The S&P/ASX 200 Index (ASX: XJO) is having a positive, if tenuous, day of green so far this Tuesday.

The ASX 200 initially opened strongly this morning. But over the day, the index has slipped lower. Even so, the ASX 200 remains up a decent 0.22% at the time of writing, putting the index at just under 7,800 points.

So time to dig a little deeper into today’s trading session. Let’s now have a look at the ASX 200 shares currently topping the market’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

Core Lithium Ltd (ASX: CXO)

Our first ASX 200 share to check out this Tuesday is the lithium share Core Lithium. So far today, a sizeable 27.55 million shares have been swapped on the markets.

This has no doubt been assisted by the company’s pleasing 4% jump that we’ve witnessed. As my Fool colleague Zach dug into earlier, this could be a consequence of Core’s recent deal with the electric car manufacturer Tesla Inc (NASDAQ: TSLA).

Pilbara Minerals Ltd (ASX: PLS)

Another ASX 200 lithium share is next up. Pilbara Minerals has seen a notable 30.33 million of its shares bought and sold on the share market thus far.

It’s been a big day for Pilbara. The company put out its quarterly update this morning, which investors were initially delighted with.

Soon after market open, Pilbara shares hit a new record high of $5.66 a share. But sentiment has dramatically cooled since, and the Pilbara share price is presently down by 0.74% at $5.34. With all of this bouncing around, it’s perhaps no wonder so many shares have been trading.

Sayona Mining Ltd (ASX: SYA)

Another ASX 200 lithium company is our third and final share experiencing high trading volumes this Tuesday. At this point of the session, a whopping 95.13 million Sayona shares have found a new home as it currently stands.

Alongside its lithium contemporaries, Sayona has enjoyed a very strong session today. Unlike Pilbara though, investors’ feet remain warm. The company is currently up a healthy 9.36% at 26 cents a share.

We haven’t had any news out of Sayona today. But it has released some well-received updates over the past month or so, which we dove into earlier. This could be a factor at play here.

The post Here are the 3 most heavily traded ASX 200 shares on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Why is ASX 200 share Reliance Worldwide crashing 16% today?
• Westpac share price trails ASX 200 big four following earnings dint
• Which ASX 200 shares could benefit from the federal budget?
• Why is the Sayona Mining share price booming 10% on Tuesday?
• Why are Core Lithium shares lifting another 5% 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 S&P/ASX 200 Index (ASX: XJO) is having a fairly solid, if tenuous, day of gains so far this Tuesday. At present, the ASX 200 has gained 0.3%. But the same can’t be said for the Reliance Worldwide Corporation Ltd (ASX: RWC) share price.

Reliance Worldwide shares are having a shocker. This ASX 200 share has suffered a 16.3% drop at the time of writing, putting the company down to $3 a share. That’s right on a new 52-week low for Reliance.

Reliance Worldwide share price tanks 16% on quarterly update

It’s not hard to see why investors have sent this company down by such a large margin this Tuesday. Reliance Worldwide put out a trading update this morning before market open. This covers the three months ending 30 September 2022.

It was something of a mixed bag for the quarter for Reliance. The company reported sales for the period of US$303.1 million, up 23% over the prior corresponding period (pcp). This includes US$53.8 million from EZ-Flo after the November 2021 acquisition. Excluding this acquisition, sales growth was 6%.

This was driven primarily by pricing increases from the company, which were implemented to offset the effects of inflation.

Meanwhile, operating earnings before interest, tax, depreciation and amortisation (EBITDA) came in at US$76.8 million, an increase of 16% over the pcp. However, excluding synergies from EZ-Flo and the sale of surplus property in the United Kingdom, EBITDA was US$63.2 million. That represents a loss of 4% over the pcp.

EBITDA margins fell from 26.6% in the pcp to 21.4% over this quarter. According to Reliance, “lower
volumes and higher costs negatively impacted margins, while price rises implemented to recover
costs resulted in diluted margins”.

Outlook

In terms of outlook, Reliance Worldwide said the following:

RWC’s end market exposure, which is predominantly to repair and maintenance activity, should provide greater resilience to economic shocks compared with the more cyclical new residential construction market. Weaker global economic conditions and the risk of a downturn in RWC’s key markets, however, mean the immediate outlook is uncertain.

RWC believes it is well placed with its local manufacturing operations and strong track record of class–leading customer service to navigate these challenges and respond to customer needs. We also expect our ongoing new product introductions will enable us to continue our long–standing track record of delivering above–market growth with quality margins.

So clearly ASX 200 investors haven’t been too impressed with this quarterly update, judging by the share price reaction. It puts the Reliance Worldwide share price down 53.1% year to date.

