Investing in S&P/ASX 200 Index (ASX: XJO) shares?

Then you’re probably as keen as I am to know what the US Federal Reserve is going to announce on interest rates.

The US may be on the opposite side of the world.

But the rate decisions made by the Fed have a major impact on global stocks, including ASX 200 shares.

Should the Federal Open Market Committee (FOMC) opt to raise rates by more than market expectations, share markets will most likely fall.

On the flip side, if the Fed is more dovish than markets have priced in, stocks are likely to broadly rally.

So, what can ASX 200 share investors expect?

ASX 200 shares and the US Fed

Fed chair Jerome Powell will make the much-awaited announcement on Wednesday US time.

That means, unless you’re a night owl, here in Australia we’ll know when we wake up on Thursday. And at market open tomorrow, ASX 200 shares will react to the news.

Before the banking crisis erupted with the collapse of Silicon Valley Bank, analysts were largely expecting a 0.50% interest rate hike from the Fed to combat ongoing high inflation.

Today, almost no one is calling for a 0.50% hike.

According to data from Bloomberg, the market is now pricing in around 80% odds that Powell will announce a 0.25% hike. That will bring the official US interest rate to 5.0%, its highest level in 16 years.

But uncertainty is high.

Among the Wall Street banks, six of eight are expecting a 0.25% hike. Two – Goldman Sachs and Wells Fargo – expect the Fed to pause its tightening path following the past weeks’ retail banking woes.

All told 11 of 98 economists in the Bloomberg survey believe the Fed will pause, 86 expect an increase, and one is pencilling in a 0.25% rate cut. Should that cut eventuate, ASX 200 shares will most likely enjoy a very strong day tomorrow.

What the experts are saying

“This tension is leading to existential angst. Have they gone too far, or not far enough? Both could be true at the same time,” Derek Tang, an economist at LH Meyer/Monetary Policy Analytics said.

“The difficult thing for the FOMC at this meeting will be the tension between bringing down inflation and financial stability risks,” Jonathan Millar, an economist at Barclays added.

And according to Anna Wong, chief US economist at Bloomberg Economics:

There are no easy options. A pause could signal that the Fed is not confident in the resiliency of the banking system or the economy, or sees problems that aren’t yet visible to the market. On the other hand, a hike could add to bank stress and spook investors.

I don’t know about you, but I certainly don’t envy Powell at the moment. He might want to consider wearing a ‘Don’t shoot the messenger’ T-shirt.

As for ASX 200 shares, the odds are strong that we’ll wake up to another 0.25% rate hike from the Fed.

The post Investing in ASX 200 shares? Here’s what to expect from the US Fed tomorrow appeared first on The Motley Fool Australia.

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More reading

• Latitude shares are back on the ASX, but why are they falling 8% today?
• Why I think Wesfarmers shares are a top buy right now
• Is a dividend ETF really better than an ASX index fund for income?
• Goldman ‘remains confident in the health’ of ASX 200 bank shares and names it top pick
• 5 ASX shares I’d buy if there is panic selling

SVB Financial provides credit and banking services to The Motley Fool. Motley Fool contributor Bernd Struben 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 SVB Financial. The Motley Fool Australia has recommended SVB Financial. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ASX is welcoming one of its shares back to trading today. Yes, Latitude Group Holdings Ltd (ASX: LFS) shares are back baby.

The financial services company has been absent for a few days now after a cybersecurity incident. But investors are now once again able to buy and sell Latitude shares on the market.

But it hasn’t exactly been a glorious return. Latitude last traded at $1.20 a share back on Wednesday, 15 March. But upon its trading resumption this morning, this company opened at just $1.01 a share. That’s a fall of 16%.

The company is doing considerably better at the time of writing, sitting at $1.11 per share. But that is still down a meaningful 7.88% on where the company closed at last week:

Let’s check the latest.

Latitude shares return to the ASX following cyberattack

As we covered at the time, this suspension was due to a cyberattack that Latitude suffered last week. Back then, the company told investors that approximately 100,000 customers had had their personal identification documents accessed or stolen.

