The Wesfarmers Ltd (ASX: WES) share price will be one to watch in the coming week. The S&P/ASX 200 Index (ASX: XJO) giant is set to release its financial year 2022 earnings next Friday.

Could now be the time to jump in on the retail-focused conglomerate behind such businesses as Bunnings, Kmart, Officeworks, and Priceline?

At Friday’s close, shares in Wesfarmers were going for $48.92 apiece, 0.74% higher than their previous closing price. Meanwhile, the ASX 200 lifted 0.02% on Friday.

So, what are brokers forecasting for the Wesfarmers share price? Let’s take a look.

Do Wesfarmers shares boast 20% upside ahead of earnings?

The Wesfarmers share price could be set for growth, with broker Morgans tipping a potential 20% upside.

The broker likes the company’s offerings, which it dubbed “one of the highest quality retail portfolios in Australia”, my Fool colleague James Mickleboro reports. It also thinks highly of Wesfarmers’ management team.

And it’s backed up its praises with equally high expectations. The broker has a $58.40 price target on Wesfarmers’ shares.

It has also tipped the company to pay out $1.65 per share of fully franked dividends in financial year 2022.

That presumably means it expects Wesfarmers’ final dividend to come in at 85 cents after the company handed investors 80 cents per share in March.

Looking further into the future, Morgans predicts Wesfarmers will pay out $1.81 per share in dividends this financial year.

The optimistic outlook likely comes as a relief for embattled investors. The retail conglomerate’s stock has tumbled 18% since the start of 2022. It has also dumped 26% over the last 12 months.

For comparison, the ASX 200 Index has also fallen 6% year to date and 5% since this time last year.

The post Is the Wesfarmers share price in the buy zone ahead of next week’s earnings result? appeared first on The Motley Fool Australia.

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More reading

• Why is the Wesfarmers share price smashing the ASX 200 today?
• Did you know you’re investing in lithium when you buy Wesfarmers shares?
• Do any ASX lithium shares pay dividends?
• ASX 200 better buy: Wesfarmers or Woolworths?
• 2 excellent ASX dividend shares experts rate as buys

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 positions in and has recommended Wesfarmers 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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ASX reporting season went into overdrive this week as a flock of S&P/ASX 200 Index (ASX: XJO) shares handed in their results.

With a flurry of news and ASX announcements, it can be hard keeping up.

So, here’s the lowdown on some of the biggest movers from ASX reporting season this week. 

You’ll find links to our relevant Foolish earnings coverage for further reading.

The ASX winners

The Nearmap Ltd (ASX: NEA) share price soared above the clouds this week, propelling 30%. While the aerial imaging company lifted the lid on its FY22 results, it was a takeover bid that had the market excited. 

The Temple & Webster Group Ltd (ASX: TPW) share price was also on fire, lighting up 30% on Tuesday before eventually running out of steam to post a 7% gain across the week. Investors cheered as the online furniture retailer delivered 31% revenue growth in FY22 while its earnings margin came in at the high range of guidance.

The IPH Ltd (ASX: IPH) share price also hit a home run, finishing the week 17% higher. The market appears pleased with the company’s global ambitions. Alongside its FY22 results, IPH announced a $387 million acquisition of Smart & Biggar, a leading Canadian intellectual property firm. This marks IPH’s first expansion beyond the Asia Pacific region.

The Brambles Limited (ASX: BXB) share price also ended the week in the winners’ column, pumping out a 12% gain. The logistics group shook off global supply chain challenges to deliver 9% sales growth in FY22, ahead of guidance, and boosted its final dividend.

Last but certainly not least, the BHP Group Ltd (ASX: BHP) share price punched in a 7% weekly rise, fortifying its crown as the ASX’s largest company. The Big Australian beat expectations in FY22 as strong cash flow performance led to a juicy final dividend of US$1.75 per share.

The ASX losers

While Temple & Webster soared, the pain continued for fellow ASX e-commerce share Redbubble Ltd (ASX: RBL). The Redbubble share price suffered a steep 40% intraday fall on Wednesday after marketplace revenue dropped 13% and earnings reversed in FY22.

The Pact Group Holdings Ltd (ASX: PGH) share price also found itself under pressure, packaging up a weekly loss of 19%. COVID and supply chain challenges contributed to a 25% fall in the company’s FY22 underlying profit. Pact Group also slashed its final dividend by 75%.

