The Star Entertainment Group Ltd (ASX: SGR) share price has been frozen as the company prepares to receive the findings of a review into its suitability to operate its Sydney casino.

The review, undertaken by Adam Bell SC, is rumoured to have found the company unfit to run the casino.

The company responded to such speculation today, saying it’s unaware of any findings thus far.

The stock was put into a trading halt this morning. It’s expected to remain frozen until the report is released. It last traded at $2.66.

Let’s take a closer look at what’s going on with the S&P/ASX 200 Index (ASX: XJO) casino operator this week.

Star share price frozen ahead of ILGA findings

The Star share price is on ice today as the company, and the market prepares to learn of the fate of its Sydney casino.

The final report on a review conducted by the NSW Independent Liquor and Gaming Authority (ILGA) is expected to be released tomorrow.

It follows an inquiry that reportedly heard that the casino operator misled regulators, involved itself in suspicious junket dealings, and concealed gambling spending.

The review found the company unfit to hold a casino licence in New South Wales, according to reporting by The Australian.  

However, it’s expected to be offered a remediation program similar to that undergone by formerly ASX-listed Crown.

Responding to the publication’s claims, the company said it “has not received a copy of the report [and] is unaware of its contents”.

It also said the trading halt is “necessary as otherwise trading in securities may take place in an uninformed market”.

It will make a further statement following the release.

The company is also facing an inquiry in Queensland regarding the operations of The Star Gold Coast and Treasury Casinos.

The post Star Entertainment share price halted amid licence probe appeared first on The Motley Fool Australia.

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More reading

• ASX falls, eyes on the Fed and huge petrol profits. Scott Phillips on Nine’s Late News
• Star Entertainment share price slides on $32 million loss

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.

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The Westpac Banking Corp (ASX: WBC) share price has been having a tough time over the last 12 months. Since this time last year, the banking giant’s shares have lost over 16% of their value.

As a comparison, over the same period, the Commonwealth Bank of Australia (ASX: CBA) share price is down 5% and the National Australia Bank Ltd (ASX: NAB) share price is up 6%.

While this is disappointing, it could be good news for income investors that are looking for big dividend yields.

Westpac dividend

According to a recent note out of Goldman Sachs, its analysts are expecting the Westpac dividend to increase to a fully franked $1.35 per share in FY 2023. This will be up almost 10% from an estimated $1.23 per share this year.

Based on the current Westpac share price of $21.46, this implies a generous 6.3% dividend yield in 2023.

But the returns don’t stop there. Goldman Sachs currently has a conviction buy rating and $26.55 price target on the bank’s shares. This implies potential upside of 24% for investors over the next 12 months. Combined, this suggests a total potential return of over 30% for investors.

What is the broker saying?

Goldman believes that rising rates and its cost cutting plans will be a boost to Westpac’s earnings and support this dividend increase in FY 2023. It also believes Australia’s oldest bank’s shares are trading on very attractive multiples compared to historic levels. The broker explained:

We continue to see WBC as our preferred exposure to the A&NZ Financials reflecting: i) its strong leverage to rising rates, ii) while we think its A$8 bn FY24 cost target will now be unachievable, we still forecast a 7% reduction in underlying expenses, iii) its recent market update highlighted that the business is still investing effectively in its franchise, and iv) our 12-mo TP implies a 23% TSR [now `30%], and we note the stock is trading at a 20% discount to peers, versus the historic average discount of 2%.

The post What will the Westpac dividend be in 2023? appeared first on The Motley Fool Australia.

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More reading

• Billions in liabilities could be set to hit CBA and other ASX banks: expert
• Westpac shares stepped into the green today amid RBA’s softer tone
• Why is the NAB share price diving more than the other big 4 ASX banks today?
• Why rising rates are a ‘sugar hit’ for ASX 200 bank shares: Macquarie
• When will the RBA stop raising rates? Here’s what Westpac thinks

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shiba Inu (CRYPTO: SHIB) skyrocketed to fame as a popular meme coin with little to no intrinsic value. You simply bought the coin because it featured a cute dog as a mascot, and it only seemed to go up in value.

