The Bendigo and Adelaide Bank (ASX: BEN) share price closed lower today, falling further than other ASX 200 banks amid a broker downgrade.

Bendigo Bank shares slipped 3.08% to finish at $8.50 apiece. For perspective, the S&P/ASX 200 (ASX: XJO) gained 0.23% today.

Let’s take a look at how Bendigo Bank and other ASX 200 bank shares fared on Wednesday.

What’s impacting ASX 200 bank shares?

Bendigo Bank shares were not the only ASX 200 bank shares to fall today. National Australia Bank Ltd (ASX:NAB) shares closed down 2.24%, while Westpac Banking Corporation (ASX: WBC) slid 0.74% and Bank of Queensland Ltd (ASX: BOQ) shares fell 1.7%.

However, Commonwealth Bank of Australia (ASX: CBA) shares climbed 0.29%, while ANZ Group Holdings Ltd (ASX: ANZ) shares closed a slim 0.09% higher.

Bendigo Bank shares fell amid broker UBS placing a “sell” rating on Bendigo shares with an $8 price target. This implies a downside of about 5.9% based on today’s closing price.

Commenting on the banks, UBS analyst John Storey said, cited by The Australian:

Recent events in the US and Europe in our view have lowered the confidence threshold of investors for banks in their portfolios.

Australia is no different, with the ASX banking index now down about 6.5 per cent year-to-date compared to the market falling 1.5%.

UBS has also cut NAB to a sell with a $25 price target, while Westpac has been slashed to neutral with a $22.50 price target, the Australian Financial Review reported.

UBS still rates ANZ a buy but with a lowered $25 price target, while CBA’s neutral rating has been maintained with a slightly lower price target of $100. Meanwhile, Bank of Queensland has also been downgraded to sell with a $6 price target.

Share price snapshot

The Bendigo Bank share price has fallen 17% in the last year. In the past month alone, Bendigo Bank shares have declined 13%.

Bendigo Bank has a market capitalisation of about $4.8 billion based on the current share price.

The post Bendigo Bank shares worst of the ASX 200 banks following UBS downgrade appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Down 10% in a month, what’s going on with the Bank of Queensland share price?
• Why Bendigo and Adelaide Bank, Jervois Global, Megaport, and NAB are dropping today
• Own CBA shares? Here’s the ASX 200 bank’s latest small business outlook
• Is time running out to buy high-yield ASX dividend shares?
• Stay away from this ASX sector (and buy this one instead): expert

Motley Fool contributor Monica O’Shea 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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/XgBmSdD

Weaker-than-expected inflation data today has raised the prospects of a Reserve Bank (RBA) rate decision next week that mortgage holders and ASX shares investors will actually like.

A sample of expert opinions shows many think the RBA is likely to pause rate rises for the first time in 11 months when the board meets on Tuesday to discuss its next decision.

According to the Bureau of Statistics’ latest CPI numbers, inflation for the 12 months to 28 February was 6.8%. That’s still high by historical standards but a hefty fall from the 7.4% recorded in January.

The figure was also below forecasts of 7.2%, thereby surprising the market.

There was an immediate and continual uplift in the S&P/ASX 200 Index (ASX: XJO) from about midday after the report was released.

Is it enough to convince the RBA to keep the official cash rate steady at 3.6%?

Let’s see what the experts think.

What will the next RBA rate decision be?

According to the Australian Financial Review (AFR), interbank futures have scaled back expectations of a rate rise in April from 18% to 3% following today’s inflation figures.

The AFR reports the following RBA rate decision predictions from brokers, economists, and other experts.

Citi thinks the RBA rate decision might be a hold.

Citi economist Josh Williamson said:

We reconcile the difference by now forecasting the cash rate on hold but for guidance to keep open the option of a further tightening in monetary policy should subsequent data show ongoing stubborn inflation pressures or higher than expected wages growth from the still tight labour market.

Catherine Birch from ANZ says the data shows ongoing strong inflation momentum, so she tips an 0.25% rise.

Birch said:

Australia’s monthly CPI indicator showed inflation momentum remains strong and is not slowing as much as the fall in annual inflation would suggest. Along with previous data releases, this makes us comfortable with our call that the RBA will raise the cash rate 25 basis points at its April meeting.

Su-Lin Ong of RBC Capital Markets reckons the RBA will pause in April before hiking again in May.