The week wasn’t kind to the TPG Telecom Ltd (ASX: TPG) share price either, descending 13%. The ASX telco reported soft first-half results, impacted by restructuring and rising cost pressures.

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price also had a week to forget, stumbling 11% as investors were unimpressed by the company’s FY22 results. The ASX bank’s commentary around its net interest margin may have spooked the market.

Finally, the Beach Energy Ltd (ASX: BPT) share price failed to fire, slipping 8% across the week. The company’s FY22 profits fell short of expectations and the ASX oil share warned investors that unit field operating costs would likely head north in FY23. 

Which ASX 200 shares are reporting next?

Gear up for another jam-packed week of ASX reporting season as a swarm of ASX 200 shares prepare to release their results.

According to our Foolish ASX reporting season calendar, some of the ASX blue-chip shares reporting next week include Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL) and Qantas Airways Limited (ASX: QAN).

The post ASX reporting season weekly wrap: Winners and losers appeared first on The Motley Fool Australia.

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More reading

• Worried about the iron ore price? Why the need for it ‘ain’t going anywhere’: broker
• Here are the top 10 ASX 200 shares today
• Is the AGL share price in the buy zone following the company’s latest results?
• Why AGL, Fisher & Paykel, Inghams, and TPG shares are sinking today
• Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor Cathryn Goh has positions in REDBUBBLE FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nearmap Ltd., REDBUBBLE FPO, and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended IPH Ltd. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited, COLESGROUP DEF SET, Nearmap Ltd., and Wesfarmers Limited. The Motley Fool Australia has recommended IPH Ltd, TPG Telecom Limited, and Temple & Webster Group 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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When it comes to investing, I have a tendency to look for ASX shares that I can buy and hold for a long period of time rather than trade in and out of positions.

This way, I can benefit from the power of compounding. This is what happens when you generate returns on top of returns. It explains how $10,000 can turn into $26,000 in 10 years if you average a 10% return per annum.

With that in mind, listed below are two ASX shares that I would invest $10,000 into for the long term. They are as follows:

CSL Limited (ASX: CSL)

The first ASX share that I would invest $10,000 into this month is CSL. It is one of the world’s leading biotherapeutics companies with a collection of world-class businesses that includes CSL Behring and Seqirus.

I’m a big fan of the company due to its high-quality portfolio of products, lucrative development pipeline, and huge investment into research and development (R&D). In respect to the latter, every year, CSL reinvests 10% to 12% of its revenue back into its R&D. This saw the company invest over US$1 billion into these activities in FY 2022, ensuring that it has a wide range of potentially lucrative and life-saving therapies destined for commercialisation in the coming years.

And while the company may not be out of the woods just yet with COVID-related margin pressures, management anticipates its margins bottoming during the first half of FY 2023. After which, the normalisation of trading conditions and the company’s exciting new Rika plasma collection technology are expected to support margin expansion and solid earnings growth once again.

All in all, I believe CSL’s shares could be a quality long-term option for investors.

Technology One Ltd (ASX: TNE)

Another ASX share that I think would be a quality buy-and-hold option right now is enterprise software company TechnologyOne.

I think it is one of the best tech shares on the Australian share market thanks to its high quality and sticky software, which is used by countless businesses and government agencies across Australia and the UK.

In respect to the stickiness of its software, TechnologyOne boasts an ultra-low churn rate of 0.09% of annual recurring revenue (ARR) and a net revenue retention (NRR) of 114%. This means that not only are TechnologyOne’s customers sticking around, it is squeezing more revenue from them each year.

Another positive is that the company is currently transitioning its customers to a software-as-a-service offering and ceasing support for legacy software. This shift to higher margin recurring revenues is expected to be supportive of stronger margins in the coming years.

This transition has been going very well and is expected to continue doing so. In fact, management is confident enough to forecast ARR of $500 million by FY 2026. This is almost double its current base ARR of $288 million.

And while TechnologyOne’s shares carry a premium valuation, I believe the company’s extremely positive outlook justifies this and would be a buyer of them for the long term at current levels.