In response, Latitude requested an immediate trading halt, which was extended until today.

This morning, Lattitude told investors (and customers) the following:

We are continuing our forensic review to determine the full extent of the attack on Latitude and the amount of personal information stolen by the attacker.

While to the best of our knowledge no compromised data has left Latitude’s systems since Thursday 16 March 2023, regrettably our review has uncovered further evidence of large-scale information theft affecting customers (past and present) and applicants across Australia and New Zealand.

Our people are working urgently to identify the total number of customers and applicants affected and the type of personal information that has been stolen. We appreciate how frustrating this latest development will be for our customers and we unreservedly apologise.

So it’s almost certain this incident is behind the big falls in the Latitude share price that we’ve seen today. We saw a similar reaction from the markets after the cyber incident involving Medibank Private Ltd (ASX: MPL) last year.

No doubt investors will be hoping that the company can recover from this attack. But we shall have to wait and see what happens.

At the current Latitude share price, this ASX share has a market capitalisation of $1.12 billion.

The post Latitude shares are back on the ASX, but why are they falling 8% today? appeared first on The Motley Fool Australia.

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• 2 beaten-up ASX dividend shares I’d buy for long-term income
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• Another ASX All Ords stock has just been halted amid a ‘malicious’ cyber attack. Here’s the latest
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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 Scott Phillips.

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The Woodside Energy Group Ltd (ASX: WDS) share price is ripping up the ASX 200 charts today.

The oil and gas giant’s shares are up 5.02% to $32.745 in early afternoon trading and headed for their strongest daily gain in almost six months.

Woodside is currently the second-best performing share of the S&P/ASX 200 Index (ASX: XJO) today. Slightly ahead is ASX coal share New Hope Corporation Limited (ASX: NHC).

Woodside shares are rising due to rebounding oil and gas commodity prices.

The energy sector is the best performer of the 11 market sectors today. The S&P/ASX 200 Energy Index (ASX: XEJ) is up 4.1% at the time of writing.

Today’s leap into the green is a welcome change for Woodside investors, who have watched their shares tumble in March.

At the market close yesterday, the Woodside share price was down 13.2% so far this month.

Let’s take a look at what’s happening.

What’s pushing the Woodside share price higher today?

Brent crude futures are currently trading at US$74.98 per barrel.

The West Texas Intermediate (WTI) price is US$69.24 per barrel.

On Monday, Brent oil dropped to its lowest level in a year at US$70.12.

According to analysis from Trading Economics, oil prices are now rising as investors get over recent troubles in the global banking sector.

Top broker Goldman Sachs has a 12-month price outlook of US$94 per barrel for Brent crude futures.

A rebound in Chinese demand following the dumping of its COVID-zero policy is behind the outlook.

Also powering the Woodside share price soar today are rebounding gas prices.

The European benchmark shot up overnight, rising 7.82%, while British gas prices rose by 9.64%.

Oil and gas prices had been falling recently due to warmer Winter weather across Europe.

What is the 52-week high for Woodside shares?

The war in Ukraine has increased commodity prices, resulting in a boon for oil and gas companies.

The Woodside share price hit an eight-year high on 8 November 2022 at $39.58.

Annual general meeting coming up

Woodside has also announced this week it will hold its annual general meeting on 28 April in Perth.

The post Why is the Woodside share price rising at its strongest rate in almost 6 months? appeared first on The Motley Fool Australia.

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More reading

• $72m and counting: ASX 200 director’s massive share buy-up continues
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• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Guess which ASX 200 director has bought $50m worth of shares in a fortnight?

Motley Fool contributor Bronwyn Allen has positions in Woodside Energy 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 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.

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The Wesfarmers Ltd (ASX: WES) share price looks like an appealing long-term buy in my opinion.

Why does the long-term part matter? I think all investing should be done with the long-term in mind, even if the investment gains play out sooner than expected.

