It’s certainly been a rough month so far for the Pilbara Minerals Ltd (ASX: PLS) share price.

Even though we’re only 10 days into June, Pilbara shares have fallen a painful 26.6% this month so far. That includes the nasty 5.7% drop to $2.16 a share that this ASX 200 lithium stock has fallen by so far today.

But these latest moves can also be seen as just an extension of the woes that Pilbara Minerals shares have been experiencing all year. Since reaching a new high of $3.89 a share back in mid-January, Pilbara shares have now fallen more than 44%.

The latest chapter in the story of these falls came right at the start of this month. On 1 June, we covered how broker Goldman Sachs put out a note that warned of a “sharp correction” in lithium prices over the coming two years.

Goldman predicted that we could see falls from US$60,350 per tonne to around US$54,000 per tonne over this year. But it is also expecting this to drop dramatically to as low as US$16,372 per tonne by 2023.

This prediction pulled the rug out from under ASX lithium shares when it became public. As we covered at the time, PiIbara Minerals shares were down 22% at one point that day.

What’s next for Pilbara Minerals shares?

So with such dramatic falls under the belt, could it finally be time to dig into Pilbara shares this June?

Well, it could be, according to some ASX expert investors.

This week, my Fool colleague Brooke covered how analysts at Macquarie Group Ltd (ASX: MQG) reckon there is still “material upside to lithium miners” after these falls. These analysts point to how Pilbara is already “factoring in realised lithium prices of approximately US$13,000 per tonne”.

But opinions are certainly mixed right now.

Earlier this month, my Fool colleague Bernd also covered fellow broker Credit Suisse’s opinion. Credit Suisse is currently “neutral” on Pilbara shares. Saying that, this broker still has a $3 share price target on Pilbara. That implies a potential upside of more than 38% on current pricing.

So some ASX experts are still confident Pilbara shares will reach higher form here. But it is certainly a tough period for the Pilbara Minerals share price and its fellow ASX lithium shares at the moment.

The post Down 26% in June, is it time to dig into Pilbara Minerals shares? appeared first on The Motley Fool Australia.

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More reading

• Is it too late to buy ASX lithium shares?
• Here are the 3 most traded ASX 200 shares on Thursday
• Can the Pilbara Minerals share price recover from a 28% loss this year?
• Here are the 3 most traded ASX 200 shares on Wednesday
• Why Macquarie still sees ‘material upside’ for ASX lithium shares

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 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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Earlier this week, the Reserve Bank of Australia surprised the market with a greater than expected increase in the cash rate.

In response to rising inflation and low unemployment, the central bank took rates 50 basis points higher to 85 basis points.

Governor Philip Lowe explained why the Reserve Bank made the move. He said:

Inflation in Australia has increased significantly. While inflation is lower than in most other advanced economies, it is higher than earlier expected. [..] Inflation is expected to increase further, but then decline back towards the 2–3 per cent range next year. Higher prices for electricity and gas and recent increases in petrol prices mean that, in the near term, inflation is likely to be higher than was expected a month ago [..]. Today’s increase in interest rates will assist with the return of inflation to target over time.

Unfortunately for borrowers, the central bank acknowledges that this rate hike, as large as it was, won’t be enough to tame the inflation beast. Mr Lowe has warned that more hikes are coming and soon. He explained:

The Board expects to take further steps in the process of normalising monetary conditions in Australia over the months ahead. The size and timing of future interest rate increases will be guided by the incoming data and the Board’s assessment of the outlook for inflation and the labour market. The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.

Where are rates going?

If you thought that 0.85% was a shock to the system then you might want to hold onto your hat.

The ASX 30 Day Interbank Cash Rate Futures provide investors with an idea of what the market is expecting from the Reserve Bank over the next 18 months. And it certainly isn’t pretty for borrowers.

Here’s what lies ahead for the cash rate between now and this time next year according to futures:

Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun
1.55%	1.63%	1.96%	2.35%	2.8%	3.02%	3.09%	3.31%	3.46%	3.59%	3.68%	3.7%

This means that the market is now pricing in the cash rate reaching 3% by Christmas, after which it is expecting rates to continue to rise to 3.7% by this time next year.

Given this expected rapid rise and the impact it could have on borrowers and the economy, it’s no surprise to see Commonwealth Bank of Australia (ASX: CBA) shares, the rest of the big four, and the ASX 200 index behaving so volatile this week.

Time will tell how accurate the market is with its predictions.