The post Why is ASX 200 share Reliance Worldwide crashing 16% 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
• Westpac share price trails ASX 200 big four following earnings dint
• Which ASX 200 shares could benefit from the federal budget?
• Even as one strategist predicts a 30% crash, others think the bottom of this bear market may already be in and shares might rally for Christmas
• Westpac share price on watch following $1.3b earnings hit

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 positions in and has recommended Reliance Worldwide Corporation Limited. The Motley Fool Australia has recommended Reliance Worldwide 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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The Rio Tinto Limited (ASX: RIO) share price is in the red today.

Rio shares are down 1.85% and are currently trading at $90.88. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.2%.

Let’s take a look at what might be affecting Rio Tinto shares.

What’s going on?

The Rio Tinto share price may be down today, but it is not the only ASX mining share struggling. The BHP Group Ltd (ASX: BHP) share price is falling 1.79% at the time of writing, while Fortescue Metals Group Limited (ASX: FMG) shares are sliding 2.44%.

The S&P/ASX 200 Materials Index (ASX: XMJ) is 1.49% in the red today.

Rio, BHP and Fortescue are all huge producers of iron ore, which is used to make steel.

The iron ore November 22 contract on the Singapore Exchange is down 2.49% at the time of writing.

ANZ senior economist Catherine Birch highlighted “sentiment remains fragile” amid property sector concerns. In a research note this morning, Birch said:

Infrastructure is now becoming the most likely sector through which demand for steel and iron ore can receive a boost, but its impact on demand is waning.

In quarterly results last week, Rio Tinto reported a 4% boost in iron ore shipments to 82.9Mt. However, this was below consensus forecasts of 84.5 Mt, as my Foolish colleague James reported at the time.

Despite this, Morgans analysts recently reaffirmed an add rating on the Rio Tinto share price with a $108 price target. This is a nearly 19% upside on the current price. Analysts said:

Putting the 3Q22 result into perspective, we still see RIO boasting solid earnings quality, dividend yield, balance sheet strength and trading at a discount to our $108.00 Target Price. We maintain our Add rating.

Goldman Sachs analysts have also recently maintained a buy rating on Rio Tinto shares with a $112.90 price target.

Rio Tinto share price snapshot

Rio Tinto shares have lost nearly 6% in the past year, while they have descended 9% year to date.

For perspective, the ASX 200 has shed nearly 9% in the past year.

Rio Tinto has a market capitalisation of about $33.7 billion based on the current share price.

The post Why is the Rio Tinto share price in the doldrums today? appeared first on The Motley Fool Australia.

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More reading

• Why is the Fortescue share price surging today?
• Broker says Rio Tinto share price is trading at a discount
• ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: expert
• Rio Tinto share price has 20% upside and 7% dividend yield: Goldman Sachs
• Top brokers name 3 ASX shares to buy 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.

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The Allkem Ltd (ASX: AKE) share price is edging higher on Tuesday afternoon.

At the time of writing, the lithium miner’s shares are up almost 0.5% to $14.95.

This means the Allkem share price is now up 33% since the start of the year.

Has the Allkem share price peaked yet?

While the team at Macquarie believe the Allkem share price can keep rising all the way up to $20.00, another leading broker doesn’t agree with this view.

According to a note out of Morgans, its analysts have retained their hold rating and trimmed their price target to $15.00.

This is largely in line with where the company’s shares are trading today.

What did the broker say?

Morgans wasn’t impressed with Allkem’s quarterly update. It commented:

AKE’s 1Q revenue of $298m missed expectations (-17% on VA consensus, -6% on Morgans forecast). The major shift was smaller production at Mt Cattlin. The company has pointed to ongoing pre-stripping activities as it moves to new areas of the mine.

It also highlights that there is a “bigger issue” to be concerned about. That’s the delay and “cost increases expected for Olaroz’s stage 2 expansion” which are expected to add “an additional $45m (12%)” to its budget.

All in all, because of this and its belief that lithium prices could soften, the broker believes the Allkem share price is now fully valued. Morgans concludes:

AKE is a well-diversified lithium producer in terms of products (spodumene, lithium carbonate and soon to be lithium hydroxide) and geographies (Argentina, Australia, Canada). We think it will perform more strongly than peers over the cycle. However, it’s not clear to us whether or not there will be shorter term interruptions to the likely long term uptrend in lithium demand that means there could be a better entry point. Given the stock’s previous sensitivity to the outlook for lithium prices and, in our view, the potential for prices to move away from their recent new found highs, we maintain our HOLD rating.