I think good investing takes patience. Holding shares for a long time gives us a better chance for a good business to deliver good returns. It gives the business more time to deliver profit compound growth, which may help push the share price higher.

Plus, long-term investing means that investors can receive more dividends, which can be re-invested into more shares.

With the Wesfarmers share price down 25% from August 2021, I think it’s a good time to invest for a few different reasons.

Attractive financials

With the company now priced at a materially lower level, we’re getting the same business for a much better price.

Let’s look at what the current price/earnings (P/E) ratio is. Commsec estimates currently suggest that Wesfarmers could generate $2.16 of earnings per share (EPS) in FY23. This puts the Wesfarmers share price at 23 times FY23’s estimated earnings.

I think that’s a very reasonable valuation considering the high-quality nature of the business.

The company achieved an overall return on equity (ROE) of 32.8% in the first half of FY23. That shows how much profit Wesfarmers generated from the shareholder money that is retained within the business.

Bunnings, the key profit generator of the business, saw a return on capital (ROC) of 70.7%.

These are the types of numbers that I’d want to see from my businesses. It also suggests that Wesfarmers can earn great returns on profit it re-invests within the business.

Growth platforms

I like that Wesfarmers is putting money into areas where it has a large growth opportunity with a long-term growth runway.

The hardware segment is huge, so Bunnings has plenty of growth avenues with commercial customers, tools and other areas. For example, it’s expanding Tool Kit Depot into the east coast of Australia.

Wesfarmers’ expansion into health and beauty with the acquisition of Priceline and Clear Skincare Clinics could turn into a very long-term play. The ASX share has identified spending trends and ageing demographics as two helpful tailwinds.

I think the Wesfarmers chemicals, energy and fertiliser (WesCEF) business is a very compelling segment. In the FY23 first half, WesCEF’s earnings before tax (EBT) increased by 48.6% to $324 million. There is plenty of further growth potential here as it works on getting the Mt Holland lithium mine operational.

Having multiple growth avenues gives the business more compound growth potential, in my opinion.

Commitment to shareholder returns

Wesfarmers says that a key objective is to “provide a satisfactory return to shareholders”.

I like this because I think it guides management’s capital allocations, ensures they don’t take any major risks with the business and look to provide growing cash returns in the form of dividends.

In FY23, Commsec numbers suggest that Wesfarmers is going to pay an annual dividend per share of $1.87. This could translate into a grossed-up dividend yield of 5.4%.

Over the past five years, the Wesfarmers share price has risen by 64%. Past performance is not a reliable indicator of future performance. But, I think it shows that the business is making steady long-term progress, and the market is recognising that.

The post Why I think Wesfarmers shares are a top buy right now appeared first on The Motley Fool Australia.

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More reading

• 2 of the best defensive and safe ASX 200 shares to buy now: broker
• These ASX lithium shares are a buy despite explosive supply forecast: UBS
• Invested $5,000 in Wesfarmers shares 5 years ago? Here’s how much passive income you’ve earned
• Here’s how much I’d need to invest in Wesfarmers shares to generate a $150 monthly income
• Morgans names the best ASX dividend shares to buy now

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

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ASX index funds are without question the most popular exchange-traded funds (ETFs) on the ASX. As it currently stands, the Vanguard Australian Shares Index ETF (ASX: VAS) is Australian investors’ first choice when it comes to ETFs. And by a country mile too.

There’s a lot to like about ASX index funds like Vanguard’s. Investors get broad diversification, and exposure to some of the country’s best companies, and ASX index ETFs tend to be generous when it comes to dividend distributions too.

But speaking of dividends, the ASX is also home to several ETFs that purely focus on maximising dividend income for their investors.

These ETFs might not be as popular as index funds like the Vanguard Australian Shares ETF. But they still command a significant chunk of the market.

The ASX’s dividend ETFs in focus

For example, the Vanguard Australian Shares High Yield ETF (ASX: VHY) has more than $4 billion in assets under management. Rather than investing in 200 or 300 shares like an index fund would, this ETF holds a far more concentrated portfolio of 73 shares (at its latest count).