The post Why I would invest $10,000 into these ASX shares for 10 years appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Buy this ASX 200 company as its costs are actually falling: Firetrail
• Here are the top 10 ASX 200 shares today
• Why CSL, IPH, Renascor, and Treasury Wine shares are pushing higher
• Broker gives its verdict on the CSL share price post-FY22 results

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 recommended TechnologyOne 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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S&P/ASX 200 Index (ASX: XJO) shares representing building materials providers are in a bind at the moment.

Interest rates are steeply rising, meaning consumers will have less money for both renovations and constructing new housing.

That logically is not great for businesses that supply construction materials.

So many of those ASX 200 shares have been sold off in recent times, and that perhaps might have opened up a buying opportunity.

After all, if sentiment is so weak now, eventually interest rates will stop rising and activity will normalise.

Several experts have tipped fibre cement sheeting provider James Hardie Industries plc (ASX: JHX) as a prudent pick-up in recent times.

But a similar ASX company not often talked about is CSR Limited (ASX: CSR).

This week Fairmont Equities managing director Michael Gable explained why he believes CSR is ripe for buying at the moment.

Why ASX 200 share CSR can fight through lean times

Gable admitted there are risks for the building products business, but plenty of factors abound that could offset the impact of rising interest rates.

“On the positive side, the rate of decline in Australian housing starts (>20%) is unlikely to be as much as the declines evident in past cycles of -25% to -45%,” he wrote on the Fairmont blog.

“One of the factors supporting the lower-than-historical rate of decline is household formation… A recovery is expected in FY25, as population growth returns to full capacity.”

Management has noted how “multi-family” and ” non-residential” construction seemed to be picking up after postponements though the early years of the COVID-19 pandemic.

“Recovery in these volumes may help soften the anticipated impact from the decline in detached housing in FY24.”

Gable added that a lesser-known business arm of the ASX 200 share, the property division, is going gangbusters.

“The company has 457ha of existing land holdings that are leveraged to key western Sydney locations that are set to benefit from structural tailwinds,” he said.

“These include a new Western Sydney Airport, surging e-commerce activity and strong demand for distribution centres.”

This real estate business is increasingly holding up CSR’s stock price.

“While there is downside risk to the valuation for the building products division, overall group valuation is likely to be supported by the property division, which is now comprising a greater portion of the group’s valuation (currently accounting for ~1/3rd of the group enterprise value).”

The share price could be at the start of a rise

From the start of the year to June, CSR shares sank as much as 34%. But over the past couple of months, the stock has rallied by 20%.

Gable feels like it’s on a roll now.

“It broke higher in mid-July on good volume,” he said.

“So far we have CSR respecting the breakout as it continues to climb higher. Momentum looks good and the share price is likely to continue rallying.”

CSR will not report its numbers this month as its financial year ends in March.

The post This building materials ASX 200 share is a buy (not James Hardie): expert appeared first on The Motley Fool Australia.

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More reading

• Why the Fortescue share price is on watch next week
• Anaysts name 2 ASX dividend shares to buy next week
• Here are 2 exciting ASX growth shares tipped as buys by analysts
• Could this ASX lithium share be set to cash in on Biden’s climate legislation?
• These 3 ASX mining shares rocketed more than 15% on Friday

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 Fortescue Metals Group Limited (ASX: FMG) share price will be one to watch next week.

This follows the release of a late announcement on Friday by the iron ore giant.

What did Fortescue announce?

After the market close, Fortescue released an update on the Belinga Iron Ore Project in the Republic of Gabon.

According to the release, the company’s 80% owned joint venture company, Ivindo Iron, has signed the exploration convention for the project with the Gabon Government. This follows an agreement between the two parties late last year that granted Fortescue an exclusivity period to study the opportunity to develop the Belinga iron ore deposit.

Clearly it has liked what it saw at the project. So much so, Fortescue expects to spend approximately US$90 million over three years on an exploration works program at the 4,500 square kilometres project.

These activities are expected to immediately commence upon grant of the exploration licences, with the initial focus on exploration works to determine the potential size and grade of the Belinga iron ore deposit and to evaluate logistics solutions.

Fortescue’s chief executive officer, Elizabeth Gaines, said:

Fortescue is committed to its strategic pillars of investing in the long-term sustainability of the iron ore business and investing in growth. Consistent with this approach, Fortescue is pursuing global opportunities in iron ore that align with our strategy and expertise.