The post Top broker says the Allkem share price has peaked appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• Broker says the Allkem share price can rise another 30%
• Why Allkem, Bowen Coking Coal, Pantoro, and Redbubble are dropping today
• Brokers name 5 ASX lithium shares to buy now
• Allkem share price tumbles on quarterly update

Motley Fool contributor James Mickleboro has positions in Allkem 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 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 PointsBet Holdings Ltd (ASX: PBH) share price is under pressure on Tuesday.

In afternoon trade, the sports betting company’s shares are down 1.5% to $2.02.

Why is the PointsBet share price falling?

The PointsBet share price is falling on Tuesday following the release of the company’s quarterly update.

According to the release, PointsBet had a mixed time during the first quarter of FY 2023.

While the company’s turnover continues to increase and rose 18% to $1,156.7 million, things weren’t quite as positive for its gross win metric.

PointsBet reported a gross win margin of 10%, down from 11.9% a year earlier. This led to a 2% decline in sports betting gross win to $115.1 million. This was driven largely by its Australian operations, which reported a 17% decline in gross win to $73 million.

Pleasingly, the company’s iGaming operations had a strong quarter and delivered a 287% increase in net win to $8.5 million. This took PointsBet’s total net win to $78.8 million, which represents a 13% increase over the prior corresponding period.

What about costs?

Once again, PointsBet’s growth came at a cost.

The company reported quarterly cash receipts from customers of $81.6 million. However, to generate this, PointsBet spent $40.9 million on its cost of sales, $45.7 million on sales and marketing activities, and $27.6 million on staff costs for the three months.

This and other expenses led to the company reporting a net cash outflow of $60.7 million, reducing its cash balance to $412 million excluding player cash.

Based on that burn rate, PointsBet has 6.8 quarters of cash remaining.

Though, it is worth remembering that the company has its deferred bonus equity options (DBEO) to call upon if required. This provides PointsBet with the opportunity to raise up to approximately $150 million during the next two years. It’s looking like those funds may be required!

The post Why is the PointsBet share price dropping today? appeared first on The Motley Fool Australia.

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More reading

• Why is the PointsBet share price on a losing streak today?
• Why did the Pointsbet share price surge 12% on Wednesday?
• Why Baby Bunting, Calidus, Pointsbet, and South32 shares are falling
• Why Lake, Pilbara Minerals, PointsBet, and PolyNovo shares are charging higher
• Why is the PointsBet share price smashing the ASX All Ords on Thursday?

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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 Telstra Corporation Ltd (ASX: TLS) share price has been one of the most interesting ASX 200 blue chips to watch over the past decade. Telstra has undergone a remarkable transformation over this period.

One only has to look at the company’s share price to see this in action:

We’ve seen the telco go as high as $6.60 (early 2015) and as low as $2.60 (mid-2018). The forces at play here were the loss of Telstra’s old copper network to the national broadband network (NBN), which upended Telstra’s old business model. We’ve also seen dividend cuts, and later dividend hikes. It’s been a time.

Over this period, Telstra has had to deal with seemingly perpetual earnings declines. These have only stemmed in the past year or two. So now many investors might be asking if Telstra’s worst days are now behind it?

The Telstra share price today — $3.85 — is well above the lows we saw in 2018. But it is also not even close to the highs it has commanded in the past.

So let’s see what one expert reckons about Telstra today, and whether the company’s best days lie in front of it.

Justin Braitling is chief investment officer at Watermark Funds Management. He recently spoke to Livewire about Telstra and its fellow in the telco space, TPG Telecom Ltd (ASX: TPG).

Are Telstra shares returning to growth?

To start with, Braitling reckons investors should be “on the hunt for ‘cheap defensive shares‘, particularly those that have underperformed in recent years”. That certainly sums the Telstra share price up over the past decade.

Here’s what Braitling had to say on both Telstra and TPG:

[Telstra] and [TPG] are both well priced here…

All the headwinds that have challenged TLS (NBN, mobile substitution, legacy deflation) are behind them. The business is growing again. Meanwhile, TPG is outstanding value here. The commitment of the founding shareholder is unclear, which I suspect puts this business in play at these depressed levels.

So ‘Telstra growing again’ might just be what investors want to hear. It’s certainly a phrase that not too many investors have said alongside the Telstra name in recent years. But equally a phrase that shareholders will be very excited to hear today.

At the current Telstra share price, the ASX 200 telco has a dividend yield of 4.3%

The post Headwinds for Telstra shares are now behind them: expert appeared first on The Motley Fool Australia.

