The Paladin Energy Ltd (ASX: PDN) share price was largely unmoved this morning even as the surge in uranium prices boosted its FY22 results.

The miner posted a 57% increase in full-year revenue to US$4.7 million as its statutory net loss after tax improved 39% to US$26.7 million.

The Paladin share price dipped 1 cent in early trade to $0.81 while the All Ordinaries (ASX: XAO) added 0.2%.

Summary of Paladin’s FY22 results

• Average selling price for Paladin’s uranium in FY22 was US$47 a pound, or 57% above FY21
• Amount of U3O8 sold was flat at 100,000 pounds
• Cost of sales increased by 58% in FY22 to US$4.7 million
• Net loss after tax from continuing operations improved 25% to US$43.9 million

What you need to know about Paladin’s FY22 results

The net loss from continuing operations was mainly due to higher foreign exchange losses of US$8.2 million (2021 loss was US$3.9 million). This primarily relates to the increase in Australian dollars held after the completion of the equity raising.

The loss was offset by the reduction in financing costs from the redemption of senior secured notes. The 13% depreciation of the Namibia dollar to the US currency also helped. Paladin’s flagship Langer Heinrich mine is in Namibia.

One of the key achievements for the miner in FY22 was winning the tender to supply uranium to a major North American power utility.

A shortfall in supply of power, energy security and the big global drive to cut carbon emissions have driven up the price of uranium over the past year.

What Paladin is saying

Paladin’s chief executive, Ian Purdy, commented:

Nuclear energy provided approximately half of the USA’s carbon-free electricity in 2021, making it their largest domestic source of low carbon energy.

Nuclear expansion remains a focus in Asia, with 35 reactor builds underway across the region. Europe and North America are focused on preserving existing nuclear assets and looking to the future via new reactor programs that include the deployment of small modular reactors.

Outlook

Paladin didn’t provide much of an outlook in its FY22 results. It only pointed to its decision to restart activities at its Langer Heinrich mine and its commitment to maintaining its spending discipline.

The ramp up of activities at the mine will support “operational readiness and uranium marketing” during this period of high energy prices.

To better capitalise on the buoyant trading environment, Paladin is also restarting its exploration program. It said it will undertake development studies at the Michelin Project in Labrador, Canada.

The truth is the outlook for Paladin is probably more tied to external events. For example, Japan’s push to restart its nuclear power plants.

Paladin share price snapshot

Even before Paladin’s FY22 results announcement this morning, the Paladin share price has shot up 71% over the past year.

That’s well ahead of the All Ordinaries, which shed 6% over the same period.

But Paladin isn’t alone in outrunning the broader market. Other ASX uranium miners have also been shooting out the lights.

The Deep Yellow Limited (ASX: DYL) share price jumped 35% while the Boss Energy Ltd (ASX: BOE) share price surged from under 20 cents to $2.62 over the period.

The post Paladin share price slips despite 57% revenue boost appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why is the Paladin Energy share price rocketing 13% today?
• Why are ASX uranium shares going gangbusters on Thursday?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Brendon Lau has positions in Boss Resources Limited and Paladin Energy Ltd. 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 Air New Zealand Limited (ASX: AIZ) share price is trading more than 2% down this week. At the time of writing, Air New Zealand shares are trading at 60 cents apiece, 0.84% higher.

Notably, investors weren’t impressed with the airline‘s FY22 results released on Thursday. Alas, yesterday’s losses were extended following the update.

Zooming out, and the airline’s share price is down almost 32% this year to date, as seen on the chart below.

What else happened for Air New Zealand last period?

The key point from the company’s performance last year was its loss before tax of $725 million, compared to last year’s $444 million.

This result was projected during previous market guidance back in June, so didn’t come as a surprise. Nevertheless, statutory loss before tax also came in at $810 million.

Travel restrictions related to COVID-19 were largely to blame for the narrowed result.

“Although the financial year ended strongly following the phased reopening of New Zealand’s borders from March, the airline’s operating revenue of $2.7 billion was significantly impacted by pandemic related travel restrictions,” the company said.

