Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Alto Capital investment advisor Tony Locantro discusses two ASX shares that are ready to break out.

Hottest ASX shares

The Motley Fool: What are the two best stock buys right now?

Tony Locantro: Proteomics International Laboratories Ltd (ASX: PIQ), they’re in the mid-eighties [cents]. They have developed the PromarkerD test which can pick up a diabetic kidney disease before it happens, well in advance. The science is proven. 

They just need to roll that out, [and] look at reimbursements. They’ve been able to manufacture 50,000 components to get that test out. 

They’ve announced some licensing of an esophageal cancer test as well. They’re working on that. And recently, they came out with some positive biomarkers for endometriosis, which affects one in nine women, and this could lead to the world’s first non-invasive test because it does take years to diagnose.

The company has some laboratory services which it provides, and the revenue matches the cash burn but you think that their expenditure will increase. The market cap is undemanding at around $85 million. Solid management that owns a lot of the company and I think it has outstanding growth. 

It’s an outstanding growth opportunity in the biotech sector. 

The second stock I’m buying is a company called Maronan Metals [MMA Offshore Ltd (ASX: MRM)]. I should disclose that I was heavily involved in the initial public offering (IPO) at 20 cents. The stock is now trading at 34 cents.

​​So, they’re about to drill at the Maronan lead, silver and copper gold resource in the Cloncurry region of North Queensland. It is already a sizable resource that requires deeper drilling to expand on the 30 million tonnes at 6.5% lead. That includes a hundred million ounces of silver. They also have a separate copper gold resource that’s around 11 million tonnes for 300,000 ounces of gold and some copper.

It’s in that vicinity of other major mines, and it could be part of a consolidation play in North Queensland. And the company’s capped around $50 million and has recently raised $15 million in its IPO. 

Again, we have extensive holdings, but it’s one of these companies that has an existing resource. The grades do get better with depth, so they’re trying to basically drill and increase the resource. There was a mining study completed in 2016, which showed favourable mining optics. 

So, highly speculative, but those are my two best buys on the market at the moment.

MF: With these minerals companies, are you ever worried about the cyclical nature of commodity prices?

TL: No.

MF: Because they’re mainly exploratory companies that you’re looking at?

TL: Yeah. 

At the moment, a lot of these mining companies are being hit with COVID issues. They’ve been hit with cost blowouts. A lot of the gold producers are now having to add dollars to their all-in sustaining cost. 

But my theory is that a good resource will override any commodity price or cycle. And even though they’re higher risk, you’re still in that exploration phase where you’ve got to move through DFS [definitive feasibility studies] really to get towards production.

So a big resource, I think it’s going to be valued, and it should be noted that around 80% of the mines in Australia are discoveries made around 1980 or [before] that, so there hasn’t been a lot of major discoveries and those that are made are rewarded with good re-ratings.

The post 2 ‘outstanding’ small-cap ASX shares that could explode: expert appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Analysts name 2 ASX growth shares to buy in August
• Why did the BHP share price have such a cracking session today?
• Broker names 2 blue chip ASX shares to buy now
• Here are the top 10 ASX 200 shares today

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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.25% to 6,807.3 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to tumble

The Australian share market looks set to have a difficult day on Wednesday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 47 points or 0.7% lower this morning. On Wall Street, the Dow Jones fell 0.7%, the S&P 500 dropped 1.15%, and the Nasdaq sank 1.9%.

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor day after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1.9% to US$94.88 a barrel and the Brent crude oil price has fallen 1.1% to US$104.05 a barrel. Demand concerns weighed on prices.

Rio Tinto half-year results

The Rio Tinto Limited (ASX: RIO) share price will be on watch this morning when the mining giant releases its half-year results. According to a note out of Goldman Sachs, its analysts are expecting revenue of US$29,655 million and underlying EBITDA of US$15,671 million. The broker has also pencilled in an ordinary dividend of US$3.18 per share and a special dividend of US$0.50 per share.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price traded lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,715.80 an ounce. Traders were selling gold ahead of the US Federal Reserve meeting this week.

Iluka demerger

The Iluka Resources Limited (ASX: ILU) share price could drop into the red today when the mineral sands company demerges its Sierra Rutile business. Following a review, the Iluka board determined that a separation of Sierra Rutile by way of demerger is the optimal pathway for the business to achieve its growth objectives, reach its potential, and maximise value for Iluka shareholders.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Why did ASX 200 energy shares fire up on Tuesday?
• Own Santos shares? Here’s why the company’s international exports could come under pressure
• Why is the Beach Energy share price having such a top run on Tuesday?
• Rio Tinto share price climbs ahead of tomorrow’s earnings update. Here’s what to watch

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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Looking for growth shares to buy in August? Listed below are two that have recently been named as buys and tipped to generate strong returns for investors.