For an almost comically low price of $0.000012, you, too, can still own a cryptocurrency with seemingly unlimited upside potential. But there is just one problem: The cryptocurrency launched with a massive supply of one quadrillion coins (a one followed by 15 zeros).

To put that into perspective, the current circulating supply of Ethereum (CRYPTO: ETH) is 122 million coins. The maximum total supply of Bitcoin (CRYPTO: BTC) — ever — will be 21 million coins. It’s evident that Shiba Inu has a problem with oversupply — one quadrillion is an insanely high number. There’s too much supply of Shiba Inu and not enough demand. Until it dramatically reduces the number of coins, its price has limited upside potential. 

Burn, baby, burn

For that reason, I’ve increasingly come to realize that there is only a single metric that should be used to value Shiba Inu: burn rate. This refers to the rate at which users are burning Shiba Inu tokens. The higher the coin burn rate, the better.

“Burning tokens” does not imply that people all over the world are holding massive bonfires. It simply means they are permanently removing tokens from circulation by transferring them to a “dead” wallet where the private cryptographic keys have been thrown away. 

Looking at the total supply of Shiba Inu today, you might be puzzled to see a figure of 589.6 trillion coins. That would seem to imply that 410.4 trillion coins have already been burned. But that’s really due to the efforts of a single person, Vitalik Buterin, co-founder of Ethereum.

The anonymous founder of Shiba Inu, known as Ryoshi, sent Buterin nearly half the supply of Shiba Inu as a gift back in 2020. Buterin promptly turned around and burned 410 trillion tokens. And it wasn’t easy, either. Burning that much worthless digital currency actually requires quite a bit of planning.

Shiba Inu burn calculations

Luckily, there are now publicly available sources that let you know how much Shiba Inu is being burned these days. According to estimates, 300 million tokens were burned in the first week of September alone. In one spectacular 24-hour period, over 100 million tokens were burned. In September, the average burn rate is now 23.67 million Shiba Inu tokens per day, which is up more than 138% from the average daily rate in August. 

No matter where you look these days, it seems like people are talking about ways to burn Shiba Inu. They have realized that an initial circulating supply of one quadrillion coins has devalued the currency. Burning is the only way to bring supply and demand back into balance.

The logic is simple: More Shiba Inu has to burn for it to become valuable. Maybe I’m being too cynical about its future, but it’s hard not to see every new project launched by the Shiba Inu community as a clever way to burn tokens and get them out of circulation. 

How much Shiba Inu still needs to burn?

So, the big question is: How much more has to burn before SHIB becomes a buy? Assuming a market capitalization of $7 billion, which is what it is valued at today, if Shiba Inu ever wants to reach the $1 mark, it would have to reduce the total supply to around seven billion coins. But, again, the total circulating supply was so insanely high at launch, that reaching that seven billion mark will be difficult. Shiba Inu would need to burn more than 99% of all its existing coins to get supply and demand back into balance. 

So that’s why the only metric that matters anymore is burn rate. I don’t want to hear about new apps, new scaling solutions, or new metaverse projects unless they offer new ways to burn tokens.

Once the massive oversupply of Shiba Inu tokens is under control, that’s when I might decide to get back into the market for what has become an extremely devalued cryptocurrency.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Shiba Inu a buy? This one metric holds the answer appeared first on The Motley Fool Australia.

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More reading

• Santos share price dips amid sell-off rumours
• Who owns shares in ASX tech company Novonix right now?
• Guess which tiny ASX mining share just rocketed 30% on lithium news?
• Down 20% in 2022, is the Lynas share price too cheap to ignore?
• Here’s why the Nickel Industries share price is racing 7% higher

Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Santos Ltd (ASX: STO) share price is drifting lower in early afternoon trade on Monday.

At the time of writing, shares in the oil and gas are trading 1.4% lower at $7.74 apiece, despite no market-sensitive updates from the company.

In broader market moves, the S&P/ASX 200 Energy Index (ASX: XEJ) is 0.2% in the green while the S&P/ASX 200 Index (ASX: XJO) is 1.1% higher.

What’s up with the Santos share price?

