Category: Stock Market

Afterpay Ltd (ASX: APT) shares have been on a tear in the past month, gaining 25.1% for investors.

Just on Thursday alone, the buy now, pay later (BNPL) stock spiked up 3.03% to close the day at $123.65.

The Afterpay share price seems to be a microcosm of a shift on the ASX.

For 3 solid months from February, growth shares were getting absolutely hammered as investors turned to value shares that benefitted the most from the post-COVID ‘reopening’ trade.

For example, the S&P/ASX All Technology Index (ASX: XTX) fell more than 20% from 15 February to 19 May.

But ASX growth shares have since made a stunning comeback. The All-Tech index has gained more than 20% since that May trough.

So if you’re confused about whether value or growth is in favour, you’re not the only one.

Afterpay shares could have more upside to run

One team that’s not confused are the equities analysts at Macquarie.

The Motley Fool’s James Mickleboro reported Thursday that those experts reckon more explosive growth for the fintech is not out of the question over the next few years.

The broker rated Afterpay shares as a buy and slapped on a price target of $140.

The product pipeline is what seems to be impressing the analysts.

The Afterpay Money app will be launched in Australia soon. In the US, the fintech’s app last month onboarded a bunch of big-name retailers to allow customers to buy now, pay later even if the merchant is not affiliated with the service.

The 12 brands add up to “almost half” of all the e-commerce that takes place in the US.

Online shopping had not died out even as vaccinations have triggered a transition to post-pandemic life, according to Afterpay North America general manager Zahir Khoja.

“Consumers still want the convenience and flexibility of buying with the click of a mouse as part of their ‘new normal’”, he said in June.

“We are thrilled to continue to support our customers by allowing them to shop every day at their favourite brands with Afterpay for things they need and want in their lives.”

Afterpay was founded in 2014 by Nick Molnar and Anthony Eisen. The Afterpay share price made its ASX debut in 2016, on the back of an initial public offering (IPO) that sold stocks for $1 each.

The post The Afterpay (ASX:APT) share price has now soared 25% in the last month appeared first on The Motley Fool Australia.

More reading

• Top broker picks the emerging ASX tech shares with the biggest upside next month
• 3 stellar ASX 200 growth shares that could be buys in July
• Why the Zip (ASX:Z1P) share price is rocketing 15% higher today
• ASX 200 rises, Challenger soars, Zip jumps
• The Afterpay (ASX:APT) share price stormed 5% higher today

Motley Fool contributor Tony Yoo owns shares of AFTERPAY T FPO and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and 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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If you’re looking to invest in the resources sector, then you may want to look closely at the highly rated ASX 200 mining shares listed below.

They have both been named as buys recently and tipped to generate strong returns for investors. Here’s what you need to know about them:

Rio Tinto Limited (ASX: RIO)

The first ASX 200 mining share to look at is Rio Tinto. It is one of the world’s largest miners with a portfolio of world class operations across a number of commodities.

Chief among them is iron ore, which contributes significantly to the company’s earnings. This is a big positive given that the steel making ingredient is currently trading at sky high levels.

One broker that thinks the Rio Tinto share price is great value right now is Macquarie. It recently retained its outperform rating and lifted its price target to $163.00. Its analysts are expecting favourable commodity prices to support strong earnings and dividends in the near term.

In fact, with the Rio Tinto share price currently fetching $126.22, Macquarie is forecasting a double digit fully franked dividend yield in FY 2021 and something similar next year.

South32 Ltd (ASX: S32)

Another ASX 200 mining share to look at is South32. It is a mining company with exposure to a range of commodities such as alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc.

It is thanks to its aluminium exposure that analysts at Goldman Sachs are bullish on South32. The broker believes that aluminium is in the early stages of a multi-year bull market and expects South32 to benefit greatly.

It is for this reason that the broker has South32 on its conviction buy rating with a $3.80 price target. This compares to the latest South32 share price of $2.94. Goldman is also forecasting generous dividends in the near future. In FY 2021 it is expecting a yield in the region of 3.3%, whereas next year it is forecasting a yield closer to 8.5%.