It does this to focus on investing only in shares that pay out higher and more sustainable dividends compared to the broader market.

It’s not the only ASX ETF that is built this way either. The ASX also houses the iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD) and the SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI), among a few others.

But are these ETFs really a better deal for those investors seeking dividend income? Well, that’s what we’ll be looking at today.

Well, let’s start with the basics. So as of 28 February, the Vanguard Australian Shares ETF has returned 6.47% over the past 12 months, and an average of 8% per annum over the past three years. Over the past five, it has averaged 7.86% per annum.

This ETF has paid out four dividend distributions over the past 12 months, which come to an annual total of $6.36 per unit. That gives the Vanguard Australian Shares ETF a trailing yield of 7.25% on current pricing. This fund charges a management fee of 0.1% per annum.

Let’s compare that to Vanguard’s dividend-focused ETF.

Income or returns?

So Vanguard’s High Yield ETF has returned 11.11% over the 12 months to 28 February. Over the past three years, it has averaged 11.53% per annum, and 8.55% per annum over the past five. This ETF pays out quarterly dividend distributions too.

On current prices, the past 12 months’ total of $4.15 in distributions per unit gives this ETF a trailing yield of 6.26%. This fund charges a management fee of 0.25% per annum.

So, somewhat ironically, we can conclude that the Vanguard Australian Shares ETF offers a higher trailing yield right now than the Vanguard High Yield ETF. However, the High Yield ETF’s overall performance (which assumes reinvested dividends) over one, three, and five years has been superior.

This doesn’t carry over to some of the other dividend-focused ETFs on the ASX though. For example, the iShares Dividend Opportunities ETF has averaged 6.15% per annum over the past three years, and 4.6% per annum over the past five. It charges 0.23% per annum.

In the SPDR High Dividend Yield Fund’s case, the story is different again. This ETF has given its investors a return of 8.08% over the 12 months to 28 February. Over three years, it has averaged 8.7% per annum, and 7.65% over five.

So when it comes to overall performance, Vanguard’s High Yield ETF seems to take the crown over most other ASX income-focused ETFs. That includes Vanguard’s own ASX 300 index fund.

Thus, we can conclude that investors would have been better off investing in this High Yield ETF over any period in recent history. But when it comes to raw dividend payments, Vanguard’s Australian Shares ETF comes out on top. Go figure.

The post Is a dividend ETF really better than an ASX index fund for income? appeared first on The Motley Fool Australia.

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• Want high income right now? These are the ASX dividend shares I would buy
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• How to generate $300 of monthly income from the Vanguard Australian Shares Index ETF
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• Income investors could get very big dividends from these ASX ETFs

Motley Fool contributor Sebastian Bowen has positions in the Vanguard Australian Shares Index ETF. 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.

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The Australian banking sector has been under the pump recently amid concerns over a global banking crisis.

This has seen ASX 200 bank shares such as Commonwealth Bank of Australia (ASX: CBA) pullback meaningfully from recent highs.

Is it time to panic?

The team at Goldman Sachs has been looking at ASX 200 bank shares and remains confident that they are in good health.

The broker highlights that the big four banks have liquidity coverage ratios (LCR) well ahead of requirements and strong capital positions. It commented:

Post Silicon Valley Bank being taken into receivership by the FDIC, we have received an increasing number of queries regarding the resilience of the Australian Banks. We remain confident in the health of the banking sector in Australia given: i) a single, national regulator, with most of the Australian listed banks subject to the Liquidity Coverage Ratio (LCR), ii) balance sheet mix, which sees only a relatively small part of their balance sheets in a marked-to-market environment, iii) Australian bank regulatory capital positions are MTM for the impact of rate rises, and iv) strong capital positions, with fully-loaded CET1 ratios at close to 18%.

One risk to consider

There is one risk that the broker sees for the banks. Though, not one that could send them into receivership.

