The Woodside Petroleum Limited (ASX: WPL) share price is currently down 0.2% to $30.89. Today, it has been as high as $31.59 and as low as $30.67. That’s a swing of almost 3% in just five hours of trading.

Other oil and gas producers, like Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT), have seen a similar pattern with their share prices – they were higher earlier today and then those gains faded.

During this week, Woodside released its quarterly update for the three months to 31 March 2022.

First-quarter update

Woodside said that its delivered production was 22.3 million barrels of oil equivalent (MMboe) for the quarter. This was down 1% from the fourth quarter of 2021.

Its sales volume was 25.5 MMboe, which included a 2% increase in the produced LNG sales volume from the 2021 fourth quarter.

The average realised price increased to $93 per barrel of oil equivalent. This was an increase of 3% from the 2021 fourth quarter.

While the price per barrel increased, the sales revenue of $2.36 billion was down 17% from the fourth quarter of 2021 due to lower trading activity.

Highlights included the commencement of processing Pluto gas at the Karratha Gas Plant. This followed the start-up of the Pluto-KGP interconnector pipeline.

Outlook for Woodside and its share price

Woodside said that it’s expecting to see the continued benefits of stronger pricing in the second quarter, reflecting the oil price lag in many of its LNG contracts.

The ASX oil share pointed to the implications of Russia’s invasion of Ukraine which exacerbated the energy markets, which were already “tight”, particularly for LNG. It has driven prices higher.

Woodside continues to make progress toward the merger with the BHP Group Ltd (ASX: BHP) petroleum business. Why are they merging? Woodside CEO Meg O’Neill explains:

We believe the case for the proposed merger with BHP Petroleum is compelling. It will bring together the best of two successful organisations and deliver the increased scale, diversity and resilience to provide value to shareholders and ensure Woodside better navigates the energy transition.

The company points to progress with a number of its other projects. This includes Scarborough where the manufacture of the pipeline has started. It has signed binding agreements for the long-term charter of three new-build LNG carriers to be delivered before the start-up of Scarborough. These new vessels “will improve the cost-competitiveness and fuel efficiency of the Woodside fleet”.

Is the Woodside share price an opportunity?

The broker Morgans thinks that Woodside is a buy, with a price target of $33.60. That implies a potential rise of around 10% over the next year.

However, UBS is only neutral with a price target of $32.20, suggesting a smaller potential rise for the Woodside share price. UBS has decreased its production expectations for the next couple of years.

The post Why is the Woodside share price in the spotlight on Thursday? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• How might the election outcome impact the outlook for ASX energy shares?
• Here’s why the Woodside share price is beating the ASX 200 today
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
• Own ASX 200 energy shares? Here’s why Morgan Stanley says the oil price is set to surge

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 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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The Xero Limited (ASX: XRO) share price has dropped 35% since the start of 2022. The ASX tech share is seen as an opportunity, according to some experts.

It has been a volatile period for the ASX share market. There is elevated inflation around the world, which is why expectations for rising interest rates are increasing.

That may explain some of the market sentiment on the Xero share price in recent times. But after the decline, some experts believe that the cloud accounting business is worth buying.

Here are some of the factors that are favourable about the company.

High-profit margin with growing SaaS metrics

It is possible for technology companies to achieve relatively high-profit margins because of the intangible nature of what they offer customers. Software can be reproduced easily and cheaply. Furniture, phones, or other physical goods have to be manufactured and shipped.

Xero reported in its FY22 half-year result that its gross profit margin improved by another 1.4% to 87.1%. This means that a large majority of new income for Xero can turn into gross profit. Xero is utilising this money to invest in further growth.

The company said it’s seeing “strength” with a number of its software as a service (SaaS) metrics. Over HY22, its average revenue per user (ARPU) increased by 5% to NZ$31.32.

Xero also said that its subscriber ‘churn’ was low and went lower. HY22 churn was 0.88%, down from 1.11% in HY21.

Global growth for Xero

The ASX tech share started operations in New Zealand but it is now a global accounting software business.

In Australia and New Zealand, it reached 1.72 million subscribers – that was an increase of 20% year on year, with 22% growth in Australia to 1.24 million. Xero said this points to the “positive potential of international segment.”

