It is fair to say that it has been a very disappointing year for the tech sector. But every cloud has a silver lining. On this occasion, that silver lining is the attractive levels that some tech shares have been dragged down to.

For example, the two ASX tech shares listed below have been hammered this year despite continuing their strong growth. Here’s why analysts think this could be a buying opportunity for investors:

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is an enterprise software provider servicing the government, financial services, health and community services, education, and utilities and managed services markets. Its shares are down 19% year to date.

This is despite TechnologyOne releasing its half year results last month and reporting a 19% increase in total revenue to $172.5 million and a 23% jump in annual recurring revenue (ARR) to $288.5 million.

Pleasingly, management also reiterated its confidence that it will grow its ARR to $500 million by FY 2026. This is being underpinned by its transition to a software-as-a-service (SaaS) business model and its growing UK business.

The latter more than doubled its profit during the first half and still has a huge runway for growth in a market many times larger than the ANZ market.

Analysts at Goldman Sachs suspect that TechnologyOne could even outperform its ARR target, noting that the risks “are skewed to the upside.”

Goldman has a buy rating and $13.30 price target on the company’s shares.

Xero Limited (ASX: XRO)

Xero is a cloud-based accounting solution platform provider to small and medium sized businesses globally. Its shares are down 45% since the start of the year.

This is despite Xero recently releasing its FY 2022 results and revealing a 28% jump in annualised monthly recurring revenue (AMRR) to NZ$1.2 billion thanks partly to a 19% increase in total subscribers to 3.3 million.

Furthermore, the company’s long term growth prospects remain as positive as ever. For example, Goldman Sachs is forecasting a 26.5% increase in revenue to NZ$1.387.1 billion in FY 2023. After which, it expects Xero’s revenue to increase to almost NZ$2 billion by FY 2025.

Beyond that, Goldman has previously stated its belief that Xero has the potential to deliver strong multi-decade growth.

In light of this, it will come as no surprise to learn that its analysts have a buy rating and $118.00 price target on its shares.

The post 2 beaten down ASX tech shares that analysts rate as buys appeared first on The Motley Fool Australia.

More reading

• Why Codan, Incitec Pivot, Xero, and Zip shares are dropping
• Down 13% in a month, fundie says Xero share price is ‘very reasonable’
• 3 ASX shares to buy now (and one bonus): fund manager
• 2 stellar ASX growth shares analysts are tipping as buys this month
• Analysts name 2 high quality ASX blue chip shares to buy right now

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 Australia has recommended TechnologyOne 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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A popular question among investors is when the Zip Co Ltd (ASX: ZIP) share price will finally bottom?

The buy-now pay-later (BNPL) company’s shares have continued to tumble to new multi-year lows not seen since early 2018.

For context, Zip shares closed at 65.5 cents, down a massive 14.38% at yesterday’s market close. This represents their ninth multi-year low in just a month.

Can the Zip share price rebound in June?

Amid all the selling pressure on the ASX over the last few weeks, the Zip share price has felt the wrath of investors.

The company delivered its third quarter results in late April, acknowledging a shift in external factors.

As such, management adjusted its strategy and doubled down on its efforts on strong unit economics and fast-tracking profitability.

However, it’s worth noting that Zip is experiencing credit losses outside its target range, around 2.6% of total transaction volume.

And with interest rates rising in the current environment, particularly yesterday’s 0.5% increase, this won’t bode well for Zip customers.

Furthermore, United States tech giant Apple Inc (NASDAQ: AAPL) recently announced its inclusion to the BNPL space.

Called “Apple Pay Later”, the service offering won’t charge any interest or late payment fees to its customers.

This is yet another company that has joined the trend away from the traditional credit cards.

A number of major Australian banks such as Commonwealth Bank of Australia (ASX: CBA) have also promoted their own offering.

With the above factors taken into consideration, signs are pointing to another difficult month for Zip shareholders.

What do the brokers think?

One broker put out its thoughts on the Zip share price.