The post 2 ASX 200 mining shares that could be buys appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Mining shares in the ASX 200 might unearth US$26b worth of dividends
• Leading brokers name 3 ASX shares to buy today
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• Iluka (ASX:ILU) share price boosts 10%, hits new 52-week high

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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One thing the S&P/ASX 200 Index (ASX: XJO) is not short of is dividend shares. Which certainly is a big positive given how low interest rates are right now.

With that in mind, I have picked out two ASX 200 dividend shares that analysts rate as buys. They are as follows:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share to look at is Coles. This supermarket operator has been tipped to grow at a solid rate over the next decade.

This is expected to be underpinned by its strong market position and its Refreshed Strategy. The latter is cutting costs, making its operations more efficient, improving its online business, and focusing on automation through its soon-to-be-built distribution centres with Ocado.

Goldman Sachs is very positive on Coles. It currently has a buy rating and $19.40 price target on its shares. The broker is also forecasting fully franked dividends of 62 cents per share in FY 2021 and then 67 cents per share in FY 2022. Based on the current Coles share price of $16.82, this represents yields of 3.7% and 4%, respectively, over the next two years.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that has been rated as a buy is Westpac. Morgan Stanley is bullish on the banking giant and has a buy rating and $29.20 price target on the company’s shares.

The broker believes Westpac can continue to outperform the ASX 200. This is thanks to a continuing earnings upgrade cycle and a better outlook for revenue growth. In addition to this, it likes Westpac due to its current valuation and the prospect of significant capital management.

Morgan Stanley is forecasting fully franked dividends per share of $1.18 and $1.25 over the next two years. Based on the latest Westpac share price of $25.53, this will mean yields of 4.6% and 4.9%, respectively.

The post Why analysts love Westpac (ASX:WBC) and this ASX 200 dividend share appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 COLESGROUP DEF SET. 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 tech shares could be the place to look for long-term growth ideas.

Technology companies have inherent advantages compared to some sectors because of how relatively little it costs to sell a new piece of software to a customer. That can lead to higher profit margins for the business over time once they reach a certain size.

Some businesses have large, long-term goals where they hope to win more market share and become bigger companies.

Here are two to think about:

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a business that is helping large and medium US churches turn digital.

It offers a number of different services. Pushpay processes billions of dollars of digital donations for churches in the US. The company is now looking to expand into the Catholic segment.

Pushpay also offers a number of tools for churches. It offers a livestreaming service so people can stay connected with the church, even in this era of COVID-19. The ASX tech share also offers things like donation tracking, community communication and church administration.

Pushpay has been proving its scalability with rising profit margins. In FY21, Pushpay operating revenue went up 40%, whilst earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) went up 133% and net profit jumped 95%.

The business is seeing even faster growth of operating cashflow, which increased by 145% to US$57.6 million in FY21. It used the money that year to fully repay its bank debt. Management said its positive cashflow provides flexibility, as it continues to assess further potential strategic acquisitions that broaden Pushpay’s current proposition and add significant value to the business.

Pushpay is expecting further operating leverage to accrue as revenue grows and expense growth remains limited.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the leading online retail businesses on the ASX.

It sells many thousands of products through lots of suppliers. The products are shipped straight from the suppliers to customers, which makes the delivery quicker. It also means Temple & Webster doesn’t need to hold (as) much inventory.

The ASX tech share is planning to invest heavily to capture the large market opportunity that is presented by the growth of online shopping.

It is focusing on advertising, increasing its product range, expanding into new categories, investing in its shopping experience and improving its business to business offering and sales.

Temple & Webster pointed out that more than 20% of furniture and homewares was bought online in the US during 2020. The company believes that Australia is following the same trajectory. It estimates that in 2020, around 9% of furniture and homewares were bought online in Australia, almost doubling from 5% bought in 2019. Online penetration in both markets is expected to increase significantly.

As it gives bigger, it’s expecting scale benefits such as improved supplier terms, a slowing investment in fixed costs and a higher percentage of exclusive products with higher gross profit margins.