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More reading

• Which ASX 200 shares could benefit from the federal budget?
• 5 ways to be carefree during the next ASX share market downturn
• Could chasing high yields mean missing out on potentially top-notch ASX dividend shares?
• Has CBA just become a new competitor to Telstra?
• Telstra shares: Buy, hold, or fold?

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 Australia has recommended TPG Telecom 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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The Zip Co Ltd (ASX: ZIP) share price has been struggling in the year to date, but are there better days ahead?

Zip shares have shed 85% since market close on 31 December and are currently fetching 63 cents apiece.

In today’s trade, the Zip share price is currently holding steady at yesterday’s closing price. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.2% higher at the time of writing.

Let’s take a look at what could be ahead for the Zip share price.

The next CBA?

The Zip share price may be having a tough year but it’s been on a roll in the last week. Zip shares have gained more than 5% since market close on 17 October. As my Foolish colleague Sebastian noted yesterday, Zip’s latest quarterly update was well received.

And Zip’s CEO and founder Larry Diamond is confident the company can turn its fortunes around.

In an interview with the Australian Financial Review (AFR), Diamond touted Zip could become the next Commonwealth Bank of Australia (ASX: CBA). He said:

We still believe, in this market, we can be the next CBA. Why not? We have the right leadership, the best technology, and the best people. We are committed to the long term.

Diamond moved to the USA with his wife and family earlier this month to focus on the market there. He said he sees America as a “significant opportunity”.

Zip’s transaction volume leapt 15% in the first quarter to $2.2 billion, as my Foolish colleague James reported last week.

The company’s revenue also increased 19% to $163.2 million, while customer numbers surged 50% to 12 million.

Diamond, speaking to the AFR, said Zip could move into the mortgage business in the future, adding:

There is no reason why deposits and mortgages can’t be inside Zip, if customers trust us.

With the right passionate leadership, infrastructure and technology, if we maintain healthy financial standing – then yes, we can.

Share price snapshot

The Zip share price descended nearly 91% in the past year, while it has fallen 9% in the past month.

For perspective, the ASX 200 has shed nearly 9% in the past year.

Zip has a market capitalisation of more than $442 million based on the current share price.

The post Zip shares have fallen 85% this year but Diamond still says ‘We can be the next CBA’ appeared first on The Motley Fool Australia.

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More reading

• How has the Zip share price been tracking in October?
• These are the 10 most shorted ASX shares
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• Has ‘growth at all costs’ been the undoing of Zip shares and what now?
• If I’d bought $1,000 of Zip shares at their all-time high, here’s how much I’d have left

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 positions in and has recommended ZIPCOLTD FPO. 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 Coles Group Ltd (ASX: COL) share price is walking higher today despite no market-sensitive news for the company.

After a difficult few months on the chart, Coles shares have turned a small corner and are now up 2.45% in the past 30 days of trade.

Despite this, it’s been a challenging period over the past year of trade for the Coles share price, as seen in the chart below.

What’s up with the Coles share price?

Whilst there’s been nothing market sensitive from the company today, noteworthy is the fact that it is launching a new drone delivery service that is making the headlines.

The retailer will launch its drone delivery service in parts of the Gold Coast, QD from next week.

Drones are increasingly being utilised in delivery and Coles will kick things off with essentials such as bread, milk and eggs for the convenience of customers.

In fact, up to 500 of the most popular Coles grocery items will be available for customers to deliver. Alcohol is not available.

The drone delivery program was originally announced by the company back in March.

Partnering with Wing, global on-demand drone delivery service, the company is the first in Australia to utilise the technology in this fashion.

At the time of the announcement, Coles Chief Executive eCommerce Ben Hassing said drone delivery was the “next evolution in delivery technology”.

It follows in the footsteps of e-commerce titan Amazon, which utilises drone deliveries for parcels and packages purchased online.

For Coles, its pioneering of technology in Australia will be of interest to many within the tech and finance spaces. Whether it converts to greater sales, or share appreciation remains to be seen.

Factors of weather and also timing are also being considered, seeing as the drones can’t fly during the night time.

Coles shareholders would welcome the gains today after a difficult year on the chart. The share price is down more than 6% since trading resumed in January.

The post Send in the drones: Why is the Coles share price taking off today? appeared first on The Motley Fool Australia.

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More reading

• 5 ways to be carefree during the next ASX share market downturn
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• Could buying Woolworths shares help ‘recession-proof’ your ASX portfolio?
• Experts say income investors should buy these ASX dividend shares
• Better buy: Woolworths or Coles shares?

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

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The Westpac Banking Corp (ASX: WBC) share price is underperforming those of the bank’s ASX 200 peers on Tuesday.

Its sluggish performance comes after the third-largest big four bank revealed a $1.3 billion earnings hit.

