The experts at Morgans believe there are some compelling ASX tech shares that are looking good value following their share price declines in 2022.

While shifting interest rates do change the theoretical value of businesses, the underlying business hasn’t changed and still has plans for growth.

The share prices of the two businesses below have dropped quite a lot and brokers like the look of them.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is a global tech business that provides cloud-based enterprise resource planning (ERP) tools for businesses and organisations.

How much cheaper is the ASX tech share now? In early morning trading today, the TechnologyOne share price is $10.22. That’s almost a 22% drop since the start of 2022. And that’s despite the growth that the business continues to report.

The company recently reported its first-half results for FY22. Revenue from its software-as-a-service (SaaS) “and continuing business” went up 21% to $169.5 million. Net profit after tax (NPAT) rose 18% to $33.2 million.

TechnologyOne says it has completed its SaaS transformation, with SaaS annual recurring revenue (ARR) reaching $225.1 million (up 44% year-on-year).

The company continues to win large-scale enterprise customers. It’s growing quickly in the UK, where profit before tax more than doubled to $2.3 million.

TechnologyOne says it sees “significant” growth opportunities in the coming years and it’s on track to deliver continuing strong growth over the full year in the UK. The total addressable UK market is three times larger than the Asia Pacific region.

In the long term, it’s expecting to reach total ARR of at least $500 million by FY26 and achieve a continuing profit before tax margin of 35% over time.

Morgans rates TechnologyOne shares as a buy with a price target of $11.53.

REA Group Limited (ASX: REA)

REA Group owns a group of digital real estate websites including realestate.com.au and realcommercial.com.au.

The business owns stakes in property websites in other countries including the US and India.

This ASX tech share has a leading market position in the property advertising digital space, allowing it to charge higher prices because it gets more eyeballs looking at its listings.

Due to the fact that it gets the most potential buyers, this can attract the most sellers, which attracts more buyers, and so on. Its market power allows it to regularly increase prices.

REA Group saw increased profitability in the latest update – the three months to 31 March 2022.

Revenue rose 23% to $278 million, while earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 27% to $155 million. Free cash flow jumped 39% to $91 million.

The ASX tech share can use that growing cash flow to pay larger dividends, make acquisitions and/or strengthen the balance sheet.

At the time of writing, the REA share price is $111.32. That’s a 35% drop year to date.

Morgans rates it a buy with a price target of $145.40. That implies a possible upside of 30%.

The post 2 beaten-up ASX tech shares with major upside: experts appeared first on The Motley Fool Australia.

More reading

• Leading broker names the best ASX tech share to buy following 2022’s tech meltdown
• Top brokers name 3 ASX shares to buy today
• The ASX 200 share with ‘hidden value’: fund manager
• 3 ‘disruptive’ ASX companies Aussies now can’t live without
• Why Nufarm, Sayona Mining, Tabcorp, and TechnologyOne shares are falling

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 REA 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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The New Hope Corp Ltd (ASX: NHC) share price is tumbling in early trade, down 7.8%.

New Hope closed yesterday at $4.10 and is currently trading for $3.78 per share.

This comes after the S&P/ASX 200 Index (ASX: XJO) coal miner released its quarterly activities update this morning

What happened during the quarter?

The New Hope share price is sliding despite the company reported on tailwinds from continuing increases in coal prices over the three months.

The miner achieved quarterly underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $358.6 million. That brings its year-to-date underlying EBITDA (as at 30 April) to $913 million.

Russia’s invasion of Ukraine alongside a rising global energy shortage saw thermal coal prices hit all-time highs. In April New Hope received an average of US$326 per tonne for its thermal coal. That average price was 61% higher than the comparative quarter.

14 April marked the ex-dividend date for New Hope’s interim (17 cents) and special (13 cents) dividend payouts. Those were paid on 4 May.

Excluding those dividend payments, the ASX 200 coal miner had cash generation for the quarter of $281.8 million.

The New Hope share price could be coming under pressure from its report that total coal sold during the quarter declined by 26.7% from the prior quarter. The company said labour markets remained tight due to COVID-19 and it was also impacted by heavy rainfall at its Bengalla operations in New South Wales.

However, guidance for total coal sold for the 2022 financial year was lifted by 4.0%, to 9.461million tonnes from the previous 9.085 million tonnes.

Looking ahead the New Hope share price could continue to benefit from elevated coal prices.