Ong said:

We push back our April hike, most likely to May. The window to hike further appears small ahead of the step-up in fixed rate mortgage expiry from mid-year but the RBA may be forced to resume tightening if inflation proves sticky.

Paul Bloxham at HSBC thinks the RBA rate decision next week will be a pause in rate hikes.

Bloxham said:

Our rule of thumb has been that once the RBA is convinced that inflation has peaked and that the unemployment rate has troughed, the RBA would pause. We now have more evidence that inflation has indeed passed its peak, economic activity is slowing, and the unemployment rate is past its trough.

Beyond April, we expect the RBA to keep the cash rate at 3.60 per cent for a number of quarters.

Diana Mousina, a senior economist at AMP, also tips that the RBA will take a break in April, partly due to the banking sector turmoil in the United States and Europe that has brought down three banks.

Given the weakening in domestic economic momentum, the slowing in inflation and the risks in the global banking sector, we see the RBA keeping the cash rate on hold next week …

Overall, the data showed that while the Australian economy is holding up, it has lost some momentum since late 2022 which is a sign that interest rate hikes are working.

Brendan Rynne, KPMG chief economist, thinks inflation is still too high and employment too strong for the RBA to start pausing rates.

He thinks the RBA rate decision next week will be an 11th consecutive rise, at 0.25%, followed by a pause.

Dr Rynne said:

The end of the tightening cycle now appears to be very close.

According to reporting in The Australian, Goldman Sachs is in the rate rise camp for next week.

Goldman Sachs Australia chief economist Andrew Boak said:

Ultimately, Australian inflation is far too high – with clearer signs of an acceleration from persistent sources in the services sector.

UBS has reaffirmed its tip for an RBA pause in April, a final 0.25% hike in May, and a cut in November.

UBS chief economist George Tharenou said:

The February monthly CPI indicator implies CPI is very likely tracking below the RBA’s implied profile.

Assuming financial market volatility/dislocation eases by May and CPI does not continue surprising on the downside, we still expect the RBA to hike 25 basis points, to a peak of 3.85 per cent at their May meeting.

EY chief economist Cherelle Murphy is not optimistic that the RBA rate decision will be to hold steady.

A few months of softer indicators does not necessarily mean inflation is on a one way track down, as indicated by recent data in other developed countries.

With inflation remaining uncomfortably high, a resilient labour market, and business conditions sitting above pre-Covid levels, there is still a case for further rate hikes.

Capital Economics tips the RBA to pause rate rises next month before one final increase in May.

The post To pause or not to pause? Here are the predictions on next week’s RBA rate decision appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• ASX 200 turns green on softer-than-expected inflation data
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

HSBC Holdings is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in Anz Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended HSBC Holdings. 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/rNOsnpf

The S&P/ASX 200 Index (ASX: XJO) ended Wednesday’s session in the green, gaining 0.23% to close at 7,050.3 points.

Its gains came amid the release of the latest Australian inflation figures. The Australian Bureau of Statistics (ABS) found the nation’s consumer price index (CPI) rose 6.8% over the 12 months to February. That’s down from 7.4% over the 12 months to January.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) was among the top-performing sectors, rising 1.2%. The S&P/ASX 200 Materials Index (ASX: XMJ) also outperformed, lifting 1.2% on Wednesday.

It wasn’t so sunny over on the S&P/ASX 200 Financials Index (ASX: XFJ), which fell 0.5% amid reports UBS has downgraded a swath of bank shares on the back of what has been dubbed a crisis among United States and European banks.

So, with all that in mind, let’s take a look at the ASX 200 share that outperformed all others in today’s session.

Top 10 ASX 200 shares countdown

The Deterra Royalties Ltd (ASX: DRR) share price provided the index’s biggest gain today, lifting 5.3% to close at $4.76.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Deterra Royalties Ltd (ASX: DRR)	$4.76	5.31%
Reliance Worldwide Corporation Ltd (ASX: RWC)	$3.70	4.82%
ALS Ltd (ASX: ALQ)	$12.10	4.76%
Silver Lake Resources Ltd (ASX: SLR)	$1.145	4.57%
Champion Iron Ltd (ASX: CIA)	$6.80	3.82%
Allkem Ltd (ASX: AKE)	$11.93	3.47%
James Hardie Industries plc (ASX: JHX)	$32.64	3.16%
Gold Road Resources Ltd (ASX: GOR)	$1.675	3.08%
Fortescue Metals Group Ltd (ASX: FMG)	$21.16	2.92%
Woodside Energy Group Ltd (ASX: WDS)	$33.84	2.64%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why ALS, Centaurus Metals, Pilbara Minerals, and Westgold shares are rising today
• Top brokers name 3 ASX shares to buy today
• ASX 200 turns green on softer-than-expected inflation data
• The latest Fortescue dividend is being paid today. Here’s what you need to know

