A2 Milk Company Ltd (ASX: A2M) shares climbed last month, despite one major daigou customer reportedly cutting ties.

The baby infant formula company’s share price lifted nearly 12% since market close on 1 July to end the month at $4.90. For perspective, the S&P/ASX 200 Index (ASX: XJO) gained 7% in the same time frame.

Let’s take a look at what is going on with A2 Milk.

What’s going on at A2 Milk

A2 Milk has lost one major corporate daigou customer, however, this is not stopping the company exploring other avenues to export its product.

‘Daigou’ refers to people or groups who export luxury goods, including infant formulas, from outside China to customers in China.

Wenjun Zhang was previously A2 Milk’s top customer, according to the Australian Financial Review, but has not bought any product since March.

However, A2 Milk CEO David Bortolussi outlined how the company is rebuilding. In comments cited by the publication, he said:

During the past year, we have increased our direct engagement with the daigou community, provided more marketing support and seen an increasing number of daigou representing our a2 Platinum brand.

Consistent with our growth strategy communicated to the market last year, we are simplifying and delayering our English Label infant milk formula distribution network.

On Tuesday, A2 Milk shares shot up more than 7% amid speculation the US Food and Drug Administration (FDA) would approve A2 Milk to sell infant formula products in the US. However, in an announcement to the market, A2 Milk said:

The company wishes to confirm that while we have been informed by the FDA that our application is under active review, at this stage there is no certainty as to the outcome of the application or the timing of any approval.

Share price snapshot

A2 Milk shares have lost almost 17% in the past year and more than 9% year to date.

For perspective, the ASX 200 Index has dropped around 6% so far in 2022.

A2 Milk has a market capitalisation of about $3.6 billion based on the current share price.

The post Own A2 Milk shares? Here’s how the company is battling to rebuild lost daigou sales appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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• Here’s why the A2 Milk share price just popped then stopped
• Own A2 Milk shares? Here’s what to expect from its FY22 results
• The A2 Milk share price has bubbled 10% higher in a month. What’s going on?

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 A2 Milk. 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has disappointed over the last five years.

The ASX bank share has slipped from $29.26 five years ago to trade at $22.71 — a 22.4% reduction in value.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 21.94% in that time, while the S&P/ASX 200 Financials Index (ASX: XFJ) has slumped 2.48%.

The only big four bank to have put in a worse performance over the last half decade was Westpac Banking Corp (ASX: WBC). The Westpac share price has fallen 31% in five years.

But ASX 200 bank shares are often viewed as strong dividend payers. So, could ANZ’s dividends have made up for its share price’s weak performance over the last five years? Let’s take a look.

How much have ANZ shares paid in dividends since 2017?

Here’s a recap of all the dividends ANZ has offered its shareholders over the half decade just been:

ANZ Dividend	Amount offered	Franking
November 2017	$0.80	100%
May 2018	$0.80	100%
November 2018	$0.80	100%
May 2019	$0.80	100%
November 2019	$0.80	70%
August 2020	$0.25	100%
November 2020	$0.35	100%
May 2021	$0.70	100%
November 2021	$0.72	100%
May 2022	$0.72	100%

All those relatively consistent dividends add up to a total of $6.74.

That means those invested in ANZ shares have just broken even over the last five years, in which the company’s share price has slipped $6.55.

Of course, as most of ANZ’s dividends in that time were fully franked, some investors might have realised even more benefits from the bank’s payouts.

And to end on another positive note, ANZ is currently boasting a 6.35% dividend yield. That’s certainly nothing to scoff at.

The post Guess how much ANZ shares have paid in dividends over the last 5 years appeared first on The Motley Fool Australia.

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• What might the ANZ deal mean for Bank of Queensland shareholders?

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 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) followed the lead of US markets and dropped into the red. The benchmark index fell 0.3% to 6,975.9 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market is expected to rebound on Thursday following a stellar night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 32 points or 0.5% higher this morning. On Wall Street, strong US economic data sent the Dow Jones up 1.3%, the S&P 500 up 1.6%, and the NASDAQ up a sizeable 2.6%.

Centuria Industrial results

The Centuria Industrial REIT (ASX: CIP) share price will be one to watch on Thursday. This morning the industrial property company is scheduled to release its full year results. It has had a strong year and is expecting to deliver funds from operations (FFO) of no less than 18.2 cents per share and a full year distribution of 17.3 cents per share in FY 2022.