Energy shares have caught a small bid today as Brent Crude oil advanced higher last week with the world oil benchmark now trading at US$91.2/Bbl.

This is after hitting lows of US$87/Bbl last week, amid fears of a global recession with central banks continuing to raise interest rates in a bid to combat inflation.

Geopolitical risks surrounding the conflict in Europe have also weighed in.

At the same time, Santos released a short update to the market today.

While not price sensitive, the company commented on media reports that large shareholder ENN Group International Investment Limited (ENN) was selling down its near 10% stake in the company.

“Santos notes media speculation today regarding a potential selldown by ENN of a 9.97%
stake in [the company],” Santos detailed today.

“ENN lodged a notice of ceasing to be a substantial shareholder in Santos with ASX on 22 April
2022, disclosing that their shareholding had dropped below 5%.”

Santos share price snapshot

The Santos share price has gained 23% year to date and 28% over the past 12 months.

Today’s trading activity sees the sideways trend continuing after bouncing from lows last month. The share price now trades back in range with June 2022 levels, as seen below.

The post Santos share price dips amid sell-off rumours appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Here’s why the ASX 200 could be set up for an almighty rally before the end of this horrible year for stocks
• Here’s why ASX 200 energy shares are diving lower today
• The Santos share price is under pressure today. Here’s why
• Why has the oil price been so volatile lately?

Motley Fool contributor Zach Bristow 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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Novonix Ltd (ASX: NVX) has been in the spotlight recently, its share price buoyed by the rapid positive developments in the lithium exploration industry. This has led some people to ask, who owns shares in Novonix on personal and institutional levels.

The good news is that this question is easily answered as it’s accessible to the general public.

So let’s break down who owns a stake in Novonix.

Novonix bag holders

The Fool’s company page for the battery metals company lists its three main institutional shareholders as the following:

Company	Shares owned	% of total capital
St Baker Energy Holdings Pty Ltd	62,843,522	15.53
Citicorp Nominees Pty Limited	32,619,424	8.06
Allegro Capital Nominees Pty Ltd	24,336,337	6.01

On a personal level, Market Index lists the following director interests of Novonix shares:

Director	Direct shares	Indirect shares	Options
Andrew Liveris	5,066,000	4,132,794	9,000,000
Robert Cooper	652,612	16,028,818	200,000
Anthony (Tony) Bellas	66,000	2,346,374	0
Robert Natter	631,034	1,500,000	1,500,000

It should be noted there have not been any on-market director share purchases over the past two years.

Novonix share price snapshot

The Novonix share price is down 0.22% at the time of writing, after spending most of the morning in the green.

Novonix shares are down around 74% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 6.4% over the same period. The company’s market capitalisation is $1.12 billion.

The post Who owns shares in ASX tech company Novonix right now? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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• Why is the Novonix share price smashing the ASX 200 on Wednesday?
• Slide continues: Novonix share price dumps 14% in 2 days
• Why did the Novonix share price crumble 14% in August?

Motley Fool contributor Matthew Farley 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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Microcap ASX mining share Korab Resources Limited (ASX: KOR) is rocketing higher today.

Korab Resources shares closed Friday trading for 2.7 cents and are currently trading for 3.4 cents apiece, up 25.9% after earlier posting gains of more than 30%.

So, what’s driving investor interest in this tiny ASX mining share?

Why is the Korab Resources share price leaping higher?

Korab Resources shares are off to the races today after the ASX mining share reported its exploration license for a 172 square kilometre tenement in the Northern Territory was renewed through to 31 July 2024.

The tenement forms part of the Batchelor Project, located 70 kilometres south of Darwin.

The ASX mining share is likely leaping higher as the Bachelor Project hosts lithium mineralisation, with lithium star performer Core Lithium Ltd (ASX: CXO) among the miners owning and operating neighbouring tenements.

Investors are keeping a keen eye on developments in the lithium space, with demand for the lightweight, conductive metal widely forecast to remain strong over the coming decade amid a surge in global EV production.

In today’s release, Korab Resources noted:

At the nearby Litchfield Pegmatite Belt, and the Finniss Lithium Project, lithium-bearing pegmatites are found within the same Burrell Creek Formation adjacent to and within aureole of I-type and S-type granites as the source of LTC pegmatites.