It’s expecting a low EBITDA margin over the next couple of years, but then could achieve a higher margin than many of its comparable offline peers over the long-term.

The post 2 high-quality ASX tech shares that could be buys appeared first on The Motley Fool Australia.

More reading

• 2 high quality ASX shares that could be buys
• These are the 10 most shorted shares on the ASX
• Here are the 5 worst performing ASX 200 tech shares from FY21
• Why the Pushpay (ASX:PPH) share price is under pressure
• 2 impressive ASX shares that could be buys in July 2021

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. owns shares of and has recommended PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Temple & Webster Group 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form again and recorded a modest gain. The benchmark index rose 0.2% to 7,341.4 points.

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

ASX 200 expected to sink

The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.6% lower this morning. This follows a poor night on Wall Street which saw the Dow Jones fall 0.75%, the S&P 500 drop 0.85%, and the Nasdaq tumble 0.7% lower. Global economic recovery concerns weighed on investor sentiment.

Oil prices rebound

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a solid finish to the week after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$73.14 a barrel and the Brent crude oil price is up 1.2% to US$74.32 a barrel. Traders were bidding oil prices higher after positive US inventory data.

Iron ore price falls

Miners with iron ore exposure such as BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) could come under pressure today after the price of the steel-making ingredient softened. According to Metal Bulletin, the spot iron ore price fell almost 2% to US$218.04 a tonne.

Netwealth given neutral rating

The Netwealth Group Ltd (ASX: NWL) share price could be fully valued according to analysts at Goldman Sachs. This morning the broker responded to the investment platform provider’s fourth quarter update by retaining its neutral rating but lifting its price target to $16.33. Goldman was pleased with its solid end to the year but remains neutral on valuation grounds. The Netwealth share price is currently trading at $16.30.

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,803 an ounce. Traders were buying the precious metal amid concerns over the US recovery from COVID-19.

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

More reading

• Can the ASX 200 hit 8,000 points by the end of the year?
• Mining shares in the ASX 200 might unearth US$26b worth of dividends
• How new US oil forecasts could impact ASX energy shares
• The BHP Group share price is rising again — so where to from here?
• Netwealth (ASX:NWL) share price up 5% on quarterly update

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 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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Fortunately for income investors in this low interest rate environment, the Australian share market is home to plenty of shares offering very generous yields.

Two that do just this are listed below. Here’s why they could be top options for income investors:

Aventus Group (ASX: AVN)

The first ASX dividend share to look at is Aventus. It is a leading owner, manager, and developer of retail parks. Aventus has been performing very positively during the pandemic. This has been driven by its overweight exposure to categories such as household goods and everyday needs retailing, which have experienced strong and sustained consumer demand.

Things have been going so well that Aventus recently revealed that the value of its properties have increased by 12% since the end of December. It also advised that it expects its earnings to grow 7% this year, compared to its prior guidance of 4% growth.

This went down well with analysts at Goldman Sachs, who retained their buy rating and lifted their price target to $3.27. It commented: “Today’s update solidifies our view that AVN is relatively well positioned in the current environment, given its Large Format Retail portfolio derives 37% of income from everyday needs tenants and the remainder from homewares, electrical, furniture, bedding and hardware, all of which we expect to continue to perform relatively well.”

The broker is also forecasting distributions per share of 16.7 cents, 18.85 cents, and then 20.4 cents between now and FY 2023. Based on the current Aventus share price of $3.14, this represents yields of 5.2%, 5.9%, and 6.4%, respectively.

Suncorp Group Ltd (ASX: SUN)

Another dividend share to look at is Suncorp. Thanks to improving trading conditions which are being underpinned by Australia’s strong economic recovery, this banking and insurance giant appears well-placed to pay attractive dividends to shareholders in the near term.

The analysts over at Citi certainly believe this will be the case. In fact, the broker suspects that things are going so well that a special dividend could be declared this year. Citi is forecasting dividends of 61 cents per share in FY 2021 and then 58 cents per share in FY 2022.

With the Suncorp share price currently fetching $11.36, this implies fully franked yields of 5.35% and 5.1%, respectively, over the next two years. Citi has a buy rating and $11.80 price target on its shares.

