In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is having a day to remember. At the time of writing, the benchmark index is up 1.8% to 6,579.1 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are charging higher:

Cogstate Limited (ASX: CGS)

The Cogstate share price is up 16% to $2.21. Investors have been buying this neuroscience technology company’s shares after Japanese drugmaker Eisai revealed that its experimental drug for Alzheimer’s disease has helped slow cognitive decline in patients in the early stages of the illness. While Cogstate won’t benefit directly from this, it has suggested that the news could “lead to a general increase in research and development expenditure in respect of Alzheimer’s disease, which may provide additional sales opportunities.”

Global Lithium Resources Ltd (ASX: GL1)

The Global Lithium share price is up almost 7% to $2.30. This morning the lithium developer announced an agreement with leading Korean battery manufacturer SK On Co (SKO). SKO is a supplier of batteries to global automakers, including Ford Motor Company, Hyundai Motor Company and Volkswagen.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price is up over 14% to $23.66. This follows the release of a very strong full year result from the retail conglomerate this morning. Premier Investment reported a 5.2% increase in global sales to $1,497.5 million and a 4.9% lift in net profit after tax to $285.2 million. This was driven by strong sales growth online and from the Peter Alexander and Smiggle brands.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is up 3.5% to $31.80. Investors have been buying Woodside shares after oil prices raced higher overnight. This was driven by news that US crude and fuel stocks had fallen more than expected. It isn’t just Woodside rising today. The S&P/ASX 200 Energy index is up 3.2% this afternoon.

The post Why Cogstate, Global Lithium, Premier, and Woodside shares are charging higher appeared first on The Motley Fool Australia.

.

More reading

• 3 ASX All Ords shares rocketing higher on good news today
• Why is the Woodside share price on the rise today?
• 3 ASX lithium shares having a stellar run on Thursday
• The Cogstate share price is rocketing again, up another 27% on Thursday
• Premier Investments share price jumps 7% on record FY22 profits and special dividend

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 CogState Limited. The Motley Fool Australia has positions in and has recommended CogState Limited. The Motley Fool Australia has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/UKzYmtn

It has been a fantastic day for the S&P/ASX 200 Index (ASX: XJO) on Thursday. In afternoon trade, the benchmark index is up 1.95% to 6,588.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is down 2% to 51 cents. Investors appear to have concerns with the infant formula company’s plans in China. Although it has gained access to the market through a joint venture, its formula for that market will no longer be manufactured in Australia. This will make it just one of the countless other China-made infant formulas and could dilute its Aussie Bubs branding.

Iress Ltd (ASX: IRE)

The Iress share price has crashed almost 17% to $8.77. This follows the release of a trading update at its annual general meeting. According to its release, Iress is experiencing some timing delays in the conversion of new sales opportunities due to challenging market conditions. As a result, FY 2022 net profit after tax is now expected to be between $54 million and $58 million, down from its prior guidance of $63 million to $72 million.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price is down 2% to $2.94. This has been driven by the administration services company’s shares trading ex-dividend this morning for its special dividend. Link shareholders can now look forward to receiving their 8 cents per share special dividend on 14 October.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is down 3% to $1.41. This is despite there being no news out of the medical device company today. However, it is worth noting that the Polynovo share price has been a very positive performer this week during the market volatility. As a result, it is still up almost 1% this week despite this decline.

The post Why Bubs, Iress, Link, and Polynovo shares are dropping today appeared first on The Motley Fool Australia.

.

More reading

• Iress share price freefalls 15% on profit downgrade
• 5 things to watch on the ASX 200 on Thursday
• Bubs share price smashes ASX All Ords following China deal
• Bubs share price halted amid JV news from China
• Why BHP, Costa, Link, and Syrah shares are dropping

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 Link Administration Holdings Ltd and POLYNOVO FPO. The Motley Fool Australia has recommended BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/lHE0WVv

Northern Star Resources Ltd (ASX: NST) shareholders will have something to cheer about today as the company pays out its latest dividend.

The gold mining giant is rewarding eligible investors with a fully franked final dividend of 11.5 cents per share.

At the time of writing, the Northern Star share price is travelling 5.3% higher to $7.55 as gold prices climb.

For context, the S&P/ASX 200 Index (ASX: XJO) also heading north with a 1.93% gain following a strong lead on Wall Street overnight.

Let’s take a look at all the details regarding the Northern Star dividend.

Northern Star pays out final dividend

Northern Star delivered a solid performance for its full-year results for the 2022 financial year.

