The Vulcan Energy Resources Ltd (ASX: VUL) share price is losing its charge today.

At the time of writing, the clean lithium developer’s shares are down 5.90% to $6.38.

It’s worth noting that its share price touched a 52-week low of $6.22 before moving in circles.

Let’s take a look at what’s impacting the company’s share price of late.

Lights out for Vulcan Energy shares?

Despite no news from the company today, the Vulcan Energy share price is being pounded by bearish sentiment from investors.

Goldman Sachs released its sector analysis on lithium in late May which caused panic across the battery metals market.

The broker believes that cobalt, lithium and nickel have peaked for now and will retrace heavily in price next year.

According to its report, Goldman Sachs is forecasting a drop in lithium prices to around US$16,000 per tonne in 2023. This represents a significant decline from the current going rate of roughly US$71,000 per tonne.

When the news became public, Vulcan Energy shares tanked 8% on the day along with other popular lithium shares.

Furthermore, the general market volatility on the ASX is also weighing down Vulcan Energy shares.

Following heavy losses on Wall Street over the past few days, the S&P/ASX 300 Metals and Mining (Industry) has plummeted.

To put that in context, the index shed 2.43% yesterday and is again down 1.41% today.

More pain could be around the corner for Vulcan Energy shareholders, who have already been on a rollercoaster ride, if lithium prices do retrace.

Vulcan Energy is aiming to become the world’s first lithium producer with net zero greenhouse gas emissions. Its Zero Carbon Lithium Project is seeking to create a lithium-hydroxide chemical product for the European electric vehicle battery market.

The Zero Carbon Lithium Project is located in Germany and is targeting production sometime in 2024.

Vulcan Energy share price snapshot

After storming to incredible highs in 2021, the Vulcan Energy share price has moved in the opposite direction.

Year-to-date, the company’s shares are down almost 40%. These beatings have mostly come since the start of April.

Just last week, its shares fell 14% after recording 4 days of consecutive losses.

Based on today’s price, Vulcan Energy commands a market capitalisation of approximately $892.55 million.

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

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More reading

• 3 ASX mining shares billionaire John Hancock is buying for rising inflation and the energy transition
• Here’s why the Vulcan share price is charging 6% higher
• Up 6%, why has the Vulcan share price surged higher today?
• Do Vulcan Energy shares pay dividends?
• Who wants to be a millionaire? If only you’d invested $10,000 in these ASX shares 10 years ago

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

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The Zip Co Ltd (ASX: ZIP) share price fell to new six-year low today as the federal government flagged new regulations for the Buy Now, Pay Later (BNPL) sector.

The Assistant Treasurer and Minister for Financial Services, Stephen Jones, broke the news in media interviews on a number of platforms.

He said that BNPL services will be regulated as credit products by middle of 2023 as he wants to ensure “guard rails” for the industry.

Zip share price joins peers in the sin bin

The Zip share price declined 2.4% to 62 cents while Block Inc CDI (ASX: SQ2) share price tumbled 6.1% to $109.18 in after lunch trade.

Other players in the space also fell. The Humm Group Ltd (ASX: HUM) share price and Splitit Ltd (ASX: SPT) share price lost over 4% each.

Growing headwinds for ASX BNPL shares

Investors are spooked by the prospect of tighter regulations as that could crimp growth of the industry. ASX BNPL shares don’t need another headwind as escalating interest rates and a slowing economy is already weighing on the sector.

There are fears that bad debts will rise due to the aggressive rate hikes by the Reserve Bank of Australia.

Higher interest rates will also make funding more expensive for the Zip share price, along with its peers.

Quacking like a duck

The sector has long argued that they are not like other credit providers. BNPL products are usually interest free and have short repayment cycles.

But some consumer groups have lobbied the new Labor government to increase legal protection to users.

The Assistant Treasurer said:

We are not interested in having a conversation about whether this particular service is credit or not. If it looks like a duck, walks like a duck, sounds like a duck, it’s a duck – and it should be regulated as a credit product.

The BNPL industry tried to head-off new regulations by developing a code of conduct last year.

Potential silver lining for the Zip share price

While Jones believes that’s a good start, he noted the code was voluntary and that stricter rules were needed.

Stephen Jones added:

We’re talking to the regulators, principally ASIC, and we’re also getting some work done through Treasury on what the appropriate way is to regulate this. A bare minimum is that it operates on a level playing field.