Oil prices tumble

Energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a tough day after oil prices tumbled on Wednesday night. According to Bloomberg, the WTI crude oil price is down 4% to US$90.71 a barrel and the Brent crude oil price is down 3.6% to US$96.90 a barrel. A surprise increase in US crude and gasoline inventories weighed on prices.

TechnologyOne rated as a buy

The TechnologyOne Ltd (ASX: TNE) share price could have plenty of room to climb higher from current levels. According to a note out of Bell Potter, its analysts have retained their buy rating and lifted their price target on the enterprise software company’s shares to $14.25. It said: “We forecast double digit underlying EPS growth in each of the next three years.” It feels this justifies a premium valuation.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a difficult day after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.4% to US$1,782.1 an ounce. A rebound by the US dollar and treasury yields put pressure on the safe haven asset.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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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While the market rebounded strongly last month, there are still plenty of shares trading well below their highs.

Two that have been beaten down in 2022 and could be great value now are listed below. Here’s what analysts are saying about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator’s shares have been having a very tough year. Weakness in Japan and concerns over inflationary pressures have been weighing on investor sentiment. This has led to the Domino’s share price dropping 42% since the start of the year.

The team at Citi remains positive on the company and believes recent share price weakness is a buying opportunity. This is due to its very positive long term growth outlook. It said:

Our Buy rating is predicated on potential upside from potential M&A activity, upside to long term store rollout and sales on track to rebound later in CY22 once the business has cycled through the abnormal comps.

Citi has a buy rating and $92.95 price target on the company’s shares.

Xero Limited (ASX: XRO)

Another ASX share that has been beaten down is Xero. It is a cloud-based accounting solution platform provider competing with the likes of MYOB, Quickbooks, and Sage.

Despite delivering a 29% increase in revenue to NZ$1.1 billion and a 28% jump in annualised monthly recurring revenue to NZ$1.2 billion in FY 2022, Xero’s shares have been hammered in 2022 due to weakness in the tech sector. Since the start of the year, the Xero share price has lost 34% of its value.

The team at Goldman Sachs appear to see this as a buying opportunity for investors. Particularly given its belief that Xero can continue growing at a rapid rate for many years to come. The broker said:

While noting that the near term remains robust, we do acknowledge the risk of higher churn from SME business challenges and recent price increases. Nevertheless, we see Xero as well-placed to navigate this uncertainty given the stickiness & importance of its software, and lower levels of churn vs. AU overall. We revise FY23-25 GP [22% CAGR] to reflect FX and higher churn/ARPU growth (price increases).

Goldman currently has a buy rating and $113.00 price target on its shares.

The post Experts name 2 beaten down ASX shares that could be going cheap appeared first on The Motley Fool Australia.

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• Top brokers say Domino’s share price has loads of extra topping in it, here’s why
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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Lindsay Australia Limited (ASX: LAU) is one of few ASX All Ords shares to defy the market sell-off in 2022.

The S&P/ASX All Ordinaries Index (ASX: XAO) has tumbled 9% over the year to date. In contrast, the Lindsay Australia share price has risen 17.7% to 46.5 cents at the market close on Wednesday.

In a new note released this week, broker Ord Minnett says the integrated logistics and rural supply company has “historically performed consistently in a weakening economy”.

The broker’s analysts maintain a buy recommendation on the ASX All Ords share. They’ve also raised their valuation to 55 cents per share, implying a potential upside of 18%.

Who is Lindsay Australia?

Lindsay Australia transports fresh produce and provides farming equipment to rural growers.

Ord Minnett points out that it “operates predominately in the consumer staples category”. This is a market sector that has traditionally withstood rising inflation better than other ASX All Ords shares.

Founded in 1953, Lindsay listed on the ASX in 2001. The company says it is “a pioneer in the refrigerated fruit and vegetable transport industry”. It was one of the first to use refrigerated trailers in Australia.

According to Ord Minnett, Lindsay operates 19 logistics terminals, 18 rural stores, and an import/export hub at the Brisbane produce markets.

About 85% of the goods it transports are perishable foods, mostly fruit and vegetables. These products are delivered to more than 3,000 customers across Australia.

Lindsay Rural supplies and transports farming equipment, fertiliser, nutrients, and packaging materials to about 1,500 customers.

Headquartered in Brisbane, the company employs more than 1,500 staff. The founding Lindsay family holds an estimated 13% of issued shares.

Why buy?

Ord Minnett explains why it likes this ASX All Ords share in a note released this week.