“Cargo and domestic revenues helped lift overall revenue by 9%, however high fuel prices and reduced flying over much of the year resulted in a loss for the period,” it added.

Management commentary

Speaking on the result, Air New Zealand Chief Executive Officer, Greg Foran said:

For customers, we’ve been focused on restoring services, maintaining a choice of fares and launching innovations to improve their journey with us. For our amazing staff we have provided one-off awards to acknowledge their continued extra mahi, and for our communities we’ve been obsessed with operational performance, which drives the reliable services they depend on.

For our shareholders, whose support has refuelled the business for future growth, we’ve completed a
successful recapitalisation that was structured to be fair to our shareholders, including those that didn’t take up the rights offer.

What’s next for Air New Zeland?

The company didn’t provide any earnings guidance in its report. However, it expects total flying capacity for FY23 to be in the range of 75% to 80% of pre-COVID levels.

In the past 12 months, the Air New Zealand share price has slipped around 60% into the red.

The post Why has the Air New Zealand share price fallen this week? appeared first on The Motley Fool Australia.

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• Bega Cheese share price soars as net profit slides 69% year on year
• Smartgroup share price plunges 11% as inflation bites
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• ASX’s best day in a fortnight; US Fed in focus. Scott Phillips on Nine’s Late News

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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The Bega Cheese Ltd (ASX: BGA) share price is shooting up this morning following the release of the company’s financial results for the year ended 30 June 2022.

Bega Cheese shares are trading 6.55% higher at $3.99 apiece at the time of writing.

Bega Cheese earnings slide in FY22

Key takeouts from the company’s results include:

• Group revenue of more than$3 billion, up 45% year on year
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $149 million, down 19%
• Profit after tax of $24.2 million, a 69% decrease from FY21’s result of $78 million
• Net operating cash flow of $158 million, reduced debt by $60 million
• Earnings per share (EPS) of 8 cents, down from 29.5 cents the year prior
• Declared final dividend of 5.5 cents per share, total dividend to 11 cents per share

What else happened this period for Bega Cheese?

Bega notes that the first full year of ownership of Bega Dairy and Drinks is reflected in the growth of the wider Group, with revenue growth of 63% to $2.5 billion.

Amid challenging conditions, brought on by supply chain bottlenecks and other disruptions from COVID-19, profit after tax declined by almost 70% year on year.

Despite this, the company still managed to declare a total dividend of 11 cents per share in FY22, and also managed to pay down $60 million in debt.

As a result, Bega’s leverage ratio narrowed by 22% from 2.3x to 1.8x, bringing the net debt total to $265 million.

Management commentary

Speaking on the announcement, CEO Paul van Heerwaarden said:

What’s next for Bega?

The company projects normalised EBITDA to be in the range of $160 million to $190 million for FY23.

It also said that competition for milk during June and July “resulted in further increases to approximately 30% higher than FY2022 farm gate milk price”.

This is coupled with a substantial increase in global dairy commodity pricing, the company says.

Bega Cheese share price snapshot

Despite today’s gains, the Bega Cheese share price has fallen 27.6% over the last 12 months and almost 30% year to date.
Based on today’s price, the company has a market capitalisation of $1.2 billion.

The post Bega Cheese share price soars as net profit slides 69% year on year appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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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The Smartgroup Corporation Ltd (ASX: SIQ) share price is taking a sharp fall, currently down 11.14% having earlier posted losses of 15%.

Smartgroup shares closed yesterday at $6.91 and are currently trading for $6.14 apiece.

This comes following the release of the employee management services company’s half-year results for the six months ending 30 June (H1 2022).

Highlights below…

Smartgroup share price hit by inflation concerns

• Revenue of $113.6 million was up 4% from H121
• Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) of $49.4 million, in line with the prior corresponding period
• Net profit after tax (NPAT) of $30.9 million, an increase of 16% year on year
• Fully franked interim ordinary dividend of 17.0 cents per share (cps)

What else happened during the half?

Smartgroup reported growth of some 5,500 salary packages for the half year, bringing its customer numbers to 383,000 across Australia.