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 positions in and has recommended Reliance Worldwide. The Motley Fool Australia has recommended Reliance Worldwide. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/3jM0XTe

If you’re looking for exposure to the Australian mining sector, then you may want to check out the two ASX 200 mining shares listed below.

Here’s why they have been named as buys:

BHP Group Ltd (ASX: BHP)

The first ASX 200 mining share to look at is mining giant BHP.

The Big Australian is one of the world’s largest miners and the owner of a world class portfolio of projects across a number of commodities and geographies.

Macquarie is a fan of the company. This is due to its belief that BHP is well-placed to generate solid free cash flow in the coming years. Particularly given strong iron ore, coking coal, and copper prices.

Macquarie has an outperform rating and $52.00 price target on BHP’s shares.

South32 Ltd (ASX: S32)

Another ASX 200 mining share to consider buying is South32. It is a diversified mining and metals company that produces a range of commodities including aluminium, copper, manganese, and nickel.

Analysts at Citi are positive on the company. This is due partly to its strong performance in FY 2023 and attractive valuation. It said:

1H FY23 profit of US$560m was better than expected. Importantly, FY23 prodn and cost guidance was maintained. FY24 prodn guidance points to modestly higher output in FY24. […] S32 now trades at 0.94x NPV vs RIO at 1.0x and FMG 1.3x. We raise our TP to $5.05 and stay Buy rated. We believe S32 has not yet run to full valuation levels trading on FY24E EV/EBITDA of 4x vs peers at >5x.

Citi currently has a buy rating and $5.05 price target on the miner’s shares. It also expects dividend yields no lower than 6.5% for the next three years.

The post Buy BHP and this ASX 200 mining share now: analysts appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• BHP share price dips as coal mines catch attention
• Why these 3 ASX 200 shares could be leading picks for dividends and growth
• Analysts say these ASX dividend shares can boost your passive income
• Want to boost your portfolio with ASX blue chips? Analysts say buy these shares
• Want $10,000 of passive income? Check out these ASX shares

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/WfaRw82

It’s nearly Easter already, with the first quarter of the calendar year almost done. I think there are some wonderful S&P/ASX 200 Index (ASX: XJO) shares that have a lot of long-term growth potential that I’d rate as buys.

In my opinion, it’s the businesses with the biggest growth runways that can deliver the strongest shareholder returns over the long term.

When businesses have global growth plans, it gives them a huge amount of room to find avenues to boost earnings.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is an ASX retail share that sells a variety of affordable jewellery for younger shoppers.

It has a relatively high gross profit margin, and each store can be very profitable for how much it costs to set up. It’s very worthwhile to open stores in locations where it makes sense.

The business has over 160 stores in Australia, with the country only having a population of around 26 million. But, it only has 42 stores in the UK, 47 stores in Germany, four stores in Italy, eight stores in Poland, one store in each of Hungary, Romania, Canada and South America and two stores in Mexico, as well as many other under-serviced markets. Plus, it’s not in mainland China yet, it has only just entered Hong Kong and there isn’t a presence in India either.

What I’m pointing out is that Lovisa has huge potential to roll out more stores. Very profitable stores. In the FY23 second half, at the time of the result release, it had opened 31 net new stores to date and total sales had increased by 24%.

I think the ASX 200 share has an extremely promising future, for both earnings growth and dividend growth to 2030.

Using Commsec estimates, the Lovisa share price is valued at just 20 times FY25’s estimated earnings with a possible FY25 grossed-up dividend yield of 5.6%.  

Xero Limited (ASX: XRO)

Xero is an ASX tech share with a very promising future, in my opinion.

The accounting software business has grown enormously over the past decade. But, I think there’s plenty of more growth to come as more businesses seek to digitalise their operations and more governments choose to require businesses to report their taxation information digitally.