That risk is increasing competition for deposits. Goldman explained:

For some time we have been highlighting that funding costs remained the key risk to the banks in 2023; a risk that has been further catalysed by the dislocation in global funding markets over the past fortnight. We estimate the Australian banks’ term wholesale funding requirements over the next three years will be one-third higher than the average issuance over the last six years.

To the extent that we expect this to drive greater levels of deposit competition, we note that our weekly product pricing database suggests that term deposit betas have averaged c. 0.75 this cycle, versus the 1.0 we have seen in previous rate cycles, with deposit betas having been as high as 1.2. Our forecasts already assume term deposit betas revert to 1.0 over this cycle, which represents an 11bp headwind to bank NIMs. To the extent this increased to 1.2, it would be an 8bp incremental hit to our NIM forecasts.

Which ASX 200 bank share should you buy?

In light of the above, the broker continues to believe that Westpac Banking Corp (ASX: WBC) is the best ASX 200 bank share to buy right now.

So much so, it has reiterated its conviction buy rating with a $27.74 price target. Goldman concludes:

We reiterate our Buy (on CL) recommendation on WBC given: i) while NIM pressures are accelerating across the sector, WBC’s shorter-duration replicating portfolio, and current balance sheet performance, should see its NIM outperform peers, ii) despite WBC recently revising its FY24E cost target to A$8.6 bn (from A$8.0 bn), the bank’s performance on cost management remains strong in this inflationary environment with a 9% step down in underlying costs expected over the next two years, iii) the stock is trading at a 25% 12-month forward PER discount to peers (historically a 3% discount), and iv) our TP of A$27.74 offers 36% TSR.

The post Goldman ‘remains confident in the health’ of ASX 200 bank shares and names it top pick appeared first on The Motley Fool Australia.

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• Online trading in these ASX 200 bank stocks is surging. Here’s why
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• Which ASX 200 big four bank share could be the safest to hold?
• Want high income right now? These are the ASX dividend shares I would buy

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is now barely in the green for 2023, erasing what had been a sensational start to the year for ASX shares.

Accelerated by a barrage of concerning events within the banking industry in recent weeks, many investors are now on their toes. The collapse of Silicon Valley Bank and a takeover of Credit Suisse has called into question whether rapid rate rises are ‘breaking’ the system. More important is whether the fallout can be contained by the intervention of central banks around the world.

All the fear, uncertainty, and doubt are taking their toll on markets. There is a chance fear becomes the prevailing emotion if circumstances worsen, which could prompt some panic selling.

While temporarily painful, such periods of indiscriminate selling can be opportunistic for long-term shareholders.

If opportunity knocks

Two fine ASX financial shares

It appears people are shooting first and asking questions later in the financial sector, with all big four banks in the red over the past month.

If the economic situation were to deteriorate, my guess is a few ASX financial shares could be at risk of irrational selling. However, one company that I’d happily scoop up in a depressed market is Macquarie Group Ltd (ASX: MQG).

The investment bank is diversified across retail banking, asset management, commodity markets, and capital advisory. In my opinion, this makes Macquarie a much more attractive holding than the big four, as its segments smooth out the cyclicality of each individual unit.

Another ASX share I’d jump at amid any panic selling is Netwealth Group Ltd (ASX: NWL). The current valuation is hardly ‘cheap’, though that’s my only real qualm with the company.

Considering it is taking the wealth management platform market by storm, Netwealth is an investment I would comfortably make in a falling market if the fundamentals remain unchanged.

Two quality names in health

The healthcare sector is one I particularly like due to its often defensive nature. Products and services in this industry tend to lean more toward ‘needs’ than ‘wants’ — proving resilient through all parts of the economic cycle.

Two ASX shares I’m eager to buy at lower prices are Pro Medicus Limited (ASX: PME) and Nib Holdings Limited (ASX: NHF). Both companies are intertwined with healthcare in different ways — Pro Medicus from a software angle and Nib Holdings as an insurer.