The company said that despite vehicle supply disruptions continuing to stretch sales lead times, increasing its excess pipeline of future settlements by $2 million over the half to around $14 million, leasing settlement volumes increased 1% compared to the prior corresponding period.

The Smartgroup share price is facing some headwinds from higher interest rates and inflation.

The company said lower consumer confidence along with extended vehicle delays have seen some potential customers delay their buying decisions. As a result, vehicle order levels were down 7% compared to H1 2021.

As at 30 June this year, the company had net debt of $26.0 million, after paying $39.7 million in special dividends in March.

Investors who want to receive the interim dividend need to own shares on the record date of 9 September.

What did management say?

Commenting on the half-year results, Smartgroup CEO Tim Looi said:

We have been able to deliver a good financial result for the half year, despite lengthening vehicle delivery timeframes and we continue to have success in increasing our level of engagement with potential customers via both digital and non-digital channels.

What’s next?

Looking ahead, Looi commented on the impacts of wage inflation, a factor that looks to be impacting the Smartgroup share price today.

Like all businesses in Australia, we are experiencing some wage inflation. It’s good to see the growth in vehicle leads as we roll out our digital assets, but the impact of interest rate rises on consumer confidence is leading to an extension to the timeframe for customers to proceed to a vehicle order.

Vehicle supply timeframes are continuing to extend and delay our settlement timeframes, resulting in a further increase in our pipeline of future settlements,” he added. “While we face some short to medium term macro-economic and industry-wide headwinds, we have a resilient business model and our operational performance is strong.

No specific guidance was provided.

Smartgroup share price snapshot

With today’s big intraday fall factored in, the Smartgroup share price is down by around 20% for the calendar year. That compares to a loss of around 8% posted by the All Ordinaries Index (ASX: XAO) so far in 2022.

The post Smartgroup share price plunges 11% as inflation bites appeared first on The Motley Fool Australia.

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• Here’s why the Nasdaq might not hit new highs soon
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• Is the Qantas share price a buy following the airline’s latest results?
• Lynas share price on watch after 244% profit jump, doubling revenue

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There are a growing number of exchange traded funds (ETFs) for investors to choose from on the Australian share market.

Three top options that could be worth checking out are listed below. Here’s what you need to know about them:

BetaShares Crypto Innovators ETF (ASX: CRYP)

The first ETF for investors to look at is the BetaShares Crypto Innovators ETF. This ETF could be a great option if you’re a crypto-believer and feel that the recent weakness in the industry is just a blip on a very long successful road higher. That’s because this high risk ETF gives investors easy access to the main players in the cryptocurrency industry. These are the miners, neobanks, trading platforms, and mining equipment providers. Among its holdings you’ll find Coinbase, Silvergate, and Riot Blockchain.

BetaShares Global Banks ETF (ASX: BNKS)

Another ETF for investors to look at is BetaShares Global Banks ETF. Unsurprisingly, given its name, this ETF gives investors exposure to many of the world’s largest banks (excluding Australian banks). With the banking sector still yet to fully recover in 2022, this could be an opportune time to make a long term investment. Especially with rates now rising and boosting bank margins. Among the banks included in the fund are Bank of America, Barclays, Citigroup, HSBC, JPMorgan and Wells Fargo.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to look at is the popular Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to almost 1,500 of the world’s largest listed companies. Vanguard believes it could be a good option for buy and hold investors that are seeking long-term capital growth, some income, and international diversification. Among the companies you’ll be investing in are giants such as Amazon, Apple, Danone, Exxon Mobil, Nestle, Procter & Gamble, and Visa.

The post 3 top ETFs for ASX investors to buy appeared first on The Motley Fool Australia.

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• 2 wonderful ETFs to buy for portfolio diversification
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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 BetaShares Global Banks ETF – Currency Hedged, Betashares Crypto Innovators ETF, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares 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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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.

The Nasdaq Composite (NASDAQINDEX: ^IXIC) has been stuck in a bear market for quite a while now, and some investors are getting impatient for a recovery. Yet even as some other major market benchmarks have managed to move closer to their former high-water marks, the Nasdaq is still more than 22% below its record high from late 2021.