According to ANZ share investing, Macquarie cut its 12-month price target on the BNPL’s shares by 43% to $1.05.

Despite the steep reduction, the broker noted that it thinks it’s unlikely that the industry has reached maturity.

It further said that it doesn’t believe that this will lead to a rapid share market loss for Zip.

Based on today’s price, Macquarie’s estimate implies an upside of approximately 60%.

Zip share price summary

An unfavourable climate has led the Zip share price to lose 90% within the last 12 months.

This means you’d need its shares to climb 900% to break even.

No doubt, the company’s shares are a long way from ever nearing its all-time high of $14.53 in February 2021.

Zip commands a market capitalisation of roughly $526.27 million.

The post Is there light at the end of the tunnel for the Zip share price in June? appeared first on The Motley Fool Australia.

More reading

• 10 ASX All Ords shares that could be stung by tax-loss selling
• Why Codan, Incitec Pivot, Xero, and Zip shares are dropping
• When will it end? Zip share price plummets again on Tuesday
• Zip share price dips to yet another 4-year low on Monday
• The carnage continues: Why the Zip share price has hit 7 multi-year lows in a month

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 Accent Group Ltd (ASX: AX1) share price has been well and truly out of form in 2022.

Since the start of the year, the footwear-focused retailer’s shares have fallen 46% to $1.32.

Is the Accent share price good value now?

The good news for investors is that one leading broker believes the weakness in the Accent share price has dragged it down to a very attractive level.

According to a note out of Bell Potter, the broker has reiterated its buy rating and $2.20 price target on the company’s shares.

Based on the current Accent share price, this implies potential upside of 67% for investors.

But it gets even better as Accent traditionally shares a good portion of its profits with shareholders. Bell Potter doesn’t expect this to change and is forecasting payout ratios of ~80% for FY 2022 and FY 2023.

This is expected to lead to fully franked dividends per share of 5.8 cents in FY 2022 and then 10.7 cents in FY 2023. This implies potential yields of 4.4% and 8.1%.

Why does Bell Potter rate it as a buy?

Bell Potter notes that Accent’s shares are trading at a lowly 9.8x estimated FY 2023 earnings. It believes this is too cheap considering the company’s dominant market position in the Australian footwear market (~30% market share) and its significant opportunity in athleisure. It explained:

AX1 is currently trading on 9.8x FY23e P/E (BPe) which we think looks conservative given its dominant market share in the Australian footwear retailing industry and growth outlook in the youth focused sports apparel vertical.

We think AX1 has a long runway ahead in terms of the athleisure market opportunity and is well placed to gain share given its accelerated vertical sales strategy. We sit ~6% ahead of consensus NPAT expectations for FY24e primarily driven by higher store based revenues & vertical sales assisted by the Glue Store roll out which in our view should see overall margin expansion through the medium term.

The post Top analyst says Accent share price has almost 70% upside appeared first on The Motley Fool Australia.

More reading

• Are these 2 beaten-up ASX shares too cheap to ignore in June 2022?
• Top broker tips Accent share price to deliver 65% upside AND juicy dividends
• 2 excellent ASX dividend shares that experts rate as buys
• 2 cheap ASX shares to buy right now: experts
• Something’s afoot! Why is the Accent share price leaping 6% today?

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 Accent Group. 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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Well, believe it or not, we are now in June. Along with moons and Ferris wheels, many investors might be wondering what this June might hold in store for the ASX, especially given yesterday’s monster interest rate hike. And one of the ASX shares investors will no doubt be watching is the Woodside Energy Group Ltd (ASX: WDS) share price.

Woodside Energy (formerly known as Woodside Petroleum) is now the ASX’s largest energy share by a mile, thanks to the recent deal with BHP Group Ltd (ASX: BHP). And what a time to have additional oil resources fall into your books. Oil prices remain at historically elevated levels, which were kick-started by the war in Ukraine earlier this year.

