Category: Stock Market

National Australian Bank Ltd (ASX: NAB) shares were fairly flat in trading today, as news circled of the bank providing the world’s largest coal export terminal with a “sustainability-linked” loan.

The NAB share price spent most of the day bouncing around in the red before closing just 0.07% higher at $27.25.

Let’s take a closer look at the Port of Newcastle’s new $515 million loan and the conditions NAB has imposed upon it.

Port of Newcastle’s loan   

The loan, termed “landmark” by NAB, is marked with incentives for the port if it meets environmental and social metrics imposed by the bank.

The Port of Newcastle will receive a margin reduction on the loan if it hits 5 positive sustainability, environmental and social markers. These are:

• Keeping its scope 1 and 2 greenhouse gas emissions below the 2025 trajectory level based on the port’s Well Below 2-degree Scenario. This will see the port achieving net-zero energy by 2030 and carbon neutrality by 2035.
• Screening all of its suppliers for modern slavery risks. The port must also demonstrate engagement with operators where medium or high risks are identified.
• Establishing an Aboriginal and Torres Strait Islander student internship program with The University of Newcastle.
• Achieving accreditation of a number of mental health first aiders in each of its departments.
• Finally, it must demonstrate progression under the New South Wales Government’s Sustainability Advantage Recognition Scheme.

Noticeably, the loan makes no judgement on the port’s scope 3 emissions which would take into account the greenhouse gasses produced by the burning of all coal that passes through the port. 

NAB states it is the first sustainability-linked financing of an Australian seaport and the first such loan to include a modern slavery assessment addressing a borrower’s suppliers.

ABC News reported the Australia and New Zealand Banking Group Ltd (ASX: ANZ) withdrew its funding for the Port of Newcastle last year, claiming ANZ believed the port would become a financial liability as the world moves away from fossil fuels.

The NAB’s loan is part of a $666 million refinancing facility for Port of Newcastle, funded by a syndicate of lenders. The funding includes up to $50 million in green lending – funding green building projects and diversifying the port’s revenue base.

The Port of Newcastle is the largest port on Australia’s east coast, employing around 9000 people.

Commentary from management

NAB Group’s executive of corporate and institutional banking David Gall said the bank was helping businesses adapt and improve their sustainability:

This sustainability-linked loan is an important step for the path Port of Newcastle is taking to be an even safer and more environmentally and socially responsible business.

Port of Newcastle’s CEO Craig Carmody said the loan would allow the port to align with long-term environmentally and socially responsible projects:

NAB is helping Port of Newcastle through financial innovation. This will in turn help create a more diverse and sustainable port in the future, supporting opportunities for jobs and economic growth in the Hunter region.

Our thinking must be in decades, not months or years. That means building new economic opportunities for Newcastle. What is good for the port is also good for the economy.

NAB share price snapshot 

While the NAB share price responded mildly to today’s news, the bank is sitting close to a 52-week high and is essentially at the same level it was back in February 2020, just before the COVID-19 pandemic struck.  

The NAB share price 18% higher than it was at the start of 2021. It’s also gained 65% since this time last year when Australia was battling the coronavirus-induced recession.

The bank has a market capitalisation of around $89 billion, with approximately 3.3 billion shares outstanding.

More reading

• Why the NAB (ASX:NAB) share price is at a 52-week high
• ASX 200 Weekly Wrap: Shares have average week but a great month
• What to expect from the NAB (ASX:NAB) half year result
• Why ASX bank shares may be facing a big sell-off in the next few weeks
• ASX bank shares best placed to ride the $1bn+ provisioning profit boost this reporting season

Motley Fool contributor Brooke Cooper 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 Nearmap Ltd (ASX: NEA) share price will be one to watch closely on Wednesday morning.

This follows the release of a positive announcement by the aerial imagery technology and location data company after the market close today.

What did Nearmap announce?

This afternoon Nearmap revealed that its strong performance in the first half has continued into the second half of FY 2021. As a result, the company is increasing its full year guidance for annual contract value (ACV).

According to the release, the company now expects to deliver ACV of $128 million to $132 million in FY 2021. This compares to its previous guidance of $120 million to $128 million. It will also be a 20% to 24% increase on FY 2020’s ACV of $106.4 million.

Management advised that it has seen momentum continue with growth across its core industry verticals from both new and existing customers.

