The Nanosonics Ltd (ASX: NAN) share price is on course to start the week a sizeable decline

At the time of writing, the infection prevention company’s shares are down over 5% to $4.36.

This is despite the Nanosonics share price storming 5% higher shortly after the open.

Why is the Nanosonics share price sinking?

Investors have been selling down the Nanosonics share price on Monday following the release of an update on its sales model transition in the North America.

According to the release, the company’s transition completed successfully with a significant proportion of all consumables sales now going through the direct channel.

The company also revealed that its North American new installed base increased by 2,650 units in FY 2022. This is an increase of 11% over the prior corresponding period. This took its global installed base to 29,850, which is up 12% year on year.

Positively, during the fourth quarter, Nanosonics’ expanded North American team sold 91% of all new installed base units.

Furthermore, the number of upgrade units sold in the second half in North America was up 32% over the first half. Of the upgrade units sold in the second half, 63% were in the fourth quarter with the Nanosonics team responsible for 86% of those sales.

Management expects this trend to continue, with the significant majority of future capital sales (both new installed base and upgrades) to be made by Nanosonics.

In light of the above, the company expects to report full-year revenue of $120.3 million in FY 2022. This will be a 17% increase on the prior corresponding period and is ahead of the market consensus estimate of ~$115 million.

So why are its shares sinking?

Given the revenue beat, the weakness in the Nanosonics share price today has been a bit of a surprise.

However, it is worth noting that one thing missing from its update was any talk about costs or margins. These have been a major concern for investors and are part of the reason why short sellers have been targeting Nanosonics.

The lack of an update on its profitability could have spooked investors and sent them to the exits this morning.

Investors will have to wait until 23 August for its results to find out how the transition has impacted its margins.

Management commentary

Nanosonics’ CEO Michael Kavanagh said:

The strategic move to a more direct sales model in North America is now substantially complete with the expanded Nanosonics operation fully in place. The collaboration between Nanosonics and GE has resulted in no disruption in the continuity of supply of consumables to customers.

The intended benefits of this change are also coming to fruition with the Nanosonics direct team selling the significant majority of all new installed base during FY22 Q4 as well as driving upgrade adoption in the same period.

While Nanosonics’ direct operations will be responsible for the significant majority of all capital sales and 100% of consumables sales moving forward, the capital reseller agreement with GE Healthcare has been extended for a further 12 months. Our respective teams continue to collaborate to ensure the infection prevention needs of customers and their patients are met.

The post Why is the Nanosonics share price sinking? 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 positions in and has recommended Nanosonics Limited. 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 South32 Ltd (ASX: S32) share price is pushing higher on Monday following the release of the miner’s production update.

In morning trade, the mining giant’s shares are up 2.5% to $3.62.

South32 share price higher on Q4 and full year update

Here’s a summary of its performance in the fourth quarter:

• Alumina production up 3% quarter on quarter to 1,361kt
• Aluminium production up 5% to 255kt
• Copper production up 101% to 16.9kt
• Manganese production up 22% to 1,469 kwmt
• Metallurgical coal down 12% to 1,380kt
• Nickel production up 2% to 10.8kt
• Zinc production down 6% to 15.4kt

What happened in FY 2022?

This solid fourth-quarter led to South32 reporting record annual production at Worsley Alumina, guidance-beating zinc production at Cannington, and 99% of its copper guidance. The latter was despite impacts from weather and labour availability caused by the COVID-19 pandemic.

Management notes that its stable operating performance has allowed the company to capitalise on record conditions for a number of its commodities, with strong sales in the June 2022 quarter capturing the benefit of high prices.

Another positive is that the company is expecting to report FY 2022 operating unit costs in-line with its previously updated guidance at the majority of its operations. This is thanks to lower than anticipated producer currencies providing a benefit in the June 2022 quarter and helping to offset cost inflation.

Looking ahead, higher volumes at some of its operations and the tailwind of lower producer currencies are expected to provide partial relief from the ongoing effect of industry wide labour, raw material, and energy cost inflation that impacted its cost base in FY 2022.

Management commentary

South32’s CEO, Graham Kerr, was pleased with the fourth quarter. Particularly given the challenges the company faced during the three months. He said:

Our teams delivered another strong operating performance in the June quarter, despite challenges that included extreme weather, supply chain disruptions and reduced labour availability caused by the COVID-19 pandemic.

Record annual production at Worsley Alumina, along with record quarterly production at South Africa Manganese and a strong sales result in June, capturing the benefit of high prices, capped another year of substantial progress for South32.