As it currently sits, crude oil remains well above US$100 a barrel, with Brent crude hitting close to US$122 a barrel earlier this week.

So if an investor wants to predict where the Woodside share price will go this June, that is certainly the first port of call. As an energy company, Woodside’s fortunes largely ride or die on the price of the ‘black gold’ it extracts.

That’s almost certainly a large part of the equation that explains Woodside’s share appreciation over 2022 thus far. It’s no coincidence that while oil has skyrocketed in price over the year to date, the Woodside share price has rocketed by more than 45%.

What’s next for the Woodside share price?

We can’t be sure where the Woodside share price will go over June. But chances are it will follow the movements of the crude oil price fairly closely.

Beyond June, many expert investors are bullish. Earlier this week, my Fool colleague Bernd covered the views of Philipp Hofflin, portfolio manager at Lazard Asset Management. Mr Hofflin said the following on Woodside’s business at the moment:

The astonishing thing about Woodside is that you can buy it today at 20% less than it was pre-COVID. Yet it has done a deal with BHP Petroleum, that is currently delivering phenomenal earnings… The cash flow is enormous.

They have a fortress balance sheet because they did this deal entirely with equity. Woodside, which has a sort of breakeven cost of production of just a bit over $10 a barrel, in a world where the oil price is $110, it’s a pretty safe value opportunity.

So that’s a pretty unequivocal opinion on Woodside shares today. This ASX 200 energy share will certainly be worth watching this June… along with the moons and Ferris wheels.

The post What’s coming up for the Woodside share price in June? appeared first on The Motley Fool Australia.

More reading

• ‘Woodside will distribute US$20bn in dividends over the coming decade’: Morgan Stanley
• Why GrainCorp, New Hope, Tabcorp, and Woodside shares are pushing higher
• Woodside shares or Whitehaven? What’s the best ASX 200 value play?
• 5 things to watch on the ASX 200 on Monday
• Woodside share price edges lower following NYSE debut

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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In uncertain times like now, one school of thought is that investing in businesses that sell directly to consumers is a bad move.

It makes sense — interest rates are rising and Australians have less to spend.

In fact, that’s exactly what the Reserve Bank of Australia wants. Reduce demand, therefore knock down inflation.

So if you’re not buying ASX shares of companies that sell to consumers, what’s left?

Companies that provide goods and services to other businesses.

Bell Potter Securities investment advisor Christopher Watt this week named two such stocks that he recommends as a buy:

‘Low risk income stream’ with stable clients

Charter Hall Long WALE REIT (ASX: CLW) shares have dipped 4.6% year-to-date. But Watt pointed that it is paying out an “attractive, stable income” with a 5.8% dividend yield.

Moreover, Charter Hall is a landlord to reliable, long-term tenants.

“This real estate investment trust invests in quality assets that are mostly leased to government and corporate tenants,” he told The Bull.

“We’re attracted to Charter Hall Long WALE’s low risk income stream, secured by a sector-leading lease term of 14 years.”

Charter Hall Long WALE shares closed Tuesday at $4.82.

The wider professional community is somewhat divided on Charter Hall.

According to CMC Markets, four of seven analysts consider it a buy, with the remaining three recommending it as a hold.

‘Strong cash flow growth’ and huge development pipeline

Watt picked another real estate stock as the other tempting buy at the moment.

Industrial property manager Goodman Group (ASX: GMG) is a landlord for warehouses — or fulfilment centres, as its e-commerce clients would call them.

“Goodman offers exposure to global property development and property funds management,” said Watt.

“While investors may be concerned about rising interest rates, Goodman management has flagged that quality assets are generating strong cash flow growth, which should support asset value growth.”

The stock has lost almost 26% since the start of the year, presenting a potential entry point.

According to CMC Markets, eight out of 12 analysts currently recommend Goodman shares as a strong buy.

Medallion Financial Group advisor Jean-Claude Perrottet said last week that Goodman is different to the typical real estate stock in that it has much potential growth ahead of it.