Here’s what you need to know about these ASX growth shares:

NEXTDC Ltd (ASX: NXT)

The first growth share that could be a buy in August is leading data centre operator, NextDC.

The team at Morgans is bullish on the company due to its analysts’ belief that NextDC is well-placed for long term growth. This is thanks to the strong market position its world class data centre network has carved out for itself over the last decade, the industry’s significant barrier to entry, and its expansion opportunities.

Morgans commented:

We retain our Add recommendation and highlight that NXT remains our preferred pick given substantial structural growth, quality management, significant barrier to entry and, in our view, improving competitive advantage with regional/edge sites.

We see a clear pathway for long-term growth, substantially higher EBITDA and material free cash flow, over the medium term.

Last week, Morgans retained its add rating with a $13.01 price target. This compares favourably to the latest NextDC share price of $11.60.

TechnologyOne Ltd (ASX: TNE)

Another ASX growth share that is rated highly is enterprise software provider TechnologyOne.

The team at Goldman Sachs is bullish on the company due to its strong position in defensive end markets such as government, health and community services, and education.

And thanks to its shift to a software-as-a-service (SaaS) model and its UK expansion, the broker believes the company is well-placed to deliver strong earnings growth over the medium term and even in the current environment.

It commented:

In our view TNE is well on its way to becoming a pure SaaS business, with high recurring revenue and expanding margins (post FY22) providing visibility into medium-term earnings growth. With a potentially challenging macro backdrop on the horizon we see TNE as offering resilient earnings given its low churn, mission critical software and defensive public sector end markets

Goldman has a buy rating and $13.30 price target on the company’s shares. This compares to the latest TechnologyOne share price of $11.41.

The post Analysts name 2 ASX growth shares to buy in August appeared first on The Motley Fool Australia.

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More reading

• Looking for ASX shares to buy? Here are two analysts rate as buys
• Here’s how much $20k invested in these ASX shares 10 years ago is worth today
• Analysts say these top ASX growth shares are buys
• Experts name 3 ASX 200 shares to buy now
• Has a turnaround already begun for ASX tech shares? Experts reveal the outlook for FY23

Motley Fool contributor James Mickleboro has positions in NEXTDC 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 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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The BHP Group Ltd (ASX:) share price had a top run on Tuesday amid rising commodity prices.

In today’s trade, the mining giant’s share price lifted 2.46% to close at $38.27. In contrast, the S&P/ASX 200 Index (ASX: XJO) jumped 0.26% today.

So why did BHP have such a good day?

Iron ore prices

BHP shares forged ahead today while other mining giants also had a stellar day. The Fortescue Metals Group Ltd (ASX: FMG) share price rose 2.47% while Rio Tinto Ltd (ASX: RIO) shares increased 1.87%.

On commodity markets, iron ore and copper prices jumped overnight amid news out of China.

ANZ economist Madeline Dunk, in a research note, said:

Copper extended recent gains as concerns over the Chinese property sector eased. Real estate stocks in China picked up after it was reported that Beijing will establish a CNY50bn [AU$10.62 billion] fund to support struggling developers.

Sentiment in the iron ore market was also boosted following news on the Chinese real estate fund.

Iron ore prices gained 0.97% to US$104 per tonne in global markets overnight, Trading Economics data shows.

On the Dalian Commodity Exchange in China, iron ore leapt a massive 7.1% to $105.27 per tonne, mining.com reported. That was its strongest level since July 14.

However, Goldman Sachs has warned that China’s property crisis could lower iron ore prices. Goldman cut its three-month target price on iron ore to $70 per tonne and the six-month target to $85 per tonne. This is down from $90 and $110 per tonne, according to Bloomberg.

Goldman said:

This sector segment generates close to a third of China’s steel and iron ore demand, which in turn represents close to a quarter of global seaborne demand.

BHP share price snapshot

The BHP share price has fallen 17% in the past year while it’s climbed about 3.57% year to date.

However, in the past month alone, BHP shares have dropped 4.37%.

For perspective, the benchmark ASX 200 index has lost almost 8% in the last year.

BHP has a market capitalisation of about $193.7 billion.

The post Why did the BHP share price have such a cracking session today? appeared first on The Motley Fool Australia.