Xero is growing in a number of countries including Australia, the UK, South Africa, Singapore, Canada and the US. This can help the ASX 200 share grow its operating revenue, and scale helps improve the business a lot considering it has a very high gross profit margin.

The company recently committed to cutting costs and improving its profit margin over FY23 and FY24, which will enable investors to see how truly profitable the underlying business is whilst it invests less heavily for growth.

If Xero can keep adding subscribers, increasing the average revenue per user (ARPU), maintaining strong subscriber loyalty and improving its profit margins then I think the business has a very promising future to 2030 and beyond.

The post 2 excellent ASX 200 shares I’d buy in April (and hold until at least 2030) appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How to make passive income for life with just $5 a day
• Jewellery and travel: Analysts say these ASX growth shares are buys
• 3 reasons why I think the Xero share price is a top buy today
• Goldman Sachs names 5 of the best ASX tech shares to buy now
• Buy these 3 ASX retail shares: Morgans

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/J53CbHQ

If you’re looking for dividend shares to buy this week, then the two listed below could be worth checking out.

Both have been named as buys by analysts at Morgans recently and tipped to provide very attractive yields. Here’s what you need to know about them:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that gets the thumbs up from Morgans is Dexus Industria.

It is a real estate investment trust which is primarily invested in high-quality industrial warehouses. At the end of December, the company’s portfolio was valued at $1.6 billion and was located across several major Australian cities

Morgans believes Dexus Industria is well-placed for growth thanks to strong demand in the industrial market. It commented:

DXI’s key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.

The broker currently has an add rating and $3.37 price target on the company’s shares.

As for dividends, it is forecasting dividends per share of 16.5 cents in FY 2023 and 16.8 cents in FY 2024. Based on the current Dexus Industria share price of $2.69, this will mean yields of 6.1% and 6.3%, respectively.

QBE Insurance Group Ltd (ASX: QBE)

Another ASX dividend share that Morgans is recommending to investors is insurance giant QBE.

The broker is positive on QBE’s outlook and highlights that premium rate increases and higher investment income should support earnings and dividend growth. It commented:

QBE’s FY22 result NPAT (US$770m) was an 18% beat versus consensus, with the 2H22 dividend (A30cps) 11% above consensus. Overall, in our view, this was a very strong FY22 performance versus market expectations. Heading into FY23, the key tailwinds are premium rate increases and higher investment income which remain supportive of earnings growth, as highlighted by QBE expecting a mid-teens ROE versus 10.5% in FY22.

Morgans has an add rating and $16.96 price target on the company’s shares.

In respect to dividends, the broker is expecting an 82 cents per share dividend in FY 2023 and then a 93 cents per share dividend in FY 2024. Based on the latest QBE share price of $14.29, this equates to yields of 5.7% and 6.5%, respectively.

The post Morgans says buy these ASX dividend shares for passive income appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Stay away from this ASX sector (and buy this one instead): expert
• ‘Significant growth potential’: Expert names 2 unfashionable ASX 200 shares to buy
• Boost your passive income with Westpac and this ASX 200 dividend share: experts
• ‘Turning point’: Fundie names 2 great-value ASX 200 shares to buy now
• ‘A rocky road ahead’: Expert names 2 ASX 200 shares to thrive in a tough 2023

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/s3ujb1r

The Bank of Queensland Ltd (ASX: BOQ) share price is in the red once more today, bringing its losses for the last month to 10%.

Right now, stock in the S&P/ASX 200 Index (ASX: XJO) regional bank is swapping hands at $6.37. That’s 1.7% lower than its previous close.

For comparison, the ASX 200 is up 0.2% today and has slumped 3% over the last 30 days.

So, what appears to be going wrong for the Bank of Queensland share price in recent weeks? Much of its suffering might be a result of what some commentators have dubbed a banking crisis.

A brief look at the 2023 ‘banking crisis’

While the last month has been rough on the Bank of Queensland share price, it’s been even harder for other international banks.

United States’ Silicon Valley Bank collapsed earlier this month as a liquidity crisis unfolded within.

Our chief investment officer Scott Phillips covered this in far greater detail than I can here, but I’ll run through it as simply as I can.

It all kicked off as a result of rising rates, which eroded the value of bonds held by the banks. When depositors caught wind of this they moved to withdraw their cash and therein lay the spark.