The ASX mining share said the geological setting of the broader Batchelor Project, and within its newly renewed tenement lease, is broadly similar.

Atop lithium, the tenement also has the potential to host rare earth oxides mineralisation. Korab said it has commenced a review of the existing exploration data. The results of that review will be reported as they become available.

How has this tiny ASX mining share been tracking?

As a microcap stock, trading in Korab Resources tends to be thin. The ASX mining share is also prone to some large price swings.

With more of those swings in the positive direction than negative over the past full year, Korab Resources shares are up 70%. That compares to a 12-month loss of 7% posted by the All Ordinaries Index (ASX: XAO).

The post Guess which tiny ASX mining share just rocketed 30% on lithium news? appeared first on The Motley Fool Australia.

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More reading

• Down 20% in 2022, is the Lynas share price too cheap to ignore?
• Here’s why the Nickel Industries share price is racing 7% higher
• The AGL share price has tumbled 16% in a month. What’s next?
• Why this top broker is tipping 17% upside for the Telstra share price
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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 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 Lynas Rare Earths Ltd (ASX: LYC) share price has dropped around 20% since the beginning of 2022. It has been a hefty fall.

Lots of businesses with compelling longer-term growth potential have been sold off this year. ASX growth shares have lost some investor support and now don’t command the same level of valuation as before.

Inflation and higher interest rates are certainly having an impact on the ASX share market and the economy. But, should a resources business be punished in the same way?

Let’s have a look at how the business has actually been performing recently because operational performance can be very different to movements of the share price.

FY22 earnings recap

In the 2022 financial year, Lynas reported that its revenue jumped by 88% to $920 million, earnings before interest, tax, depreciation and amortisation (EBITDA) went up 155% to $601.2 million and net profit after tax (NPAT) increased 244% to $540.8 million.

The company reported that favourable market conditions and strong demand for rare earth materials saw rare earth prices sustained at high levels in the second half of the financial year, with the Neodymium-Praseodymium (NdPr) market price remaining 70% to 80% higher than the same period last year.

Lynas has continued to work on its 2025 growth plan with construction of its rare earths processing facility in Kalgoorlie, as well as a heavy rare earth separation facility and light rare earth separation facility in the US.

New agreement

It was only last week that the rare earth company announced the signing of agreements with Japan Australia Rare Earths (JARE) which reconfirms its shared commitment to work together on future development opportunities.

Under the agreements, JARE will provide a contribution of US$9 million to the exploration program at Mt Weld on the exploration target in the fresh carbonatite below the current Mt Weld life of mine design and ore reserve. JARE will also provide technical support to the exploration program through the involvement of world-leading geologists and other technical professionals.

JARE has also agreed to remove capital management restrictions, so Lynas can do things like issue dividends, carry out share buybacks and so on.

Is the Lynas share price a buy?

The broker Macquarie currently has a neutral rating on the business, with a price target of $9.50. That implies a possible rise of mid-single-digits for Lynas over the next 12 months. However, it noted that rare earth prices have recently fallen back.

The broker Ord Minnett is much less optimistic about Lynas’ prospects. It has a sell rating with a price target of just $4.85. That implies a possible fall of more than 45% from here. The broker notes the high level of capital expenditure that Lynas is planning to spend on its projects, with project execution being a potential risk. It also pointed out that the Lynas share price has fallen.

Looking at the Lynas share price and projections, Macquarie thinks Lynas is valued at 13 times FY23’s estimated earnings and Ord Minnett thinks Lynas is priced at under 11 times FY23’s estimated earnings.

The post Down 20% in 2022, is the Lynas share price too cheap to ignore? appeared first on The Motley Fool Australia.

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• Why is the Lynas share price surging higher on Tuesday?
• Should investors ‘buy the dip’ in Lynas shares right now?
• Guess which ASX rare earths share is rocketing 13% on a ‘resounding success’. Hint: not Lynas
• Down 24% since April, have investors fallen out of love with Lynas shares?
• Top ASX shares to buy in September 2022

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 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 Nickel Industries Ltd (ASX: NIC) share price has been a strong performer on Monday.