If there is a silver lining, it’s comments from Jones that the laws applying to BNPL won’t be identical to those applied to other debt products, like loans.

Investors will be hoping for the Zip share price’s sake, this means a much more relaxed set of rules for BNPL players.

The post Zip share price hits multi-year low as Assistant Treasurer flags BNPL regulation appeared first on The Motley Fool Australia.

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More reading

• Why Block, Evolution, Fortescue, and Magellan shares are sinking today
• Hmmm… Why is the Humm share price lagging its sector on Friday?
• The Block share price is down 7% on Friday. What’s going on?
• Zip share price turns positive. Could today be its first green day in June?
• How are ASX 200 tech shares performing following the RBA rate hike?

Motley Fool contributor Brendon Lau has positions in Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Humm 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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What a depressing way to end the trading week for the S&P/ASX 200 Index (ASX: XJO). So far this Friday, the ASX 200 has dropped another 1.1% and is now back under 7,000 points. Seeing as the ASX 200 was above 7,200 at the start of the week, it’s certainly been one to forget.

But rather than letting all of that ruin our weekend, let’s instead take a look at the ASX 200 shares that are now at the top of the share market’s volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

South32 Ltd (ASX: S32)

Mining giant South32 is our first ASX 200 share to check out this Friday. So far today, a hefty 16.52 million of this diversified miner’s shares have been traded on the markets. There’s been no news out of the company itself today.

However, the South32 share price has regardlessly been smashed. It’s currently down by around 4% at $4.81 a share. It’s likely that it is this steep fall in value that has resulted in so many South32 shares finding a new home on the ASX today.

Alumina Limited (ASX: AWC)

Another ASX 200 resources share is next up this Friday in alumina and aluminium producer Alumina. As it currently stands, a sizeable 17.9 million Alumina shares have changed hands. Again, we haven’t heard anything from the company itself today that could easily explain this volume.

But Alumina has also suffered a rather nasty share price movement today. The company is presently down a painful 4.85% to $1.57 a share. It’s this fall that we can probably blame for the elevated volume we see.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is our third and final ASX 200 share to have a look at today. This lithium producer has had a whopping 32.32 million shares bought and sold on the share market so far. Unfortunately, we seem to have yet another share price plunge to thank for this high volume we are seeing.

Continuing its woeful June form, Pilbara has lost another 3.7% of its value so far today and is currently going for $2.20 a share. It was even worse this morning, with Pilbara touching a low of $2.14 just after lunch.

The post Here are the 3 most traded ASX 200 shares on Friday appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares defying Friday’s falls to leap higher
• Why are ASX 200 mining shares tumbling on Friday?
• Down 26% in June, is it time to dig into Pilbara Minerals shares?
• The market expects the RBA to take the cash rate to 3% by the end of 2022
• ASX 200 midday update: Big four banks rebound, Atlas Arteria’s takeover update

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

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The S&P/ASX 200 Index (ASX: XJO) is ending a rough week in the red, but some of the shares that call the index home are managing to buck its downwards trend.

These three ASX 200 shares are shaking off the market’s struggles to record gains of up to 3% on Friday. We take a look at what’s keeping them in positive territory.

Right now, the ASX 200 is down 1.12%. That leaves it around 4.1% lower than it was at the end of last week.

3 ASX 200 shares pushing higher on Friday

James Hardie Industries (ASX: JHX)

The James Hardie share price is in the green on Friday despite its sector coming in as the ASX 200’s second worst performer. The stock has gained 1.87% to trade at $34.94 at the time of writing.

Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) has slipped 1.33%.

James Hardie is the only constituent of the sector posting a gain. Interestingly, the company’s US listing fell 3.11% overnight.

There’s been no announcements from the company. However, news of its Prattville manufacturing plant hit headlines overnight.

The Alabama facility – where the company produces fibre cement building solutions – will undergo an expansion, the state’s Governor Kay Ivey announced earlier this week.

“The growth project will double the size of the Alabama facility, permitting a large-scale expansion of its manufacturing capacity,” the Governor said.

Breville Group Ltd (ASX: BRG)

ASX 200 consumer discretionary share Breville is also gaining on Friday. It’s currently trading at $18.21, 1.11% higher than its previous close.

The gain follows the release of an update on the company’s acquisition of LELIT and an insight into its financial year 2022 performance.

The acquisition is on track to be completed at the start of July. Meanwhile the company’s expecting to meet its previously issued guidance for this financial year.