“It has $13.4 billion of development work in progress across 89 projects,” he said.

“Goodman has high quality tenants and an occupancy rate that increased to 98.7%. [It] is a quality business, with about $68.7 billion in assets under management.”

The post ‘Attractive, stable’: 2 ASX shares other companies rely on appeared first on The Motley Fool Australia.

More reading

• Experts name 2 excellent blue chip ASX 200 shares to buy
• Goldman Sachs rates these ASX shares as buys
• 2 ASX shares to buy if you don’t want to invest in the share market: experts
• Why has the Goodman share price tanked 14% in a month?
• Why I’d buy these 2 ASX 200 shares

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 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 Domino’s Pizza Enterprises Ltd (ASX: DMP) share price was caught up in the selloff on Tuesday.

The pizza chain operator’s shares dropped 2% to $64.89.

This means the Domino’s share price is now down 47% since the start of the year.

Will the Domino’s share price soon deliver?

While the Domino’s share price hasn’t been delivering for investors in 2022, the team at Morgans think investors should stick with it.

According to a note, the broker has retained its add rating but trimmed its price target to $93.00.

Based on the current Domino’s share price, this implies potential upside of 43% for investors over the next 12 months.

‘Absolutely undiminished’ growth opportunity

While Morgans acknowledges that foot inflation and foreign exchange headwinds will weigh on its earnings in the near term, the broker feels that investors should look beyond this.

Instead, the broker thinks investors should be looking at the company’s significant long term growth opportunity which is being underpinned by its store expansion plans. These plans will see the company aim to more than double its network in current markets between now and 2033.

Its analysts commented:

The near-term challenges of currency headwinds and inflation continue to intensify. We have lowered our EBITDA estimates by 2% in FY22F and 6% in FY23F to take account of these pressures (we now sit below consensus). This should not, in our view, take away from the significant longer-term opportunity for growth that DMP offers.

The engine of DMP’s growth is the rollout of new stores. Although near-term store rollout may be slower than DMP would like, the medium-term opportunity is absolutely undiminished, as evidenced by the reiteration of the 2033 outlook today. DMP has developed a solid platform for inorganic expansion.

The post Domino’s share price tipped to rise 40% amid ‘absolutely undiminished’ growth opportunity appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why Ansell, Domino’s, Firefinch, and Healius shares are dropping
• 3 excellent ASX growth shares with major upside potential
• Top broker says beaten-up Domino’s share price has 46% upside
• Best ASX shares to buy in June 2022

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 Dominos Pizza Enterprises 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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Interest rates rose again this week for the second consecutive month.

Believe it or not, the Reserve Bank of Australia is deliberately trying to slow the economy down.

It wants Australians to spend less, thus reducing demand for goods and services.

That’s obviously not the best environment for any business, not just ASX-listed companies.

When central banks do this, it is playing with fire. It has to be careful not to slow down activity so much that the country falls into recession.

Wilsons head of investment strategy David Cassidy thinks authorities will be successful in avoiding a global recession, but it will still be a bumpy ride.

And in such nervous times, he would pick only very specific ASX shares to buy.

“With the return and volatility of quality defensives being historically superior to those of broader equities during choppy market conditions, investors may benefit from purchasing these stocks during turbulent times.”

Cassidy names three such quality defensive ASX shares in a recent Wilsons memo:

Market dominance matters when people have less to spend

One important theme that Cassidy’s team seeks in quality defensive shares is market dominance.

The idea is that if a company has a monopoly or a massively unassailable position, economic downturns don’t matter as customers still have no choice but to buy its goods and services.

They could even raise prices in response to inflation, and would not lose business.

A great example of this is toll road operator Transurban Group (ASX: TCL).

“Toll roads are used every day to get from A to B and pre-COVID had steady, consistent earnings growth,” he said.

“Transurban is our pick with its monopolistic power in NSW, VIC, and QLD. TCL should be able to pass inflation costs onto the consumer as prices rise.”