In early afternoon trade, the nickel producer’s shares are up 7% to 96 cents.

Why is the Nickel Industries share price racing higher?

Investors have been scrambling to buy this nickel producer’s shares following the release of an update on its Hengjaya Mine in Indonesia.

According to the release, the company has upgraded its mineral resource to 300 million dry metric tons (dmt), with an average grade of 1.22% nickel and 0.09% cobalt. This equates to approximately 3,700,000 tons of nickel metal and 270,000 tons of cobalt.

Since the last resource estimate in June 2020, measured resources have increased 333%, indicated resources are up 20%, and inferred resources are up 53%. Management notes that this delivers a significant conversion of inferred and indicated to measured resources and provides increased confidence in the current remaining resource estimate.

This mineral resource estimate is based on data incorporating 529 kilometres of ultra-ground penetrating radar survey, 4,657 drill holes, and 111,643 sample assays from drill cores taken from a 3,000-hectare area at the Hengjaya Mine.

Nickel Industries’ Resource managing director, Justin Werner, was delighted with the news. He said:

We are delighted to deliver a significant increase in our Resource at the Hengjaya Mine from 2.4 million tonnes to 3.7 million tonnes of contained nickel metal representing a 56% increase, with further upside remaining. This places the Hengjaya Mine amongst the top 10 global nickel resources, highlighting the world class size of the deposit.

The Hengjaya Mine is the closest large tonnage, high grade saprolite and limonite mine to the Indonesia Morowali Industrial Park (‘IMIP’) and one of its largest ore suppliers. This underscores the important strategic value of the mine in providing secure, long-term supply to the Company’s RKEF operations within IMIP, being HNI and RNI, as well as Oracle Nickel (‘ONI’) which is currently under construction and due to commission in October this year.

The post Here’s why the Nickel Industries share price is racing 7% higher appeared first on The Motley Fool Australia.

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• Why is the Nickel Industries share price getting hammered on Tuesday?
• Why BHP, Deep Yellow, Nickel Industries, and PointsBet shares are dropping
• Nickel Industries share price dips despite 40% profit surge

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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The AGL Energy Limited (ASX: AGL) share price has been in the red over the past month, losing around 16% of its value.

The gas and electricity company’s slump has been a major weight on the S&P/ASX 200 Utilities Index (ASX: XUJ). It’s the market’s worst performing sector by a significant margin in the past month, down 8.7%. The second worst performer, the S&P/ASX 200 Real Estate Index (ASX: XRE), is 4.52% lower.

Certainly, other utility companies are also down over the period. These include Origin Energy Ltd (ASX: ORG), down 2%, and Meridian Energy Ltd (ASX: MEZ) which has lost about 2.8%.

Let’s check what may be impacting the AGL share price lately.

What’s happening with AGL’s energy transition?

The unfolding global energy crisis is undoubtedly hitting the utilities sector hard.

It comes as AGL is facing its own challenges. These include recovering from a $225 million loss for FY22, replacing heads of management, finding a new CEO and board chair, and transitioning away from carbon-based energy production methods.

As reported by The Australian, one of AGL’s key focuses is likely to be on transitioning from coal to more sustainable energy sources.

This observation was made by VanEck portfolio manager Jamie Hannah. VanEck is a top 10 shareholder of AGL.

Hannah said:

They need to work out what their long-term plan is, in terms of what they’re going to be doing with their coal power plants, if they’re going to keep them, how long for and then how they’ll be increasing their renewables production.

He continued:

I think financing is part of the issue here. Coal power plants are generating returns and they probably want to keep them for as long as possible but a lot of investors want to see a move to renewables.

Certainly, the move to renewables could come at an opportune time for AGL, with advances in hydrogen and nuclear fusion developing rapidly.

Alternative energy sources abound

AGL launched a study into the feasibility of using hydrogen energy in June this year. Part of the study is the prospect of converting its gas-fed power station at Torrens Island, northwest of Adelaide, to hydrogen power. It also investigates the feasibility of creating a green hydrogen hub near Adelaide.