Xero Limited (ASX: XRO)

The final ASX 200 share posting a gain today is tech favourite Xero. The company’s stock is currently 3.32% higher, trading at $82.37. That’s despite no news having been released by the company on Friday.

However, as The Motley Fool Australia reported earlier today, analysts have been impressed by its move to raise prices.

The accounting software provider will increase the prices it charges subscribers in mid-September.

The post 3 ASX 200 shares defying Friday’s falls to leap higher appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Why Breville, Bubs, Terracom, and Xero shares are pushing higher today
• The market expects the RBA to take the cash rate to 3% by the end of 2022
• Here’s why the Breville share price is smashing the ASX 200 on Friday
• ASX 200 midday update: Big four banks rebound, Atlas Arteria’s takeover update

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 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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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

According to a note out of Macquarie, its analysts have retained their outperform rating and $29.50 price target on this banking giant’s shares. It believes that the recent weakness in the banking sector has created a buying opportunity for investors. Particularly given how it believes “lazy” term deposit customers that don’t switch to better offers could provide a margin boost over the next 12 months. The ANZ share price is trading at $23.13 this afternoon.

SEEK Limited (ASX: SEK)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating on this job listings company’s shares with a $36.90 price target. Credit Suisse has bumped its earnings estimates higher for FY 2022 to reflect stronger than expected volumes at home and in Asia. The broker’s estimate now implies earnings ahead of management’s guidance. The Seek share price is fetching $22.24 on Friday.

Xero Limited (ASX: XRO)

Analysts at Citi have retained their buy rating and $108.00 price target on this cloud accounting platform provider’s shares. This follows news that Xero is increasing its prices in the ANZ and UK markets less than a year after its last increase. This is much quicker than the company traditionally increases prices. Citi believes this is an indication of the company’s confidence in its position in its core markets. The Xero share price is trading at $81.94 on Friday afternoon.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares defying Friday’s falls to leap higher
• Why Breville, Bubs, Terracom, and Xero shares are pushing higher today
• ASX 200 midday update: Big four banks rebound, Atlas Arteria’s takeover update
• Why are ASX 200 bank shares rebounding on Friday?
• Here’s the ANZ dividend forecast through to 2024

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Macquarie Group Limited and SEEK 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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It has been another day to forget for the S&P/ASX 200 Index (ASX: XJO) on Friday. In afternoon trade, the benchmark index is down 1.2% to 6,933.3 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

Block Inc (ASX: SQ2)

The Block share price is down 6% to $109.34. This follows a similarly sharp decline by the payments company’s NYSE listed shares overnight amid weakness in the tech sector. Wall Street was a sea of red on Thursday night ahead of a key inflation data release later today.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price is down over 3% to $3.46. This has been driven by weakness in the gold sector and a broker note out of Macquarie. In respect to the latter, the broker has reiterated its underperform rating this morning. It believes the gold miner’s earnings are at risk from higher electricity prices.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 2% to $21.14. Weakness in the resources sector and a bearish note out of Goldman Sachs appear to be behind this decline. The latter has seen Goldman reiterate its sell rating and cut its price target on Fortescue’s shares to $13.50. This implies potential downside of 36% for the Fortescue share price from current levels.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price has continued its slide and is down a further 3.5% to $12.37. Investors have been selling this fund manager’s shares this week after the release of another disappointing funds under management update. In addition, S&P Dow Jones Indices revealed that it was kicking Magellan out of the ASX 100 index later this month at the next rebalance.

The post Why Block, Evolution, Fortescue, and Magellan shares are sinking today appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 mining shares tumbling on Friday?
• The Block share price is down 7% on Friday. What’s going on?
• Fortescue share price sinks: Broker warns that it could fall a further 34%
• Why Boss Energy, Crown, Magellan, and Shaver Shop shares are rising
• ASX 200 midday update: Magellan rebounds, Crown’s takeover boost

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 Block, Inc. 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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The volatility facing ASX 200 mining shares is a reminder that there will be no easy profits to be had in the coming months.

The sector crashed nearly 2% today and is one of the worst performers on the S&P/ASX 200 Index (Index:^AXJO).

All sectors are in the red during lunch time trade. The only other sector that’s faring worse than mining is ASX 200 Real Estate, which is down 2.5%,

ASX 200 mining shares in a hole

The way things are going, the S&P/ASX 200 Index (Index:^AXJO) could finish the week nursing a loss of around 4%.

Friday’s big falls in ASX resource shares comes even as commodities are seen to be well placed to benefit from the rising risk of stagflation.