The Transurban share price has risen more than 4% year-to-date during a period in which the rest of the non-mining market has struggled. The stock also pays out a 2.5% dividend yield.

Cassidy also identified telephony as an “essential” service for Australians.

And he, not surprisingly, likes the market leader.

“Providers like Telstra Corporation Ltd (ASX: TLS) operate within an oligopoly with solid pricing power,” said Cassidy.

“Earnings are unlikely to be volatile now competition in the market has subsided.”

Telstra shares have dipped around 8% since the start of this year, while giving out a 2.8% dividend yield.

The third ASX share Cassidy named is related to a very basic human need — hunger.

“Since people need to buy food and basic household items, stocks from these sectors can do well when volatility is high.”

Australia has an effective duopoly in the supermarket sector, but Cassidy has a definite favourite out of Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW).

“The underperformance in Woolworths adds to the case for buying at current prices,” he said.

“Woolworths’ valuation premium to Coles has also been eroded slightly over the past few months.”

Indeed the Woolworths share price has dropped more than 10% so far this year. The ASX share hands out a 2.7% dividend yield.

The post Tolls and phones: Wilsons unveils 3 ASX shares to buy for a slowing economy appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Tuesday
• Will June be a good month for the Transurban share price?
• Analysts name 2 top ASX 200 dividend shares to buy right now
• Transurban share price hit by broker downgrade
• What’s the outlook for the Telstra share price in June?

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 COLESGROUP DEF SET and Telstra Corporation 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) fell heavily after the Reserve Bank increased rates more than expected. The benchmark index fell 1.5% to 7,095.7 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to rebound on Wednesday following a solid night of trade in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.75% higher this morning. On Wall Street, the Dow Jones rose 0.8%, the S&P 500 climbed 0.95%, and the Nasdaq was also up 0.95% after bond yields eased.

Platinum update

The Platinum Asset Management Ltd (ASX: PTM) share price will be on watch today following the release of the fund manager’s latest funds under management (FUM) update. That update revealed that Platinum experienced net outflows of approximately $209 million In May. This left it with FUM of $19,588 million.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after a solid night of trade for oil prices. According to Bloomberg, the WTI crude oil price is up 1.3% to US$120.02 a barrel and the Brent crude oil price has risen 1.3% to US$121.09 a barrel. Concerns over tight supplies continue to keep oil prices at high levels.

ResMed rated as a buy

The ResMed Inc (ASX: RMD) share price could be good value according to analysts at Goldman Sachs. This morning the broker has reiterated its buy rating and $34.40 price target, implying potential upside of ~20%. Goldman notes that there “is a 12-18 month backlog of new patients waiting to be diagnosed.”

Gold price climbs

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price climbed overnight. According to CNBC, the spot gold price is up 0.65% to US$1,855.4 an ounce. The safe haven asset was boosted by falling bond yields.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• Experts name 2 excellent blue chip ASX 200 shares to buy
• Why is Audinate outperforming other ASX tech shares today?
• Here’s why the Perenti share price is rocketing 18% today
• Can the Evolution Mining share price turn the corner in June?
• Will June be a good month for the Santos share price?

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 ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed 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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Are you interested in adding some more ASX shares to your portfolio in June?

Three ASX shares that could be worth considering this month are listed below. Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first ASX share to look at is Altium. It is an award-winning printed circuit board (PCB) design software provider. Altium could be worth considering due to its leading position in a market exposed to the Internet of Things and artificial intelligence booms. The proliferation of electronic devices is expected to lead to increasing demand for its software over the next decade.

Bell Potter currently has a buy rating and $41.25 price target on its shares. This compares to the latest Altium share price of $27.62.

Life360 Inc (ASX: 360)

Another ASX share to look at is Life360. This growing technology company is responsible for the Life360 mobile app. This market leading app is for families and offers useful features such as communications, driver safety, and location sharing. It also recently acquired Jiobit and items tracking company Tile. These are opening the door to material cross and upselling opportunities to its tens of millions of users.