We achieved further significant milestones as we reshape our portfolio towards the metals critical for a low carbon future. In May, we completed the acquisition of an additional shareholding in the hydro-powered Mozal Aluminium smelter. We also completed our acquisition of an additional interest in the MRN bauxite mine and delivered first production from the restart of our Brazil Aluminium smelter, powered by 100 per cent cost efficient renewable power.

The post South32 share price higher on solid Q4 update 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 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is having a strong start to the week.

In morning trade, the travel agent’s shares are up over 5% to $18.05.

Why is the Flight Centre share price charging higher?

Investors have been bidding the Flight Centre share price higher this morning after the company upgraded its guidance for FY 2022.

Following a solid rebound in travel demand globally late in the financial year, the company expects to record an underlying EBITDA loss of between $180 million and $190 million in FY 2022.

This represents an 11.9% improvement on the mid-point of the company’s initial FY 2022 guidance for an underlying loss of between $195 million and $225 million. It will also be a material improvement on Flight Centre’s FY 2021 underlying EBITDA loss of $337.9 million.

Based on this, the company is expecting to breakeven on an underlying EBITDA basis for the six months to June 30. Management notes that this is a major turnaround considering the significant losses it was making through to February.

On the top line, management expects to report total transaction value (TTV) of over $10 billion, which is more than two-and-a-half times the $3.95 billion achieved in FY 2021.

Pleasingly, on a monthly basis, the company’s TTV was tracking near or above pre-COVID levels in a number of businesses by year-end. This has been fuelled by both an uplift in demand and higher than normal ticket prices linked to a lack of airline capacity, particularly on international routes.

Management commentary

Flight Centre’s managing director, Graham Turner, was pleased with the company’s turnaround. He said:

After an incredibly challenging period, we were pleased to achieve our goal of returning to monthly underlying EBITDA profitability in both the corporate and leisure sectors late in the year. The scale of our recovery exceeded our initial expectations and meant that we should now exceed our preliminary FY22 result target, with early trading results pointing to a breakeven second half result and a healthy fourth quarter profit (underlying EBITDA).

Turner acknowledges that COVID isn’t going anywhere any time and the industry will continue to face challenges from new strains. Nevertheless, he believes the company is well-placed to overcome these challenges. The managing director explained:

There will inevitably be ongoing challenges for the industry over the next six to twelve months as new strains of the virus emerge, airline capacity returns and as we rebuild staff numbers to required levels, but we feel that we are well placed to overcome these concerns given our corporate business’s continued rise and our leisure business’s ongoing strength.

In the corporate sector, we are gaining market-share globally through high customer retention rates and a multi-billion-dollar pipeline of new accounts won across our Corporate Traveller and FCM brands during the pandemic.

In the leisure sector, our success is built on having strong brands and sales channels that are resonating with customers in what is now a more complex travel environment.

The post Flight Centre share price storms 5% higher on guidance upgrade 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 Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

Shares of Tesla (NASDAQ: TSLA) surged higher last week, helped by the electric-car maker’s second-quarter report, which included better-than-expected adjusted earnings per share and an impressive outlook from management for a strong second half of the year. The upbeat update from management was welcomed warmly by investors as Wall Street is being greeted by a growing number of disappointing quarterly reports this earnings season.

While the earnings release included a lot of interesting information, investors interested in the stock should also take some time to listen to Tesla’s second-quarter earnings call, where management discussed its results in more detail with analysts. It was packed with helpful information, including additional commentary on the supply chain, more color on the company’s plans to boost manufacturing capacity, and more. Management’s comments from the call provided important information for investors as they try to assess the company’s growth potential.

Here are three quotes from the call that investors should see.

An improving supply chain

“I think we’re seeing a very rapid increase in battery production and in the whole supply chain,” said Tesla CEO Elon musk in the earnings call.

This is great news for Tesla, since the company seems to have more than enough demand. With Model Y orders today delivering sometime next year, for instance, Tesla’s sales growth is limited by supply.

The company provided some more concrete evidence of its improving supply chain when Elon noted that the company saw record levels of production at both its Fremont and Shanghai factories in June.

Combining its improving supply chain with its achievement of record production levels in June, Tesla said it expects to have a record-breaking second half of the year.

Tesla’s planned Cybertruck launch

The long-awaited Tesla Cybertruck has a target launch date. Musk said he expects deliveries of the fully electric pickup truck to start in the middle of next year. “And we’re very, very excited about that product. I think it might actually be our best product ever,” the CEO added.

Given the popularity of pickup trucks in the United States, investors have good reason to look forward to the important vehicle’s launch.