As The Motley Fool Australia reported earlier, the bank’s second-half net profit and cash earnings will be $1.3 billion less, mainly due to a $1.1 billion loss from the sale of its life insurance business.

Right now, the Westpac share price is 0.36% higher at $23.955.

That’s still a better performance than that of the S&P/ASX 200 Index (ASX: XJO) – it’s currently up 0.2%. However, it leaves Westpac’s stock underperforming both its sector and its big four peers.

The S&P/ASX 200 Financials Index (ASX: XFJ) is up 0.89% right now.

Meanwhile, shares in Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Australia and New Zealand Banking Group Ltd (ASX: ANZ) have gained 1.15%, 0.92%, and 0.74% respectively.  

Let’s take a closer look at what’s weighing on the Westpac share price on Tuesday.

Westpac share price underperforms peers’ on Tuesday

The Westpac share price is underperforming its peers after the bank announced a $1.3 billion post-tax impact from notable items on Monday evening. The hit will be included in its upcoming earnings.

The news hasn’t upset Goldman Sachs. The top broker remains bullish on the bank share, retaining its $27.07 price target and buy rating.

The company will release its full-year earnings on 7 November. It has been tipped to post a $5.4 billion profit for the full year, Brisbane Times reported yesterday.

The big four bank announced a $3.28 billion profit and $3.1 billion of cash earnings for the first half of financial year 2022.

Those figures marked half-on-half increases of 63% and 71% respectively. Though, they were 5% and 12% lower respectively than that of the first half of financial year 2021.

The Westpac share price may be underperforming that of its peers on Tuesday, but it’s outperformed over the longer term. Year to date, the bank’s stock has gained nearly 11%.

The next best-performing ASX 200 big four bank share is NAB. It’s gained 8.5% so far in 2022.

The post Westpac share price trails ASX 200 big four following earnings dint appeared first on The Motley Fool Australia.

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More reading

• Which ASX 200 shares could benefit from the federal budget?
• Even as one strategist predicts a 30% crash, others think the bottom of this bear market may already be in and shares might rally for Christmas
• Westpac share price on watch following $1.3b earnings hit
• 2 much-maligned ASX shares cheap enough to buy now: experts
• 5 things to watch on the ASX 200 on Tuesday

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 Goldman Sachs. 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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The AGL Energy Limited (ASX: AGL) share price has outperformed the S&P/ASX 200 Index (ASX: XJO) in the past year, but could it go higher?

AGL shares have jumped 5% from $6.22 at market close on 25 October 2021 to the current share price of $6.52. For perspective, the benchmark index has fallen nearly 9% in the same time frame.

Let’s take a look at the outlook for the AGL share price.

Is AGL a buy?

AGL is one of Australia’s largest energy providers with a history spanning 185 years. One analyst is predicting AGL shares could rise by up to 35%.

Morgans investment advisor Jabin Hallihan is recommending shareholders “buy” AGL shares.

Analysts have an add rating on the AGL share price with a price target of $8.81. This is a 34.7% upside on the current share price.

Hallilan believes AGL’s fixed fuel costs “leaves the company in a good position” given electricity prices are high in all states in Australia.

In comments cited by The Bull, he added:

The company is exiting coal-fired generation by 2035, accelerating the closure of the Loy Yang A power station by 10 years. It’s also delivering positive near term earnings.

Meanwhile, Credit Suisse analysts upgraded the AGL share price to an outperform rating in early October with a price target of $8.20. The broker is optimistic AGL’s free cash flow will remain strong, as my Foolish colleague James reported.

In a release in late September, AGL advised it is planning to exit from coal fired generation by the end of the 2035 financial year. AGL chair Patricia McKenzie said:

AGL is committing to an ambitious but achievable strategy to deliver a responsible and accelerated low carbon future.

We are aiming to reshape our energy portfolio into a cleaner and more flexible one, transitioning away from coal and focusing on new renewable and firming capacity

AGL share price snapshot

AGL shares have risen nearly 7% in the year to date, while they are down 1% in the last month.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has shed nearly 9% in the year to date.

AGL has a market capitalisation of about $4.4 billion based on the current share price.

The post Why the AGL share price can surge 35%: Morgans appeared first on The Motley Fool Australia.

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More reading

• 2 much-maligned ASX shares cheap enough to buy now: experts
• Could chasing high yields mean missing out on potentially top-notch ASX dividend shares?
• Is AGL really an ASX 200 ‘business with huge, huge upside for shareholders’?
• Why is the AGL share price getting hammered this week?
• The AGL share price plummeted 17% in the first quarter. What now?

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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