Bell Potter is bullish on the company’s future and has a buy rating and $7.50 price target on its shares. This compares to the current Life360 share price of $3.12.

Megaport Ltd (ASX: MP1)

Megaport could be another ASX share to consider buying. It offers scalable bandwidth for public and private cloud connections, metro ethernet, and data centre backhaul. Megaport has networking equipment in hundreds of data centres around the world, which has created a software layer that provides an easy way for users to create and manage network connections. This means that through the Megaport network, users can create and run a global network with or without the need for physical infrastructure.

Goldman Sachs currently has a buy rating and $13.10 price target on Megaport’s shares. This compares favourably to the latest Megaport share price of $5.95.

The post 3 fantastic ASX shares that analysts reckon have huge upside potential appeared first on The Motley Fool Australia.

More reading

• Why is Audinate outperforming other ASX tech shares today?
• Megaport share price hits multi-year low: Is this a buying opportunity?
• Why did ASX 200 tech shares fall today?
• Goldman Sachs says beaten-up Megaport share price has 100% upside
• Top broker says unloved Life360 share price has 120% upside

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Life360, Inc., and MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The All Ordinaries Index (ASX: XAO) fell today, but three ASX All Ordinaries shares defied the trend.

The All Ords Index fell 1.54% today to 7,318.60 points. For perspective, the S&P/ASX 200 Index (ASX: XJO) also dropped 1.53%.

So let’s take a look at which shares outperformed the index today.

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price jumped 3.9% today. However, in earlier trade, it leapt 7% before pulling back.

The lithium developer’s shares jumped on the day after the company was added to the benchmark ASX 200 index as part of a June 2022 quarterly rebalance. ASX lithium shares including Lake tumbled last week after Argentina set a reference price for lithium carbonate exports of US$53 per kilogram.

However, a S&P Global Commodity Insights publication overnight states that Chinese lithium carbonate producers don’t see “any impact of this announcement” on the spot market in the near term. The source said:

I think overseas prices won’t drop drastically following Argentina’s announcement, though there’s also not enough support for prices to go up that much more,

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price jumped 3.77% today. However, in earlier trade, the company’s share price lifted 7.5% before retreating. Like Lake Resources, Core Lithium also joined the ASX 200 index yesterday.

As my Foolish colleague Bernd reported, investors potentially saw the ASX lithium share sell-off last Wednesday as “overdone”. Lithium shares fell on Wednesday after news of the Argentina reference point on lithium prices, along with a note out from Goldman Sachs.

However, other market analysts including Macquarie are more optimistic on the outlook for ASX lithium shares. Core Lithium is exploring the Finniss Lithium project near Darwin in the Northern Territory. Drill assay results from the project released on 3 June revealed intersections outside the mineral resource at BP33.

Perenti Global Ltd (ASX: PRN)

The Perenti Global share price soared a mammoth 10% today, defying the market trend. Shares jumped after the company announced a huge contract win.

The mining services company has been awarded a contract for the Evolution Mining Ltd (ASX: EVN) Cowal Underground project in NSW. The contract, involving both production and underground development, could be worth a whopping $520 million. Perenti said the project will deliver strong cash flows in return for capital investment.

Commenting on the win, CEO Mark Norwell said:

The Cowal contract represents one of the largest underground mining projects in Barminco’s history, generating revenue of nearly $520 million with an initial term of four years, from a contract commencement date in early July 2022.

The post 3 ASX All Ordinaries shares that had a terrific Tuesday appeared first on The Motley Fool Australia.

More reading

• Core Lithium share price shakes off oversupply concerns to march 8% higher today
• Why is the Lake Resources share price rising 6%?
• Why Core Lithium, Perenti, Strandline, and Yancoal shares are pushing higher
• Here’s why the Perenti share price is rocketing 18% today
• Could the Core Lithium share price be set to take off again in June?

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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