In summary, the company achieved gold production of 1,561koz at an all-in sustaining cost (AISC) of $1,633/oz.

This led to a bumper group revenue of $3,735 million, up 35%.

On the bottom line, Northern Star reported a 27% fall in underlying net profit after tax (NPAT) of $273 million.

However, the biggest win for shareholders came from the board’s decision to increase the final dividend by 21% over H2 FY 2021.

Furthermore, this is the second-biggest dividend to be paid out by the company, behind the 19.5 cents per share paid out during COVID-19.

When calculating against the current share price, the company is trailing on a dividend yield of 2.84%.

Northern Star share price snapshot

Over the past 12 months, the Northern Star share price has fallen 11% on the back of falling gold prices.

Consecutive rate hikes by the US Federal Reserve to combat hot-running inflation hasn’t helped the company.

Nonetheless, the group previously noted it has ample firepower on its balance sheet to seize opportunities during market downturns.

Northern Star has a price-to-earnings (P/E) ratio of 19.31 and commands a market capitalisation of approximately $8.35 billion.

The post Own Northern Star shares? Here’s some great news about your dividends appeared first on The Motley Fool Australia.

.

More reading

• Guess which ASX 200 mining shares are outpacing BHP today
• Here’s why the Northern Star share price is staging a partial rebound
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• Why is the De Grey share price struggling this week?

Motley Fool contributor Aaron Teboneras has positions in Northern Star Resources 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.

from The Motley Fool Australia https://ift.tt/cYOFtvf

With equity markets in turmoil this year, most investors are questioning when – and at what mark – we’ll find a bottom in the broad ASX 200 indices.

It’s been a difficult year for just about all sectors in 2022. Indices tracking the performance of each ASX sector are all down, except for utilities and energy.

The once high-flying tech and information tech domains have been punished the most.

For instance, the S&P/ASX 200 Information Technology index (ASX: XIJ) has slipped around 35% into the red this year to date, and is trailing all other sectors over the past 12 months as well.

Zooming out, there’s a total of eight Global Industry Classification Standard (GICS) sectors down in the past year, while just three have punched up into the green.

But there’s plenty more room to run with the broad market now trading back more or less in line with its pre-pandemic levels, as seen below.

What does this tell us about ASX 200 shares?

Chief to the investment debate is the Reserve Bank of Australia (RBA)’s decision to lift policy rates in order to combat surging inflation.

It has done so at a rapid pace, with a series of hikes earlier in the year sending an impulse throughout financial markets and the economy.

The subsequent increase in yields on long-dated government bonds – often a proxy for risk in the market – shot to multi-year highs, compressing the valuations of generously priced ASX 200 shares.

At the time of writing, the yield on the 10-year Australian government note is sitting at 3.9%, just off 4.15% in June – its highest mark in years.

As seen in the chart below, the yield on the Australian 10-year and US Treasury 10-year notes have been a leading indicator for ASX 200 shares in 2022.

As yields have spiked, share prices have de-rated downwards in an inverse relationship.

This is due to the relationship between asset valuations and the yields on these government bonds – the higher the interest rate, the lower the valuation.

The spike in both policy rates by the RBA and yields on government bonds also signals tough times ahead for investors and the real economy.

Striking the right balance

Right now, central banks have a balancing act to perform in order to reduce inflation and maintain a respectable level of economic growth.

Chances are that a successful landing of both issues is quite unlikely, as history has shown.

Typically, there’s a slowdown in economic growth as the intervention by central banks tends to slow aggregate demand. Especially with efforts from the US Federal Reserve in trying to cool the US economy.

However, Australia has fared well in previous global recessions, and both job and economic growth numbers are currently strong.

The review of last month’s consumer price index (CPI) data for Australia showed a 20 basis point month-on-month decline in inflation to 6.8%. Previously, it was 7% in July.

What’s next?

The question then turns to what the RBA might do next, and if it sees the current level of policy rates as acceptable in achieving its inflation mandate.

Markets have priced in a high chance the RBA will deliver another 50 basis point increase to the cash rate when it meets for its monthly sit-down next week.

This could, in turn, spell further jumps in government bond yields and further dampen the price evolution for ASX 200 shares when looking ahead.

Moreover, with so many external headwinds yet to be clarified, including tension in Europe, issues in the global supply of key industrial materials and ongoing financial market instability, it’s unwise to say investors have fully priced in a recession.

There’s still too much unknown, and the market takes pride in assigning value based on past history and forward expectations.

Meanwhile, in today’s session, all sectors are up and running and have posted gains at the time of writing.