Not that you can tell with the way ASX 200 mining shares are trading today. The Fortescue Metals Group Limited (ASX: FMG) share price crashed 2% to $21.13, South32 Ltd (ASX: S32) share price tumbled 3.6% to $4.83 and Alumina Limited (ASX: AWC) share price tanked 5.5% to $1.56 at the time of writing.

Why are ASX 200 mining shares underperforming?

A drop in hard commodity prices is dragging on ASX 200 mining shares. Iron ore shed 1.4% overnight, while copper slipped 1.4% while aluminium gave up 1.2%.

There are also worries that high fuel and power prices will crimp on profit margins for miners. This is because processing plants are energy intensive, while heavy machinery used onsite are require diesel.

What is also hurting sentiment are predictions that aluminium prices have peaked. Research firm Harbor Intelligence warned that the price will plunge by nearly 20% by December to US$2,310 a tonne, reported Bloomberg.

Gloomy prediction for aluminium

The dire forecast was presented at North America’s largest aluminium conference this week. The drop is caused by slowing demand and rising supply.

Harbor Intelligence managing director Jorge Vazquez said at the conference:

We all know that last year and so far this year has been the best ever in terms of demand.

But there’s one component of that demand borrowed from the future, and we’ll need to pay that – consumers cannot sustain this level of goods spending seen the past two years.

Is it time to sell out of the sector?

Meanwhile, the price of other commodities is also tipped to decline in the near- to medium-term. This includes lithium and iron ore.

This doesn’t necessarily mean ASX 200 mining shares are about to collapse into bear territory. The fact is many do not need record high prices for their commodities to generate good profits.

Further, the price for many commodities isn’t likely to crash given the high inflation forecasts by most economists.

The post Why are ASX 200 mining shares tumbling on Friday? appeared first on The Motley Fool Australia.

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More reading

• The market expects the RBA to take the cash rate to 3% by the end of 2022
• ASX 200 midday update: Big four banks rebound, Atlas Arteria’s takeover update
• Why are ASX 200 bank shares rebounding on Friday?
• Fortescue share price sinks: Broker warns that it could fall a further 34%
• South32 share price sinks: Is this a buying opportunity?

Motley Fool contributor Brendon Lau has positions in Fortescue Metals Group Limited and South32 Ltd. 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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Shares of Galileo Mining Ltd (ASX: GAL) have slipped hard this week and now trade more than 21% in the red. At the time of writing, Galileo shares are fetching $1.43 apiece.

In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) has slipped around 2% on the day.

What’s up with the Galileo share price?

After news surfaced that the company could be a takeover target earlier this week, there was short-term optimism in the Galileo share price, with the stock surging 9% on the day.

Zooming out, however, shares have clamped down from a high of $1.82 since 2 June, and are now continuing in a downtrend since that date.

The company also advised this week it had started drilling at its Callisto discovery, located at its Norseman project in Western Australia.

Nevertheless, investors weren’t biting from the update and sent the stock even lower on the day.

An equal weighting factor is the broad-sector weakness currently marring the metals & mining sector.

Over the past month of trade, there’s been a striking similarity in the trajectory of both the Metals & Mining index and the Galileo share price, as seen below. Both have slipped from highs in June.

With that in mind, it appears sector weakness may have spilled over to the Galileo Mining share price this week.

Despite the downward pressure, the Galileo Mining share price has returned more than 535% this year to date and has spiked 429% in the last 12 months.

The post Why is the Galileo Mining share price diving 21% this week? appeared first on The Motley Fool Australia.

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More reading

• Why is the Galileo share price soaring 9% on Tuesday?
• Galileo share price dips 7% despite project milestone
• Galileo Mining share price shrugs off market pressure, soars 16%
• Why has the Galileo Mining share price shot to the stars in May?
• 3 ASX mining shares soaring by more than 30% on Friday

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

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The TerraCom Ltd (ASX: TER) share price is roaring higher today despite the broader ASX market plummeting.

At the time of writing, the resource company’s shares are swapping hands at 80.5 cents, up 2.55%, having earlier risen 10.83% to 87 cents. This means its shares have now gained around 37% in the past month.

For context, the All Ordinaries Index (ASX: XAO) is today in the red by 1.2% to 7,153.8 points.

TerraCom on track to hit sales targets

The TerraCom share price is climbing on Friday following a couple of positive announcements made by the company.

According to its release, TerraCom is on track to meet its June 2022 quarterly forecast.