The business is growing quickly outside of Australia/New Zealand.

In the UK, it grew subscribers by 23% to 785,000 in HY22. It’s looking to grow by expanding its compliance and tax offerings. In North America, subscribers rose 23% to 308,000. Xero is looking to grow in both the US and Canada.

Xero is also aiming to gain a significant presence in the ‘rest of the world’ segment. HY22 saw subscribers grow by 48% to 201,000. The ASX tech share is making “strong progress” in South Africa and Singapore.

Platform business model

Xero wants to build its small business platform. Indeed, CEO Steve Vamos said:

We are committed to delivering the world’s most insightful and trusted small business platform to make life better for people in small business, their advisors and communities around the world.

The company is seeing growth in the number of Planday users and employees being paid through Xero payroll. The total payment value is also increasing on Xero’s platform.

Xero is directing the cash flow it generates to grow its platform to “drive long-term shareholder value”.

The percentage of revenue that comes from its platform, rather than core accounting, is growing. In HY22, platform revenue was 11% of the total revenue, up from 6%. Platform revenue increased 104% year on year, or 37% excluding revenue from acquired businesses.

Xero share price targets

Ord Minnett rates Xero as a buy, with a price target of $107. The broker thinks Xero can benefit from global tailwinds toward cloud software. Citi also rates Xero shares as a buy, with a price target of $132.60.

At the time of writing, Xero shares are swapping hands for $93.68, down 0.92% for the day. The Xero share price has dived 36% year to date and 32% over the past 12 months. Its 52-week high is $156.65.

The post Why the Xero share price is a buy right now: experts appeared first on The Motley Fool Australia.

More reading

• 2 ASX tech shares to buy for dirt cheap right now: experts
• 2 ASX 200 blue chip shares to buy in May: Analysts
• Top brokers name 3 ASX shares to buy next week
• Broker tips Xero share price to rise 30% due to ‘compelling global growth story’
• 2 top ASX growth shares leading brokers say ‘buy’

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is rebounding from recent weakness. At the time of writing, the benchmark index is up 1.1% to 7,340.2 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

AMP Ltd (ASX: AMP)

The AMP share price is up 15% to $1.18. Investors have been buying this financial services company’s shares after it announced an agreement to sell its international infrastructure equity business to DigitalBridge. The two parties have agreed an upfront consideration of A$462 million and a total value of up to A$699 million. This follows recent agreements to sell its domestic infrastructure equity and real estate business and its infrastructure debt platform. AMP intends to return the majority of the proceeds to shareholders.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is up 6.5% to $21.43. This morning the mining giant released its third quarter update which revealed iron ore shipments up 10% year on year to 46.5 million tonnes (mt). This means Fortescue’s shipments reached a record of 139.5mt for the first three quarters of the financial year. This led to management upgrading its shipments guidance for FY 2022.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up 2% to $2.65. Earlier today the lithium miner released its quarterly update and revealed production of 81,431 dry metric tonnes (dmt) of spodumene concentrate. While this was down 2% quarter on quarter, management has retained its FY 2022 production guidance of 340,000–380,000 dmt. It also reported another increase in lithium prices for the quarter.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire share price is up 11% to $5.77. Investors have been buying this copper producer’s shares following the release of its quarterly update. That update revealed strong production, sales, and earnings thanks largely to the transformational acquisition of MATSA.

The post Why AMP, Fortescue, Pilbara Minerals, and Sandfire shares are racing higher appeared first on The Motley Fool Australia.

More reading

• Why is the Rio Tinto share price rebounding strongly on Thursday?
• Sandfire share price shoots 12% higher on ‘transformational’ quarter
• AMP share price surges 11% as $699m Collimate deal confirmed
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• Pilbara Minerals share price climbs as lithium prices surge

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 Bruce Jackson.

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The Mineral Resources Limited (ASX: MIN) share price is storming higher today.

This comes after the mining services company announced an update to its unsecured senior notes offer.

At the time of writing, the Mineral Resources share price is up 4.79% to $58.15.