According to the company:

Pricing is expected to remain elevated for the foreseeable future, with the potential for the market to structurally shift to materially higher long-term levels than those realised in the past.

New Hope share price snapshot

Despite today’s slide, the New Hope share price remains up 64% in 2022. That compares to 6% loss posted by the ASX 200.

The post Here’s why the New Hope share price is tumbling 8% on Thursday appeared first on The Motley Fool Australia.

More reading

• 3 ASX All Ordinaries shares smashing multi-year highs on Tuesday
• Why are ASX coal shares charging higher again today?
• Here are the best performing dividend shares in the ASX All Ords so far in 2022
• The New Hope share price has rallied 60% in 2022. Is there more to come?
• Why did ASX coal shares having such a stellar run on Thursday?

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 Catapult Group International Ltd (ASX: CAT) share price is on the slide on Thursday following the release of the company’s full-year results. This is despite the rest of the tech sector shooting higher today.

At the time of writing, the sports technology company’s shares are down 6% to $1.08.

Catapult share price lower as losses widen

• Revenue up 54% to US$77 million
• Annual contract value (ACV) up 19.7% to US$63.9 million
• ACV churn down by over a third to 3.4%
• Underlying EBITDA loss of US$5.8 million
• Net loss widened by 265% to $32.1 million

What happened during the 12 months?

For the 12 months ended 31 March, Catapult reported a 54% increase in revenue to US$77 million and a 19.7% increase in ACV to US$63.9 million.

However, things weren’t anywhere near as positive for its earnings, with the company reporting a deterioration in its margins. Management advised that this was driven by its additional investment in accelerating ACV growth.

This led to Catapult recording an underlying EBITDA loss of US$5.8 million, compared to positive EBITDA of US$3.5 million in FY 2021 and US$9.4 million in FY 2020.

On the bottom line, Catapult revealed a net loss of US$32.2 million, up from a loss of US$8.84 million a year earlier.

Nevertheless, Catapult ended the period with a strong balance sheet. It reported $26.1 million of cash at bank.

Management commentary

Catapult’s CEO Will Lopes revealed that the company’s shift to a software-as-a-service (SaaS) model is coming along nicely. He said:

With our transition into a fully-SaaS model, we can better serve our customers around the world and provide them the objective data they need for their athletes and teams. As proof, subscription revenue accelerated dramatically after 12 months of strong ACV growth. With the world reopening post-pandemic, sports are delivering excitement and engagement again.

The strong rebound in North America especially, increases our confidence in future ACV growth. In FY22, the P&H vertical has also delivered high growth, and following our acquisition of SBG, we see new demand for our Tactics & Coaching solutions and are starting a second growth engine for the Company. The new customers we added along with new innovations continue to position us well for capturing demand at all levels of sport.

Outlook

Looking ahead, management is forecasting further solid growth over the next 12 months. It is expecting ACV growth of between 20% to 25% in FY 2023 with ACV churn in the range of 4.5% to 6%.

The company also appeared to address concerns that it may soon run out of cash.

It said:

Catapult is confident in its ability to generate strong operating cash flow in the short to long term. Operating cash flow is expected to be positive for FY23. During FY22 Catapult was subject to increasing supply chain challenges and cost inflation. These are expected to continue at a moderate degree throughout FY23, impacting freight, COGS, wage costs, and inventory sourcing. Catapult’s planned organic investments in FY23 are fully funded.

The post Why is the Catapult share price tumbling 6% lower today? appeared first on The Motley Fool Australia.

More reading

• 3 exciting small cap ASX shares 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 positions in and has recommended Catapult Group International Ltd. The Motley Fool Australia has positions in and has recommended Catapult Group International Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Appen Ltd (ASX: APX) share price has come flying out of the gates on Thursday morning.

In early trade, the artificial intelligence services company’s shares were up as much as 35% to $8.64.

The Appen share price has pulled back a touch since then but remains up 29% to $8.29.

Why is the Appen share price rocketing higher?

Investors have been scrambling to get hold of Appen’s shares today after it revealed that it has received a takeover approach.

According to the release, the company has received an unsolicited, conditional, and non-binding indicative proposal from TELUS International to acquire it for $9.50 per share. This values Appen at approximately $1.2 billion.

Based on the Appen share price at the close of play on Wednesday, this offer represents a 46% premium for shareholders. Though, it is still well short of its 52-week high of $14.67 and two-year high of ~$40.00.

