The Novonix Ltd (ASX: NVX) share price is falling on Friday.

In morning trade, the battery materials and technology company’s shares are down 2% to $2.22.

This follows the company being quizzed by the Australian share market operator this morning.

What’s happening?

This morning Novonix responded to an ASX Aware Query or please explain request.

The stock market operator highlighted that the Novonix share price rocketed 20% higher on Tuesday from $1.79 to $2.15 despite there being no news.

And then lo and behold, big news was unveiled a couple of days later. That news was of course Novonix being selected for a $240 million government grant.

The response

Novonix admitted that it was aware of the grant selection on 14 October and that “does consider the Information to be information that a reasonable person would expect to have a material effect on the price or value of its securities.”

However, it felt that it was “an incomplete proposal or negotiation” and advised that it was “prohibited from disclosing its selection […] prior to the DOE making a public announcement about the matter.”

In fact, the company was “advised by DOE that failure to abide by this requirement could result in forfeiture of the opportunity.”

Asked why it did not request a trading halt during the interim period, management appeared to suggest that the market should have been expecting this news as “NVX was considered a logical candidate for the grant funding.”

Furthermore, it “had been monitoring information sources for any suggestion that confidentiality in the Information had been lost and watching NVX trading volumes and prices very closely.”

So, following the aforementioned 20% gain by the Novonix share price on Tuesday, it decided to act and requested a trading halt before the commencement of trade on Wednesday. It explained:

NVX noted the increase in NVX trading volume and prices over the course of 18 October 2022 and despite the fact that NVX believed confidentiality in the Information had not been lost, NVX decided that it would be prudent to go into a trading halt from 19 October 2022 in order to manage its continuous disclosure obligations until such time as it was in a position to announce the Information.

The post Novonix share price falls after ASX ‘please explain’ appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Challenger, Novonix, Piedmont Lithium, and Woodside shares are racing higher
• Novonix share price rockets 26% on $240m US Government grant news
• Why is the Novonix share price stuck on standby today?
• Here are the top 10 ASX 200 shares today

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 Liontown Resources Limited (ASX: LTR) share price is up 0.5% in morning trade on Friday.

The ASX lithium stock closed yesterday trading for $1.84 and is currently trading for $1.85 per share.

The Liontown share price has leapt 22% since last Thursday’s close, and handily outperformed the All Ordinaries Index (ASX: XAO) in 2022.

That outperformance has been driven by strong demand and near-record prices for the critical battery metal lithium.

The Liontown share price got a big boost from Tesla in February

Investors were particularly keen earlier this year after Liontown announced it had entered into a binding lithium supply agreement with global electric vehicle (EV) giant, Tesla Inc (NASDAQ: TSLA).

Tesla agreed to purchase lithium spodumene concentrate from Liontown’s $473 million Kathleen Valley Lithium Project, in Western Australia.

The initial five-year agreement, expected to commence in 2024, will see Liontown supply Tesla with 100,000 dry metric tonnes (DMT) of lithium spodumene concentrate in the first year. Tesla agreed to buy 150,000 DMT in the following years.

Liontown shares surged more than 16% on 16 February, the day of the announcement.

Why might Tesla’s results impact Liontown?

Despite some strong annual growth figures, investors were less than impressed with Tesla’s quarterly results, reported yesterday.

The disappointment likely stemmed from the EV giant’s quarterly revenue figures falling slightly short of consensus expectations. Whatever the cause, the Tesla share price closed down 6.7% yesterday, bringing its 2022 losses to a painful 48.2%.

While this doesn’t look to be having any immediate impact on the Liontown share price today, the broader picture could cast a shadow over the medium-term outlook for lithium demand.

According to Eliot Hastie, markets analyst at Australian digital brokerage Stake, “Some analysts believe that softening demand is the primary concern, with sales in China – Tesla’s biggest market – having slowed due to rising competition and a poor macroeconomic landscape.”