Mineral Resources bolsters its notes offer

According to its release, Mineral Resources advised the pricing and upsizing of its US$1.25 billion unsecured notes offer.

As previously stated, the notes will be offered across two tranches to persons believed to be qualified institutional buyers.

It appears investors are viewing the release as a positive one, sending the Mineral Resources share price higher.

The first offer comprises US$625 million senior unsecured notes priced at 8% per annum, maturing in 2027. The interest is payable on 1 May and 1 November each year, commencing in November 2022.

The second tranche of US$625 million senior unsecured notes will be priced at 8.5% per annum, expiring in 2030. These will also have the same payable interest dates as above, commencing in November 2022.

Originally, the proposed notes offering was placed at US$1 billion.

Mineral Resources stated that it intends to use the cash proceeds for general corporate purposes, including capital expenditures.

The settlement of the offering of the notes is expected to occur on 2 May 2022, subject to customary closing conditions.

Mineral Resources share price snapshot

Despite being down 5% for the week, Mineral Resources shares have gained almost 20% since this time last month.

When looking further back, its shares are up 26% over the past 12 months.

On valuation grounds, Mineral Resources presides a market capitalisation of roughly $11 billion, with approximately 189.2 million shares outstanding.

The post Here’s why the Mineral Resources share price is leaping 5% appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 mining shares defying today’s sell-off to surge higher
• 5 things to watch on the ASX 200 on Wednesday
• Why Chalice Mining, EML Payments, Mineral Resources, and South32 shares are tumbling
• Why is the Mineral Resources share price sinking 9% today?
• 5 things to watch on the ASX 200 on Tuesday

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 Bruce Jackson.

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It’s been a very pleasing day on the whole for the S&P/ASX 200 Index (ASX: XJO). After some heavy losses earlier in the week, the ASX 200 is rebounding strongly today, up 0.95% at the time of writing to around 7,330 points. But it’s been an even better day for the Rio Tinto Limited (ASX: RIO) share price. Rio shares are currently up a healthy 2.34% at $111.51 each. That comes after some steep selling earlier this week.

So why are Rio shares surging higher today?

Well, we can’t be completely certain. The company hasn’t released any news itself today. However, looking at the market, we can take a guess. The materials and metals and mining indexes on the ASX 200 are the top two performing sectors so far today. So Rio is certainly not alone in its gains. Its peers like BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) are also surging, both up even more than Rio. Fortescue’s shares have risen an eye-popping 5.82%.

Rio share price rises amid higher iron ore price, falling dollar

These moves come as the iron ore price sees a rebound. According to Trading Economics, iron ore rallied overnight to US$137 a tonne. The Aussie dollar has also fallen in recent days. It’s now at just over 71 US cents, down from over 72 earlier n the week. A falling dollar makes exports from Australia cheaper to buy for foreign buyers, which is good news for miners like Rio.

So a rising iron ore price, and a falling Aussie dollar is the likely reason why iron ore miners like Rio, BHP and Fortescue are rallying today. This is no doubt coming as a relief for Rio investors, who had to watch the company lose around 4% of its value over Tuesday and Wednesday’s trading.

At the current Rio Tinto share price, this ASX 200 mining giant has a market capitalisation of $40.44 billion, with a trailing dividend yield of 9.75%.

The post Why is the Rio Tinto share price rebounding strongly on Thursday? appeared first on The Motley Fool Australia.

More reading

• Despite the global uncertainty, here’s why Macquarie remains bullish on ASX shares
• Why is the Woolworths share price missing out on the ASX party today?
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• Down over 10% in 10 days: Is the BHP share price a bargain buy now?
• Fortescue share price charges higher on Q3 update and shipments guidance upgrade

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 Bruce Jackson.

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Markets are lifting in afternoon trade on Thursday with the benchmark S&P/ASX 200 index (ASX: XJO) resting 105 basis point up at 7,337.

The big end of town is joined by Australian small caps today as well with the S&P/ASX Small Ordinaries index (XSO) also up by 74 basis points.

Meanwhile, theS&P/ASX 300 Metals and Mining index (XMM) that’s leading today with a circa. 3% gain, just ahead of the S&P/ASX 200 Materials index (XMJ) and ASX 200 resources index (XJR).

