motley Fool Australia.

More reading

• Here’s what happened to the Woodside Petroleum (ASX:WPL) share price in the FY22 first quarter
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• These were the 3 best performing ASX energy shares in September
• Why A2 Milk, Magellan, Santos, & Whitehaven Coal shares are falling

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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Bank of Queensland Limited (ASX: BOQ) shares will be on watch this week.

On Wednesday the regional bank is scheduled to release its full year results for FY 2021.

Ahead of the release, I thought I would look to see what is expected from the bank.

What is expected from Bank of Queensland in FY 2021?

According to a note out of Goldman Sachs, its analysts are expecting Bank of Queensland to deliver strong profit growth in FY 2021.

The note reveals that the broker has pencilled in cash earnings of $406 million, which will be an increase of 80% year on year.

This is expected to lead to cash earnings per share of 66 cents, allowing the bank to pay a 39 cents per share fully franked full year dividend. The latter comprises an interim 17 cents per share dividend and Goldman’s forecast for a 22 cents per share final dividend.

Based on the current Bank of Queensland share price of $9.72, this represents an attractive 4% dividend yield.

What else should you out for?

There are a number of key metrics that banks release with their results that help investors judge its performance and the strength of its business.

One of these is its CET1 capital ratio, which Goldman expects to come in at 10%. This is ahead of the bank’s target range of 9% and 9.5%, suggesting there’s room for potential capital returns.

In addition, the broker is expecting a notable improvement in the bank’s cash return on equity from 5.4% in FY 2020 to 8% in FY 2021.

Another metric Goldman will be looking out for is its lending growth. It expects the bank to be growing its lending at above system growth.

It explained: “For 2H21, BOQ expected to achieve above system lending growth with a steady recovery in business lending through 2H21. (GSe housing +2.8% vs. system (ex-ME Bank), business -1%). We will be keen to hear management commentary around the sustainability of its volumes growth and whether this can be achieved with a reasonable NIM outcome. We note that the recent month’s APRA data indicates 4 straight months of improved momentum (tracking at 13.3% on a 3m ann. basis) and we remind investors that at its 1H21 result, BOQ guided to 2H21 NIM (ex-ME Bank) to be flat hoh.”

Are Bank of Queensland shares in the buy zone?

The note reveals that Goldman Sachs still sees value in Bank of Queensland shares at the current level.

The broker currently has a buy rating and $10.09 price target on its shares.

Based on the current Bank of Queensland share price, this implies a potential return of 4% before dividends and 8% including them.

Though, it is worth remembering that this recommendation could change (for better or for worse) depending on the quality of its results on Wednesday.

The post Own Bank of Queensland (ASX:BOQ) shares? Here’s what to expect from its FY21 results appeared first on The Motley Fool Australia.

More reading

• Bank of Queensland (ASX:BOQ) share price hits 52-week high on Friday
• Top broker tips Bank of Queensland (ASX:BOQ) share price as a buy
• 5 things to watch on the ASX 200 on Wednesday
• If you invested $1,000 in Bank of Queensland (ASX:BOQ) shares a decade ago, here’s what it would be worth now
• Why Bank of Queensland (ASX:BOQ) shares are up 66% in the past 12 months

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 Aurizon Holdings Ltd (ASX: AZJ) share price is sliding into the red on Monday and now trades at $3.89.

Shares in the rail freight giant are struggling amid reports the company may be stepping onto the acquisition trail that’s been set on the ASX so far in 2021.

Here are the details.

What’s the situation?

The Aurizon share price is losing ground amid speculation the company may be gearing up to buy One Rail Australia.

According to a report in The Australian, Australia’s largest freight operator has put itself in prime position to sweep up the $2 billion One Rail, potentially opting to buy all of its assets.

These include 2,500km of railroad between South Australia and the Northern Territory, alongside bulk haulage operations.

One Rail is also understood to derive approximately 47% of its revenue from coal, according to the report. With the price of coal soaring lately, Aurizon would be on the receiving end of these earnings if the sale were to go through.

This comes despite the company’s recent moves to take a step back from its coal revenue streams, in accordance with ESG principles.

However, the price of coal has climbed more than 196% this year to date and is up another 34% in the past month, making the commodity an attractive asset for its net-revenue potential right now.

According to The Australian, there is speculation Aurizon is set to make a move for One Rail. This could have a bearing on its share price if the deal goes through. Especially if Aurizon were to reinvest cash flows from its coal operations into non-coal operations.

On this prospect, the Aurizon share price was recently upgraded to a buy from leading broker Morgans which increased its price target to $4.14.

Analysts at the firm liked Aurizon’s prospects to make acquisitions and generate return on the company’s invested capital.