The post 2 top ASX dividend shares for income investors appeared first on The Motley Fool Australia.

More reading

• A dividend bonanza could be inbound for ASX shares, here’s why
• Here are 3 ASX 200 shares that were on the move today
• Why Appen, Aventus, HomeCo Daily Needs, & Ramelius are dropping
• Suncorp (ASX:SUN) share price bucks market downtrend on ~$84m divestment
• Why the Suncorp (ASX:SUN) share price is on the rise 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 recommended AVENTUS RE UNIT. 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 CSL Limited (ASX: CSL) share price is out of form in 2021 and underperforming the S&P/ASX 200 Index (ASX: XJO).

Since the start of the year, the biotherapeutics company’s shares are down 2% to $279.14.

Could it be time to consider buying CSL shares?

A number of Australia’s leading brokers have given their verdict on the CSL share price in recent months. And as you might expect due to COVID-19 uncertainties, opinion is largely divided on whether now is a good time to consider buying CSL shares.

Below is a summary of what brokers are saying about CSL shares in July 2021.

Citi

Citi currently has a neutral rating and $310.00 CSL share price target. This implies potential upside of 11% over the next 12 months. Citi is also forecasting a CSL dividend of $3.14 per share in FY 2021.

Goldman Sachs

Goldman Sachs has a neutral rating and CSL share price target of $305.00. If CSL shares hit this level, it will mean a gain of 9.2%. In addition, Goldman has pencilled in a CSL dividend of $2.81 this year.

Morgans

Morgans currently has an add rating and CSL share price target of $301.10. This represents a potential return of 7.9%. The broker is also forecasting a CSL dividend of $2.86 per share in FY 2021.

UBS

UBS is the most bullish broker with a buy rating and CSL share price target of $330.00. This implies potential upside of 18.2% over the next 12 months. UBS’ analysts are forecasting a CSL dividend of ~$2.33 per share in 2021.

Broker comments

The team at Goldman Sachs explained why they are neutral on the CSL share price.

Goldman said: “We are Neutral rated on CSL. Our 12-month TP of A$305 is based on our target NTM EV/EBITDA multiple of 28.9x. Key upside risks include: (1) Faster-than-expected recovery in plasma collections; (2) More supportive pricing dynamic than we already expect; (3) Positive results from the pipeline. Key downside risks include: (1) Extent of disruption to plasma collections; (2) Threat of mRNA/competitive approaches to Seqirus vaccine business; (3) Competitive product launches; (4) Plasma donor fee inflation.”

The post Could it be time to consider buying CSL (ASX:CSL) shares? appeared first on The Motley Fool Australia.

More reading

• 5 worst-performing ASX 200 healthcare shares of FY21
• How these top ASX biotech shares performed in FY21
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• CSL (ASX:CSL) share price up after new AstraZeneca advice
• Why CSL (ASX:CSL) could be an ASX 50 share to buy

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

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Macquarie Group Ltd (ASX: MQG) shares finished in the green today following reports it’s considering an attempt to secure a buyout for Sydney Airport Holdings Pty Ltd (ASX: SYD) as part of a consortium. By market close, the Macquarie share price was trading 0.45% higher at $157.17.

Let’s dive into today’s developments regarding a potential new bidding war for Australia’s largest airport operator.

Macquarie share price outperforms on Thursday

The Macquarie share price managed to outperform the S&P/ASX 200 Index (ASX: XJO) today, which finished the session just 0.2% higher. This came following reports from various sources that Macquarie is weighing up the possibility of lobbing a rival bid for Sydney Airport.

By way of a quick recap, last Friday a consortium of infrastructure investors had proposed a $22 billion all-cash buyout offer for Sydney Airport. The original consortium, made up by the syndicate of IFM Investors, QSuper and Global Infrastructure Partners, made the offer at $8.25 per share, a roughly 42% premium to the Airport’s closing price last Friday afternoon.

Now, according to Bloomberg, investment bank powerhouse Macquarie is said to be considering throwing its hat in the ring, reportedly structuring its own pitch to comb in investors from its stand-alone business Macquarie Infrastructure and Real Assets.