The distribution of these returns’ feeds into why one broker is bullish on ASX shares rolling through 2022 and beyond.

Why is Macquarie bullish on ASX shares?

After reviewing the current state of affairs, investment bank Macquarie Group Ltd (ASX: MQG) has urged its clients to tilt their portfolios towards domestic shares, particularly amid tensions in Europe.

It also recommends to concentrate in resources stocks over industrials in preference, considering the macroeconomic climate that’s driving up commodity prices.

Altough, with commodity indices racing to multi-year highs in 2022, it mightn’t come as a surprise. Brent Crude oil has surged 52% in the past 12 months whereas gold is still up 6% despite a sharp pullback recently.

Meanwhile, commodity-popstar lithium has still booked a 434% gain during the last year, and energy markets including coal and natural gas have secured triple-digit returns as well.

And let’s not overlook agricultural and food-based commodities. Except for lumber, the entire ‘ag-com’ basket is trading well into the green.

Most recently that’s been spurred on by Indonesia’s decision to scale back RBD palm oil exports.

“The world’s top producer [Indonesia] announced such a move in further effort to stabilise domestic prices, and authorities will assess local supply regularly,” as calculated by Trading Economics.

There’s talk such a move could add further pressure on agricultural commodities.

However, there’s two sides to every trade. And as commodity prices surge, there’s sure to be a long list of winners in 2022, Macquarie says.

Macquarie equity strategist Matthew Brooks said that “[e]asing lockdowns and more China stimulus should support commodities,” in a note, cited by The Australian.

Fed tightening remains a headwind for growth and valuations, and we still think this headwind will be greater for Industrials than Resources.

We still think the war in Eastern Europe is positive for Australia and continue to see inbound interest in ASX stocks from global investors.

The strategist’s outlook aligns with the current macro-thematic it seems, as ASX shares continue to shrug off pressures seen in European and US markets so far in 2022.

The post Despite the global uncertainty, here’s why Macquarie remains bullish on ASX shares appeared first on The Motley Fool Australia.

More reading

• Why is the Woolworths share price missing out on the ASX party today?
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• ‘No risk, no reward’: Exit ASX shares if you can’t stomach volatility, says experts
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today

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 recommended Macquarie Group Limited. 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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Telstra Corporation Ltd (ASX: TLS) shares are down 0.25% on Thursday afternoon after it was revealed to have paid $2.2 million in refunds and penalties.

The sell-off in the morning saw the stock price plunge as much as 0.5% as investors digested the news that the telco had overcharged customers.

The Telstra share price is now down more than 2% over the past week, and 5.8% for the year so far.

The Australian Communications and Media Authority (ACMA) announced before market open on Thursday that the company had paid a $506,160 penalty and more than $1.73 million in refunds after it was busted.

“At a time when Australians are being very careful with their budgets, these errors are particularly concerning as they could have caused considerable strain and distress,” said ACMA chair Nerida O’Loughlin.

“Telecommunications is an essential service for Australian households and businesses, and there are no excuses for overcharging customers.”

Charging customer after they departed

More than 8,000 of the roughly 11,600 impacted customers had been with Telstra’s budget brand Belong.

They were collectively charged more than $1.2 million for broadband after they had switched to another provider.

The problem was particularly concerning as Telstra had already been busted for the same offence in 2020.

“Telstra had already been formally directed by the ACMA to comply with billing rules so should have moved to address these issues and not inconvenienced its customers further.”

The Motley Fool has contacted Telstra for comment.

The errors, which occurred between July 2018 and October 2021, were self-reported by the company. The report triggered ACMA investigations, but the firm independently committed to refunding the overcharges.

According to ACMA, Telstra blamed the mistakes on data transfer issues between its customer relationship management system and its billing system, plus manual processing errors and obsolete instructions for staff.

The excuses didn’t really cut it for O’Loughlin.

“Telstra is the largest telecommunications company in Australia. I would expect its billing systems to be more sophisticated and compliant with industry-wide consumer protection rules.”

Telstra buys set-top box provider

During the day, Telstra announced that it had bought a 51% stake in streaming box provider Fetch.