Time will tell if the speculation will convert to a real-life offer from Aurizon to purchase One Rail.

Aurizon share price snapshot

The Aurizon share price is trading flat this year to date and has posted a loss of 9.74% these past 12 months.

Yet, it has gained 2% in the last month and another 2% this past week.

Nonetheless, these results have lagged the S&P/ASX 200 Index (ASX: XJO)’s return of around 25% this last year.

The post Aurizon (ASX:AZJ) share price struggles amid $2b deal speculation appeared first on The Motley Fool Australia.

More reading

• Why a top broker upgraded the Aurizon (ASX:AZJ) share price to a buy
• 2 highly rated ASX dividend shares to buy
• Aurizon (ASX:AZJ) share price lifts following sustainability report
• Broker tips BHP (ASX:BHP) and this dividend share to provide huge yields

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Aurizon Holdings 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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Fortescue Future Industries is the talk of the ASX today, but market watchers may be disappointed to learn they can’t invest directly into the company.

However, there is a way to get a slice of Fortescue Future Industries in your portfolio. Though, it involves buying its parent company, Fortescue Metals Group Limited (ASX: FMG).

At the time of writing, an investor can get their hands on a share in Fortescue Metals for $14.60. That’s 2.46% higher than the company’s stock’s previous closing price.

The Fortescue Metal share price has potentially been boosted by news of Fortescue Future Industries’ new hydrogen investment.

Buying into Fortescue Metals would mean indirectly investing in Fortescue Future Industries’ newly announced Global Green Energy Manufacturing Centre.

The first stage of Global Green Energy Manufacturing Centre will create Australia’s first multi-gigawatt-scale electrolyser factory. Electrolysers can remove hydrogen from water and, if run on renewable energy, can produce ‘green’ hydrogen – a zero-carbon fuel source.

Of course, investing in Fortescue Metals means investing in all aspects of Fortescue Metal’s business, not just Fortescue Future Industries.

Let’s take a closer look at Fortescue Future Industries and how the business is related to Fortescue Metals.

How to invest in Fortescue Future Industries on the ASX

ASX investors might be overjoyed to find there is a way to get a slight holding in Fortescue Future Industries.

To do so, one can invest in Fortescue Metals, the world’s fourth largest iron ore producer.

Fortescue Metals is Fortescue Future Industries’ parent company.

According to Fortescue Metals, its subsidiary is the face of its hydrogen-powered ambitions and a key component in its plan to reach carbon neutrality by 2030.

Fortescue Future Industries is working to establish a portfolio of renewable hydrogen and ammonia operations. It plans to be a leader in the world’s renewable hydrogen industry.

Further, it plans to produce 15 million tonnes of green hydrogen each year by 2030. It also hopes green hydrogen will be the most traded seaborne energy commodity in the world by then.

So, while investors can’t buy into Fortescue Future Industries directly, a holding in Fortescue Metals will grant them some exposure to the business.

The post Is Fortescue Future Industries listed on the ASX? appeared first on The Motley Fool Australia.

More reading

• Why are ASX hydrogen shares in the spotlight on Monday?
• Fortescue (ASX:FMG) share price gains amid Twiggy’s planned $1bn hydrogen investment
• Do these ASX dividend shares really have 20%+ yields?
• 2 ASX shares that could be worth researching this weekend
• Here’s why the Rio Tinto (ASX:RIO), BHP and Fortescue share prices are surging today

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 Qantas Airways Limited (ASX: QAN) share price has given back its early morning gains to be down 0.5% at time of writing.

That’s right in line with the broader S&P/ASX 200 Index (ASX: XJO), also down 0.5% at this time.

That’s the action today.

Now let’s take both a step back and have a glance ahead at the bigger picture for Qantas shareholders.

COVID-19 and the Qantas share price

Qantas, like most every ASX travel share, was absolutely hammered following the onset of COVID-19.

And that’s no exaggeration.

From 27 December 2019, when the Qantas share price was at $7.34, through to 20 March 2020, Qantas shares plummeted 68%.

Since then, the airline has recovered strongly. It’s now up 136% from its 20 March 2020 lows.

Yet the Qantas share price remains down 24% from its post-Christmas levels in 2019. (Remember, when a company loses 50% in value, it needs to gain 100% to get back to even.)

Now, with Australia poised to begin reopening in earnest, investors are increasingly wondering if the flying kangaroo will march back to its pre-pandemic levels. Or perhaps even exceed them.

Can Qantas pull a Ryanair?

Even with the rapid rollout of the vaccines Down Under, it will likely be sometime after Christmas before all the Australian states fully reopen to international travels. Even interstate travel will likely see some restrictions remain initially.