Additionally, these two businesses have a history of generating solid free cash flows. Hence, I would sleep like a baby holding these companies, even through a tumultuous period of time.

An adventurous ASX retail share

Last but not least is a retailer with an iconic and growing brand — KMD Brands Ltd (ASX: KMD).

If you’re not familiar with KMD Brands, here’s the long and the short of it. The company comprises outdoor clothing brand Kathmandu, surfing and sportswear retailer Rip Curl, and hiking boots brand Oboz.

Although the outdoor clothing market is highly competitive with the likes of Patagonia and The North Face, Kathmandu goes toe-to-toe with these giants locally. As demonstrated by the search volume for jackets locally, Kathmandu is a strong contender.

The ASX retail share is now expanding to Canada and Europe, presenting an opportunity for further growth over the coming years.

Today, KMD Brands revealed it has swung back into profitability in its FY23 first-half results. An increase of 8% in sales across the United States for its Rip Curl brand is evidence of execution.

The post 5 ASX shares I’d buy if there is panic selling appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Forget term deposits and buy these ASX 200 dividend shares: analysts
• Why I’d be happy to invest in these ASX 200 bank shares today
• Turbulence insurance: Fund names 2 ASX 200 shares for long-term riches
• Buy Macquarie and this high yield ASX dividend share: brokers

Motley Fool contributor Mitchell Lawler has positions in Kmd Brands, Macquarie Group, and Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group and Pro Medicus. The Motley Fool Australia has positions in and has recommended Macquarie Group, Netwealth Group, and Pro Medicus. The Motley Fool Australia has recommended NIB Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Pilbara Minerals Ltd (ASX: PLS) share price is storming ahead today.

Pilbara shares are rising nearly 3.27% to $3.635. However, in earlier trade, Pilbara shares were up 5%. For perspective, the S&P/ASX 200 Index (ASX: XJO) is lifting 0.92% today.

Let’s take a look at why Pilbara Minerals shares are on the rise today.

What’s going on?

Pilbara is not the only ASX lithium share in the green today. Mineral Resources Ltd (ASX: MIN) shares are up 3.27%, while Allkem Ltd (ASX: AKE) shares are rising 2.82%.

ASX lithium shares including Pilbara appear to be following in the footsteps of multiple US lithium shares overnight.

Lithium giant Sociedad Quimica y Minera de Chile (NYSE: SQM) rose 5.7% on the New York Stock Exchange overnight, Albemarle Corporation (NYSE: ALB) shares jumped 4.5% and Livent Corp (NYSE: LTHM) lifted 2.25%.

This followed a visit from high-profile California Governor Gavin Newsom touting lithium as “white gold”. He said in quotes cited by CNBC:

The entire industry has moved in this space. We want to dominate. We see this as the greatest economic opportunity, and we want to dominate in this space, and we’re doing that

Meanwhile, data from Asian Metal, cited by Bloomberg overnight, shows the lithium price surged by more than 1,300% in two years.

On the flip side, the data also showed the lithium price in China has halved in four months.

Higher global supply of lithium and China’s EV sector moderating could be reasons for this fall, the publication noted.

Morgans has recently recommended investors buy the Pilbara Minerals share price and placed a $4.70 price target on its shares. As my Foolish colleague James reported, Morgans believes demand from China could lift from March.

However, as my Foolish colleague Sebastian reported yesterday, UBS has recently placed a neutral rating on Pilbara Minerals shares. UBS believes new lithium supply could double between 2022 and 2025, potentially weighing on the lithium price.

Pilbara Minerals share price snapshot

The Pilbara Minerals share price has risen 21% in the last year.

Pilbara has a market capitalisation of about $10.9 billion based on the current share price

The post Why is the Pilbara Minerals share price having such a top run today? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• These ASX lithium shares are a buy despite explosive supply forecast: UBS
• Buy Pilbara Minerals and this high yield ASX dividend share: analysts
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Buy these ASX growth shares this week: experts

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.