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More reading

• 5 ASX 300 shares this fundie has been buying at bargain prices
• Here’s why I think the BHP share price is a buy right now
• How might China’s $6b Mineral Resources Group impact the iron ore price?
• ‘We remain cautious’: Could the BHP share price be heading south?
• Own BHP shares? Here’s why the miner just partnered with one of the world’s biggest steelmakers

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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If you’re looking to make some new blue chip additions to your portfolio, then look no further.

Listed below are two blue chip ASX shares that the team at Morgans are bullish on. Here’s what the broker is saying about them:

Treasury Wine Estates Ltd (ASX: TWE)

The first blue chip ASX share that the broker rates highly is wine giant Treasury Wine. In fact, Morgans describes the company as a “key pick” for its analysts.

Morgans is bullish on the company due to its strong brands, positive growth outlook over the coming years, and attractive valuation.

Its analysts commented:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Morgans has an add rating and $13.93 price target on Treasury Wine’s shares. This compares to the latest Treasury Wine share price of $12.00.

Wesfarmers Ltd (ASX: WES)

Another blue chip that has been rated as a buy is this conglomerate. Morgans rates the company highly due to the strong brands in its retail portfolio and its talent management team.

The broker also believes that recent share price weakness has created a buying opportunity for buy and hold investors.

Its analysts explained:

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While COVID-related staff shortages are proving to be a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the pullback in the share price as a good entry point for longer term investors.

Morgans has an add rating and lofty $58.40 price target on Wesfarmers’ shares. This compares favourably to the latest Wesfarmers share price of $45.95.

The post Broker names 2 blue chip ASX shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Should investors buy Wesfarmers shares for dividends?
• Analysts name 2 stellar ASX growth shares to buy
• Got $1,000? You can buy 85 Treasury Wine shares… or one bottle of Penfolds Grange!
• Can ASX dividend shares deliver during earnings season?
• Could ASX earnings season be ‘a lot better than what the market is positioned for’?

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 positions in and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Treasury Wine Estates 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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After a wobbly start to the day, the S&P/ASX 200 Index (ASX: XJO) posted a gain for the first time in three sessions after lacklustre performances yesterday and on Friday.

At the end of Tuesday’s trade, the index was up 0.26% at 6,807.3 points.

ASX 200 energy shares lead the way

ASX 200 energy shares drove the market higher today on the back of rising commodity prices.

The Brent crude price rose 1.9% overnight to trade at US$105.15 a barrel. The US Nymex crude price lifted 2.1% to US$96.70 a barrel.

Meanwhile, the price of thermal coal increased 0.3% to reach U$410.25 a tonne.

Materials shares also spent a day in the sun, likely on the back of a gain in iron ore futures, up 0.5% to US$105.01.

On the flipside, ASX consumer discretionary shares and ASX healthcare shares suffered.

The S&P/ASX 200 Consumer Discretionary Index (AS: XDJ) fell 1.7% today. The S&P/ASX 200 Health Care Index (ASX: XHJ) slipped 0.9%.

So, without further ado let’s take a look at which ASX 200 shares outperformed all others on Tuesday.

Top 10 ASX 200 shares countdown

Today’s top-performing ASX 200 share was none other than Zip Co Ltd (ASX: ZIP).

The buy now, pay later player lifted a whopping 20% despite the company’s silence. The Zip share price surged to trade higher than $1 for the first time in two months.

Today’s biggest gains were made by these ASX 200 shares:

ASX-listed company	Share price	Price change
Zip Co Ltd (ASX: ZIP)	$1.025	19.88%
Paladin Energy Ltd (ASX: PDN)	$0.665	8.13%
Nanosonics Ltd (ASX: NAN)	$4.54	6.57%
Whitehaven Coal Ltd (ASX: WHC)	$6.48	6.4%
Lake Resources NL (ASX: LKE)	$0.73	5.8%
Telix Pharmaceuticals Ltd (ASX: TLX)	$7.31	5.79%
Nickel Industries Ltd (ASX: NIC)	$1.085	5.34%
Imugene Limited (ASX: IMU)	$0.24	4.35%
Beach Energy Ltd (ASX: BPT)	$1.80	4.05%
Mineral Resources Limited (ASX: MIN)	$49.22	3.38%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Why did ASX 200 energy shares fire up on Tuesday?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why has the Lake Resources share price surged 16% in a week?
• How long can ASX coal shares keep this rally up?
• Why is the Beach Energy share price having such a top run 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 Nanosonics Limited and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Nanosonics 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 Bitcoin (CRYPTO: BTC) price is down 3.5% over the past 24 hours.