Will a deal be made?

Appen advised that it is looking over the offer but doesn’t sound overly keen to accept it. This may explain why the Appen share price is still trading at a sizeable 13% discount to the offer price.

It commented:

The Board is in discussions with Telus to seek an improvement in the terms of the Indicative Proposal. To facilitate this, the Board has offered to provide, on a non-exclusive basis, limited business and financial information, subject to Telus agreeing to enter into a mutually acceptable confidentiality and standstill agreement, which it has yet to execute. At this point in time, no material non-public information has been provided to Telus.

Trading update

It may prove quite fortuitous that the company received a takeover approach, because without it the Appen share price may have come under pressure from the release of a particularly weak trading update.

That update reveals that Appen’s year-to-date revenue was lower than it was at this time last year at the end of April.

In light of this, the company expects its first half earnings before interest, tax, depreciation and amortisation (EBITDA) to be “materially lower than the prior corresponding period.”

And while management expects its second-half performance to be stronger, its guidance has been wide of the mark in recent years so this is far from guaranteed.

The post Appen share price rockets 35% on Telus takeover approach appeared first on The Motley Fool Australia.

More reading

• Appen share price on watch amid $1.2 billion takeover bid
• If you’d invested $10,000 in Appen shares 7 years ago, lucky you! Here’s what you’d have now
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• ASX 200 midday update: Brambles rockets, Goodman upgrades guidance

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 Appen Ltd. 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 National Australia Bank Ltd (ASX: NAB) share price is gaining this morning as the bank reveals a buy now, pay later (BNPL) offering of its own.

NAB Now Pay Later will go up against Commonwealth Bank of Australia (ASX: CBA)’s StepPay, as well as ‘traditional’ BNPL companies such as Zip Co Ltd (ASX: ZIP) and Afterpay (now owned by Block Inc (ASX: SQ2)).

At the time of writing, the NAB share price is $31.86, 0.63% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.04%.

Let’s take a closer look at the ASX’s latest BNPL product.

NAB launches BNPL product

The NAB share price is in the green as the bank reaches what arguably appears to be a rite of passage for ASX 200 banks – jumping aboard the BNPL train.

NAB Now Pay Later will allow NAB customers to buy up to $1,000 worth of goods and pay in four fortnightly installments. It can be used anywhere that Visa Inc (NYSE: V) is accepted.

Interestingly, NAB’s offering differs from most other BNPL products by ditching all fees. It charges no late fees, no interest, no account fees, and has no minimum spend.

The product can be accessed through the NAB app. The bank’s executive of personal banking Rachel Slade noted customers can be approved to use NAB Now Pay Later while moving “from the fitting room to the register”.

“We’re able to do this quickly because of the combination of technology and knowing our customers,” Slade continued.

“We know their banking and credit history and we’re assessing them based on our existing banking relationship.”

It follows the release of NAB’s no interest credit card in 2020. The card has accounted for 30% of credit card applications over the past year, making it NAB’s most popular credit card product.

The bank expects NAB Now Pay Later to officially launch in July. Customers can pre-register for the product now.

NAB share price snapshot

The NAB share price is outperforming the ASX 200 by 13% in 2022.

The bank’s stock has gained around 8% since the start of the year. It’s also nearly 19% higher than it was this time last year.

The post NAB share price lifts amid BNPL product reveal appeared first on The Motley Fool Australia.

More reading

• Why is the NAB share price having such a cracker of a day?
• ASX shares paid out a record $98b in dividends in the 12 months to March. Which are the star performers?
• 3 reasons this broker thinks the NAB share price is great value
• Why Allkem, NAB, Pushpay, and Virgin Money UK shares are rising
• Has the NAB dividend been growing?

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 Block, Inc. and Visa. The Motley Fool Australia has positions in and has recommended Block, Inc. 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.

What happened

Shares of electric vehicle leader Tesla (NASDAQ: TSLA) zoomed higher on Wednesday morning, and were up by 5% through 11:58 a.m. ET.

You can give some credit to Cathie Wood for that.

So what

Over the past two days, as Tesla stock trended lower, famed (and lately, famously embattled) growth investor Wood scooped up nearly 42,000 shares — 15,858 shares on Monday, and another 26,081 shares Tuesday — according to data provided by the website of her investment management firm, ARK Invest. These were Wood’s first purchases of Tesla stock in at least the last two months — and they followed a two-month-long selling streak during which her ARK exchange traded funds (ETFs) sold off more than 490,000 shares.  