Manufacturing capacity expectations

In the company’s second-quarter earnings report, Tesla revealed it currently has installed production capacity for production of up to 1.9 million vehicles per year. For context, Tesla delivered only 936,000 vehicles this year. Achieving production levels of 2 million vehicles annually, therefore, would represent significant growth.

But it’s one thing to have installed capacity and another to refine production lines and the supply chain to fully utilize this capacity. To this end, one analyst asked how quickly Tesla can ramp up production and Musk said, “I think we’ve got a good chance of exiting this year at 40,000 vehicles a week.” That’s an annualized run rate of more than 2 million vehicles.

Overall, the earnings call gave even more credence to the already upbeat narrative revealed in the company’s second-quarter earnings report. 

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

The post Tesla Q2 earnings call: 3 must-see quotes from Elon Musk appeared first on The Motley Fool Australia.

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

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

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Today could be a big one for the Genex Power Ltd (ASX: GNX) share price after the company received a takeover bid worth more than $300 million.

The 23 cents per share bid for the company was posted by a consortium including Atlassian co-founder and co-CEO Scott Farquhar’s Skip Capital.

The Genex share price was 13.5 cents at its previous close.

Let’s take a closer look at the takeover proposal announced by the company this morning.

Genex share price on watch following takeover bid

The Genex share price could be about to take off after the company confirmed a previously-speculated takeover bid on Monday. Additionally, the company released its quarterly results today.

A consortium made up of the Skip Essential Infrastructure Fund and Stonepeak Partners has placed a 23 cent per share bid for Genex, representing a total valuation of more than $300 million and a 70% premium on the company’s previous close.

Skip Capital – headed by Farquhar’s wife, former Hastings Funds Management director Kim Jackson – snapped up a 19.99% interest in the renewable energy company’s stock last week.

Genex’s portfolio of renewable energy generation and storage projects is worth more than $1 billion.

Commenting on the bid, Jackson said, courtesy of The Australian:

Skip Essential Infrastructure Fund and Stonepeak bring the experience and insight required to allow Genex to play a substantially larger role in Australia’s energy transition.

The Genex board hasn’t promised it will engage with the takeover bid. It noted a potential acquisition would be subject to its recommendation, due diligence, and regulatory approvals. Notably, it would need the approval of the Foreign Investment Review Board.

And in other news likely to move the Genex share price today, the company achieved record revenue and its maiden full-year positive cash flow last financial year.

Its solar farms brought in $26.1 million of revenue (unaudited) over financial year 2022. Meanwhile, its net operating cash flow reached $4 million.

The post Genex share price in focus amid Atlassian co-founder’s $300m takeover bid appeared first on The Motley Fool Australia.

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• Here’s why ASX renewable shares slipped in June

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 Atlassian. 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 Breville Group Ltd (ASX: BRG) share price has risen by around 17% since 23 June 2022.

After that sizeable rise in the company’s shares, investors may be wondering whether the business is still worth pursuing.

Sometimes a share price can move quickly, making it more (or less) attractive to brokers.

Let’s have a look at some of the latest broker ratings.

Expert opinion on the Breville share price

There are many brokers that currently believe Breville is a buy.

Indeed, UBS thinks it is a buy with a reduced price target of $25. It acknowledges the outlook is looking less promising but it’s still expecting a small amount of revenue growth in FY23, with a return to better growth in FY24 and a good longer-term outlook.

Morgans also rates the company as a buy with a price target of $25. It also noted that inflation could cause problems on both the revenue and cost side for Breville, but a small amount of growth is still expected in FY23.

Similarly, Morgan Stanley also rates the ASX share a buy with a price target of $25. The broker said the decline in the Breville share price makes it seem attractive, partly because of its global growth potential. It also said the customers that Breville sells to could be less hard hit by inflationary pressure.

Macquarie is yet another broker with a positive rating on the business, though the price target is a little lower at $23.35. Still, that implies a potential upside of around 15%. The broker thinks that Breville can deliver attractive growth over the longer term.

In a recent presentation to investors, Breville noted that it has a “long way to go” and is presented with a “large, untapped opportunity”.

Most recent result

For the first six months of FY22, Breville said that revenue was up 23.6% to $878.7 million and net profit after tax (NPAT) increased by 25.1% to $77.7 million. Its dividend was boosted to 15 cents per share, an increase of 15.4%.

It said that there was strong demand across all regions and categories underpinning revenue growth, despite ongoing logistical challenges. Margins were “well managed” with price rises and restrained promotional spending.

Further, the company committed to continue investing in research and development, marketing, and technology to support growth in FY23 and beyond.

In FY22, it’s expecting to generate earnings before interest and tax (EBIT) of approximately $156 million.