Regardless of whether the company were to match or beat the original offer, the buyout would rank as Australia’s largest-ever acquisition and would be on the podium as one of the largest airport transactions ever recorded.

Macquarie, which holds $562 billion in assets under management at the time of writing, may also consider joining the original consortium trio if the rival bid fails to convert, Bloomberg reported.

The Macquarie share price jumped in early trading this morning, reaching an intraday high of $157.87 around midday, before making the walk south into negative territory and then recovering to its closing level in the green.

Today’s results extend the gains for Macquarie shares over the past 12 months, which have posted a return of ~29% over this period.

What does this mean for Sydney Airport?

Shares in the airport operator catapulted from the market open today, jumping from $7.61 straight up to $7.88 in the first 30 minutes of trading.

After that, Sydney Airport shares largely traded sideways, with little volatility, finishing the day 2.89% higher.

Sydney Airport shares also saw a huge swing to the upside on Monday this week when the buyout offer was first announced.

Immediately following Monday’s open, the company’s shares skyrocketed 37% into the green, and have extended these gains today.

Monday’s extreme share price action can be clearly seen on the 3-month chart below.

Chart Source: The Motley Fool

Foolish takeaway

The Sydney Airport share price continues to remain under the magnifying glass, now that this potential new bidding war has surfaced.

Macquarie Group is reportedly still in the process of considering an offer, while the original offer of $22 billion in cash or $8.25 per share remains firmly on the table from the original consortium.

The Macquarie share price continues in the green over the past week, finishing up 0.14% at today’s close on the previous 5 days.

At the current market price, shares in Sydney Airport are still trading at a discount of ~5% to the original offer of $8.25 per share.

The post Macquarie (ASX:MQG) share price up amid news of rival bid for Sydney Airport appeared first on The Motley Fool Australia.

More reading

• Why the Sydney Airport (ASX:SYD) share price flew higher again today
• ASX 200 rises, Macquarie up, Rural Funds launches capital raising
• ASX 200 midday update: Zip rockets, AMP asset sale
• Is the Macquarie (ASX:MQG) share price a buy for dividends?
• AMP (ASX:AMP) share price in focus after Macquarie (ASX:MQG) asset sale agreement

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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The National Australia Bank Ltd (ASX: NAB) share price has been a positive performer in 2021.

Since the start of the year, the banking giant’s shares have climbed a sizeable 14%.

Where next for NAB shares?

Although the NAB share price is up 14% in 2021, one leading broker believes there’s still room for its shares to run higher. That broker is Goldman Sachs. In fact, it currently has NAB shares on its conviction list. According to a recent note, the broker has a conviction buy rating and NAB share price target of $29.97.

Based on the current NAB share price of $26.21, this implies potential upside of 14% over the next 12 months.

In addition to this, the broker is expecting the NAB dividend in 2021 to be on the generous side. Goldman is forecasting a fully franked dividend of $1.24 per share. This represents a yield of 4.7%, which extends the potential return to a total of ~19%.

Goldman commented: “We reiterate our Buy (on CL) on NAB and it remains our preferred sector exposure given: i) NAB’s cost management initiatives, which seem further progressed relative to peers, should therefore drive productivity benefits sooner; ii) NAB’s position as the largest business bank, we believe it will be a bigger beneficiary of the continued economic recovery (management highlighting improving volumes momentum across the franchise, in particular SME); iii) versus peers, NAB, on a pro-forma basis, is well capitalised (it has significant buffer over target CET1 range of 10.75-11.25%), looks well positioned for capital management.”

Is anyone else bullish on the NAB share price?

Another broker that is on the bullish side is Credit Suisse. Its analysts currently have an outperform rating and NAB share price target of $27.50.

However, unlike Goldman Sachs’s NAB share price target, this only implies potential upside of 5% over the next 12 months. Though, with Credit Suisse forecasting the NAB dividend in 2021 to be $1.26 per share, the potential return stretches to 10%.