The post Is a recession already priced into ASX 200 shares? appeared first on The Motley Fool Australia.

.

More reading

• ASX 200 retailer Harvey Norman’s boss calls mooting changes to dividend franking credits ‘totally mad’
• 2 tiny ASX battery minerals shares going gangbusters on project news
• Top fund manager sees potential for this ‘cheap gold stock’ to turn into ‘multi-billion-dollar’ company
• Could rising rates send the Westpac share price soaring 27%?
• Has the Vanguard MSCI Index ETF (VGS) been growing its dividends?

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.

from The Motley Fool Australia https://ift.tt/8yVxlwO

The boss of S&P/ASX 200 Index (ASX: XJO) dividend share Harvey Norman Holdings Limited (ASX: HVN) has joined voices slamming the federal government’s proposed changes to franking credits.

The law proposes to disallow companies from offering franking credits on dividends funded by capital raisings, as my Fool colleague Brendon reported. Thus, it has the potential to discourage companies from offering special dividends.

But what’s really got the billionaire fired up are suggestions the law could be applied retrospectively. That could force Aussie investors to repay franking credits from as long ago as 2016.

Let’s take a closer look at what’s got Harvey Norman chair Gerry Harvey fired up.

ASX 200 retail boss hits out at proposed franking change

Gerry Harvey has spoken out against a proposed law that could close a loophole at the expense of past dividend recipients.

The change has been tabled to stop companies offering franking credits on dividends worth more than the income they’ve paid tax on.

The head of the ASX 200 retail giant has slammed any suggestion of backdating the change. Speaking to 3WA, he said:

This is totally mad … [its] about as bad as you can get.

If you want to change the law, and it’s a bad law, that’s fine, but you can’t make it retrospective. That’s not right.

Questions surrounding past Harvey Norman dividends

If the law is passed, it could see those invested in Harvey Norman shares facing a tax bill.

The ASX 200 share reportedly paid out more in dividends than it brought in profits in financial year 2020. That lead the Australian Financial Review to question whether the company would continue undergoing capital raises to grow its payouts.

The company offered investors 33 cents per share in dividends that fiscal year. The offerings followed a $163.8 million capital raise undergone in October 2018 and another $173.5 million capital raise in October 2019.

The post ASX 200 retailer Harvey Norman’s boss calls mooting changes to dividend franking credits ‘totally mad’ appeared first on The Motley Fool Australia.

.

More reading

• What might the latest retail sales figures mean for ASX 200 consumer shares?
• 2 ASX 200 retail shares ravaged following US rate decision
• What’s the outlook for ASX 200 retail shares as inflation begins to bite?
• 5 ASX retail shares spruiking the highest dividend yields right now
• What’s driving ASX 200 consumer shares on Tuesday?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/9pCdFEj

The S&P/ASX 200 Materials Index (ASX: XMJ) is rising 3% today, but two ASX battery minerals shares are soaring far higher.

The Arcadia Minerals Ltd (ASX: AM7) and Evolution Energy Minerals Ltd (ASX: EV1) share prices are leaping ahead today.

Let’s take a look at why these two ASX battery minerals shares are lifting today.

Evolution Energy Minerals

Evolution Energy shares are soaring nearly 17% today. Investors are buying up Evolution shares after the company executed a binding term sheet for a joint venture with Yichang Xincheng Graphite Co Ltd.

The companies are aiming to work together to develop a downstream processing plant. This would process 25,000 tonnes per annum of coarse flake concentrate from Evolution’s Chilalo Graphite Project in Tanzania. Following a scoping study, the companies plan to form a joint venture.

Commenting on the news, Evolution managing director Phil Hoskins said:

We look forward to this initiative being the next step change beyond our immediate focus of financing the Chilalo mine development.

Arcadia Minerals 

The Arcadia Minerals share price is surging 13% today. Arcadia is exploring lithium, tantalum, nickel, copper and gold in Namibia. Acadia announced today it has made progress toward a definitive feasibility study (DFS) at the company’s Swanson Tantalum Project in Namibia. This includes securing water and electricity supply and signing a land use agreement. The DFS is within budget and due to be complete by the end of October.

The post 2 tiny ASX battery minerals shares going gangbusters on project news appeared first on The Motley Fool Australia.

.

More reading

• ASX 200 retailer Harvey Norman’s boss calls mooting changes to dividend franking credits ‘totally mad’
• Top fund manager sees potential for this ‘cheap gold stock’ to turn into ‘multi-billion-dollar’ company
• Could rising rates send the Westpac share price soaring 27%?
• Has the Vanguard MSCI Index ETF (VGS) been growing its dividends?
• Why is the Lynas share price powering up 5% today?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/QHJx0MX

The five year St Barbara Ltd (ASX: SBM) share price chart makes for some very ugly viewing.