We welcome the opportunity to assess the Belinga Project, which we believe is potentially one of the world’s largest undeveloped, high-grade hematite deposits. We look forward to working with our partner, the Gabon Government and all key stakeholders on this important project as we continue to assess opportunities to optimise growth and returns in our iron ore business.

The Fortescue share price is down 3.5% in 2022.

The post Why the Fortescue share price is on watch next week appeared first on The Motley Fool Australia.

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More reading

• Worried about the iron ore price? Why the need for it ‘ain’t going anywhere’: broker
• 1 factor that could drag on Fortescue Future Industries’ green dream
• Can shareholders have bigger dividends AND more spending on Fortescue Future Industries?
• Why is the Rio Tinto share price lagging the ASX 200 on Tuesday?
• ‘Self-interested billionaires’: Fortescue share price climbed today despite union war of words

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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If you’re looking for new additions to your income portfolio next week, then the two ASX dividend shares listed below could be worth considering.

Both shares have been rated as buys by analysts and tipped to provide attractive yields in the coming years. Here’s what you need to know:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share for income investors to look at is the Charter Hall Social Infrastructure REIT.

As its name implies, this real estate investment trust invests in social infrastructure properties such as bus depots, government facilities, police and justice services, and childcare centres.

The analysts at Goldman Sachs are big fans of the company. This is due partly to its sky high occupancy rate and long leases.

The broker is expecting this to underpin growing dividends in the coming years. For example, it is forecasting dividends per share of 17.3 cents in FY 2023 and 18 cents in FY 2024. Based on its current share price of $3.73, this implies yields of 4.8% and 5.1%, respectively.

Goldman also sees a lot of value in its shares at the current level with its conviction buy rating and $4.35 price target. This suggests potential upside of 17%.

Dexus Industria REIT (ASX: DXI)

Another ASX dividend share to look at is industrial and office property company Dexus Industria.

It has been rated as a share to buy by analysts at Morgans. The broker appears confident that the company is well-placed to deliver sustainable income and capital growth over the long term.

In the near term, the broker is anticipating some attractive dividend yields. It is forecasting dividends per share of 16.4 cents in FY 2023 and 16.9 cents in FY 2024. Based on the current Dexus Industria share price of $2.85, this will mean yields of 5.75% and 5.9%, respectively.

Another positive is that the broker sees plenty of upside for its shares with its price target of $3.25. This implies potential upside of 14%.

The post Anaysts name 2 ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Goldman Sachs names 2 ASX dividend shares to buy
• Analysts say these ASX dividend shares are top buys
• 2 quality ASX dividend shares rated as buys by brokers
• Analysts rate these ASX dividend shares as buys now

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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If you’re a fan of growth shares like I am, then you’ll be pleased to hear that a number have recently been rated as buys by leading brokers.

Two such ASX shares are listed below. Here’s what analysts are saying about them:

Breville Group Ltd (ASX: BRG)

The first growth share to look at is Breville. It is the leading appliance manufacturer behind a range of popular brands. These include Sage, Kambrook, and of course Breville.

Breville has been a quiet achiever over the last decade, generating strong sales and earnings growth and delivering stellar returns for investors without much fanfare.

This has been underpinned by a combination of smart bolt on acquisitions, its consistent investment in research and development, and its expansion into new territories.

And while trading conditions aren’t easy at the moment and could weigh on its near term performance, the long term looks as bright as ever. In fact, the team at Morgans believes the company is “positioned to deliver double-digit sales growth consistently over the next few years as it grows its market share, notably in geographies into which it has recently launched.”

In light of this, the broker currently has an add rating and $25.00 price target on Breville’s shares.

Nitro Software Ltd (ASX: NTO)

Another ASX growth share to consider is Nitro. It is a growing provider of document productivity software to businesses large and small globally. 

Unfortunately, Nitro’s shares have been absolutely smashed this year. This has been driven by the market’s aversion to loss making stocks, weakness in the tech sector, and a disappointing guidance downgrade.