The post The market expects the RBA to take the cash rate to 3% by the end of 2022 appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Big four banks rebound, Atlas Arteria’s takeover update
• Why are ASX 200 bank shares rebounding on Friday?
• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most traded ASX 200 shares on Thursday
• 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 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 Novonix Ltd (ASX: NVX) have sunk 4% in the red on Friday and now trade at $3.08 apiece.

The slide brings losses to more than 66% this year to date for the company, and over 74% from its 52-week closing high of $12.15.

The question now becomes if Novonix can restart its growth engine and push back toward these former highs.

Can the Novonix share price revive itself?

We’ve got to at least gauge the market’s prospects in order to address this question. According to its Annual Energy Paper 2022, JP Morgan notes that “global [electric vehicle] sales gathered steam in 2021, growing to almost 9% of total vehicle sales”.

“Although to be clear, EVs are still just 1.5% of the global fleet of vehicles on the road,” it added.

The JP Morgan team also noted the substantial increase in battery costs, underscored by surging commodities used in their production.

Estimated battery costs have also risen approximately $500–$1,500 since January 2020 across various battery styles, it says.

“EV buyers can expect to offset part of this price increase via lower fuel costs if the current gap between gasoline and electricity costs per mile is sustained,” the team remarked.

With the price of oil and gasoline surging at equal pace, the case is arguably stronger for the transition some might also say.

But the market also prices stocks on a blend of past earnings history, and forward earnings expectations, according to Peter Lynch, in his book, ‘One up on Wall Street’.

According to Bloomberg consensus data, Novonix is forecast to grow revenue by 69% year on year to $8.8 million in FY22, with that expanding more than 478% to $51 million in FY23 and $141 million in FY24.

However, it’s also forecast to produce a net loss into FY23, before turning profitable in FY24, according to this data.

Noteworthy is that FY22’s projected loss of $35 million is more than its FY21 result of a $16 million loss.

It’s not uncommon for ‘growth’ companies to present with negative earnings and high revenue growth forecasts. However, the high-growth trade has arguably unwound itself this year.

For instance, the Vanguard Growth ETF (NYSE: VUG) has tanked 26% in the last 6 months, whereas the BetaShares Diversified All Growth ETF (ASX: DHHF) has slipped more than 10%, both behind the benchmark.

The striking similarity in these instruments and their directional movement is shown on the chart below.

The culmination of these pressures means the future outlook of the Novonix share price is murky.

The post Can the Novonix share price hit the comeback trail in June? appeared first on The Motley Fool Australia.

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More reading

• Novonix share price slips to 10-month low amid Thursday’s sell-off
• Novonix share price dips ahead of US investor conference presentation
• Do Novonix shares pay dividends?
• Why are ASX 200 tech shares having such a cracking Friday?
• Why did the Novonix share price tumble 22% in May?

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 Sezzle Inc (ASX: SZL) share price is getting hammered today.

Sezzle shares closed yesterday trading for 43 cents and are currently trading for 40 cents, down 7%.

So, why is the buy now, pay later (BNPL) share coming under selling pressure again today?

Interest rates and competition

The Sezzle share price isn’t the only one amongst the BNPL companies doing it hard today.

Global payments provider Block Inc (ASX: SQ2), which acquired Afterpay in January, is down 6.6% at this same time. Openpay Group Ltd (ASX: OPY) is down a somewhat less painful 2.6%.

So why is the Sezzle share price under pressure alongside the wider BNPL sector?

First up, there’s interest rates. Rates are going up across most of the western world for the first time in more than a decade. And as we witnessed with the RBA’s 0.50% rate hike on Tuesday, they have the potential to rise further and faster than most analysts had expected.

With US inflation figures due out today (tonight Aussie time), jittery investors pushed the tech-heavy Nasdaq down 2.8% in Thursday’s trading. If inflation figures come in higher than forecast, it could mean more aggressive tightening from the Federal Reserve.

Higher rates throw up a number of headwinds for BNPL shares, including a likely rise in bad customer debts in a sector already struggling with that issue. Higher rates could also impact customer spending habits, seeing a decrease in demand for Sezzle’s payment services.

Then there’s the rise of some serious competition in the pay via interest free instalments space that’s pressuring the Sezzle share price.

Earlier this week Apple Inc. (NASDAQ: AAPL) announced that it was pressing ahead with its own BNPL service, Apple Pay Later. Apple, one of the biggest companies in the world with a market cap north of US$2.3 trillion, said it won’t charge interest rates or late fees. And the service will be available to any merchants who already accept Apple Pay.

Sezzle share price snapshot

A stellar performer during the first year following the pandemic lows, the Sezzle share price has been heading sharply downhill since last June.

Over the past 12 months, Sezzle shares are down a painful 95.7%. That compares to a full year loss of 5% posted by the All Ordinaries Index (ASX: XAO).