The company also recently completed the acquisition of LELIT, an Italian business that designs, manufactures, and sells premium ‘prosumer’ home coffee equipment in Europe and throughout the world. This deal was for a total cost of $140 million.

Breville share price snapshot

Since the beginning of 2022, the Breville share price has dropped by 37%.

The post The Breville share price has surged 17% in around a month. Is it too late to buy? appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Northern Star Resources Ltd (ASX: NST) is one of Australia’s largest gold mining shares. But does it offer one of the biggest dividend yields?

Resource businesses can pay attractive dividends to investors if they pay an attractively-high dividend payout ratio. In other words, do they pay out a large amount of net profit after tax (NPAT) as a dividend?

Dividends can also flow when the relevant resource price rises because it essentially costs the same to dig up a resource out of the ground, whether that commodity price is US$10 higher or lower. Therefore, higher commodity prices can largely turn into profit.

Let’s look at the potential Northern Star dividend yield, on current predictions.

Dividend expectations

Looking at the dividend estimates on CMC Markets, Norther Star is expected to pay an annual dividend per share of 22.5 cents in FY22.

Following that, CMC Markets estimates suggest a dividend increase to 25.4 cents per share in FY23.

Finally, in FY24, Northern Star is projected to pay an annual dividend per share of 28 cents.

Furthermore, the ASX gold mining share attaches franking credits to its dividends.

Let’s look at each of the expected yields.

In FY22, Northern Star could pay a grossed-up dividend yield of 4.5%.

This could grow to a grossed-up dividend yield of 5.1% in FY23.

By FY24, the Northern Star grossed-up dividend yield could rise to 5.6%.

What this says is that the business is expected to pay a starting yield of more than 4% and keep growing the dividend from there.

Is the Northern Star share price worth buying?

There is more to a potential investment or asset than just how much income it could produce in the shorter term.

Investors should also consider earnings growth and other compelling factors.

Let’s look at whether experts believe the gold mining ASX share is an opportunity to buy right now or not.

Credit Suisse rates the business as buy, with a target price of $9.50.

Citi rates Northern Star as a buy, with a price target of $10.80.

Macquarie rates the ASX gold mining share as a buy, with a price target of $10.

The broker Ord Minnett rates Northern Star as a buy, with a price target of $11.10.

Morgans rates the business as a buy, with a price target of $8.50.

So, there are plenty of brokers positive on the miner, at the moment.

The post What’s the dividend yield on Northern Star shares in July? appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for dividend shares to add to your income portfolio? Then the two listed below could be top options.

Here’s why analysts rate these dividend shares highly:

Charter Hall Social Infrastructure REIT (ASX: CQE)

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

This real estate investment trust is focused on investing in social infrastructure properties. This includes a growing number of childcare centres, government sites, and healthcare buildings. The latter includes healthcare property owned by Healius Ltd (ASX: HLS) that was acquired in FY 20222.

Goldman Sachs is a big fan of the company and has a conviction buy rating and $4.24 price target on its shares.

In respect to dividends, the broker is expecting a 17.2 cents per share dividend in FY 2022 and a 18.3 cents per share dividend in FY 2023. Based on the current Charter Hall Social Infrastructure REIT share price of $3.67, this implies a dividend yield of 4.7% and 5%, respectively, for investors.

DEXUS Property Group (ASX: DXS)

Another ASX dividend share to look at is Dexus. It is an Australian real estate company focused on office, industrial and retail properties.

LIke the Charter Hall Social Infrastructure REIT, it also continued to add to its high quality portfolio in FY 2022 with the acquisition of the Collimate RE and domestic infrastructure business from AMP Limited (ASX: AMP) and some industrial assets. The latter includes Jandakot Airport in Perth and a logistics centre leased to Australia Post. This appears to have left Dexus well-placed for growth in the coming years.

Ord Minnett is bullish and recently upgraded the company’s shares to a buy rating with a $11.50 price target.

As for dividends, the broker is forecasting dividends per share of 53 cents in FY 2022 and 55 cents in FY 2023. Based on the latest Dexus share price of $9.34, this will mean yields of 5.7% and 5.9%, respectively.

The post Analysts rate these ASX dividend shares as buys now appeared first on The Motley Fool Australia.

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More reading

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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 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 A2 Milk Company Ltd (ASX: A2M) share price has gone up by around 10% since 22 June 2022. That compares favourably to the S&P/ASX 200 Index (ASX: XJO), which has risen by just over 4%.

That’s quite a bit of outperformance over a short period.

A2 Milk is a large dairy business that sells infant formula, protein-free milk, and other milk products.

Let’s have a look at what may be affecting things, aside from just the wider market climbing.