Wood, it appears, had been waiting patiently for Tesla stock to top $1,000, and she’s been steadily unloading the EV maker’s shares ever since, but after they sank below $700 on Friday, she resumed buying.

Now what

What prompted Wood’s sudden shift? A stock price that’s now 30% cheaper than it was when she started selling was likely one catalyst. But there was also some more substantive news out regarding Tesla on Wednesday. As U.K. newspaper The Independent reported, Tesla’s Advanced Battery Research division has announced it has developed a nickel-based rechargeable car battery that has the potential to last 100 years — or at least 1 million miles — before it must be recycled. (For the technically curious, the key material’s chemical formula is Li[Ni_0.5Mn_0.3Co_0.2]O₂.)  

Granted, Tesla’s current LiFePO₄ batteries are already estimated to have a service life of more than 20 years before they lose 20% of their maximum charge capacity — longer than the lifespan of most cars. But even so, increasing that lifespan by a factor of five implies the batteries might effectively never lose any significant charging capacity within a car owner’s time of ownership. That would give Tesla’s vehicles another strong competitive advantage in an electric car market that’s getting more crowded by the day.

Even more than Cathie Wood’s stamp of approval, this battery news is a good reason for Tesla stock to be rising. 

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

The post Why Tesla stock raced higher today appeared first on The Motley Fool Australia.

More reading

• Why Tesla stock turned south today
• Why Tesla stock finally bounced today
• Nasdaq sell-off: 2 growth stocks billionaires were buying in Q1
• Down almost 30% in the past month, here are 2 reasons to buy Tesla shares and 1 reason to hold off
• Why Tesla stock fell again today

Rich Smith 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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The S&P/ASX 200 Index (ASX: XJO) mining shares are known to be large dividend payers. In fact, one of them is currently the world’s biggest payer of dividends.

But does a big dividend mean that they are good options as ASX dividend shares?

FY21 and FY22 are certainly looking fruitful for shareholders of the large iron ore ASX mining shares of BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG).

Dividend expectations for FY22

In the current financial year, these are the following estimates for the dividend yields of the big three miners:

• Macquarie is expecting BHP to pay a grossed-up dividend yield of 16.6% in FY22.
• The broker thinks Rio Tinto is going to pay a grossed-up dividend yield of 16.3%.
• Macquarie has projected that Fortescue is going to pay a grossed-up dividend yield of 14% in FY22.

There’s no doubt these yields are very large. Not many ASX 200 shares will pay yields as large as that in FY22.

Longer-term shareholders have received a lot of cash from these miners in recent times thanks to the buoyant commodity prices.

Are ASX 200 mining shares attractive income ideas?

Short-term profits and dividend yields from the above names look tempting.

However, a key thing to remember with resource companies is that those commodities can move up and down at any time. Commodity prices are not predictable or consistent.

One year could see big profits and another year could show a major decline. Just look at what happened to the iron ore price towards the end of 2021 and also in 2016.

That’s the problem – ASX mining shares generate profit from their relevant commodities and then the dividends are paid from that profit. Dividends can suffer from a major decline in profit if the commodity price drops.

If shareholders don’t mind a variable dividend, then an ASX mining share could be an attractive option for income over the longer term.

However, for investors wanting a more consistent level of dividends year to year, ASX mining shares may not be the right place to be looking.

When is a good time to be looking for ASX mining shares?

Investors can choose to buy resource businesses any time they choose. However, I think it could be useful to consider commodity businesses when the price of that commodity has gone down, which may affect sentiment about that company and the sector. A cheaper share price could be better at the low point of the resource cycle.

For example, during the volatility towards the end of 2021, I chose to buy some Fortescue shares at a cheaper price than where they are today.

If the Fortescue share price were to drop below $16 again then I would be interested in adding to my position. I believe that any share price weakness of BHP or Rio Tinto could also make them more tempting.

The post Are ASX 200 mining shares good options for dividends? appeared first on The Motley Fool Australia.

More reading

• Australia’s renewable energy output could triple by 2030 under Labor. Will that impact these ASX 200 shares?
• Why BHP, BrainChip, Chalice Mining, and Fisher & Paykel shares are dropping
• Why has the Fortescue share price gained 10% in a week?
• ASX 200 midday update: BHP and Pilbara Minerals shares tumble
• What exactly is the difference between Woodside Energy (WDS) and Woodside Petroleum (WPL)?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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There are a select number of exchange-traded funds (ETFs) that give exposure to certain sectors, such as green technology.