The broker says:

Positive results and outlook commentary from Elders Ltd (ASX: ELD) and Silk Logistics Holdings Ltd (ASX: SLH) during the past quarter reinforces our thesis that transport and agri conditions remain favourable, supported by upward pricing of freight contracts to reflect cost pressures and tightness of supply.

Specific to the horticulture sector, ABARE has issued bullish output forecasts for FY22e and FY23e, rising by 6% and 7% respectively. Momentum from LAU’s first half result is likely to accelerate into the second half, given a higher forecast number of rail containers in operation and improving returns from the 18-store rural network.

Growth in these areas is supportive of group margins, ROE and free cash flows.

We are attracted to the market position of Lindsay Australia … and the consistency of revenue generation from grower and corporate customers. Competitive advantage is found in the synergies and customer value-add leveraged through the combined transport and rural store network.

Refrigerated transport holds high barriers to entry and the acceleration of rural and rail services is proving to be a major positive catalyst for returns. The company has more than doubled the number of rail containers to approximately 400 by 30 June 2022.

We expect LAU to increase the share of group EBITDA generated by rail services to approximately 25% in the medium term, improving free cash flow generation and adding to the ESG credentials of the business. Returns on equity have increased materially to approximately 15% in FY22e and with lower financial leverage we see higher rates of earnings per share growth into future periods.

What’s next for this ASX All Ords micro-cap?

Lindsay Australia is expected to release its full-year FY22 earnings during this month’s earnings season.

Ord Minnett is expecting FY22 EBITDA of $57.1 million, up 27%. It projects an adjusted EPS of 4.95 cents per share, up 54%.

The broker says the ASX All Ords share trades on a price-to-earnings (P/E) ratio discount to its peers.

It notes forecasts of horticulture production in FY22e and FY23e to be approximately 8% above the long-term average. This will benefit Lindsay Australia given 70% of its group revenue comes from the horticulture sector.

The broker said: “With scale as Australia’s largest stand-alone horticulture logistics specialist and national operations, we see upside risk to earnings forecasts and have raised our estimates in FY23e and FY24e”.

Lindsay Australia has a market capitalisation of $140.42 million.

The post Broker says buy: The ASX All Ords share defying this year’s sell-off to leap 13% appeared first on The Motley Fool Australia.

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• Top ASX shares to buy in August 2022

Motley Fool contributor Bronwyn Allen 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 Lindsay Australia Limited. The Motley Fool Australia has recommended Lindsay Australia 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price was rangebound today. ANZ shares closed trade 44 basis points down at $22.71.

The bank raised $2.3 billion of debt capital on Wednesday following sharp demand for its bond issue that was completed today.

In broad market moves, the S&P/ASX 200 Financials Index (ASX: XFJ) softened today, 0.88% in the red at market close.

ANZ raises $2.3 billion for Suncorp deal

The bank issued the subordinated bonds at a fixed coupon rate (interest rate) of 5.986% until maturity, according to Refinitiv Eikon data.

ANZ has been on the road with its pitchbook in an effort to sure up additional capital. It follows the bank’s $4.9 billion purchase of Suncorp Bank.

It had issued $3.5 billion of equity via an equity raise to pay for the transaction, and completed another bond issue last week for $2.8 billion.

That offer was at a higher interest rate – 6.32% to be exact. More to the point, it adds to a large cash injection the company has secured over the past few months.

After the $4.9 billion capital expense, ANZ’s balance sheet would have seen a large outflow of cash.

Consequently, this would have adjusted its capital adequacy ratios (CET1 and CET2 ratios).

Banks are required to keep a certain amount of capital on the balance sheet relative to their liabilities. It’s synonymous to the bank’s reserves.

These are known as capital adequacy ratios and place a layer of resiliency over the sector.

With that in mind, ANZ needed to acquire the additional capital in order to bring its CET1/CET2 ratios back in line with the required 4%/8% respectively.

ANZ share price snapshot

In the last 12 months, the ANZ share price has slipped more than 18% into the red. ANZ shares have lost 16.8% since the start of 2022.

The post ANZ share price best of bad bunch after pocketing extra $2.3b appeared first on The Motley Fool Australia.

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

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The Core Lithium Ltd (ASX: CXO) share price powered ahead despite a small hiccup earlier last month.

The ASX lithium share finished at $1.155 a share, up 20.94% for the month of July.

In contrast, the S&P/ASX 200 Materials (ASX: XMJ) index fell almost 1% over the same time frame.

Let’s take a look at what led the company’s shares to accelerate while the broader index remained stagnant.

What happened to Core Lithium last month?