Strong demand

One of A2 Milk’s main competitors, Bubs Australia Ltd (ASX: BUB), recently reported that it’s experiencing a lot of growth, which may (or may not) be a positive indicator for A2 Milk.

For the three months to 30 June 2022, Bubs revealed that gross revenue had increased by 278% to $48.1 million. Half-year gross revenue of $65.7 million was up by 71% half on half.

It also reported it had seen sustained growth momentum across all key product segments (including its A2 product) and all key markets (including Australia, China and the United States).

While some of this growth came about from Bubs’ activities in the US, it also reported promising signs in Australia and China.

Australian domestic retail sales revenue of infant formula saw growth of 31% year on year.

Bubs’ Chinese sales were up 523%, largely due to corporate daigou sales. However, cross-border e-commerce sales were up 20%.

A2 Milk expecting to report growth in the second half

When A2 Milk announced its FY22 half-year result, the company said that the revenue growth outlook for the business in FY22 had improved.

However, it also said the expected improvement in revenue is not likely to translate into higher earnings in FY22 as it increases its investment to drive growth.

Even so, revenue in the second half of FY22 is still expected to be “significanly higher” than the second half of FY21, with anticipated growth compared to the first half of FY22 and FY22 being ahead of initial expectations mainly because of growth in infant formula sales.

However, it did warn that COVID-19 impacts on the supply chain have increased and are/were a key risk in the second half.

Is the A2 Milk share price a buy?

Some recent broker opinions are neither optimistic nor pessimistic.

For example, the broker Credit Suisse has a price target of $5.15 on the business, with a neutral rating. That implies a possible rise of more than 10%. The company notes recent sales strength in China.

Citi is also neutral on the business, with a price target of $4.64. So, the broker isn’t expecting much movement from here over the medium-term.

The post The A2 Milk share price has bubbled 10% higher in a month. What’s going on? appeared first on The Motley Fool Australia.

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More reading

• Do these 2 All Ords ASX shares offer a hefty upside?
• Bubs share price higher after more than tripling Q4 sales
• Here’s why the A2 Milk share price crashed 27% lower in FY22
• Why Block, Bubs, Infomedia, and Zip shares are dropping
• Bubs share price falls despite US FDA update

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. 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 St Barbara Ltd (ASX: SBM) share price has accelerated in July while its peers are falling by the wayside.

After hitting a multi-year low of 75 cents on 30 June, the gold miner’s shares are up 20% this month. This makes it one of the best performers across the sector.

In comparison, the Newcrest Mining Ltd (ASX: NCM) share price is down 8% while Northern Star Resources Ltd (ASX: NST) is up 4% over the same period.

Let’s take a look at what’s driving St Barbara shares higher lately.

What’s driving the St Barbara share price higher?

As reported by my Foolish colleague Monica, St Barbara appears to be in discussions with Genesis Mining regarding a merger.

The news has prompted investors to jump on board and take advantage of the recent St Barbara share price weakness.

Genesis Mining is apparently seeking to consolidate operations in the Leonora Province in Western Australia. Ultimately, this would give it access to the flagship Gwalia gold mine which accounts for a large slice of St Barbara’s profits.

In addition, it’s rumoured St Barbara might sell its overseas assets which would boost its coffers by up to $100 million. Another Foolish colleague Brooke noted the reasons here.

If the deal does go ahead, St Barbara shareholders could be set for a big payday.

Furthermore, St Barbara released its FY22 production update earlier this month.

This sent its shares almost 10% higher on the day as the gold miner finished the fourth quarter strongly.

Total gold production stood at around 86.4koz for the June quarter, up 40% over the previous comparable period. Full-year gold production came to 281koz.

What do the brokers think?

A number of brokers have rated the St Barbara share price with different price points in the past month.

The team at Macquarie upgraded its outlook on the company’s shares to “outperform” from “neutral”. The broker also raised its 12-month price target by 10% to $1.10 per share.

Based on the current share price, this implies an upside of 23% for investors.

On the other hand, Citi analysts reduced their rating on St Barbara shares by 28% to $1.15. Despite the cut, its analysts believe that the company’s shares still have some room to bounce higher.

At Friday’s market close, the St Barbara share price finished at 89.5 cents.

The post Why has the St Barbara share price leapt 20% so far this month? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• This ASX 200 gold miner’s value has plunged from $2b to under $700m. Could it be set for some major M&A action?
• 5 things to watch on the ASX 200 on Friday
• The best and worst ASX All Ords mining shares of FY22
• Why Pro Medicus, St Barbara, Vulcan, and Whitehaven Coal are pushing higher

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.

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