Hastie continued:

Tesla still makes up just under a fifth of all global battery-only electric vehicles sales, so it’s a significant sentiment driver for Australian lithium stocks. The brand’s earnings could be seen as a negative sign for lithium demand in the short term by some, but the need for this commodity is still predicted to increase exponentially over the long term.

I think Hastie nails it there with the long-term outlook for lithium demand and prices.

A slowdown in China could impact Tesla and the Liontown share price in the shorter term. But analysts are broadly in agreement that the 10-year global demand outlook for lithium remains very strong as EV markets are forecast to continue growing rapidly.

The post Up 22% in a week, will Tesla’s results slow the Liontown share price surge appeared first on The Motley Fool Australia.

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More reading

• Tesla’s growth is back on track. Is it time to buy?
• Tesla stock drops on earnings release: 7 key metrics you should see
• 3 lithium ASX shares to watch after Tesla’s results
• Why is Tesla stock falling if its business is stronger than ever?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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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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.

Investors shouldn’t obsess about a company’s progress over just a three-month period, but quarterly results are still watched closely for good reason.

They help detect trends and can confirm or refute what stock analysts have been saying about a business’ prospects.

One of the most closely followed stocks is Tesla (NASDAQ: TSLA), and its third-quarter earnings report comes at a transitional time for the company and the entire electric vehicle (EV) sector.

Amidst competition that is ramping up and several other headwinds in the industry, Tesla just gave investors another good reason to think about buying its stock. 

More than just a stock split quarter

One of the highlights for shareholders in Tesla’s third quarter was the 3-for-1 stock split it completed in August. But that didn’t change anything about the business or the company. Investors just found out the details of what it did from its quarterly report, however. 

After its first quarterly drop in net income in the second quarter, the EV trailblazer rebounded with a near-record third quarter. Tesla’s bottom line more than doubled compared to the year-ago period, with $3.3 billion in net income. That was just $26 million shy of the record it set in the first quarter of this year.  

Importantly for investors, Tesla generated $3.3 billion in free cash flow — defined as operating cash flow less capital expenditures — as it is now reaping the benefits of the growth investments it’s been making. That was more than $1 billion more free cash than it generated in the record first quarter. 

Addressing the demand question

Business remains robust for Tesla as well. Some investors have worried about demand destruction as EV competition swells globally. But in the conference call for investors, CEO Elon Musk stated, “I can’t emphasize enough, we have excellent demand for Q4, and we expect to sell every car that we make for as far in the future as we can see.” 

That’s exactly why the company has spent billions to build its two new manufacturing facilities in Texas and Germany, as well as upgrading its Shanghai plant. That China plant now has the ability to produce 1.1 million vehicles annually at full capacity. It closed in on that run rate with a monthly record 83,135 units in September. 

The company has also said its energy division, which includes battery storage and solar rooftops, has more demand than it can supply. Sales from that division represented 5% of total revenue in the third quarter. 

Growth stock valuation

There’s no question the company is performing well, even as it faces supply chain and logistics headwinds.

The company produced 22,000 more vehicles in the third quarter than it was able to deliver due to shipping bottlenecks. Customers will take ownership of those vehicles in the fourth quarter. That issue could cause 2022 deliveries to miss the company’s 50% annual growth target, but it does expect production to still hit that level of growth.

But investors still wonder if the stock is valued appropriately. Its trailing-12-month price-to-earnings (P/E) ratio remains above 60 even as net income has accelerated this year. If the multi-year 50% annual growth level holds, however, that P/E will decline relatively quickly. 

Investors shouldn’t count on any stock to guarantee a certain return over just one or two years. There are too many outside factors like the current supply chain risks.

A visionary leader like Elon Musk has also been aggressive with his predictions. The Tesla Semi truck was first announced nearly five years ago, for example. But that vehicle is now set to begin deliveries next month.

Tesla shares could go lower even after it is down nearly 50% from their highs. But with its promising growth path ahead, long-term investors might want to take advantage of that decline and buy some Tesla stock now. 