The banks didn’t have all that much money in cash form. Cue a liquidity crunch.

Another liquidity crunch saw Signature Bank in the hands of regulators just days later.

Next we knew, a similar happening was occurring across the pond at Switzerland’s Credit Suisse. Fortunately, fellow Swiss banking giant UBS stepped in to save the day, agreeing to acquire Credit Suisse.

And before the dust had settled, there was news from Germany’s Deutsche Bank. The institution saw its share price tumble late last week amid concerns of the costs associated with insuring its bonds.

Of course, all this took its toll on many bank stocks around the globe, with those of regional lenders among the hardest hit.

What does this have to do with the Bank of Queensland share price?

Well, everything and nothing. None of our Aussie banks has been seriously caught up in the liquidity turmoil, but that’s unlikely to have stopped investor sentiment from tumbling, dragging share prices down with it.

Indeed, UBS has dropped its outlook for the Aussie banking sector in the wake of the chaos. Few ASX 200 banks were safe from the broker’s wrath as it underwent a series of downgrades today.

Though, Bank of Queensland shares appeared to take one of the hardest punches. The broker dropped its rating on the stock to sell while slashing the price target for its shares by 25% to $6, according to the Australian Financial Review.

Thus, the Bank of Queensland share price’s 10% tumble over the last 30 days might have a little, or a lot, to do with the broader international banking landscape.

The post Down 10% in a month, what’s going on with the Bank of Queensland share price? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How I’d invest $20k in ASX 200 shares to earn a second income of $140 a month
• Is right now a once-in-a-decade opportunity to buy ASX 200 bank shares?
• Why is the Bank of Queensland share price pushing higher today?
• Want to bank more passive income? This ASX 200 bank share’s dividend yield outstrips all others
• Why are the smaller ASX 200 banks rebounding so strongly on Wednesday?

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/F5vAZ8l

If you have a high tolerance for risk, then you might want to consider adding some small cap exposure to your portfolio.

But which small cap ASX shares should you buy? Listed below are two that brokers rates very highly. Here’s why they are bullish on them:

FINEOS Corporation Holdings PLC (ASX: FCL)

The first small cap ASX share to look at is Fineos. It is a provider of core systems for life, accident, and health insurance carriers globally.

The company currently has a sizeable 7 of the 10 largest group life and health carriers in the US, as well as a 70% market share of group insurance in Australia. It clearly means business!

Goldman Sachs is a big fan of the company and is very positive on its outlook. It recently commented:

Recent industry data points and commentary suggest that demand conditions are normalizing into 2023, with easing wage pressures increasing confidence in FCL’s cash break-even trajectory (we now see upside to consensus earnings across FY23-25E). Separately, FCL’s closest US comp Duck Creek was taken out for ~2-3x FCL’s trading multiple, providing valuation support for the sector.

Goldman has a buy rating and $1.95 price target on its shares.

Volpara Health Technologies Ltd (ASX: VHT)

Another small cap ASX share to watch is Volpara. It is a provider of software that uses artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer.

Volpara has been growing its top line at a rapid rate in recent years thanks to market share gains and its expanding average revenue per user (ARPU) metric.

Morgans appears to believe that this can continue, particularly given favourably regulatory developments. It said:

After a long wait, the FDA finalised federal legislation for mammography centers to report breast density to patients. This is positive for VHT’s FDA cleared AI volumetric density software. VHT also announced a further contract win with Sutter Health for their Risk Pathways product, with an additional TCV of US$900k over 3 years. This expands their existing relationship with Sutter. […] We view both of these announcements as incrementally positive for the company. We see VHT at a critical turning point in the company’s trajectory to profitability with improving investor sentiment.

Morgans recently reiterated its add rating and $1.21 price target on its shares.

The post Brokers say these small cap ASX shares are buys appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How to make passive income for life with just $5 a day
• Why Aeris, Block, Fineos, and Tyro shares are racing higher
• 3 ASX All Ordinaries shares I’m watching like a hawk in March
• Bargain buys? 3 ASX All Ords shares trading at 52-week lows right now
• Why Arafura, Myer, Volpara, and Xero shares are zooming higher

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 positions in and has recommended Volpara Health Technologies. The Motley Fool Australia has positions in and has recommended Volpara Health Technologies. The Motley Fool Australia has recommended FINEOS Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/vwHj4OB

The Australian share market is home to countless ASX shares that pay dividends every six months.