It believes this further reinforces the attractiveness of the company’s subscription business model, the benefits of its technology leadership position, and the differentiated customer offering which combine to give Nearmap a significant competitive advantage.

In addition, the company revealed that it continues to invest the proceeds from the FY 2021 capital raise into key growth initiatives. This includes the development of HyperCamera3, which remains on track to be rolled out in FY 2022.

Positively, with each of the investment initiatives on track and with continued momentum in ACV growth, management now expects its net cash outflow to be less than $10 million this financial year.

On track to deliver growth targets

Nearmap’s Chief Executive Officer and Managing Director, Dr Rob Newman, was pleased with the company’s performance. He also believes Nearmap will deliver on its growth targets.

Dr Newman said: “With our refined go-to-market strategy still at a relatively early stage, I am very encouraged by the strong growth we are seeing across our ACV portfolio.”

“This performance validates our strategy to focus on our core growth verticals of insurance, government and roofing, with the adoption of premium content types particularly strong from these verticals, driving returns from the investments we made into new and expanded content.”

“The early success of our refined go-to-market strategy – which has delivered strong growth in FY21 – and the continued deployment of investments into this strategy gives us confidence that we remain on track to deliver on our 20- 40% ACV growth targets from FY22 onwards.”

Nearmap share price performance

The Nearmap share price is down 9% since the start of the year.

Shareholders will no doubt be hoping this update gets it heading in the right direction again.

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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 Nearmap Ltd. The Motley Fool Australia has recommended Nearmap 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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ASX gold shares have been lagging the market and their quarterly updates have been an overall disappointment – but now’s precisely the time to be buying these shares.

That’s the view of JPMorgan even though the broker found the latest quarterly production reports “underwhelming”.

The broker isn’t the only one that’s been unimpressed. The market has largely cast aside our major ASX gold producers.

ASX gold shares have lost their shine

The Newcrest Mining Ltd (ASX: NCM) share price gained only 6% over the past year, while the Evolution Mining Ltd (ASX: EVN) share price and Northern Star Resources Ltd (ASX: NST) share price fell 3% and 11%, respectively.

In contrast, the  S&P/ASX 200 Index (Index:^AXJO) surged 34% over the same period and is closing in on its record high.

You can blame the falling gold price for the underperformance of the sector. Some of the ASX gold miners were even a little creative in their quarterlies to help paint a better picture, even though that didn’t seem to help much.

Lacklustre quarterly updates

“There were few downgrades to FY21 guidance, but risk remains to the downside, with some hoping for up to 35% of annual production in the final quarter to get them to the low end of guidance,” said JPMorgan

“Costs are under even more pressure, even after shifting as much capex as possible out of AISC and into ‘growth’ capex.”

The broker believes a lot of the cost pressures were self-inflicted due to lower production. Mining a scale game and the less your produce, the worst your margins.

The outlook on the cost front isn’t getting better either. You only need to look at the skills shortage in Western Australia to see that.

Turnaround for ASX gold shares in sight

But there is light at the end of the tunnel for the ASX gold sector. JPMorgan believes gold’s retreat from its record of over US$2,000 an ounce to around US$1,700 an ounce could be on a turning point.

“Gold prices appear to have bottomed in the short term, and we have upgraded our near-term prices by $50, to $1,750/oz, thereby increasing earnings by 1-7%,” said JPMorgan.

“We believe the sector continues to present good value on an NPV [net present value] basis.”

That’s encouraging given that JPMorgan’s forecasts are below consensus. What this shows is that there could be too much bad news baked into embattled ASX gold shares.

ASX gold shares to buy today

JPMorgan upgraded its recommendation on the Regis Resources Limited (ASX: RRL) share price to “overweight” from “neutral” with a 12-month price target of $3.20 a share.

Its key picks in the sector include the Newcrest share price, Northern Star share price, SSR Mining Inc CDI (ASX: SSR) share price and Gold Road Resources Ltd (ASX: GOR) share price.

More reading

• Will May make eight straight months of gains for the ASX 200?
• 3 things you need to know about the RBA’s interest rate decision today
• Brokers point to these ASX 200 shares to beat the market in May
• Why De Grey, Infomedia, Northern Star, & SEEK shares are storming higher
• What’s happening with the Dexus (ASX:DXS) share price today?