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

The post Tesla’s growth is back on track. Is it time to buy? appeared first on The Motley Fool Australia.

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More reading

• Tesla stock drops on earnings release: 7 key metrics you should see
• 3 lithium ASX shares to watch after Tesla’s results
• Why is Tesla stock falling if its business is stronger than ever?
• Tough year for leading global growth fund laid bare with brutal fall in tech stocks
• Why Tesla stock was surging at the market open today

Howard Smith has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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 Allkem Ltd (ASX: AKE) share price is tumbling on Thursday morning.

In early trade, the lithium miner’s shares are down 6% to $14.05.

Why is the Allkem share price tumbling?

Investors have been selling down the Allkem share price this morning following the release of the company’s first quarter update.

For the three months ended 30 September, Allkem delivered group revenue of US$298 million and a cash margin of approximately US$244 million.

This was driven by Olaroz lithium carbonate sales of 3,721 tonnes, generating record quarterly revenue of ~US$150 million with a gross cash margin of 89%, and shipments of 21,215 tonnes of Mt Cattlin spodumene, generating revenue of US$106.7 million with a gross cash margin of 80%.

In respect to its lithium carbonate, management advised that excluding shipments to Naraha, third party sales for the quarter averaged US$43,237 per tonne FOB. Whereas its Mt Cattlin spodemene commanded a price of US$5,028 per tonne CIF for SC 5.4%.

An additional US$35 million of revenue was generated from sales of 59,326 tonnes of low grade spodumene concentrate from pre-existing stockpiles and processing of fine-grained spodumene ore

Where are prices going?

The good news for lithium investors is that Allkem believes that lithium carbonate prices are going higher in the next quarter. It advised:

The lithium carbonate sales price to third party customers for the December quarter is expected to be approximately US$50,000/tonne. After accounting for actual pricing in the September quarter this remains in line with previous guidance of US$47,000/tonne for H1 FY23.

Things aren’t quite as positive for spodumene, with management expecting pricing to be “in line with the September quarter.” Though, this puts it on track to achieve its previous guidance of US$5,000 per tonne for the half.

Costs rising

One negative from the update was news that costs at its Mt Cattlin operation are increasing. After recording a cash cost of US$796 per tonne in the last quarter, its costs are expected to rise 13% to US$900 per tonne for the full year.

This reflects “the current operating environment and mitigation actions, ongoing development of the 2NW pit, lower ore grades of 0.93-0.94% and the associated metrics.”

Though, with a price of US$5,000 per tonne being commanded for its spodumene at present, it still has very high margins.

Management also warned that its other projects could be impacted by cost pressures. It said:

Capital expenditure for James Bay and Sal de Vida remain subject to the same cost pressures that all resource projects are experiencing globally. Allkem will continue to review and monitor the capital cost budgets for all its projects as they progress.

It appears that this could be putting a bit of pressure on the Allkem share price today.

The post Allkem share price tumbles on quarterly update appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 companies among the top 10 lithium producers in the world
• 3 ASX 200 lithium shares that turned a $10,000 investment into $500,000
• Could Rio Tinto be coming for your ASX lithium shares?

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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Sayona Mining Ltd (ASX: SYA) shares have become an ASX lithium staple, particularly after the company was added to the iconic S&P/ASX 200 Index (ASX: XJO) last month.

With its popularity apparently growing, prospective investors might be surprised to learn another ASX lithium share has beaten them to the punch.

Piedmont Lithium Inc (ASX: PLL) is currently Sayona Mining’s largest shareholder.

So, what drove one ASX lithium share to snap up a huge stake in its peer? Keep reading to find out.

The Sayona Mining share price closed Thursday’s session at 22 cents.

The ASX lithium share with a huge stake in Sayona Mining

There’s a simple reason behind Piedmont Lithium’s massive stake in Sayona Mining. The pair have partnered in a number of Canadian lithium projects.

Those projects include the North American Lithium (NAL) operation. The pair are working to kickstart lithium production at the operation, launching a pre-feasibility study earlier this month.  