The key to the Nasdaq returning to all-time highs will be for the fast-growing companies that sent the index to record levels to regain their former momentum. Unfortunately, although some businesses have rebounded, others are still seeing ongoing challenges. That’s what investors are seeing from the latest financial results from Autodesk (NASDAQ: ADSK) and Splunk (NASDAQ: SPLK) on Thursday morning, and the wide disparities in how shareholders are responding to those reports suggest that new all-time highs could still be a long way away.

Autodesk paints a pretty picture

Shares of Autodesk were up almost 9% near the open on Thursday morning. The company behind the popular AutoCAD software package for design use saw solid gains in its fiscal second-quarter report.

Autodesk’s key performance metrics were encouraging. Revenue and billings for the quarter ended July 31 were both up 17% from year-earlier levels. Autodesk reported significant improvement in operating margin, with gains of 5 to 6 percentage points from where they were 12 months ago. Net revenue retention rates remained between 100% and 110%, and adjusted earnings of $1.65 per share jumped 36% year over year.

Revenue gains were consistent across geographies and product offerings. Interestingly, the AutoCAD segment saw the weakest change in year-over-year sales, but even there, a 13% rise showed the overall strength of demand for Autodesk’s software.

Autodesk is upbeat about its future prospects, projecting total revenue of $4.985 billion to $5.035 billion for the current fiscal year. Adjusted earnings of $6.52 to $6.71 per share would also make shareholders happy, and with more than $2 billion in free cash flow anticipated for fiscal 2023, Autodesk is in a strong position to keep making smart moves to bolster its growth and find new pathways for success.

Splunk stock goes thunk

However, shareholders in Splunk weren’t as fortunate. The stock fell 11% in early morning trading Thursday even after the data platform provider announced solid revenue gains in its fiscal second quarter.

Splunk’s backward-looking numbers for the quarter ending July 31 were strong. Total revenue amounted to nearly $800 million, up 32% year over year and supported by a 59% jump in cloud-based sales. Splunk’s cloud dollar-based net retention rate weighed in at 129%, showing solid loyalty from existing customers. The company now boasts 723 customers producing $1 million or more in annual recurring revenue, up 24% from where the number was 12 months ago.

However, Splunk’s guidance for the near future didn’t live up to high expectations. The company sees revenue of $835 million to $855 million in the third quarter, which would indicate an ongoing slowing in sequential sales gains. Even though Splunk boosted its full-year sales guidance to a new range of $3.35 billion to $3.4 billion, investors seemed disappointed by the implied annual revenue growth to roughly 26%.

The key to success for Splunk and most of its Nasdaq peers is whether they can keep drawing in new business for the products and services they provide. With so much uncertainty on the macroeconomic front, any sign that a company might not be able to sustain past growth rates results in the stock of that company getting punished. As long as investors have that attitude, it’s going to be hard for the Nasdaq to work its way out of its current bear market.

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

The post Here’s why the Nasdaq might not hit new highs soon appeared first on The Motley Fool Australia.

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Dan Caplinger 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 Autodesk. The Motley Fool Australia has recommended Autodesk. 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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Motley Fool Australia Chief Investment Officer Scott Phillips joined Michael Thomson for Nine’s Late News on Thursday night to discuss the ASX’s best day in two weeks, plus a stronger Aussie dollar, a jump for IDP Education Ltd (ASX: IDL) and all eyes on the US Federal Reserve and the implications for Australian interest rates.

[youtube https://www.youtube.com/watch?v=Pnuql2ittCQ?feature=oembed&w=500&h=281]

The post ASX’s best day in a fortnight; US Fed in focus. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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• IDP Education share price leaps 11% as revenue surges in FY22
• Experts name 2 ASX growth shares to buy when the market reopens
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Motley Fool contributor Scott Phillips 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 Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Qantas Airways Limited (ASX: QAN) share price is under the spotlight as a potential investment opportunity after the airline reported its FY22 results to investors on Thursday.