Motley Fool contributor Brendon Lau owns shares of Evolution Mining Limited, Newcrest Mining Limited, and Regis Resources 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 great investor Warren Buffett — chair and CEO of Berkshire Hathaway Inc. (NYSE: BRK.A)(NYSE: BRK.B) — has been in the news a lot this week. That’s because Buffett hosted Berkshire’s annual shareholder meeting over the weekend, a much-loved event in the investing community. So much so that it’s been dubbed the ‘Woodstock for capitalists’.

Now, most of us would love to invest the way Warren Buffett does. According to Berkshire’s latest annual letter, Buffett has managed to steer Berkshire to average gains of 20% per annum since 1965 after all.

Unfortunately, Buffett is an extraordinarily gifted investor, and many have tried and failed to follow in his footsteps. Fortunately, though, there is an ASX exchange-traded fund (ETF) that employs a ‘Buffett method’ in picking shares. And it’s pretty good at it too.

One of Buffett’s favourite attributes that a company can have is what he calls a ‘moat’, or an intrinsic competitive advantage. A moat is a protective barrier to entry that a company can create around itself. This can be in the form of being the lowest-cost producer of a good or service. Or else a networking effect that lures more customers in, or just a strong brand name. Or a combination of the above and more.

Buffett loves a MOAT

Buffett talked about some of Berkshire’s largest companies over the weekend, including Apple Inc (NASDAQ: AAPL) and Coca-Cola Co (NYSE: KO). Both of these companies have incredible dominance in their respective industries. No one can deny the power of Apple’s brand, and the ‘ecosystem’ that Apple products collectively weave together around their owners. Coca-Cola’s own brand is so strong that it can charge more than any of its competitors, whilst still being the highest selling cola in the world.

That’s probably why the VanEck Vectors Morningstar Wide Moat ETF AUD (ASX: MOAT) holds both Berkshire Hathaway and Coca Cola shares at the present time. That’s alongside 47 other ‘wide-moat’ companies that display similar characteristics. This reflects an index put together by Morningstar. This index comprises US companies that are believed to display characteristics of a wide moat. Some other examples include Amazon.com, Inc. (NASDAQ: AMZN), salesforce.com, Inc. (NYSE: CRM) and McDonald’s Corp (NYSE: MCD).

That’s all fine to say that this ETF tries to invest the way Buffett does. But what do its hard numbers tell us? Well, that it is doing a pretty good job. Over the past 5 years, the MOAT ETF has returned an average of 19.34% per annum. Since its ASX listing in 2015, it’s returned an average of 20.25% per annum. Incidentally, that’s a higher rate of return than what Berkshire investors themselves have enjoyed over the same periods.

MAOT charges an annual fee of 0.49% per annum.

More reading

• Why Robinhood is having a go at Warren Buffett
• Berkshire Hathaway reveals Warren Buffett’s eventual successor
• What Warren Buffett learned from investing during a global pandemic
• Warren Buffett hates Bitcoin. Here’s why
• Some takeaways from Warren Buffett’s Berkshire Hathaway meeting

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Coca-Cola, McDonalds, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Salesforce.com and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2023 $130 calls on Apple, short June 2021 $240 calls on Berkshire Hathaway (B shares), short January 2022 $1940 calls on Amazon, long March 2023 $120 calls on Apple, and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Amazon, Apple, Berkshire Hathaway (B shares), and VanEck Vectors Morningstar Wide Moat ETF. 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 S&P/ASX 50 index is home to 50 of the largest listed companies on the Australian share market. This means the index is home to many of the highest quality and most well-known companies that the ANZ region has to offer.

Two ASX 50 shares to consider are below:

CSL Limited (ASX: CSL)

CSL is a biotechnology company that manufactures and develops a portfolio of leading therapies and vaccines. This includes flu vaccines, immunoglobulins, and countless other plasma-based products. It also operates one of the most wide-reaching plasma collection networks globally.

And while plasma collections have been difficult during the pandemic, one leading broker believes that the headwinds are easing. According to a recent note out of Citi, it believes that collection volumes will return to 2019 levels during the second half of 2021. This is thanks to the positive progress being made in the United States in respect to vaccine rollouts.

In light of this, Citi believes the recent weakness in the CSL share price has created a buying opportunity for investors. Its analysts have put a buy rating and $310.00 price target on its shares.