This year alone, St Barbara shares have fallen almost 50%, hit by a falling gold price and poor results, with production for FY22 down 14%, profits down 70% and no dividend announced.

Writing in its August monthly update, leading fund manager Firetrail Australian Small Companies Fund noted the recent fall in the St Barbara share price came in sympathy with falling gold prices and the company’s softer than expected guidance for FY23.

Rather than be deterred by these challenges, Firetrail disclosed it added St Barbara to its portfolio, saying it “is one of the cheapest gold stocks globally.”

“Given the company’s significant resource base in WA, we expect it to play a leading role in much needed consolidation of the Australian small cap gold sector. We see potential for a multi-billion-dollar gold company to emerge in the next 12 months.”

In Thursday trading, the St Barbara share price is up 4.82% cents to 70.8 cents, giving the company a market capitalisation of $577.35 million. If Firetrail are correct in their assessment that this could be a multi-billion-dollar gold company, the upside potential could be enormous.

The post Top fund manager sees potential for this ‘cheap gold stock’ to turn into ‘multi-billion-dollar’ company appeared first on The Motley Fool Australia.

.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Why Atlas Arteria, Liontown, St Barbara, and Zip shares are dropping today
• 5 things to watch on the ASX 200 on Friday
• Why Lake Resources, Lovisa, Megaport, and St Barbara shares are dropping

Motley Fool contributor Bruce Jackson 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.

from The Motley Fool Australia https://ift.tt/IqvQotD

The Westpac Banking Corp (ASX: WBC) share price could be dirt cheap at current levels.

That’s the view of analysts at Goldman Sachs, which this week reiterated their bullish view on Australia’s oldest bank.

What did Goldman say about the Westpac share price?

According to the note, Goldman Sachs has retained its conviction buy rating and lifted its price target on the bank’s shares to $27.08.

Based on the current Westpac share price of $21.30, this implies potential upside of 27% for investors over the next 12 months.

Why is Goldman bullish?

Goldman has been bullish on the Westpac in recent months due to its cost cutting plans and belief that the bank provides strong leverage to rising rates.

This week, the broker became even more bullish because it feels that the market is being too conservative with sector net interest margins (NIMs) forecasts.

In fact, Goldman expects sector NIMs to reach their highest levels in a decade in FY 2024. This has led to the broker increasing its earnings estimates for Westpac and the rest of the big four banks.

Its analysts explained:

Our product profitability analysis gives us greater conviction around where NIMs should settle as cash rates revert towards 3%, and we now forecast FY24 NIMs to rise to c. 1.9% (+3-5 bp vs. previous forecast), which is in line with where they were in FY13, adjusted for shifts that have occurred to the major banks’ product mix since then. We now sit 3-9 bp ahead of consensus of FY24E NIM, which drives FY24E ROTEs of 12%-13% (top-end at 11% CET1 ratio). Therefore, with the sector trading on 1.6x spot P/NTA, we think value exists.

We continue to prefer WBC (Buy on CL) reflecting its: 1) strong leverage to rising rates, 2) cost management, 3) recent market update highlighting that the business is still investing effectively in its franchise, and 4) supportive valuations.

The post Could rising rates send the Westpac share price soaring 27%? appeared first on The Motley Fool Australia.

.

More reading

• What’s the outlook for ASX 200 bank shares in October?
• 5 things to watch on the ASX 200 on Wednesday
• Why did the Macquarie share price trail the other ASX 200 banks today?
• Broker tips major upside for the Westpac share price
• Looking for juicy ASX dividends? This expert says Westpac shares are a buy

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.

from The Motley Fool Australia https://ift.tt/RLzdXyr

All investors like to see their investments, and their returns, grow year-on-year. And it’s no different for those invested in exchange-traded funds (ETFs) like the Vanguard MSCI Index International Shares ETF (ASX: VGS), which pays out quarterly dividends.

The ETF tracks the MSCI World ex-Australia Index with net dividends reinvested. That sees it granting investors exposure to many of the world’s largest companies outside of Australia.

The ETF is currently trading on a trailing dividend yield of around 1.9%, having brought in approximately $1.73 per unit in financial year 2022.

But is the ETF growing its distributions? Let’s break the data down to find out.