Despite Qantas reporting a whopping $1.9b loss, the market appeared to like what it saw, with the airline’s shares rising by 7% yesterday.

But, one strong day doesn’t necessarily mean that Qantas is now too expensive to be worth buying.

Some analysts seemed to be impressed by what Qantas reported, according to reporting by The Australian.

Analyst thoughts on the result

The newspaper reported that analyst Matt Ryan from investment bank Barrenjoey said the Qantas FY22 earnings before interest, tax, depreciation and amortisation (EBITDA) was in line with guidance.

However, the net debt was much better than the gearing range target. This enabled Qantas to announce a sizeable on-market share buyback.

Barrenjoey noted that Qantas is benefiting from a large recovery of demand, Ryan said this “can also be seen in the revenue received in advance which was almost $2 billion higher than six months ago. Guidance is broadly in line with our forecasts but assumes a reduction in domestic capacity of 10%.“

The Australian also reported on comments by E&P Financial analyst Cameron McDonald, who thought that the market would like the result and that the balance sheet is in a “healthy” position. He noted that the $400 million buyback was a surprise and that the company is guiding for “increased capacity to be deployed”. He also noted an increase in revenue per available seat kilometre, meaning price increases.

Profit generation and expected future profit can have a large impact on the Qantas share price, so let’s look at that.

How much of a recovery is Qantas seeing?

Qantas reported in its FY22 result that it made an underlying loss before tax of $1.86 billion and a statutory loss before tax of $1.19 billion. The difference between those two measures largely reflected the $686 million net gain on the sale of surplus land, which helped it reduce its COVID-related debt.

Net debt declined to $3.94 billion – Qantas’ optimal target range is $4.2 billion to $5.2 billion.

The airline said that it’s trying to offset the CPI inflation between FY19 to FY23 through additional cost and revenue initiatives, despite already delivering $1 billion in annual cost reductions.

It also said the RASK (revenue per available seat kilometre) performance is expected to fully recover increased fuel price across the group (despite the fuel bill for FY23 being expected to be $5 billion). It also said there would be a temporary unit cost increase to address operational challenges.

Qantas is reducing its domestic capacity by another 10% in response to higher fuel costs and operational challenges. Some capacity may be restored once operational resilience improves. In the first half of FY23, domestic capacity will be 95% of pre-COVID levels, in the second half of FY23, it will be 106% of pre-COVID levels.

Group international capacity is expected to increase as more planes enter service and overseas borders continue to open. In the first half of FY23, international capacity will be 65% of pre-COVID levels and then 84% in the second half.

My 2 cents on the Qantas share price

FY22 was another year full of disruption, particularly in the first half. However, I think Qantas seems ready to capitalise on the strong return of demand. The share buyback indicates to me that the company is confident with its expected profitability and financial position.

It’s hard to say what the oil price will do next, but it has dropped quite a bit since mid-June. This could also help Qantas’ profitability.

While Qantas isn’t a business I’d make one of my biggest portfolio positions, I’d be happy to buy some shares at the current Qantas share price thanks to the strong and improving outlook.

The post Is the Qantas share price a buy following the airline’s latest results? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Deep Yellow, IDP, Pendal, and Qantas shares are soaring today
• What’s going on with the Qantas dividend in 2022?
• The Qantas share price just flew 8% higher on $400 million share buyback

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 Lynas Rare Earths Ltd (ASX: LYC) share price will be closely monitored on Friday after the company revealed explosive growth in its 2022 financial report. 

What did Lynas report?

• Revenue up 88% to $920 million
• Net profit after tax up 244% to $540.8 million
• Earnings before interest, taxation, depreciation and amortisation (EBITDA) up 156% to $601.2 million
• Closing cash and cash equivalents at $965.6 million
• No dividends will be paid

What else happened in FY22?

Lynas, as the only significant producer of rare earths minerals outside of China, has enjoyed the world’s desire to break a monopoly. For example, in June the US Department of Defence signed a $120 million deal with the company to build a rare earths separation facility in that country.