Lendlease Group (ASX: LLC)

Another ASX 50 share to look at is this global property and infrastructure company.

After a few years of struggles, Lendlease is now going through a major transformation. This has seen the company divest its engineering business and launch a new strategy which aims to shift its earnings mix and business model to be more like Goodman Group (ASX: GMG).

Goldman Sachs believes this strategy shift is a big positive and has put a buy rating and $16.54 price target on the company’s shares.

Its analysts believe that Lendlease’s shares are likely to re-rate to higher multiples once it starts to demonstrate that it is executing its new strategy successfully.

More reading

• Why the CSL (ASX:CSL) share price is seesawing over the past month
• Pssst, I’m a value investor who makes money from growth shares: fundie
• ASX 200 Weekly Wrap: Shares have average week but a great month
• Here’s how the CSL (ASX:CSL) share price performed in April
• Top ASX shares to buy in May 2021

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 CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Oncosil Medical Ltd (ASX: OSL) share price finished in positive territory during late-afternoon trade. This comes after the company announced it has received regulatory approval from an important strategic market.

At market close, the medical device company’s shares ended the day at 9.8 cents, up 4.2%.

New market opportunity

Investors appear pleased with the company’s latest update, sending Oncosil shares higher towards the end of the day.

In the statement to the ASX, Oncosil advised it has been granted regulatory clearance to market and sell the Oncosil device in Hong Kong. This follows the recent approvals received in Singapore and Malaysia last year.

Oncosil stated the regulatory clearance came from the Medical Device Division which operates under the Department of Health in Hong Kong.

The company’s Oncosil device will be targeted for the treatment of locally advanced pancreatic cancer (LAPC). The disease represents around one-third of the cases of pancreatic cancer and has a median survival of 9 months.

Oncosil stated that Hong Kong is an important market in the Association of Southeast Asian Nations (ASEAN) commercialisation strategy. The country has a small number of hospitals that can provide treatment of LAPC. In addition, healthcare spending per capita is considered as high when compared to other Asian markets.

Furthermore, the company also revealed that it has begun commercial sales in New Zealand, although no sales figures were given. It is also awaiting the outcome of its application lodged to the Australian Therapeutic Goods Administration to sell its device.

Oncosil share price snapshot

Despite today’s positive announcement, the Oncosil share price has been a poor performer over the past 12 months, down 13%. When looking at year-to-date comparisons, the company’s shares have also dropped 22%.

Based on today’s prices, Oncosil has a market capitalisation of around $75 million, with over 807 million shares on issue.

More reading

• 2 fantastic ASX 50 shares rated as buys
• New Century Resources (ASX:NCZ) share price climbs on latest results
• Here’s the top holding of this leading ASX-listed fund manager
• Why the NAB (ASX:NAB) share price is at a 52-week high
• JB Hi-Fi (ASX:JBH) share price lower despite new appointment: Time to buy?

Motley Fool contributor Aaron Teboneras 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 New Century Resources (ASX: NCZ) share price rose today amid a volatile period after the company announced further high-grade Silver King assay results.

New Century Resources shares were up 1.08% at market close, trading at 18 cents per share.

New Century Resources is an Australian-based mineral exploration and development company. Its assets include the Kodiak Coking Coal Project and Century Mine project. The company’s geographical segment includes Australia and the USA.

New Century Resources assay results

The company’s most recent market update regards assays from nine holes of its 30-hole resource definition program at Silver King. In the nine holes it’s now received, the company is reporting “continued impressive results showing continuity of high-grade mineralisation”.

The company is drilling almost entirely below 100 metres, mostly below 200 metres deep. Additionally, it is finding lead equivalent intercepts of up to 43% at around five-metre lengths. Most of the assay results are in the 10—30% grade, with intercepts ranging from one to 10 metres.

The company is also reporting high grades of pure lead and zinc but at similarly deep mining targets.

New Century Resources’ release stated that strong silver assays continue in its Silver King mine, with results up to 580 g/t of silver found in its most recent assay results. 

The company says the current results provide “strong support” to upgrade its mineral resource confidence as part of the company’s target investment decision in the first quarter of the 2022 financial year.

The company’s Silver King vein remains an open down plunge mine and the company is expecting further assay results on 14 additional drilling targets to return by the end of this month.