The world’s top crypto by market cap is currently trading for US$21,112 (AU$30,283).

This comes after the Bitcoin price topped 30-day highs just last Thursday when the token traded for US$24,196, according to data from CoinMarketCap.

With the latest drop factored in, Bitcoin is now down 56% in 2022, temporarily diminishing hopes of a new, sustained price rally.

What needs to happen for a sustained Bitcoin price rally?

Almost every crypto – save those stablecoins that didn’t meltdown – have traded closely in line with share markets in 2022. Particularly higher risk assets.

This year’s crypto fire sale has mirrored (and magnified) the 26% year-to-date losses posted by the tech-heavy NASDAQ.

While cryptos’ correlation to stock markets may eventually come uncoupled, it’s not one of the factors analysts are waiting for to see a sustained rally in the Bitcoin price.

Instead, one of the requirements is an easing of the US Federal Reserve’s current path of aggressive tightening.

As market analyst at eToro Josh Gilbert pointed out, that will only happen once inflation figures in the world’s largest economy come down.

According to Gilbert:

Crypto asset prices have rallied off their June lows, following equities higher as investors become more comfortable with the economic growth outlook. But markets are not yet out of the woods and need to see a clear fall in US inflation for this bear market rally to become sustainable.

Chief market strategist at Miller Tabak + Co Matt Maley agrees that the US Fed holds one of the keys to a digital asset rally.

“Crypto is a liquidity asset right now, so as long as the Fed is tightening, it’s going to be hard for it to see a sustained rally,” Maley said (courtesy of Bloomberg).

Maley added a second factor that could lead to a sustained rally in the Bitcoin price, namely confidence.

“Second, the asset class has lost a lot of confidence with investors, so it’s going to take time for it to regain that confidence,” he said.

The post 2 things need to happen for a sustained Bitcoin price rally: experts appeared first on The Motley Fool Australia.

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More reading

• Why Bitcoin, Ethereum, and Shiba Inu are falling today
• Can Ethereum reach $10,000?
• Will Ethereum and Bitcoin see the ‘flippening’ in 2022?
• Why Bitcoin, Ethereum, and Dogecoin are falling today
• Tesla sells 75% of Bitcoin holdings. Here’s why Elon Musk is unloading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. 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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What a rollercoaster the Novonix Ltd (ASX: NVX) share price has been on in recent weeks. Last week, the battery metals company delighted investors with a whopping near-27% gain. Yes, Novonix shares rose from $2.02 to $2.56 by the end of last week, a gain of 26.73%.

But this week has been far more muted for the company. Yesterday saw the Novonix share price shed a painful 5.47% to finish at $2.42 a share. That has only been somewhat assuaged by the 2.07% gain to $2.47 we have seen at market close today. So what on earth is going on here?

Well, let’s start with last week. As my Fool colleague Monica covered at the time, Novonix shares seemed to get an almighty boost from the comments of Tesla Inc (NASDAQ: TSLA) CEO Elon Musk.

As head of the world’s largest electric vehicle manufacturer, Musk obviously has some insights into the lithium industry. So investors seemed to take it very seriously when Musk declared the following:

So it is basically like minting money right now. There’s like software margins in lithium processing right now.

Since Novonix is a lithium processor, investors were clearly excited. Enough to send the Novonix share price up almost 27% anyway.

But what of this week?

Why is the Novonix share price struggling this week?

Well, there’s been no additional news or developments out from Novonix. So perhaps Novonix shares have been caught up in the woes that have hit ASX tech shares this week. After a stellar week last week, many ASX tech shares have taken a hammering so far.

As my Fool colleague covered yesterday, ASX tech shares have come under pressure following some recent heavy selling in the equivalent sector in the US. This comes after some disappointing earnings reports, from social media company Snap Inc (NYSE: SNAP) in particular.

So even though Novonix isn’t a social media share, it looks as though its shares have been caught up in this anxiety nonetheless.

Whatever the reason, no doubt investors will be hoping the rest of the week is kinder to Novonix shares. But we shall have to wait and see.

In the meantime, the current Novonix share price gives this ASX battery tech share a market capitalisation of $1.21 billion.

The post After gaining 27% last week, the Novonix share price is struggling this week. What gives? appeared first on The Motley Fool Australia.