Some ETFs are about the entire share market, such as Vanguard US Total Market Shares Index ETF (ASX: VTS) or Vanguard Australian Shares Index ETF (ASX: VAS).

Other ETFs can give exposure to specific sectors like cybersecurity, video gaming or banking.

The below two ETFs are ones that are all about green technology:

BetaShares Climate Change Innovation ETF (ASX: ERTH)

This investment is about a portfolio of businesses that are aiming to fight climate change. BetaShares says the portfolio “comprises a portfolio of up to 100 leading global companies that derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions.”

The types of sectors that it’s invested in include clean energy, electric vehicles, energy efficiency technologies, energy storage, sustainable food, water efficiency and pollution control.

Some of the names in the portfolio include ones like Eaton, American Water Works, Cie De Saint-Gobain, Trane Technologies, Ecolab, Vestas Wind Systems, Infineon Technologies, Tesla, Samsung and Zoom Video Communications.

It’s a pretty diverse portfolio, geographically speaking. The US is less than half of the country allocation, which is less than most globally-focused ETFs. China, France, Germany, Denmark, the UK, South Korea and Japan all get weightings of more than 3%.

The ERTH ETF has an annual management fee of 0.65%.

ETFS Battery Tech & Lithium ETF (ASX: ACDC)

As the name may suggest, this ETF is about businesses involved in battery technology and lithium mining.

ETFSecurities says that “demand for energy storage is being driven by the movement towards emissions reduction and renewable energy.”

It’s a global portfolio, with around 30 names. Some of the names in there include BYD, Allkem Ltd (ASX: AKE), TDK, Mineral Resources Ltd (ASX: MIN), LG Energy Solution, Renault, Livent and NGK Insulators.

The annual management fee of this ETF is 0.69%.

ETFSecurities says:

Battery technology represents a growth investment for many investors given the projected demand for storage in the coming years off the back of growth in renewables use and the electric vehicle industry.

The value chain for battery technology ranges from mining companies, mining for metals like lithium, to manufacturers of battery storage and storage technology providers. All are potential beneficiaries of the anticipated growth in this industry.

Foolish takeaway

I’m not going to say that either of these ETFs is a buy, but I do think that both of them give exposure to two very interesting sectors and megatrends.

The post These 2 ASX ETFs are focused on ‘green’ technology appeared first on The Motley Fool Australia.

More reading

• 2 fantastic ETFs for ASX investors to buy next week
• Does the ETFS Battery Tech & Lithium ETF (ACDC) pay dividends?
• What is a megatrend and which ones are impacting ASX shares right now?

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 Tesla and Zoom Video Communications. The Motley Fool Australia has recommended Zoom Video Communications. 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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With electric vehicle adoption rising and the clean energy transition underway, demand for lithium has been increasing strongly.

This has led to the white metal commanding sky high prices, which bodes well for the many lithium stocks listed on the Australian share market.

But which lithium shares could be in the buy zone? Two that have been named as buys are listed below. Here’s what analysts are saying about them:

Allkem Ltd (ASX: AKE)

The first lithium stock to look at is Allkem. It is a lithium giant which owns a collection of world class operations and projects across Western Australia, Argentina, and Canada.

Analysts at Morgans have named it their top pick in the lithium industry. They expect electric vehicle demand to remain strong with geopolitical events and a potentially tight oil market accelerating the shift towards electrification. Morgans has an add rating and $14.83 price target on its shares.

It explained:

We maintain our ADD rating given the strong growth outlook for the company and the potential 24% upside to our valuation. AKE’s diverse products and geographical mix adds opportunities to capture value as the market evolves. There is further potential upside that are not in our numbers such as Olaroz stage 3 and/or another lithium hydroxide plant. Should the lithium market continue to remain strong AKE still has a large amount of untapped growth potential.

Mineral Resources Limited (ASX: MIN)

Another lithium stock to look at is Mineral Resources. It is the company behind the massive Wodgina operation, which is one of the largest known hard rock lithium deposits in the world with a production life of over 30 years. It also has the Mt Marion Lithium Project and exposure to iron ore.

Goldman Sachs is very bullish on Mineral Resources and currently has a buy rating and $73.80 price target on the company’s shares.