Despite tumbling to a near year-to-date low of 82.5 cents on 13 July, the Core Lithium share price made a stunning turnaround.

Selling pressure increased within the first couple of weeks of July as investors were betting against the lithium industry.

This saw Core Lithium, along with its peers, sink deep in the red.

On the same day, the company announced it significantly increased the Mineral Resource Estimate and Ore Reserves Estimate for the Finniss Lithium Project.

However, this failed to appease the market with investors shrugging off the good news at the time.

But as they have before, Core Lithium shares began to turn the tide in the following days as bargain hunters appeared to take advantage of the recent share price weakness.

The response saw the company’s shares rocket more than 20% from 14 July until 21 July.

In addition, Core Lithium released its June quarterly activities and cashflow report which highlighted its progress at Finniss.

With the company targeting first production of spodumene concentrate by the end of 2022, this could bode well for its share price.

Of course, this is provided lithium prices remain stable from here on.

Core Lithium share price summary

Adding to its already impressive gains, the Core Lithium share price has almost doubled in value in 2022.

When factoring in the last 12 months, its shares are up an incredible 317%.

Core Lithium commands a market capitalisation of roughly $2.03 billion.

The post Why did the Core Lithium share price jet 20% higher in July? appeared first on The Motley Fool Australia.

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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 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 Westpac Banking Corp (ASX: WBC) share price was out of form on Wednesday.

The banking giant’s shares ended the day over 1% lower at $21.75.

Where next for the Westpac share price?

The good news is that the team at Goldman Sachs believe the Westpac share price could be heading a lot higher from current levels.

According to a note from earlier this week, the broker has upgraded the bank’s shares to a conviction buy rating with a $26.12 price target.

Based on the current Westpac share price, this implies potential upside of 20% for investors over the next 12 months.

In addition, the broker is forecasting fully franked dividends per share of 123 cents in FY 2022 and 135 in FY 2023. This represents yields of 5.65% and 6.2% respectively, which brings the total potential 12-month return to over 25%.

What did the broker say?

Goldman’s bullish view on the Westpac share price is predicated on its belief that the bank is well-placed to benefit from rising rates. It explained:

WBC provides strong leverage to rising rates and will particularly benefit from the relative lack of domestic deposit repricing that we have seen to date post recent rates cash rate rises. Furthermore, its shorter-dated replicating portfolio (three-years for deposits versus five-years for peers), will also see the benefit of higher rates play through its NIM quicker than peers.

And while the broker isn’t convinced that Westpac can achieve its bold cost reduction targets, it still expects a decent reduction. It said:

While we now expect the inflationary environment will make WBC’s A$8 bn expense target by FY24E unachievable, our like-for-like FY24E expense forecast of c. A$8.9 bn still implies an 18% reduction in reported expenses versus 1H22A annualised, and a 7% reduction in expenses, excluding large/notable items and the impact of potential asset sales, with some ground already made since the strategy’s launch in May-21.

In light of the above, the broker believes “WBC now offers the most upside of the banks over the next 12 months.”

The post Broker says Westpac share price ‘offers the most upside of the banks’ appeared first on The Motley Fool Australia.

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• How are ASX 200 bank shares responding to the RBA rate increase?
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• Why is the Westpac share price outperforming the other ASX 200 banks on Monday?

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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S&P/ASX 200 Index (ASX: XJO) bank shares initially charged higher after the Reserve Bank of Australia (RBA) announced its latest interest rate hike at 2:30pm AEST yesterday, with most of the big bank stocks outperforming the index.

As you’re likely aware, the central bank lifted the official cash rate by another 0.50% yesterday. That marked the fourth month in a row of rate increases, bringing Australia’s official cash rate to 1.85%.

Before the RBA moved to raise rates from the all-time lows of 0.1% in May, the bank had not tightened its monetary policies in more than 10 years. And according to RBA governor Philip Lowe, we can expect more tightening in the months ahead.

Here’s how the ASX 200 bank shares responded.

ASX 200 bank shares charge higher…at first

The RBA’s rate hike decision hit the markets at 2:30pm AEST.

In the hour after the RBA’s statement, the ASX 200 shot up 0.5%. The index finished the day up 0.4% from the time of the announcement. The benchmark index closed 0.32% lower on Wednesday.

As for the ASX 200 bank shares, the Commonwealth Bank of Australia (ASX: CBA) share price initially jumped 0.4% on the news and finished up a slender 0.04% in the 90 minutes following the RBA’s report. The CBA share price closed 1.47% lower today.