Meanwhile, nuclear power is undergoing a renaissance in popularity, thanks to developments in nuclear fusion technology and miniaturised nuclear reactors. Several countries, including France and India, have indicated they will join the nuclear ranks. While others, such as Japan and the United States, are expanding their nuclear presence.

Although nuclear power has been banned in Australia since 1998, indications in recent times have shown some sections of the federal government are not averse to the idea. As shadow defence minister in April 2022, Labor’s Brendon O’Connor called for Australia’s nuclear submarines to be built locally as part of the AUKUS defence deal, as reported by the ABC.

Indeed, Australia already has a nuclear reactor on its soil. The Open Pool Australian Lightwater (OPAL) has been operating at Port Kembla, New South Wales since 2007. OPAL is powered through enriched uranium for scientific uses.

Whatever green option AGL opts for may be controversial, but these developments show the landscape of energy production is rapidly evolving.

AGL share price snapshot

AGL shares are currently trading for $7.12 apiece, up 2.3% on the day so far, clawing back some ground after their steep fall over the past four weeks.

Even with the losses of the past month, the AGL share price is up 16% year to date and 16.53% over the past year. This compares to the S&P/ASX 200 Index (ASX: XJO)’s 6.44% loss in 2022 so far. The benchmark index is also down around 6% in the past 12 months.

AGL’s current market capitalisation is around $4.8 billion.

The post The AGL share price has tumbled 16% in a month. What’s next? appeared first on The Motley Fool Australia.

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More reading

• Are AGL shares offering a bigger final dividend than Origin this year?
• Broker tips 22% upside for the AGL share price
• ‘We would like to see faster progress’: ASX 200 energy shares on notice
• Down 15% in a month – is the AGL share price good value yet?
• Why is the AGL share price on the slide today?

Motley Fool contributor Matthew Farley 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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It’s been a strong start to the trading week for the Telstra Corporation Ltd (ASX: TLS) share price so far this Monday. At the time of writing, Telstra shares have added a decent 0.38% and are going for $3.94.

However, if we zoom back a little, it’s clear that Telstra shares have been struggling in recent months. The telco remains down by 6.75% year to date in 2022 so far. Telstra is also down by almost 8% from the 52-week high of $4.31 a share that we saw back in January. The company has gained 0.64% over the past 12 months.

Even so, it could have been worse. The S&P/ASX 200 Index (ASX: XJO) has lost an even greater 8.25% over the year to date. The ASX 200 is also still down by 6.1% over the past 12 months, so Telstra shares have actually delivered meaningful market outperformance over this period.

But we still can’t say Telstra shares have done too much in recent months.

But what of the future? Could this share price stagnation lead to a good buying opportunity for the ASX 200 telco today?

Well, one ASX broker thinks it just might.

Is the Telstra share price a buy today?

As my Fool colleague James covered yesterday, ASX broker Ord Minnet thinks the best might be yet to come for Telstra. Ord Minnet currently rates Telstra shares as a buy, with a 12-month share price target of $4.60 a share. If that came to pass, it would result in a compelling upside of almost 17% on current pricing.

Ord Minnet is excited about Telstra’s future dividend prospects. Telstra raised its dividend for the first time in years last month. Investors will enjoy a final dividend of 8.5 cents per share, fully franked, for FY22.

But Ord Minnet reckons the telco will be able to jack up its dividends again in FY23, estimating an FY23 total of 17 cents per share in dividends. This is expected to rise to 19 cents per share for FY24.

No doubt this will be very welcome news for Telstra investors today.

At the current Telstra share price, this ASX 200 telco share has a market capitalisation of $45.5 billion, with a dividend yield of 4.19%. 

The post Why this top broker is tipping 17% upside for the Telstra share price appeared first on The Motley Fool Australia.

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More reading

• Experts name 2 excellent ASX dividend shares to buy next week
• Telstra share price is caught in no man’s land as Optus feud continues
• ASX bounces back and telco titans tussle. Scott Phillips on Nine’s Late News
• The Telstra share price has gone backwards in 2022. Is now the time to pounce?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. 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 Telstra Corporation Limited. 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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