But it was a different story back in early 2021. Then, NAL was just a twinkle in Sayona Mining’s eye as the company worked to develop several Canadian lithium projects.

That’s when the company caught US-focused lithium developer Piedmont Lithium’s attention. The pair signed a deal that would see Piedmont Lithium buy a 9.9% stake in Sayona Mining, with the option to receive another 10% through convertible notes, for up to $15.5 million.

Piedmont paid just 0.92 US cents for each Sayona Mining share it snapped up in January 2021. At that point in time, Sayona Mining shares were swapping hands for around 1 cent apiece.  

Piedmont also paid around US$5 million for a 25% stake in Sayona Québec.

Back to the present, Piedmont – which is also listed on the NASDAQ Index – holds around 1.19 billion Sayona Mining shares as of 12 October, according to the latter lithium favourite.

That represents around 14.3% of the company’s outstanding shares.

The post Guess which ASX lithium company is the biggest holder of Sayona Mining shares? appeared first on The Motley Fool Australia.

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More reading

• Why Challenger, Novonix, Piedmont Lithium, and Woodside shares are racing higher
• 3 ASX lithium stocks leaping higher on big news
• Piedmont Lithium share price shoots 12% higher on $226m US government grant
• If you’d bought $5,000 of Sayona Mining shares at the start of 2022, congratulations! Here’s what you’d have today
• Why are these ASX 200 lithium shares smashing it on Monday?

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 New Hope Corporation Limited (ASX: NHC) share price will be on watch today as the ASX 200 coal share prepares to take its latest dividends off the table.

On Monday, New Hope shares will be trading without entitlements to the company’s recently-declared monster dividend.

This includes a final dividend of 31 cents per share and a special dividend of 25 cents per share, both of which are fully franked.

With New Hope shares turning ex-dividend for this payment on Monday, today will be the last day to snap up these dividends, which will be paid on 8 November.

Since New Hope doesn’t have a dividend reinvestment plan (DRP), shareholders will have no choice but to receive this payment in cash.

Any New Hope shares purchased after today won’t lay claim to these latest dividends.

But to compensate investors, New Hope will likely be deep in the red on Monday as the value of these dividends leaves the share price.

These latest dividends alone represent a yield of 8.1%, so there’ll be a lot of downwards pressure on the New Hope share price to start the week.

How did New Hope perform in FY22?

New Hope operates on a slightly different financial calendar than most of the ASX. Its financial year ends on 31 July. So, New Hope handed in its full-year FY22 results last month.

It was a bumper set of results, supported by sky-high coal prices which have surged on the back of the Russia-Ukraine conflict.

These results were headlined by a 143% jump in revenue, which hit $2.6 billion, and a 1,139% increase in profit, which came in at $983 million.

Interestingly, New Hope’s production slumped by 18% in FY22, producing 7.9 million tonnes of saleable coal. The company’s operations were impacted by periods of unusually high rainfall throughout the year, along with COVID-related workforce shortages.

However, such was the strength in coal prices that New Hope delivered eye-watering financial growth. 

New Hope’s average realised prices surged from $101.36/tonne in FY21 to $281.84/tonne in FY22, an increase of 176%. Its average realised price in the fourth quarter came in at a whopping $493.52/tonne. 

This helped the ASX 200 coal miner to declare fully franked dividends of 86 cents per share in FY22, up a mammoth 681% compared to the total dividends of 11 cents declared in FY21.

Based on current prices and including special dividends, New Hope shares are spinning up a monster trailing dividend yield of 12.5%. With the benefit of franking credits, this yield cranks up to 17.8%.

What do brokers think about New Hope shares?

New Hope has been a standout performer on the ASX this year, rocketing nearly 200%. It’s kept the party going in recent months, taking out the title as the ASX 200’s best performer in September with a 28% gain. However, some brokers are wary. 