The $50 million investment values Fetch at around $100 million, with current owner Astro Holdings retaining 49% of the business.

Until now, Telstra had provided streaming boxes branded Telstra TV that were made by US company Roku Inc (NASDAQ: ROKU).

Telstra TV currently had about 800,000 active subscribers, and Fetch has about 670,000 through other partners such as Optus and TPG Telecom Ltd (ASX: TPG).

The deal is subject to regulatory approval.

The post What’s dragging the Telstra share price lower today? appeared first on The Motley Fool Australia.

More reading

• Down 5% in 2022, is the Telstra share price a buy today?
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
• Can Telstra shares deliver an attractive dividend yield AND 13% upside in 2022?
• Analysts name 2 top ASX 200 dividend shares to buy
• Here are the 3 most heavily traded ASX 200 shares on Thursday

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. 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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The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is pushing higher on Thursday.

In afternoon trade, the banking giant’s shares are up 0.5% to $27.04.

This means the ANZ share price is now up 9% in the space of approximately seven weeks.

Where next for the ANZ share price?

Unfortunately for shareholders, one leading broker feels the ANZ share price may have peaked for the time being.

According to a note out of Morgans, its analysts have downgraded the bank’s shares to a hold rating and cut the price target on them to $26.00. This implies potential downside of 3.8% for the ANZ share price from current levels.

In addition, Morgans has downgraded Westpac Banking Corp (ASX: WBC) shares to a hold rating and slashed its price target down to $23.90. This compares to the current Westpac share price of $23.57.

Why did the broker make the move?

The note reveals that Morgans made the move amid concerns over near-term factors.

In respect to ANZ, the broker explained:

“Whilst ANZ’s Institutional business provides it with potentially strong leverage to rising rates, ANZ’s Australian home lending continues to disappoint in terms of growth. Moreover, it appears the limited growth ANZ is achieving is being driven by less complex, low-margin home loans. We consequently see risk of ANZ disappointing in the near term by way of loan growth and margin performance.”

As for Westpac, its analysts said:

“It has been disappointing to see that WBC’s Australian investor home loan book has continued to shrink post FY21 according to APRA statistics. We believe this contraction is being partially driven by WBC’s business bankers being focused on remediation issues; we had hoped these issues would be resolved by now. We suspect the remediation issues are also hampering WBC’s Australian business loan growth.”

“This is of particular concern in the near term as investor and business lending are two relatively high-margin areas of lending. We expect WBC’s share price to broadly track sideways until these issues are resolved.”

The post Top broker downgrades ANZ and Westpac shares appeared first on The Motley Fool Australia.

More reading

• Is the Westpac share price expensive in April?
• Here’s what the 5 biggest companies on the ASX 200 today were worth in 2000
• Own ANZ shares? Here’s what this top broker finds ‘particularly concerning’
• What predictions are being made for the ANZ share price in April?
• Own Westpac shares? Here’s why the bank has just copped a further $100m in fines

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Bruce Jackson.

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It appears the Vulcan Energy Resources Ltd (ASX: VUL) share price is not getting the attention it might have wanted amid the release of its quarterly activities report.

As we enter the afternoon, the lithium project developer is being valued at $8.37 per share, down 2.3%. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up 0.99% to 7,332.9 points. Furthermore, the blame cannot be placed on the sector — the materials segment of the market is currently the best performing.

So, let’s take a look at the latest quarter for Vulcan.

Vulcan energy share price wanes amid cash-burning

• Receipts from customers of 2.214 million euros, up from zero
• Commenced pre-fabrication of Direct Lithium Extraction (DLE) demonstration plant
• Exploration license area up 50% to more than 1,000 square kilometres
• Binding lithium hydroxide offtake agreement signed with LG Energy Solutions
• Began trading on the Frankfurt Stocks Exchange
• Finished the quarter with cash and cash equivalents totalling 115.61 million euros

What else happened during the quarter?

The quarter gone by was yet another eventful period for the upcoming lithium aspirant. Importantly, it involved several accomplishments that progress the company’s lithium production ambitions.