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The top end of town might not be where most market watchers turn to hunt down whopping returns, but some brokers appears hopeful the share price of $139 billion giant CSL Limited (ASX: CSL) could break the mould.

Indeed, they’ve tipped the S&P/ASX 200 Index (ASX: XJO) healthcare icon to soar as much as 22% from its current levels. That’s on top of the 8.5% gain it’s posted over the last 12 months.

Right now, the CSL share price is trading at $286.40. That’s 0.49% higher than its previous close.

For comparison, the ASX 200 has lifted 0.88% today and dropped 4% since this time last year.

So, what might the future hold for the CSL share price? Let’s take a look at what these bullish brokers are forecasting.

Is the CSL share price a buy right now?

There’s a lot to like about CSL shares, according to these experts.

The biotech icon impressed with the release of its first-half earnings last month. It posted a 19% jump in revenue, a 10% improvement in post-tax profit prior to amortisation on a constant currency basis, and lifted its dividend to US$1.07 per share.

It also revealed record plasma collections – a factor that could boost its revenue further in the future, Citi noted.

The broker retained its buy rating and forecast the stock to gain a notable 22% to $350 on the back of its results, my Fool colleague James reported.

Meanwhile, Morgans tips the company’s earnings to continue growing in the coming years as its interest expenses fall and sales at its Behring and Vifor businesses rise.

The broker has a $337.92 price target – a potential 18% gain – and an add rating on CSL shares.

Though, not all are convinced the ASX 200 healthcare monolith represents a good buy right now.

Goldman Sachs has a neutral rating and a $314 price target on the share. Though, that still represents a 9% upside.

The post Does the CSL share price really offer 22% upside right now? appeared first on The Motley Fool Australia.

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More reading

• How I’d aim to retire rich enough to live on passive income from my ASX dividend shares
• Analysts say these ultra high quality blue chip ASX 200 shares are buys
• Why is the CSL share price smashing the ASX 200 on Thursday?
• Here’s how much I’d need to invest in CSL shares to generate a $300 monthly income
• 5 ASX 200 shares that inflation can’t touch: expert

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 CSL and Goldman Sachs Group. 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.

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The Endeavour Group Ltd (ASX: EDV) share price is rising with the market on Wednesday.

In morning trade, the drinks company’s shares are up over 1% to $6.67.

Where next for the Endeavour share price?

It could be onwards and upwards from here according to a couple of leading brokers.

Goldman Sachs, for example, is bullish on the company and has recently put a buy rating and $7.80 price target on its shares.

Based on the current Endeavour share price, this implies potential upside of 17% for investors from current levels. In addition, Goldman expects dividend yields of approximately 3.3% in FY 2023 and 3.6% in FY 2024.

The broker is positive largely due to Endeavour’s leadership position in a defensive category. It commented:

We remain positive on EDV given its clear leadership in a resilient category with proven strong sales execution and high consumer loyalty. We believe that the company’s investments in digitalization enabling targeted pricing and promotions as well as increasing automation of cost items will provide the operational agility required in a fast changing consumer environment. Additionally, our sensitivity analysis suggests that the risk of NSW gaming regulatory risk is largely factored in and hence more clarity around execution could provide upside catalysts.

Who else is bullish?

Another broker that is bullish is Morgans. In fact, its analysts named the company on the broker’s best ideas list again this month with an add rating and $7.80 price target.

Morgans believes recent weakness in the Endeavour share price has created a buying opportunity for investors. It commented:

We believe the share price weakness over the past six months on the back of an uncertain regulatory environment (eg, potential introduction of cashless gaming cards in NSW) has shifted the balance of risks to the upside with EDV’s underlying business remaining strong. The company possesses a broad network of retail liquor stores/hotel venues, well-known brands (eg, Dan Murphy’s and BWS) and dominant market positions.

The post Why brokers tip double-digit gains from the Endeavour share price appeared first on The Motley Fool Australia.

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More reading

• 2 of the best defensive and safe ASX 200 shares to buy now: broker
• Morgans names 3 of the best ASX shares to buy in March

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.

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