In the wake of New Hope’s FY22 results, Citi maintained its sell rating on New Hope shares and left its price target unchanged at $3. This implies a potential downside of 56% over the next 12 months. Citi’s sell rating is based on valuation grounds.

Goldman Sachs is also bearish. The broker currently has a sell rating on New Hope shares but its price target is higher than Citi’s, coming in at $4.40. This implies a potential downside of 36% over the next 12 months. Goldman’s rating is also based on valuation grounds, along with its view that New Hope’s Bengalla thermal coal mine has only modest production growth potential.

On the flip side, Morgans is fighting for the bulls. Analysts recently retained their add rating on New Hope shares and lifted their 12-month price target to $7.20, implying a potential upside of 4%. The broker’s positive view is being driven by higher-than-expected coal prices. Morgans also sees the potential Associated Water License (AWL) approval at the Acland coal mine as an underrated catalyst for the New Hope share price.

The post Hoping to dig into the monster New Hope dividend? Here’s what you need to know appeared first on The Motley Fool Australia.

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• These 2 ASX 200 shares have turned a $10,000 investment into $35,000 in 2022
• 3 ASX All Ords shares smashing multi-year highs on Friday
• Up 24% in a month, is it too late to buy New Hope shares?
• Could dark clouds be gathering for ASX 200 coal shares?
• 4 ASX 200 directors who raised the stakes in their company shares in September

Motley Fool contributor Cathryn Goh 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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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.

Tesla (NASDAQ: TSLA) stock is down 7.2% on Thursday as of 9:52 a.m. ET, following the electric vehicle pioneer’s release of its third-quarter report yesterday.

The stock’s drop is probably largely attributable to the quarter’s revenue coming in a little lighter than Wall Street’s consensus estimate. Given the challenging market conditions in 2022, many investors are reacting more unfavorably to even relatively minor blips in quarterly earnings reports than they did when the market was in a bull mode. 

There was much to like about the report. Adjusted earnings per share (EPS) beat the analyst expectation, and revenue, operating profit, and free cash flow set quarterly records.

The following is an overview of Tesla’s third quarter centered on seven key metrics.

1. Revenue surged 56%

Quarterly revenue grew 56% year over year to $21.45 billion. This result fell short of the $21.96 billion Wall Street consensus estimate.

Revenue growth was primarily driven by increased vehicle deliveries and a higher vehicle average selling price, partially offset by the strengthening of the US dollar relative to other currencies. Tesla’s clean energy and services/other businesses also contributed to growth. 

Segment year-over-year revenue performance was as follows:

• Automotive segment revenue grew 55% to $18.7 billion.
• Energy generation and storage revenue rose 39% to $1.1 billion. Growth was driven by a 66% increase in energy storage capacity deployments to a record 2.1 gigawatt hours (GWh) and a 13% increase in solar power deployments to 94 megawatts (MW).
• Services and other revenue rose 74% to $1.6 billion. Growth was driven by used car and part sales along with a more than threefold increase in paid use of Superchargers.

2. Vehicle production and deliveries grew 54% and 42%, respectively

In Q3, Tesla produced 365,923 vehicles (about 20,000 Model S and X units and 346,000 Model 3 and Y units), up 54% from the year-ago period.

And it delivered 343,830 vehicles (about 19,000 Model S/X and 325,000 Model 3/Y), up 42% year over year.

3. Auto gross margin was 27.9%

In Q3, automotive gross margin (gross profit divided by revenue) based on generally accepted accounting principles (GAAP) was 27.9%. While this is a strong auto gross margin, it was down from 30.5% in the year-ago period. Sequentially, it was flat, as it was also 27.9% in the second quarter. 

4. Operating income rocketed 84%

In Q3, operating income grew 84% year over year to $3.7 billion. Operating margin (operating income divided by revenue) landed at 17.2%, up from 14.6% in the year-ago period. 

5. Adjusted EPS soared 69%

GAAP net income was $3.3 billion, or $0.95 per share, up 98% from the year-ago period. Adjusted for one-time items, net income came in at $3.7 billion, or $1.05 per share, up 69% year over year. This result surpassed the $1 adjusted earnings per share (EPS) that analysts had expected.