The team at Goldman Sachs is sticking with the company and has been urging investors to take advantage of the weakness in the Nitro share price by picking up shares while they’re down. Particularly given that the broker continues “to see NTO as an undervalued global growth opportunity and highlight that the company now trades at ~12x FY24E EV/EBITDA on a capitalisation-adjusted basis.”

As a result of this bullish view, Goldman has a buy rating and $2.05 price target on its shares.

The post Here are 2 exciting ASX growth shares tipped as buys by analysts appeared first on The Motley Fool Australia.

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• Here are 3 top ASX growth shares that experts are tipping as buys
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• Here are the top 10 ASX 200 shares 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 recommended Nitro Software 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 Monger Gold Ltd (ASX: MMG) share price has been soaring lately, but could it have more joy ahead?

This ASX lithium share has lifted nearly 121% in a month, closing 8.86% higher on Friday at 43 cents.

Let’s take a look at what is going on at Monger Gold.

Could the US climate legislation help?

Monger Gold may be exploring gold, copper and zinc, but it is also intent on playing a role in the lithium future.

On Thursday, Monger shares soared on news it had secured an exclusive option to take over the Brisk Lithium Project.

This mine is located in the James Bay Lithium Project in Quebec, Canada and hosts pegmatite outcrops.

Monger sees this project as an opportunity to cash in on a huge climate bill that recently passed the United States Congress.

Commenting on the latest acquisition this week, CEO Adam Ritchie said:

For Monger, this deal solidifies the foundational lithium asset set. In combination with the
Scotty Lithium Project in Nevada, all three main lithium resource types are now covered being brine, sedimentary and hard rock.

This places Monger in a prime position to take advantage of legislation recently passed by the US congress, enforcing a minimum level of locally sourced raw materials within the North American battery supply chain.

In May, the company signed an agreement to acquire the Scotty Lithium Project in Southern Nevada.

In addition, multiple ASX lithium shares have soared this week as United States President Joe Biden signed legislation labelled the “biggest step forward on climate ever”.

As my Foolish colleague Bernd reported, this Bill includes an extension on tax credits for new electric vehicles (EVs). The Bill specifies the critical minerals for these EV batteries must come from the US or a nation with a free trade agreement with the US.

Monger share price snapshot

The Monger share price has surged 79% in a year and nearly 105% year to date.

In comparison, the S&P/ASX Materials Index (ASX: XMJ) has climbed 0.11% in a year and lost 1.28% year to date.

Monger has a market capitalisation of about $17 million based on the current share price.

The post Could this ASX lithium share be set to cash in on Biden’s climate legislation? appeared first on The Motley Fool Australia.

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• 3 tiny ASX mining shares leaping over 20% on project announcements

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The S&P/ASX 200 Materials Index (ASX: XMJ) lifted 0.82% today, but three ASX mining shares soared much higher.

Astron Pty Ltd (ASX: ATR), Cobre Ltd (ASX: CBE), and Oceana Lithium Ltd (ASX: OCN) all rocketed ahead today.

So why did these ASX mining shares have such a great day?

Cobre

The Cobre share price soared 28.5% today. Cobre’s share price has exploded 210% over the past five days. Cobre is exploring copper in Botswana and Western Australia. Investors appear to be buying up Cobre shares on the back of two positive announcements this week. On Tuesday, Cobre revealed drilling had intersected with a “new significant copper intersection” at the Ngami Copper Project in Botswana. Furthermore, Cobre revealed it had received notice of renewal on five exploration licences yesterday.

Astron

The Astron share price surged nearly 17% today. The company is developing the Donald Mineral Sands and Rare Earth project in the Murray Basin, Victoria. This is said to be one of the biggest zircon and titanium resources in the world. On Thursday, Astron provided an update on this project.

A preliminary estimate of phase one operations over a 35-year time frame profile is 250,000 to 300,000 tonnes per annum of heavy mineral concentrate and 7,000 to 10,000 tonnes per annum of Renewable Electronic Energy Coin (REEC).

Meanwhile, as my Foolish colleague Tony reported on Wednesday, one expert has singled out Astron as an ASX share that is “clearly under the radar”.

Collins Street Asset Management chief investment officer Vasilios Piperoglou said:

They have a very large, I believe one of the world’s largest, undeveloped zirconium and rare earth projects. It has a potential 50-year mine life. You could argue it’s a tier-one asset in a tier-one jurisdiction.