New Century Resources share price snapshot

The New Century Resources share price is on a rollercoaster of sorts. It’s down marginally this week, but up 20% the past month. It’s then lost 22% in 2021 so far against broader 20% gains over the past 12 months.

More reading

• Here’s why the New Century Resources (ASX:NCZ) share price has rocketed 12% today

Motley Fool contributor Lucas Radbourne-Pugh 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 of Australia’s leading fund managers has just made a major new investment.

Antipodes Global Investment Company (ASX: APL) has revealed to the Motley Fool Australia that German automotive giant Volkswagen has recently become its top holding.

What does Antipodes like about Volkswagen?

The Chief Investment Officer of Antipodes Partners, Jacob Mitchell, has provided readers with an insight into why the fund is bullish on the future of Volkswagen (VW).

He commented: “VW today is already one of the world’s largest car makers, roughly on a par with Toyota, with a little over 10% of the global market. As the world transitions to EVs [electric vehicles], VW has the opportunity and scale to significantly increase that market share thanks to an all-in approach to electrification, while other legacy automakers have taken a more gradual approach.”

Mr Mitchell believes that the auto giant is well-positioned to grow its market share and become the leader in both the European and Chinese markets.

“Based on currently available data, VW’s share of the EV market in 2025 is likely to be significantly higher than its global market share in 2019 and with the number one position in Europe and China, which are expected to be the two fastest growing EV markets.”

“Market share is critical to the future financial performance of the VW group. Automotive, like any business with a meaningful fixed cost base, is in part a game of scale, something which VW has in abundance,” he added.

EV platform a point of difference

The Chief Investment Officer notes that Volkswagen has a point of difference in its EV platform.

He explained: “And it’s not only VW’s own volumes across all group brands over which they are able to spread the development costs. Other automakers lacking the resources or desire to develop an internal EV platform may choose to partner with VW, e.g. Ford is using VW’s platform for European EV models. New market entrants like tech companies could also add volume and thereby spread costs. It is not inconceivable that VW could become a platform company, though this not our base case.”

Internal battery production

Antipodes notes that Volkswagen has been forward-thinking and is aiming to reduce battery costs significantly in the future.

Mr Mitchell commented: “Management continues to take proactive and forward-looking decisions to protect the company against the changing landscape. In March this year, VW announced plans to internalise future battery production in partnership with its current battery suppliers. This partnership approach is a sensible one, reducing the capital cost to VW while securing supply.”

“Battery cost deflation is a key contributor to the future profitability of EVs. Industry prices today are around $140/kwh but VW is targeting cost reduction of 30% to 50% by the end of the decade which will take battery cost significantly below $100/kwh at which point cost parity between EVs and combustion engine vehicles will likely be achieved,” he added.

Valuation

Other key reasons for its inclusion in the fund are its exposure to the post-COVID-19 economic recovery and its valuation. Mr Mitchell believes the latter is very attractive.

The Chief Investment Officer explained: “VW is well-positioned to benefit from a meaningful post-COVID-19 rebound in economic activity and pent-up demand in the auto cycle, as the multi-year downcycle we’ve seen reverses. The company is also a great way to get exposure to the strong recovery in China given it is the leader in what is the world’s largest auto market. Further, rising bond yields are likely to support relative valuations.”

“At just 8x forward earnings, generating free cash flow of over $10bn p.a. – and that’s post the investment into the electrification offensive – VW can transition to a secular growth winner as it dominates electrification. “

“By 2023 we expect VW’s underlying earnings per share to be at least €35. Applying an undemanding PE multiple of x10 to this points to a fair value of €350 over the coming couple of years, and we see the possibility of upside to both the earnings and the applied multiple,” he concluded.

More reading

• 2 fantastic ASX 50 shares rated as buys
• Why the Oncosil (ASX:OSL) share price finished the day higher today
• New Century Resources (ASX:NCZ) share price climbs on latest results
• Why the NAB (ASX:NAB) share price is at a 52-week high
• JB Hi-Fi (ASX:JBH) share price lower despite new appointment: Time to buy?

Motley Fool contributor James Mickleboro 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 National Australia Bank Ltd. (ASX: NAB) share price had a pretty flat day today. NAB shares have risen 0.03% at the time of writing to $27.24 a share. But zooming out, and the picture looks a whole lot rosier. NAB shares are now up 3.77% over the past month, 18.7% year to date, and 65% over the past 12 months. At the present levels, NAB shares are actually sitting at a new 52-week high. Well, almost. The actual 52-week high was hit yesterday when NBA topped out at $27.30. But at $27.24 today, we can safely say the company is still at its high point for the year.