6. Operating cash flow jumped 62%

In Q3, cash generated from operations grew 62% year over year to $5.1 billion. Free cash flow skyrocketed 148% to $3.3 billion.

Tesla ended the quarter with $21.1 billion in cash, cash equivalents, and short-term investments, up by $2.2 billion from the prior quarter. 

7. Supercharger stations increased 32%

Tesla continued its solid pace of building out its network of Supercharger stations. It ended the quarter with 4,283 stations, up 32% from the year-ago period. Supercharger connectors grew 33% year over year to 38,883. 

A great quarter with a new revenue source coming soon

Tesla turned in a great quarter. The company recently began production of its all-electric Class 8 truck, the Tesla Semi, at its Gigafactory in Nevada. It plans to begin deliveries to PepsiCo in December. The beverage and food giant reportedly reserved 100 of these trucks soon after Tesla unveiled this vehicle in 2017.

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

The post Tesla stock drops on earnings release: 7 key metrics you should see appeared first on The Motley Fool Australia.

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More reading

• 3 lithium ASX shares to watch after Tesla’s results
• Why is Tesla stock falling if its business is stronger than ever?
• Tough year for leading global growth fund laid bare with brutal fall in tech stocks
• Why Tesla stock was surging at the market open today
• Tesla and Netflix will make or break the Nasdaq this week

Beth McKenna 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 Tesla. 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 Westpac Banking Corp (ASX: WBC) share price may be flying this month, but it could be heading even higher.

That’s the view of analysts at Morgans, which have upgraded the banking giant’s shares this week.

What is Morgans saying about the Westpac share price?

According to the note, the broker believes that Westpac could offer the greatest value on a medium term view.

As a result, the broker has upgraded the company’s shares to an add rating with a $26.71 price target.

Based on the current Westpac share price of $23.92, this implies potential upside of almost 12% for investors over the next 12 months.

In addition, the broker is expecting a fully franked 7% dividend yield in FY 2023. If we add this into the equation, the total return stretches to approximately 19%.

Why did the broker upgrade its shares?

Morgans upgraded Westpac after revising its earnings estimates higher to reflect the positive impact of rising interest rates on its net interest margin (NIM).

The broker explained:

Compared to previous forecasts, we downgrade FY22F and upgrade FY23-24F cash EPS, as a result of assuming greater NIM expansion, higher costs, and greater ramp-up in expensing for expected credit losses, partly offset by higher shares on issue. Notable differences to consensus include higher NIM uplift and lower expected credit loss expensing, resulting in a higher dividend forecast.

Another reason to be positive is the potential for share buybacks in the future. While Morgans notes that it wouldn’t be possible right now due to capital constraints, it suspects buybacks could commence from FY 2024.

Buybacks are constrained by APRA’s CET1 capital adequacy requirements. We expect WBC to print a c.11.1% CET1 ratio at FYE-22 vs 10.75% at 3Q22. APRA’s revised framework will apply from 1 January 2023, which includes decreased risk weights applied to loans but higher minimum (equity) capital ratios. Post-implementation, WBC has indicated it will target an operating range for the CET1 capital ratio of 11-11.5%. We assume WBC undertakes c.$5bn of buybacks across FY24-25F, based on surplus capital build.

All in all, the broker feels this makes the Westpac share price great value at the current level.

The post Broker upgrade: Westpac share price tipped to keep rising appeared first on The Motley Fool Australia.

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More reading

• 5 big ASX announcements making news this week
• ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: expert
• Westpac share price offers best value in the sector: Goldman Sachs
• Why Hub24, Sezzle, Telix, and Westpac shares are rising
• Tyro share price on watch as Westpac takeover approach confirmed

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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The Pilbara Minerals Ltd (ASX: PLS) share price has skyrocketed since the last day of the 2022 financial year.

Pilbara shares have soared 117% between market close on 30 June and 20 October this year.