This makes it a great place to generate a regular and growing passive income.

But which ASX shares could you invest $20,000 into now in order to generate $1,000 of passive income?

Generating $1,000 of passive income with ASX shares

If you have $20,000 to invest, then you’re going to need a 5% dividend yield to generate $1,000 of passive income.

One ASX share that is highly rated and is expected to provide investors with this level of yield is Rio Tinto Ltd (ASX: RIO). In fact, you’ll get more bang for your buck than necessary with this mining giant’s shares according to Goldman Sachs.

Its analysts are forecasting fully franked dividends per share of US$5.33 in FY 2023 and then US$5.98 in FY 2024. Based on the current exchange rates and the most recent Rio Tinto share price of $115.20, this equates to yields of 6.9% and 7.8%, respectively.

This means a $20,000 investment in the miner’s shares would yield passive income of $1,380 this year and then $1,560 next year.

Goldman also sees plenty of upside for the Rio Tinto share price with its buy rating and $140.40 price target.

Another option for investors to consider for passive income is the Vanguard Australian Shares High Yield ETF (ASX: VHY).

Rather than picking one share to buy, this ETF allows you to invest in a diverse collection of ASX shares that pay larger than average dividends in one fell swoop. This includes Rio Tinto.

At present, the ETF is trading with an estimated forward dividend yield of 5.4%. This would mean that a $20,000 investment generates passive income of $1,080 over the next 12 months.

The post Want $1,000 of passive income? Check out these ASX shares appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Goldman Sachs says these ASX dividend shares with 7%+ yields are buys
• 3 ASX dividend ETFs to make nice income
• Invested $7,000 in Rio Tinto shares 5 years ago? Here’s how much passive income you’ve earned
• Market beating returns and big yields: 2 ASX ETFs to buy next week
• Buy this ASX ETF for retirement income

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 Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/MDYLINf

The S&P/ASX 200 Materials Index (ASX: XMJ) is climbing 1.19% in late trading on Wednesday, but these three ASX mining shares are soaring far higher.

Shares in Globe Metals & Mining Ltd (ASX: GBE), Cobre Ltd (ASX: CBE), and Walkabout Resources Ltd (ASX: WKT) are all outperforming the index today.

Let’s take a look at what these three companies announced to the market.

Globe Metals & Mining

Globe Metals and Mining shares are surging 13% today to 9.5 cents. However, in earlier trade, the company’s share price rocketed nearly 31% to 11 cents. In today’s news, Globe revealed it has entered a mining and development agreement with the Malawi government to develop the Kanyika Niobium Project. Globe described this development as a “significant milestone in Globe’s history”. Chair Alice Wong said:

With this ultimate approval and final agreement in place, all parties concerned can now focus their efforts and resources on making the Kanyika Project the first niobium mine in Africa and Globe the first new niobium producer in over 50 years.

Cobre

Cobre shares soared nearly 24% today, hitting an intraday high of 13.5 cents a share. The company’s share price has since settled at 12 cents, up 14.3%. Cobre is exploring metals including copper and silver in Botswana and Western Australia.

Today, the company advised of a ‘Change of Director’s Interest’ indirectly involving director Martin Holland. Holland International Pty Ltd has acquired 700,000 new shares at a value of $71,225.73. Yesterday, Cobra announced soil sampling and preparation for aircore drilling is underway at the company’s Kitlanya West Project in Botswana.

Walkabout Resources

Walkabout Resources shares are up 4.55% in late afternoon trading to 11.5 cents apiece. That’s after the company’s share price lifted 18% to 13 cents a share earlier today. Walkabout announced today it has signed a term sheet for an up to US$25 million senior debt facility to complete construction of the Lindi Jumbo graphite mine in Tanzania.

Commenting on the news, CEO Andrew Cunningham said:

It is pleasing to know that the Lindi Jumbo Project will be funded through to production.

The post 3 ASX mining shares rocketing over 18% on big news appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Want $1,000 of passive income? Check out these ASX shares
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• 4 ASX 300 directors buying up their company shares in the past week
• Why Bendigo and Adelaide Bank, Jervois Global, Megaport, and NAB are dropping today
• Why ALS, Centaurus Metals, Pilbara Minerals, and Westgold shares are rising today

Motley Fool contributor Monica O’Shea 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/VasxUi7