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More reading

• Why is the Novonix share price surging 9% on Thursday?
• 3 ASX 200 tech shares having a stellar session today
• ‘You can’t lose’: Which ASX lithium shares operate in Musk’s sweet spot?
• Why is the Novonix share price launching 5% higher today?
• Down 76% this YTD, can the Novonix share price claw back gains?

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

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The Xero Limited (ASX: XRO) share price has had a very volatile 2022 so far. In recent weeks, it has been rising and top broker Citi has a positive outlook for the company’s ongoing growth.

Xero is a large cloud accounting technology business. It has built a global subscriber base, with a particularly large presence in Australia, the United Kingdom, and New Zealand.

At the time of writing, the Xero share price is down 39% in 2022. That compares to a 10% fall for the S&P/ASX 200 Index (ASX: XJO). However, since the beginning of July, Xero shares have gone up by 16%.

There has been a lot of investor attention on inflation and what this means for central bank interest rates. In theory, higher interest rates are meant to lead to lower asset values.

The ASX and other share markets are meant to be forward-looking. In other words, investors have tried to ‘price in’ the expected changes in the economic environment. Investors have estimated where they think interest rates will go, and therefore how various ASX shares should be valued.

Some brokers are seeing opportunities in the sell-off.

Bullish Xero share price target

Citi is one of the brokers that rates Xero a buy with a share price target of $108. Based on Tuesday’s closing Xero share price of $89.18, this implies a possible rise of around 20%.

One of the main reasons for that price target is the fact that the company is increasing its prices for subscribers in the UK, Australia, and New Zealand. Not only does this imply that Xero management thinks the company’s market strength is good, but it can also lead to increased revenue.

Citi thinks that the higher subscription price will lead to a rise of close to 10% for Xero’s average revenue per user (ARPU), which could lead to the business doing better than previously predicted.

The broker also noted that Xero has been hiking its subscription prices at a faster rate than it used to.

Morgan Stanley is another broker that is optimistic about the Xero share price with a target of $148. But this rating is a bit older than Citi’s. Morgan Stanley is also optimistic about the company’s long-term future.

Xero is also focused on the long term. When the company released its FY22 results, Xero CEO Steve Vamos said:

We are committed to delivering the world’s most insightful and trusted small business platform by focusing on driving cloud accounting adoption, growing the small business platform and building for global scale and innovation.

We continue to prioritise investment in building products and growing partnerships by investing cash generated to help deliver our strategy, drive long-term growth and meet customer needs.

The post Top broker rates Xero share price a buy with 20% upside appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 tech shares having such a lousy start to the week?
• Is the Xero share price heading back over $100?
• 3 fantastic ASX tech shares experts say are buys
• Here are the top 10 ASX shares today
• ASX 200 midday update: Megaport rockets, Allkem’s update, tech shares rally

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 200 energy shares jumped today amid rising oil and gas prices.

Energy shares that finished in the green include Woodside Energy Group Ltd (ASX: WDS), Santos Ltd (ASX: STO), and Beach Energy Ltd (ASX: BPT).

So why did these ASX 200 energy shares have such a good day?

Rising oil and gas prices

Woodside and Santos shares jumped almost 3% while the Beach Energy share price gained just over 4%. These ASX 200 energy shares are major oil and gas producers.

On commodity markets, the West Texas International (WTI) crude oil price is up 1.26% while the Brent crude oil price is 1.37% higher, according to Bloomberg.

Natural gas prices are also up 1.17%.

Oil prices increased in US markets on Monday due to supply fears, Reuters reported. Commenting on the rise, UBS oil analyst Giovanni Staunovo told the publication:

A slightly weaker U.S. dollar and improving equity markets are supporting oil.

Meanwhile, gas prices also jumped amid supply concerns. Russian energy giant Gazprom said it would cut gas flows to Germany to 33 million cubic metres a day from Wednesday, Reuters reported.

This led to Ukraine President Volodymyr Zelenskiy to suggest the Kremlin is engaging in an “open gas war” against Europe.

Share price summary

Woodside shares have surged 44% in the year to date while Santos shares have gained 14%. Meanwhile, the Beach Energy price has increased 45% in the same time frame.

For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 28% in the year date.

The post Why did ASX 200 energy shares fire up on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Own Santos shares? Here’s why the company’s international exports could come under pressure
• Why is the Beach Energy share price having such a top run on Tuesday?
• 5 things to watch on the ASX 200 on Tuesday
• Own Woodside shares? Here’s why this $7 billion deal could be at risk
• Leading brokers name 3 ASX shares to buy 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.

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