So if I had invested in this ASX lithium explorer at the end of June, how would I be doing?

Winning investment

Let’s say I had invested $5,000 in Pilbara Minerals shares after market close on 30 June. Pilbara shares were available for $2.29 at this time.

With this investment, I would have received 2,183 shares in the company with 93 cents left over.

Now, Pilbara shares are trading at $4.97. So my investment would be worth $10,849.51.

So I would have doubled my money and would have the option of banking a $5,849.51 profit.

Now let’s take a look at Pilbara shares at their all-time high on 7 October. Pilbara shares closed at $5.42 this day. My investment would have been worth $11,831.86 at this time.

But would I want to sell my Pilbara Minerals shares? Macquarie has this week retained an outperform rating on Pilbara Minerals shares with a $5.70 price target following its latest digital auction. This implies a 14.7% upside on the current share price.

On the flip side, UBS rates the Pilbara Minerals share price as a sell, my Foolish colleague Tristan reported recently.

Red Leaf Securities CEO John Athanasiou has also recently recommended investors consider “cashing in some gains” on the Pilbara share price.

Pilbara Minerals does not currently pay dividends. However, Credit Suisse analysts are tipping the company to pay a 29 cents per share dividend in FY23. This would equate to a 5.84% dividend yield for investors.

Pilbara Minerals share price snapshot

Pilbara Minerals shares have climbed 55% in the year to date, while they have risen almost 5% in the past month.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has lost almost 10% in the year to date.

Pilbara has a market capitalisation of more than $14.8 billion based on the current share price.

The post If I’d bought $5,000 of Pilbara Minerals shares at the end of June, here’s how much I could bank right now appeared first on The Motley Fool Australia.

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More reading

• 5 big ASX announcements making news this week
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is the Calix share price frozen on Wednesday? (Hint: it involves Pilbara Minerals)

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 recommended Macquarie Group 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 CSL Limited (ASX: CSL) share price is out of form this week.

Since the start of the week, the biotherapeutics company’s shares have fallen 3.2% to $271.64.

This is despite the company releasing an update on its new CSL Vifor business earlier this week.

Can the CSL share price bounce back?

The team at Morgans was pleased with what it saw at the company’s presentation earlier this week.

In light of this, it continues to see CSL as a share to buy and has retained its add rating with a trimmed price target of $312.20.

Based on the current CSL share price, this implies potential of 15% for investors over the next 12 months.

What did the broker say?

Morgans notes that the new CSL Vifor business has a strong position across several core therapy areas. It commented:

Vifor offers a leading portfolio across three core therapy areas (Iron deficiency; Dialysis; and Nephrology), with strong brands and a deep pipeline poised to expand the commercial opportunities and support chronic kidney disease patient across the treatment continuum (from preventing kidney damage, to chronic kidney disease treatment, to dialysis treatment to transplant).

The broker was pleased to see that management remains “extremely confident” in the long term growth potential of these therapies. It commented:

Management remains “extremely confident” in its ability to drive long-term sustainable growth by better leveraging a much more diversified product portfolio and deeper pipeline. Notably, management targets >10% revenue growth across Vifor over the medium term and reiterated profit accretion (low-to-mid teens ex-amortisation /one-off costs), including US$75m in cost synergies over the first 3 years.

In light of the above and improving plasma collections, it believes now is the time to buy. It concludes:

While plasma inventories need to be rebuilt over time, strong plasma collections, with ongoing demand across both Behring and Seqirus, coupled with Vifor’s added breadth, portends strong growth and momentum.

The post Here’s what Morgans is saying about the CSL share price appeared first on The Motley Fool Australia.

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More reading

• This ASX 200 share could be 50% higher next year: expert
• Citi says CSL share price is great value amid large iron therapy opportunity
• 2 classic healthcare ASX shares priced to buy now: expert
• 3 ASX 200 shares that turned a $5,000 investment into $1 million
• Why is the CSL share price dropping today?

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 CSL 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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