The post Why is the Sezzle share price fizzling 7% on Friday? appeared first on The Motley Fool Australia.

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More reading

• 10 ASX All Ords shares that could be stung by tax-loss selling
• ‘Just horrific’: Why this fundie says Zip should abandon its Sezzle takeover
• Why Brambles, James Hardie, Seek, and Sezzle shares are sinking
• Why is the Sezzle share price tumbling on Tuesday?
• Why is the Sezzle share price tumbling 8% on Wednesday?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Apple. 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 Aussie share market is yet again heading south after Wall Street recorded another heavy fall overnight.

In early afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is down by 0.89% to 6,957.5 points.

However, ASX bank shares — including the Westpac Banking Corp (ASX: WBC) share price — are defying the sell-off to outperform the broader index.

The Westpac share price spent much of the morning in the green — at one stage rising as high as $21.65, a 2.2% gain. However, at the time of writing it has edged into the red by 0.05% to trade at $21.16.

What’s helping Westpac shares outperform on Friday?

While most of the ASX market is in a sea of red, the S&P/ASX 200 Banks Index (ASX: XBK) is among the best performing sectors today.

Currently 0.28% higher at 2,475.2, the benchmark index for Australian banks is rebounding from this week’s sizeable losses.

Since Monday, the ASX 200 banking sector has dropped almost 10%. This followed the decision by the Reserve Bank of Australia (RBA) to increase the official cash rate by 0.5%.

Today, Westpac’s big four peers are all currently in the green. National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking Group Ltd (ASX: ANZ), and Commonwealth Bank of Australia (ASX: CBA) were all up by more than 1% earlier in the day but have since partially retreated.

Westpac ponders capital notes offer

On a separate note, Westpac advised today that it’s weighing up a new capital notes offer in the near future.

According to its release, the offer could include a reinvestment offer for certain Westpac capital notes 2 holders.

Although, whether or not it goes ahead will depend on market conditions, and regulatory and other required approvals.

It’s worth noting that some investors who previously participated in the capital notes 2 may not be eligible. This is due to Westpac changing how the offer is conducted following the recent introduction of product design and distribution obligations (DDO).

As such, management advised below of what’s expected under any offer that is made:

• All applications, including under a reinvestment offer, will need to be made through a syndicate broker;
• Participating applicants would need to satisfy new eligibility requirements;
• No specific offer will be made to Westpac securityholders; and
• There won’t be any direct applications to Westpac.

Westpac share price snapshot

Over the past 12 months, the Westpac share price has declined by 20% after a tough beginning in 2022.

After significant volatility across the ASX, the bank’s shares are flat year-to-date.

Based on today’s price, Westpac commands a market capitalisation of roughly $76.95 billion.

The post What’s impacting the Westpac share price on Friday? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 bank shares rebounding on Friday?
• Here are the 3 most traded ASX 200 shares on Thursday
• Why Appen, Cleanaway, Syrah, and Westpac shares are dropping
• Westpac share price slides again and is now down 12% this week
• What exactly is going on with ASX 200 bank shares and the RBA rate rise?

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

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The Virtus Health Ltd (ASX: VRT) share price is lifting on Friday despite the broader market’s suffering.

Right now, the S&P/ASX 200 Index (ASX: XJO) has slumped 0.75% while the All Ordinaries Index (ASX: XAO) has dipped 0.93%.

Meanwhile, the Virtus share price is trading at $8.15, 0.25% higher than its previous close.

The S&P/ASX 200 Health Care Index (ASX: XHJ) is also outperforming today, gaining 0.43%.

Could the company’s ongoing takeover be behind its buoyancy today? Let’s take a look.

Why is Virtus’ stock outperforming on Friday?

The Virtus share price is in the green today as shareholders get closer to receiving a potential special dividend worth up to 30 cents.

The last few weeks have been dramatic for Virtus and its suitors. CapVest Partners and BGH Capital were battling to takeover the company earlier this year.

However, CapVest stepped back from the competition last week, conceding defeat when the company’s board shifted its support from CapVest’s $8.10 takeover bid to BGH’s $8.15 bid.

Now, BGH is working to acquire 90% of the company’s voting power. It holds an 84.3% stake as of this morning.

Its offer closes at 7 pm on Monday – a public holiday for NSW and Victoria.

If it has met its target by the close of business on Tuesday, the company will consider paying a fully franked special dividend valued at up to 30 cents per share.

That means shareholders might get both an $8.15 payout as well as the benefits from franking credits. That could bring a tax benefit of 13 cents per share for some shareholders if the dividend is 30 cents per share.