Of course, there is a downside to being an economic beneficiary of geopolitical tensions. Also in June, a cybersecurity company revealed Lynas was targeted by a pro-China social media campaign.

Lynas’ plant in Malaysia also had to put up with an 11-day shutdown in October due to COVID-19, although the company used that time to perform maintenance.

What did management say?

Lynas managing director and chief executive Amanda Lacaze said:

Favourable market conditions and strong demand for Lynas’ rare earth materials saw sales revenue increase by 88.1% and net profit after tax (NPAT) increase by 244% from the 2021 result. Rare earths prices were sustained at high levels during the second half of the year, and the NdPr market price remained 70% to 80% higher than in the same period last year.

Ongoing measures implemented across the business mitigated some of the challenges presented by the external environment, including shipping delays, input cost increases, water supply issues and the ongoing effects of the COVID-19 pandemic. The Lynas team prioritised production to meet the needs of our customers and remained focused on growing the business to support customer growth. 

What’s next?

The company declined to give specific guidance for the 2023 financial year.

However, it is in the midst of executing its “2025 growth plan”. This is how Lynas explains the strategy:

Our expansion initiatives will support the further growth and development of outside China supply chains, including the re-establishment of a rare earths supply chain in the United States. The objectives of the Lynas growth plan are to grow with the market, diversify the company’s industrial footprint, and increase the product range for customers.

Lacaze said:

Closing cash at $965.6m allows us to confidently progress our various growth initiatives. This is important as Lynas is uniquely positioned with a resilient supply chain for rare earth materials from our facilities in Western Australia and Malaysia to our partners in Vietnam, Japan and Europe. This is valued by our key customer base. 

Lynas share price snapshot

Like many resources stocks, the Lynas share price has been volatile.

The stock is down more than 19% year to date, but over the past 12 months it’s actually up 34%. The Lynas share price has dipped 11.9% over the past 10 days.

The stock had a price-to-earnings (P/E) ratio of 29.6 before the latest financials, but that now sits at 13.4.

Lynas does not pay out a dividend.

The post Lynas share price on watch after 244% profit jump, doubling revenue appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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 Vulcan Energy Resources Ltd (ASX: VUL) share price has been having a good few weeks.

Since this time last month, the lithium developer’s shares have risen a sizeable 10%.

This is almost three times greater than what the ASX 200 index has achieved during the same period.

Can the Vulcan share price keep charging higher?

The good news for shareholders is that one broker believes the Vulcan share price has a long way to run before peaking.

According to a recent note out of Germany-based broker Alster Research, its analysts have reiterated their buy rating and lofty $20.00 price target on the company’s shares.

Based on the current Vulcan share price of $8.20, this implies potential upside of 144% over the next 12 months.

Why is it bullish?

Alster is bullish on Vulcan due to its belief that the company’s Zero Carbon Lithium project in Germany is “predestined to mark the beginning of the decarbonization of the battery industry.”

The broker also highlights that the company is “experiencing an increasing positive momentum of the political backing, as Germany’s high dependence on Russian gas produces a more favorable climate towards geothermal energy.”

Vulcan is looking to power its operation with geothermal energy and sell whatever is left over.

All in all, the broker believes the next 12 months will be a landmark period for the company. It concludes:

Vulcan faces a landmark year, as it will soon enter a multi-year capex-intensive phase. Building on a strong cash position of EUR 175m per 30 June 2022, the company is preparing its drilling program to commence, while the rigs are currently being prepared. The favorable political environment should continue to provide tailwinds. Regarding the upcoming DFS and PFS, we will update our capex projections upon release. More importantly, we expect the production targets to increase, which we believe to be a catalyst for Vulcan’s share price. We confirm our PT with AUD 20.00, equivalent to EUR 13.71 and reiterate to BUY.

The post Why this broker says the Vulcan share price can more than double appeared first on The Motley Fool Australia.

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setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
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More reading

• Wesfarmers share price in focus as profit slips to $2.35b
• Goldman Sachs says Woolworths share price has huge upside potential
• Broker tips Allkem share price to rise 36% from current levels
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• 3 ASX 200 shares trading ex-dividend on Monday

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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