Westpac Banking Corp (ASX: WBC) shares leapt 0.6% on the news and managed to hold those gains, closing 0.6% from the level they were trading at when the RBA news hit the wires. Westpac shares finished down 1.6% today.

National Australia Bank Ltd (ASX: NAB) followed a similar trend, first jumping 0.7% and then giving back some of those gains to close up 0.4% from the time of the announcement. NAB shares ended Wednesday’s session down 0.58%.

As for Australia and New Zealand Banking Group Ltd (ASX: ANZ), the ASX 200 bank gained 0.6% on the news of the RBA rate hike and closed up 0.2% from the time of that news. ANZ finished the day down 0.44%.

Headwinds and tailwinds from rising rates

As interest rates rise from historic lows, this presents opportunities and threats for the ASX 200 bank shares.

The biggest threat stems from a potential steep fall in the banks’ lucrative mortgage lending sector, as well as the chance that if rates rise steeply and quickly the banks could see a sizeable increase in bad debts.

The biggest opportunity lies in the banks’ abilities to increase their net interest margins (NIM) and boost profitability on their loans.

Out of the ASX 200 bank shares, JP Morgan reports that CBA is “most leveraged to a rising cash rate”, enabling it to squeeze the most out of increased NIM as rates go higher.

However, the broker also notes that CBA is trading at a significantly higher price to earnings (P/E) ratio than its peers.

The post How are ASX 200 bank shares responding to the RBA rate increase? appeared first on The Motley Fool Australia.

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More reading

• Up 10% in a month, is the CBA share price now fully valued?
• Here’s the CBA dividend forecast through to 2024
• 5 things to watch on the ASX 200 on Tuesday
• Will the RBA increase rates today?
• Leading brokers name 3 ASX shares to buy today

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 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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July was a top month for the S&P/ASX 200 Index (ASX: XJO) and many ASX 200 shares. Over the month just gone, the ASX 200 managed an increase of 5.7%. It was a similarly successful time for the Woolworths Group Ltd (ASX: WOW) share price as well.

Woolworths shares started July at a price of $35.60. But by the end of last week, the ASX 200 grocer had risen to $37.52 a share. That’s a gain worth 5.4%. Not quite as pleasing a gain as the ASX 200’s return, but certainly nothing one could arguably turn their nose up to.

After July, the Woolworths share price has now recorded a loss of close to 1% for the 2022 year to date. It’s also down by 2.77% over the past 12 months.

In contrast, the ASX 200 has performed even worse over these periods. The index is now down by 8.12% over 2022 so far, and down 6.7% over the past year. So that makes Woolies shares look pretty good.

But what of the future? What’s in store for the Woolworths share price over the next 12 months?

Is the Woolworths share price a buy today?

Well, analysts are rather united in their views of Woolies’ immediate future.

Earlier this week, my Fool colleague Brooke went through the current buy rating that ASX broker Citi has on Woolworths shares right now. The broker has a 12-month share price target of $42.50 on the company. This would represent an upside of 11.6% if it turns out to be accurate.

Citi reckons rising inflation will help Woolworths boost sales growth:

While the supermarkets have outperformed in recent months and are well held, we expect earnings upgrades could drive them further towards our revised target prices.

But Citi isn’t the only broker expecting big things from the Woolworths share price over the coming year.

As we also looked into last week, another ASX broker in Goldman Sachs is also bullish on Woolies today. Goldman also has a buy rating on the supermarket operator, with a share price target of $40.50. 

Goldman also likes how Woolworths is positioned today. It’s expecting both sales and earnings to grow significantly over the next two financial years “driven by effective cost-price pass through and additional mix improvement with relatively stable volume growth”.

This broker is also expecting this will enable Woolworths to lift its dividends to $1.18 per share by the end of FY2023.

So all in all, a very confident outlook for the Woolworths share price from these two ASX brokers. We’ll have to wait and see which one (or if either) proves correct with their expectations. But no doubt investors will be glad to hear these views.

At market close on Wednesday, this ASX 200 consumer staples share had a market capitalisation of $46.856 billion, with a dividend yield of 2.60%. 

The post The Woolworths share price leapt 5% in July, what’s in store now? appeared first on The Motley Fool Australia.

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More reading

• Does rising inflation put the Woolworths share price in the buy zone right now?
• Have Woolworths shares been a market-beating investment over the past 5 years?
• Broker names 2 ASX dividend shares to buy next week
• Own Woolworths shares? Here’s what a top broker is saying about its latest acquisition
• Why the Woolworths share price will be on watch today

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

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