A third opinion

Finally, analysts at Citi are sitting on the fence with NAB shares. Its analysts currently have a neutral rating and $26.25 NAB share price target. This is broadly in line with where NAB shares are trading today.

In respect to the NAB dividend in 2021, Citi has pencilled in a $1.20 per share fully franked dividend. This represents a 4.6% dividend yield based on the latest NAB share price.

Citi was disappointed with recent anti-money laundering (AML) compliance news. That news reveals that AUSTRAC has launched an enforcement investigation into NAB’s compliance with AML regulations.

It commented: “Despite almost 4 years of rectification work, at a cost of ~$800m, NAB has continued to report non-compliance issues to regulators concerning their processes, procedures and documentation. We expect NAB will likely be forced to re-prioritise these rectifications under a new AUSTRAC-led timetable. Whilst we are not expecting civil penalties as this stage, higher operating cost growth must be inevitable to meet the regulator’s expectations.”

Time will tell which broker makes the right call.

The post Is now a good time now to buy National Australia Bank (ASX:NAB) shares? appeared first on The Motley Fool Australia.

More reading

• NAB (ASX:NAB) share price up following prediction of no rate hike until 2024
• ANZ (ASX:ANZ) share price takes the cake among big four bank shares
• 2 buy-rated ASX dividend shares for income investors
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• Broker names 2 ASX dividend shares to buy

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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When the S&P/ASX 200 Index (ASX: XJO) hit 7,000 points for the first time ever back in January 2020, it caused quite a stir.

Although an arbitrary threshold like 7,000 points has very little real application or value, it still provides an easy rally point for investors’ psychology. A similar, although perhaps not quite as large, a stir also happened when the ASX 200 once again finally found 7,000 points back in April.

Following this, the ASX 200 then breached 7,100 points, followed by 7,200 and 7,300, followed finally by 7,400 points over the past few months.

How much higher can it go? That might be what many an investor is asking. Well, one fund manager thinks the runway isn’t ending soon. According to a report in the Australian Financial Review (AFR) today, global investment manager Research Affiliates is expecting the ASX 200 to push past 8,000 points by the end of the year, and outperform other global markets to boot.

The source of this optimism? Commodity prices. Here’s some of what Mike Aked, director of research at Research Affiliates, had to say:

We would expect that Australian resource companies are much more likely to drive our local market higher over the second half … possibly rising to as high as 8000 given the momentum in commodity prices… Resource companies are well positioned to take this lead as news of domestic and global inflation should continue to rattle markets until the end of 2021.

Miners to push ASX 200 above 8,000 points?

Commodity prices are indeed at record levels. Iron ore is still stubborn above the sky-high US$200 a tonne mark, despite various predictions of a return to ‘normal’ levels.

Oil is back above US$70 a barrel, and copper prices are also at historical highs. This has pushed the ASX 200’s big miners such as BHP Group Ltd (ASX: BHP) to new highs in recent months. 

Even gold is remaining resolutely above US$1,700 an ounce. Sure, that’s still not at the highs above US$2,000 an ounce that we saw last year. However, it’s still very high relative to its (long) history.

Aked is also looking to ASX 200 resources shares as a hedge against the possibility of future inflation, a bugbear for ASX investors. Here’s some of what he had to say on that topic:

While we do not know what the remainder of 2021 will bring, investing in a portfolio of cheap resource names that are positioned well for rising inflation seems a more robust investment strategy than investing in expensive financials, which will need continued property price increases to justify their price.

There you go, out with the banks, in with the miners, at least according to Aked. Eight thousand points by the end of the year (or a 9% rise from today’s levels)… it’s a bold claim. But most ASX investors would probably be pretty happy if it turns out to be right.

The post Can the ASX 200 hit 8,000 points by the end of the year? appeared first on The Motley Fool Australia.

More reading

• Here are 3 of the ASX 200’s most heavily traded shares today
• ASX 200 rises, Macquarie up, Rural Funds launches capital raising
• Mining shares in the ASX 200 might unearth US$26b worth of dividends
• The BHP Group share price is rising again — so where to from here?
• The 5 best performing ASX healthcare shares of FY21, did yours make the cut?

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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