It commented:

We forecast a more than doubling of group EBITDA to over A$2bn in FY23 driven by higher lithium and low grade iron ore prices, and a 5% increase to mining services volumes to ~300Mt. Over the next 5yrs we expect MIN’s mining services volumes to increase ~50% to over 400Mtpa, lithium volumes to triple, and iron ore equity volumes to nearly double.

The post Analysts name 2 of the best ASX lithium stocks to buy now appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX 200 lithium shares primed to take off
• Here are the top 10 ASX shares today
• Why Allkem, NAB, Pushpay, and Virgin Money UK shares are rising
• Why are ASX 200 lithium shares kicking goals today?
• The Mineral Resources share price leapt 10% this week. Too late to buy?

Motley Fool contributor James Mickleboro owns Allkem 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 Bruce Jackson.

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Australia’s Labor Government could see the nation’s renewable energy capabilities triple over the next eight years. That’s likely got some investors wondering where that might leave ASX 200 energy shares.

Quinbrook Infrastructure Partners co-founder and managing partner David Scaysbrook recently told media Labor’s election has made the firm “the most hopeful that we have been in a decade”.

Quinbrook doesn’t invest in ASX energy shares. Rather, its portfolio consists of renewable energy projects worldwide.

He believes the Labor Government could fast-track investment in renewables, growing green energy to generate more than 80% of Australia’s electricity.

Let’s take a look at what that could mean for some major ASX 200 energy shares.

Australian renewables could triple by 2030

Labor’s Powering Australia Plan aims to see 82% of the nation’s power derived from renewable energy by 2030, helping Australia cut emissions by 43%.

The policy saw Australia voting the party into power for the first time in nine years last weekend. It’s also a plan that could see Australia becoming a renewable energy superpower, Scaysbrook says.

“We’ve seen the targets that are being discussed are now anywhere between 80% and 100% by 2030. Just to put that into context, we’re sitting around 30% today.

“The compound rate of growth that that implies is extraordinary and I don’t believe it’s been matched proportionally anywhere else in the world … All the existing renewables in Australia has to be tripled in eight years.”

But it’s not only the chance to decarbonise Australia’s domestic power supply that’s exciting the institutional investor.

“There’s a genuine intent to create a rapid shift in deployment of more green energy and renewables, and also to start capturing the opportunities that lie at Australia’s feet in industrial decarbonisation,” he said.

Could these ASX 200 energy shares jump on the green train?

Plenty of ASX 200 energy shares could be impacted by a rapidly changing energy environment.

Notably, AGL Energy Limited (ASX: AGL). The company is Australia’s largest emitter and its management recently denied the possibility of speeding up its build-out of wind farms to meet a 2030 deadline.

Additionally, its planned demerger has been criticised as potentially slowing down the company’s journey to renewable energy and decarbonisation.

Also worth mentioning, Wilson Asset Management boss Geoff Wilson is critical of the company’s work towards renewables. He recently told The Australian the company’s invested “virtually nothing” in renewables since financial year 2018.

Thus, AGL might be forced to shift gears over the years following the leadership handover. It’s already flagged that it be reassessing closure dates for its coal-fired power stations annually in the years to come.

Origin Energy Ltd (ASX: ORG), on the other hand, has a large renewable portfolio and plans to ditch coal by 2025. It might not be stressed to help meet the government’s target.

Of course, ASX 200 energy producers could also feel the heat following the change of government. Fossil fuel producers such as Santos Ltd (ASX: STO), Woodside Energy Group Ltd (ASX: WDS), Whitehaven Coal Ltd (ASX: WHC), and Beach Energy Ltd (ASX: BPT) could find themselves less globally competitive, my colleague Bernd Struben reported earlier this week.

Finally, while not an energy share, ASX 200 iron giant Fortescue Metals Group Limited (ASX: FMG) bears a mention.

Scaysbrook dubbed the ASX 200 iron giant’s Fortescue Future Industries “a champion of hydrogen”. That could mean big things for a future Australian renewable energy export industry.

The post Australia’s renewable energy output could triple by 2030 under Labor. Will that impact these ASX 200 shares? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Woodside share price steady on first day trading under new name
• Why has the Fortescue share price gained 10% in a week?
• AGL share price lifts despite intensifying demerger opposition
• What exactly is the difference between Woodside Energy (WDS) and Woodside Petroleum (WPL)?

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 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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