Previously, the company promised to consider a special dividend of up to 44 cents per share. However, that was revised after it was forced to pay around $7.2 million in break fees to CapVest.

Virtus share price snapshot

Today’s gains have helped to boost the Virtus share price even further into the long-term green.

It’s currently trading nearly 21% higher than it was at the start of 2022. It has also gained 24% since this time last year.

The post Here’s why the Virtus share price is defying Friday’s sell-off appeared first on The Motley Fool Australia.

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• Why is the CSL share price losing ground on Friday?
• Virtus share price holds steady despite 30% earnings fall

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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The Breville Group Ltd (ASX: BRG) share price has defied the market weakness today and is pushing higher.

In afternoon trade, the appliance manufacturer’s shares are up 2% to $18.40.

This compares favourably to the ASX 200 and its 0.75% decline.

Why is the Breville share price rising?

The catalyst for the rise in the Breville share price on Friday has been the release of an update on an acquisition and the company’s guidance for FY 2022.

According to the release, Breville’s acquisition of Italian-based prosumer coffee group LELIT is progressing well. It was expected to complete in early July following an internal reorganisation.

Breville has now confirmed that the reorganisation is going to plan and the transaction is expected to complete on July 1 2022. This means the business will be part of Breville in time for the start of FY 2023.

As for FY 2022, Breville revealed that it expects to release its full-year results on 23 August. And, pleasingly, it has reiterated that its FY 2022 earnings before interest and tax (EBIT) should be in line with its previous guidance and the market consensus.

Breville is expecting to report EBIT of ~$156 million for the 12 months. This will be a year on year increase of 14.4% from $136.4 million in FY 2021. Which is all the more impressive when you consider that FY 2021’s EBIT was up 40% on FY 2020’s numbers.

Despite this strong form, the Breville share price is still significantly underperforming the market in 2022. Since the start of the year, the company’s shares are down a disappointing 43%.

Analysts at Macquarie are likely to see this as a buying opportunity. This morning the broker retained its outperform rating with a $23.80 price target.

The post Here’s why the Breville share price is smashing the ASX 200 on Friday appeared first on The Motley Fool Australia.

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More reading

• Belt tightening? 5 ASX 200 consumer shares slipping to new 52-week lows today
• The Breville share price has at least 50% upside: top brokers
• Why these 2 ASX 200 shares are undervalued opportunities: WAM
• 2 top growth shares experts are tipping as buys in June
• Potential buys from experts: 2 compelling ASX shares

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 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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The Block Inc (ASX: SQ2) share price is down 6.9% in late morning trade.

Block shares closed yesterday at $116.29 and are currently trading for $108.30.

Below we look at why the dual-listed global payment provider, which acquired Afterpay in January, again finds itself under pressure.

Why are investors hitting the sell button today?

There’s plenty of interest in Block shares today, with more than 5,400 trades already placed at the time of writing for a total value of some $10.9 million.

Those trades are bidding down the Block share price after the BNPL company’s NYSE listed stock plummeted 9.7% yesterday (overnight Aussie time). This came as the broader US tech sector also took another beating, with the Nasdaq closing the day down 2.8%.

Investors are keeping a close eye on US GDP numbers, with a slowdown in the economy having some analysts tipping that a recession may be nigh.

Investors are also on edge as they await the latest inflation figures (CPI) due out of the United States today (tonight Aussie time). If inflation in the world’s top economy surprises to the upside it will likely mean investors can expect more aggressive interest rate hikes from the US Federal Reserve.

Atop the much watched Fed, the European Central Bank (ECB) also flagged a series of rate rises ahead. While the ECB held fire yesterday, it indicated rates will rise by 0.25% next month, with more hikes ahead to tame inflation in the eurozone, currently running at 8%.

Higher rates tend to drag on equities, particularly growth shares like Block that are priced with higher future earnings in mind. According to CommSec, Block trades on a price to earnings (P/E) ratio of 105 times.

According to Liz Ann Sonders, chief investment strategist at Charles Schwab & Co (quoted by Bloomberg), “There’s a bit more chatter, call it whisper numbers, for the CPI being a little north of expectations. You add in a more hawkish stance by the ECB and you have another weaker day.”

Block share price snapshot

Block shares began trading on the ASX on 20 January.

Since then, the Block share price is down 39%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is down 5% over that same time.

The post The Block share price is down 7% on Friday. What’s going on? appeared first on The Motley Fool Australia.

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More reading

• How are ASX 200 tech shares performing following the RBA rate hike?
• Why is Audinate outperforming other ASX tech shares today?
• Why did ASX 200 tech shares fall today?
• Why is the Block share price tanking 5% on Monday?
• These are the 10 most shorted ASX shares

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 Wesfarmers Ltd (ASX: WES) share price is currently going through one of its roughest patches in years.