Disappointing few years for income investors

As global markets struggle through 2022, so has the Vanguard MSCI Index ETF. It has tumbled 16.6% year to date. Though, that’s a better performance than many of its major holdings.

The fund’s biggest holding is Apple Inc (NASDAQ: AAPL). The tech giant’s stock has dumped 17.7% so far this year.

Its second biggest investment, Microsoft Corporation (NASDAQ: MSFT), has plunged 28% year to date, while its third largest holding, Amazon.com Inc (NASDAQ: AMZN), has slumped 30.8%.

Combined, the struggling stocks make up around 10% of the ETF’s $4.7 billion of managed assets.

It may come as no surprise then, that the Vanguard MSCI Index ETF’s dividends have also fallen recently.

The ETF declared a total of $1.73 of dividends in financial year 2022. That was down 8% on financial year 2021’s $1.88 of declared distributions.

Let’s look at how the fund’s payouts have evolved over its eight-year history:

As can be seen, the fund’s first full financial year following its inception in November 2014 saw it post record distributions of approximately $2.29 per unit.

And while it’s been a wild ride since, it’s not fair to say the ETF’s dividends have grown.

What has grown over the years, though, is its value. Vanguard MSCI Index ETF’s price has rocketed 77.5% over its lifetime, including its 2022 slump – certainly nothing to scoff at.

What’s next for the Vanguard MSCI Index ETF?

Only time will tell where the Vanguard MSCI Index ETF, and its dividends, go from here.

The fund simply tracks a portfolio of 1,470 stocks, 71% of which are listed in the US, which all determine their own dividend offerings.

However, we do know Vanguard expects the fund to pay a dividend worth around 34.3 cents per unit next month.

The post Has the Vanguard MSCI Index ETF (VGS) been growing its dividends? appeared first on The Motley Fool Australia.

.

More reading

• Want to invest globally? Here are 2 international ETFs for ASX investors
• This ASX ETF was my first investment, and I’ll be holding it for the long term
• How much is too little to start investing in ASX shares?
• Could right now be the perfect time to buy the Vanguard Index International Shares ETF?
• Here are 2 high quality ETFs for ASX investors to buy right now

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Microsoft, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon, Apple, and 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.

from The Motley Fool Australia https://ift.tt/8E2rs76

The Lynas Rare Earths Ltd (ASX: LYC) share price is charging higher today despite no new announcements from the company.

At the time of writing, the rare earths producer’s shares are up 4.71% to $7.68.

For context, the S&P/ASX 200 Materials Index (ASX: XMJ) is one of the best performers on the ASX today. The sector is up 2.74%.

What’s giving rise to Lynas shares?

After the Lynas share price hit a year-to-date low of $7.28 yesterday, investors are taking advantage of the recent weaknesses.

This comes amid the ASX staging a comeback despite macro-environmental headwinds still in the midst.

Notably, the recent lift in neodymium-praseodymium (NdPr) prices is likely also supporting investor confidence in the company’s shares.

In the past two weeks, the price of NdPr has been trending upwards to post a gain of around 10%.

Lynas is considered the world’s second-largest producer of NdPr, behind China, which accounts for 60% of global production of rare earths.

These deposits comprise a group of 17 metals that are critical to the manufacturing of many electronic products. This includes mobile smartphones, electric vehicles, aircraft engines, and wind turbines, as well as military hardware.

What do the brokers think?

A couple of brokers weighed in after the company announced water supply disruption issues affecting production at its Malaysia plant.

According to ANZ Share Investing, analysts at Macquarie cut their price target by 2% to $9.30 per share. Based on the current Lynas share price, this implies an upside of around 20%.

Clearly, the broker believes there is still significant value in the miner despite the short-term problems.

On the other hand, Ord Minnett had a more bearish tone, slashing its 12-month rating by 1% to $4.80. This represents a downside of almost 40% from where Lynas trades today.

Lynas share price snapshot

Over the past 12 months, the Lynas share price has gained 15%.

Year-to-date, however, the share is down 25% on the back of market volatility.

Lynas has a price-to-earnings (P/E) ratio of 12.67 and commands a market capitalisation of approximately $6.63 billion.

The post Why is the Lynas share price powering up 5% today? appeared first on The Motley Fool Australia.

.

More reading

• Which ASX shares have exposure to this ‘absolutely essential’ market?
• Looking to buy Lynas shares? Here’s what rare earths are actually used for
• The Lynas share price is down 20% this year, so why is management receiving a huge bonus?
• Here are the top 10 ASX 200 shares today
• Lynas share price storms 5% higher: Can it keep rising?

Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://ift.tt/8RdHpa6