As such, 640,000 tonnes of coal from the company’s wholly-owned Blair Athol (BA) coal mine in Central Queensland will be delivered. This represents 27% of the 2.3 million tonnes of coal sales to be achieved in FY22.

Furthermore, management is forecasting an operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) for BA of approximately $180 million in the June quarter. Combined with the prior nine months, TerraCom is hoping to achieve an operating EBITDA of $360 million for FY22.

At its South Africa operations, operating EBITDA is expected to be around $44 million for the June quarter. This will total roughly $128 million for FY22 when including the previous $84 million attained from July 2021 to March 2022.

On a separate note, TerraCom issued a convertible bond to Madison Pacific Trust Limited for US$20 million. The conversion price stood at A$0.696, with the bonds expiring on 24 December 2022.

However, OCP Asia informed TerraCom that it wishes to convert the full amount of the bonds into fully-paid ordinary shares.

Based on the conversion rate, this will equate to around 39.91 million TerraCom shares to OCP Asia. This represents approximately 5% of the entire company’s issued capital.

Lastly, management stated that it will be looking to restart its dividend policy in the coming weeks.

Management commentary

In regards to the dividends, TerraCom executive chair Craig Ransley said:

The Company’s balance sheet has significantly improved following the repayment of the US$167 million Euroclear Bond.

The Board looks forward to being able to recommence dividends to shareholders following strong financial performance continuing to be achieved.

Based on forecast, the first dividend to be returned to shareholders is expected to be declared for the period ending 30 June 2022 and estimated to be paid during September 2022. The dividend is forecast to be an initial unfranked dividend of 10 cents per share.

TerraCom share price summary

Strong investor sentiment has led the TerraCom share price to accelerate over the past 12 months, reaching gains of 600%.

Year-to-date, the company’s shares have also performed admirably, up 345%.

TerraCom presides a market capitalisation of around $591.58 million.

The post TerraCom share price rallies as dividends return appeared first on The Motley Fool Australia.

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

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The National Australia Bank Ltd (ASX: NAB) share price has fallen by close to 10% this week.

Indeed, all of the other big four banks of Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), and Australia and New Zealand Banking Group Ltd (ASX: ANZ) have also seen their share prices decline this week.

After that decline, the broker Macquarie believes that NAB is an interesting opportunity.

What happened this week?

Earlier this week, the Reserve Bank of Australia (RBA) decided to increase the interest rate (the cash rate target) by 50 basis points to 85 basis points. The RBA rate is now 0.85%.

There has been a lot of commentary that a rising interest rate could help the net interest margin (NIM) of the banks. This is the margin that the banks make on their lending, compared to the cost (such as savings accounts). The broker Macquarie also sees that potential improvement in margins for NAB.

However, some experts, such as Morgan Stanley, have pointed out that banks are also increasing the interest rate for savers and term deposits, which could be a negative for the NIM.

Macquarie says NAB share price is a buy

The broker has an ‘outperform’ rating on NAB, with a price target of $34. That implies a potential rise of around 20% over the next year on the current NAB share price of $28.22.

It thinks that people that don’t move their money to try to get the best rates — the people that aren’t proactive — will help improve margins for NAB.

Macquarie is expecting a basis point boost in the mid-to-high single digits for NAB over the next year.

Valuation

Using the numbers that Macquarie has projected, the NAB share price is valued at 13.5x FY22’s estimated earnings. Looking at the projected earnings for FY23, NAB shares are valued at 12x FY23’s estimated earnings.

Morgan Stanley’s earnings estimates for NAB over the next two financial years are very similar to Macquarie’s.

But there is more to the bank business than just its valuation.

Dividends can also form an important part of the total returns from the bank.

Macquarie thinks the projected grossed-up dividend yield for NAB in FY22 is going to be 7.4%. The broker is expecting another dividend increase in FY23, leading to a possible grossed-up dividend yield of 7.6%.

NAB share price snapshot

While the NAB share price may be down this week, it’s actually up by around 6% over the past year. However, it is down by around 2% this year to date and more than 10% over the past month.

The post The NAB share price is down 10% this week: Macquarie says it’s a buy appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 bank shares rebounding on Friday?
• What exactly is going on with ASX 200 bank shares and the RBA rate rise?
• Why is the NAB share price sinking on Thursday?
• Why are ASX 200 bank shares plunging on Wednesday?
• NAB share price backtracks amid $1 billion capital raise

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 and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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