At this level, NAB is essentially sitting at the same level it was back in February 2020, just before the pandemic struck. That’s a pretty remarkable turnaround if we stop and think about it. In saying that however, we are still nowhere near NAB’s all-time high. NAB was even trading close to $30 a share in the latter half of 2019. And going all the way back to 2015, that’s when we saw this ASX bank at around $37 a share. But NAB’s all-time high? For that fabled event, we have to backtrack all the way to 2007 – just before the onset of the global financial crisis. Back then, NAB shares were seeing highs of $42 a share. That’s still a long way off of where we are today.

But that’s enough history. So why are NAB shares back at their pre-COVID levels today?

Why is the NAB share price at a 52-week high?

Well, it probably comes down to economic growth. NAB, as a bank, is highly tied to the performance of the overall economy. And the economy is doing well, much better than we all thought was possible in fact. Just today, the Reserve Bank of Australia (RBA) held its monthly meeting for May. It revealed that it has upgraded its growth forecasts for the Australian economy, and is now predicting growth of 4.75% this year. That’s ‘gangbusters’ kind of growth, although slightly tempered by the fact that the economy went backwards hard last year.

Also helping is the booming property market. Housing has also been going gangbusters. And higher house prices usually translate into more borrowing, as property investors take advantage of higher leverage opportunities. Especially if you throw in an interest rate that’s pretty much zero (well, 0.1%). More borrowing is of course, great for NAB.

And now we have a recipe for an ASX bank hitting a new 52-week high. At the current NAB share price, the bank has a market capitalisation of $89.9 billion, a price-to-earnings (P/E) ratio of 15.11 and a trailing dividend yield of 2.2%.

More reading

• ASX 200 Weekly Wrap: Shares have average week but a great month
• What to expect from the NAB (ASX:NAB) half year result
• Why ASX bank shares may be facing a big sell-off in the next few weeks
• ASX bank shares best placed to ride the $1bn+ provisioning profit boost this reporting season
• What could APRA’s climate guidance mean for ASX bank shares?

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank 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 JB Hi-Fi Limited (ASX: JBH) share price is trading lower on Tuesday despite the announcement of a new senior appointment.

In afternoon trade, the retail giant’s shares are down 0.5% to $45.97.

What did JB Hi-Fi announce?

This afternoon JB Hi-Fi announced the appointment of Biag Capasso as the Managing Director of The Good Guys business.

Mr Capasso will replace Terry Smart in the role when he takes over as JB Hi-Fi Group CEO upon the previously announced departure of Richard Murray in August 2021.

Last month Mr Murray agreed to become the next CEO of the Premier Retail business owned by Premier Investments Limited (ASX: PMV).

According to the release, Biag Capasso has been with The Good Guys since November 2011, holding several roles in the merchandise department. This includes Merchandise Director since May 2018. Prior to this, he was Marketing and Merchandise Manager for Retravision for six years.

The company believes his appointment is a testament to the quality and depth of management within the JB Hi-Fi Group and its succession planning.

Terry Smart commented: “Biag has done an outstanding job as Merchandise Director over the past three years. He has played a key role in the transformation of the business post-acquisition and developed a first-class merchandise buying team. We look forward to Biag taking on his new role and leading the experienced The Good Guys executive team to continue the business’ strong performance.

Is the JB Hi-Fi share price in the buy zone?

One broker that sees a lot of value in the JB Hi-Fi share price is Credit Suisse.

According to a note from last week, the broker has upgraded its shares to an outperform rating with a $57.39 price target. This price target implies potential upside of approximately 25% over the next 12 months.

Credit Suisse believes the market is underestimating the momentum that remains in the household goods market.

More reading

• ASX 200 Weekly Wrap: Shares have average week but a great month
• Retail just changed. Forever…
• Claims of insider trading in JB Hi-Fi (ASX:JBH) shares
• Top brokers name 3 ASX shares to sell today
• Is there still upside to the JB Hi-Fi (ASX:JBH) share price?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post JB Hi-Fi (ASX:JBH) share price lower despite new appointment: Time to buy? appeared first on The Motley Fool Australia.

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