Oceana Lithium

The Oceana Lithium share price rocketed 17% on Friday. Oceana is exploring lithium in Ceara, Brazil, and the Northern Territory. Oceana’s share price has lifted 18% this week despite no news from the company. However, last week Oceana advised the market it had started fieldwork at two lithium projects in Brazil and Australia. At the flagship Solonopole project in Brazil, Oceana is exploring the “highly prospective” Lapinha zone to follow up high-grade lithium surface samples. Oceana has also commenced fieldwork at the Mt Denison tenement in the Northern Territory.

This week was a positive week for ASX lithium shares amid United States President Joe Biden signing a big spending climate bill. The legislation stipulates critical minerals for EV batteries must be sourced from either North America or a country with a free trade agreement with the US.

The post These 3 ASX mining shares rocketed more than 15% on Friday appeared first on The Motley Fool Australia.

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• ‘Clearly under the radar’: Expert reveals hidden gem ASX share he’s holding
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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 most recent peak in the iron ore price was in March at about US$160 per tonne. Since then, the commodity’s value has fallen in a very jagged line to trade just above US$100 per tonne today.

As is usual, the major ASX mining shares have fallen alongside the iron ore price.

Since March, the BHP Group Ltd (ASX: BHP) share price has dropped 17.5%. Rio Tinto Limited (ASX: RIO) shares have fallen 22%. The Fortescue Metals Group Limited (ASX: FMG) share price has lost 1.3%.

Analysts at Trading Economics forecast iron ore to trade at about US$109 by the end of the September 2022 quarter. In a year’s time, the team expects the iron ore price to be about US$97 per tonne.

But Saxo Bank country head of direct sales, David Harvie, isn’t worried. Harvie says China’s demand for iron ore is a long-term trend given the country’s ongoing industrialisation. He reckons it’s only a matter of time before the world’s largest consumer of iron ore begins chewing it up at a strong pace again.

Broker says China will ‘fire up again’

In an interview with The Motley Fool, Harvie said:

When we talk to our China strategists and when we talk to our APEC strategists, I think they make a really valid point. And the point would be it’s not if, but when the largest consumer of iron ore in the world fires up again, being China.

Building cities the size of Brisbane once a month, or whatever they’re doing over there, that ain’t going anywhere either. Our house theory is that it is a demand question, and that should be satisfied by virtue of some of those large economies kicking off again.

ANZ reckons the iron ore price has ‘limited upside’

ANZ commodity strategists Daniel Hynes and Soni Kumari provided their view on the iron ore price in a note released yesterday.

Hynes and Kumari wrote:

We see limited upside in iron ore prices. A stabilisation in the Chinese property market should support sentiment and prices through Q3 and into year end. We expect prices to trend lower in Q4 and into 2023 as the impact of China’s stimulus measures peters out and iron ore demand weakens. We ultimately see prices at the end of 2023 sitting under USD100/t as the market tightness eases.

China’s shadow over commodity markets remains large. That raises the risk that weak economic data will create increasing headwinds for the sector. Those perceived risks don’t completely reflect what we are seeing on the ground.

Stimulus measures announced earlier this year raised hopes that commodity demand would rebound strongly in H2 2022. However, China’s credit impulse is slowing again in response to the restrictions involved in its zero-COVID strategy. This is normally a signal of weaker demand for commodities, but the relationship may not be as straightforward as it was in the past.

What’s next for the big three ASX mining shares?

BHP impressed the market with its full-year FY22 results this week.

BHP reported a 16% increase in its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) to a record US$40,634 million.

The Big Australian will pay a US$1.75 per share final dividend.

Rio Tinto reported its half-year results on 28 July.

Fortescue is the only company out of the big three ASX mining shares yet to report this earnings season. It is scheduled to report its FY22 figures on Monday 29 August.

The post Worried about the iron ore price? Why the need for it ‘ain’t going anywhere’: broker appeared first on The Motley Fool Australia.

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More reading

• 1 factor that could drag on Fortescue Future Industries’ green dream
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• The OZ Minerals share price has barely moved since rocketing on BHP’s takeover bid. So, what now?
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Motley Fool contributor Bronwyn Allen has positions in BHP Billiton Limited and Fortescue Metals Group 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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