During the quarter, Vulcan entered into a memorandum of understanding with chemicals company Nobian. Essentially, the agreement will see the two explore the feasibility of bringing a central lithium plant to life in Frankfurt, Germany.

In another key update, Vulcan is moving closer to having its demo plant up and running. This will serve as a 1:200 scale representation of the company’s commercial plans for its Zero Carbon Lithium Project.

However, the exploratory operations come at a cost. Due to Vulcan not having its core operations cemented yet, the company burnt through 18.94 euros during the quarter. This might be weighing on the Vulcan Energy share price today.

What did management say?

Commenting on the progression of the company, Vulcan managing director Dr. Francis Wedin said:

We are swiftly capitalising on strategic opportunities to ensure timely project development. The recent appointment of Dr Günter Hilken and Mr Mark Skelton complement the existing key skills of our Board, at this critical juncture in our project development. I would like to thank the entire Vulcan team for their unwavering commitment to the Zero Carbon Lithium Project, as we remain focused on delivering the Definitive Feasibility Study (DFS) in the second half of the year, ahead of our targeted phase one commercial lithium production in 2024.

In addition, Dr Wedin highlighted the pleasing numbers from Vulcan’s operational DLE pilot plant. So far, the company has found lithium recovery rates averaging between 94% to 95%.

Vulcan share price snapshot

Despite some ASX-listed lithium plays continuing their upward trajectory this year, the Vulcan share price has had no such luck. In 2022, the project developer has experienced a 22.5% fall in its valuation.

At present, ASX-listed Vulcan boasts a market capitalisation of $1.12 billion.

The post Why is the Vulcan share price lagging the ASX 200 today? appeared first on The Motley Fool Australia.

More reading

• Down 13% in a month, is the Vulcan share price a buying opportunity?
• Analysts name 3 top ASX lithium stocks to buy now
• Why this broker says the Vulcan share price can more than double
• Vulcan share price up on new offtake agreement
• March was a stellar month for the Vulcan Energy (ASX:VUL) share price. Here’s why

Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

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If you’re looking to gain exposure to the banking sector, then National Australia Bank Ltd (ASX: NAB) shares could be worth considering.

That’s the view of one of Australia’s leading brokers, which has just reiterated its bullish view on the bank.

Why NAB shares?

According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating and $34.03 price target on the bank’s shares.

Based on the current NAB share price of $32.04, this implies potential upside of 6.2% for investors over the next 12 months.

But it gets better. Goldman Sachs is forecasting a fully franked dividend yield of ~4.5% in FY 2022. If we add this into the equation, the total potential return stretches to almost 11%.

What did the broker say?

Goldman likes NAB due to its strong position in business banking, cost management initiatives progress, and its balance sheet momentum.

The broker explained:

“Our preference for NAB (Buy, on CL) is premised on:

i) NAB’s position as the largest business bank means we believe it will benefit more from the continued economic recovery (management at the FY21 result saw all segments in its Business & Private Bank exhibiting solid growth without sacrificing margin, and asset quality remains pristine as at 1Q22),

ii) good balance sheet momentum, with NAB highlighting at the 1Q22 update that market share was gained across core lending and deposit products,

iii) NAB’s cost-management initiatives, which seem further progressed relative to most of its peers, have freed up investment spend to be more directed towards customer experience (targeting 50% in FY22 from 39% in FY21) as opposed to infrastructure.”

As for the rest of the big four, Goldman has a buy rating on Australia and New Zealand Banking GrpLtd (ASX: ANZ) shares, a neutral rating on Westpac Banking Corp (ASX: WBC) shares, and a sell rating on Commonwealth Bank of Australia (ASX: CBA) shares.

The post Why NAB shares are this leading broker’s top big four pick appeared first on The Motley Fool Australia.

More reading

• 2 inflation-busting ASX dividend shares that brokers are tipping as buys
• Is the Westpac share price expensive in April?
• Here’s what the 5 biggest companies on the ASX 200 today were worth in 2000
• Why is the NAB share price beating the other ASX 200 banks in April?
• If you’d invested $5,000 in NAB shares just after the COVID crash, here’s what you’d have now

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Bruce Jackson.

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