That, for now, looks to be keeping a lid on the Qantas share price.

But the light is certainly beckoning at the end of the lockdown tunnel. And Australians may soon join their British and American neighbours in being able to hop on an airplane and take that much missed vacation.

In fact, in the United States, according to Josh Gilbert, market analyst at global online trading platform eToro, “The US airline Delta [Delta Air Lines, Inc. (NYSE: DAL)] expects to see domestic travel bookings in 2022 exceed the numbers set back in 2019.”

Among the biggest winners, Gilbert told The Motley Fool is Ryanair Holdings plc (LON: RYA).

Low-cost carriers are seemingly winning the battle of industry market share, with Ryanair’s share price recently climbing above pre-pandemic levels to around 17 euros per share. Compared to larger airlines in Europe, Ryanair expects more passengers to fly in the European autumn season, citing strong optimism moving into 2022.

Indeed, taking the same 27 December 2019 date we used for the Qantas share price moves above, shares in Ryanair are now up 16% since then. A feat Qantas shareholders are certainly hoping the Aussie airline can replicate.

How has Ryanair been tracking?

According to Gilbert:

Ryanair announced its traffic numbers hit 10.6 million passengers in September 2021, which more than doubled from the same period in 2020 of 5.2 million passengers. The company’s CEO, Michael O’Leary, has also confirmed that he expects that the company will keep flying around 10 million passengers a month until 2022, which will ultimately benefit Ryanair’s share price moving forward.

Ryanair has been successful so far in attracting customers and filling planes by keeping fares low, which has also resulted in the company retaining a strong balance sheet. In its recent FYQ1 report in July, Ryanair announced its revenues increased by 196% year-over-year, net debt dropped by 27%, and cash balance grew to 4 billion euros.

As for the outlook for Aussie travel shares, Gilbert told The Motley Fool, “Local airlines such as Qantas and Virgin will also benefit, especially when it comes to Aussies travelling out of the country.”

Keep an eye on these risks

Investors hoping to see the Qantas share price leap above its pre-pandemic levels should remember that “the possibility of new restrictions and lockdowns is a constant risk,” Gilbert said. Adding that, “Travel stocks aren’t going to be a quick flip and investors need to understand that this will be a long-term play.”

Atop that, Gilbert noted:

Travellers in Europe still have to complete PCR tests and require vaccine passports in order to travel, and this will likely be the same across different countries, including Australia.

Nevertheless, for investors with a long-term outlook, the travel industry is an attractive sector that is providing some impressive returns and an interesting outlook for the future.

The post Will the Qantas (ASX:QAN) share price follow Ryanair’s surge on reopening? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• International borders will reopen soon. Why is the Qantas (ASX:QAN) share price stalling?
• Travel stocks soar. Hopes for a new COVID treatment. Evergrande drags on. Scott Phillips on Nine’s Late News
• Why ASX 200 travel shares are having a bumper day
• Up 7%, the Flight Centre (ASX:FLT) share price is surging. Here’s why

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Delta Air Lines. 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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It certainly has been another disappointing year for the AMP Ltd (ASX: AMP) share price.

The embattled financial services company’s shares have shed 31% of their value in 2021.

This means the AMP share price is now down a bitterly disappointing 80% over the last five years.

Is the AMP share price finally good value?

According to a recent note out of Citi, there could be value in the AMP share price at the current level.

The note reveals that the broker currently has a neutral (high risk) rating on the company’s shares with a price target of $1.25.

So while the broker’s rating is only neutral, with the AMP share price trading at $1.08, its price target implies potential upside of almost 16% over the next 12 months.

What did the broker say?

Citi has been pleased with the progress that AMP is making, though it acknowledges that there’s still a lot of work to do.

It commented: “While AMP has clearly made some progress in 1H21, there is still a long way to go. There will be no dividend until at least 1H22 and earnings are guided to fall in 2H. However given the 1H beat on higher “investment earnings” we nonetheless lift our FY21E by 3% with little change to later years.”

The broker also notes that there’s still a large amount of uncertainty regarding the AMP Capital business and demerger, which explains why it is retaining its neutral rating despite its attractive price target on the AMP share price.

Citi explained: “As a new CEO takes the helm, it still remains unclear what shape AMP Capital will be in by the time of its targeted private capital markets demerger with its profit currently on a declining path. Further, while its remediation program is finished and there is progress in advice, there is still a long way to go to put the business on a profitable footing. Given slightly reduced, but still considerable, uncertainty we retain our Neutral/High Risk call and A$1.25 target price.”

The post Why this top broker sees 16% upside for the AMP (ASX:AMP) share price 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 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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