Shares of this ASX 200 retail conglomerate last peaked in August of 2021. That was when Wesfarmers hit its current 52-week and all-time high of $67.20 a share. But today, the company is going for just $44.56 at the time of writing, down 0.51% for the day so far.

That puts Wesfarmers shares down a nasty 25.76% year to date in 2022 so far. The company is also down more than 32% from its all-time high that we saw last year, a fall comparable to the drops seen during the COVID-19 crash of 2020.

So now that we’ve established how painful the past few months have been for the Wesfarmers share price, let’s talk about the elephant in the room – are Wesfarmers shares currently a bargain buying opportunity?

Is the Wesfarmers share price a buy today?

Well, at least one broker thinks it is.

As my Fool colleague James covered earlier this week, Morgans is currently bullish on Wesfarmers shares at their current level. Morgans is currently rating Wesfarmers as an “add”, with a 12-month share price target of $58.40. If that came to pass, it would equate to a potential gain of more than 31% off of the current share price.

Morgans noted that Wesfarmers’ recent strategy update provided “insights into the growth opportunities available for each business division and the strategy going forward”.

All in all, the broker concluded the following for Wesfarmers shares right now:

We continue to see WES as a long-term, core portfolio holding with a strong mix of businesses, highly regarded management team and a healthy balance sheet.

But Morgans isn’t the only professional investor optimistic over Wesfarmers at the moment. My Fool colleague Tony chatted to Adam Dawes of Shaw and Partners last month.

Dawes noted how Wesfarmers shares have fallen over the past few months and stated that “there’s some definite value there” when it comes to the current Wesfarmers share price. He was also excited over the future prospects of Wesfarmers’ lithium battery business.

So that’s how two professional investors view Wesfarmers at the moment. Both clearly reckon the Wesfarmers share price is heading up, and not down, over the upcoming 21 months. So it will be interesting to see if these predictions play out.

At the current Wesfarmers share price, this ASX 200 conglomerate has a market capitalisation of $50.46 billion, with a dividend yield of 3.82%.

The post How much further could the Wesfarmers share price fall? Here’s what the experts reckon appeared first on The Motley Fool Australia.

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More reading

• Experts name 2 ASX dividend shares for income investors to buy now
• The Wesfarmers share price is trading at 2-year lows. Time to plough in?
• Belt tightening? 5 ASX 200 consumer shares slipping to new 52-week lows today
• ASX retail shares tumble following RBA rate rise
• Why this top broker is tipping the Wesfarmers share price to rise 24%

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 positions in and has recommended Wesfarmers 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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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with another day in the red. The benchmark index is currently down 0.75% to 6,967.3 points.

Here’s what is happening on the ASX 200 today:

Atlas Arteria takeover update

The Atlas Arteria Group (ASX: ALX) share price is trading largely flat on Friday. This is despite the toll road operator denying potential suitor IFM access to non-public information to support a takeover proposal. It has instead offered the investment company the chance to meet with management. IFM acquired a 15% stake in Atlas Arteria earlier this week.

Xero shares rise despite tech selloff

The Xero Limited (ASX: XRO) share price is rising despite weakness in the tech sector. This follows a positive response from analysts to the cloud accounting platform company’s price increases. Goldman Sachs, for example, has retained its buy rating and $118.00 price target. It is “confident Xero will be able to execute on these increases while preserving its existing subscriber base.” The S&P/ASX All Technology Index is down 1.1% at lunch.

Bank shares rebound

After a couple of terrible trading sessions, Australia’s big four banks are rebounding on Friday despite the market weakness. The best performer in the group has been the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price with a 1.5% gain. Investors appear to believe the big four banks have been oversold since the Reserve Bank lifted the cash rate on Tuesday. A note today reveals that analysts at Macquarie have have suggested the recent bank selloff is a buying opportunity.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Healius Ltd (ASX: HLS) share price with a 3% gain on no news. Going the other way, the Lynas Rare Earths Ltd (ASX: LYC) share price is the worst performer with a 7.5% decline amid weakness in the resources sector. The S&P/ASX 200 Resources index is down 2.3% at lunch.

The post ASX 200 midday update: Big four banks rebound, Atlas Arteria’s takeover update appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 bank shares rebounding on Friday?
• Here’s the ANZ dividend forecast through to 2024
• Atlas Arteria share price falls on takeover update
• Could this help boost the Xero share price in 2022?
• 5 things to watch on the ASX 200 on Friday

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

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