All eyes will be on the BHP Group Ltd (ASX: BHP) share price on Thursday.

This follows the release of the mining giant’s third quarter update this morning.

What happened during the quarter?

For the three months ended 31 March, BHP delivered iron ore production of 59.7Mt. This was flat quarter on quarter and means that year to date production remains down 10%.

Management notes that this reflects temporary labour constraints due to COVID-19, train driver shortages, and planned maintenance activities at Western Australia Iron Ore (WAIO). This was partially offset by record production from the MAC hub with the continued ramp up of the South Flank.

BHP’s copper production came in at 369.7kt, which was up 1% quarter on quarter. This was driven by higher volumes at Olympic Dam following the completion of planned smelter maintenance campaign, which was partially offset by lower volumes at Escondida due to COVID-19 workforce impacts and public road blockades following social unrest. Year to date copper production is now down 10%.

Nickel production was down 13% quarter on quarter to 18.7kt. This means that year to date nickel production is also down 13%. Temporary labour constraints were also to blame.

BHP’s metallurgical coal production rebounded during the quarter thanks to lower rainfall and a strong operational performance. It rose 20% quarter on quarter to 10.6Mt, which means year to date production is now down only 2%.

Elsewhere, energy coal production was down 13% to 2.6Mt and petroleum production reduced 6% to 24.1MMboe.

Management commentary

BHP’s Chief Executive Officer, Mike Henry, appear pleased with the quarter, all things considered. He said:

“BHP delivered safe and reliable production in the third quarter. Our WA iron ore business continues to perform strongly as we navigate the state’s first major COVID-19 wave, and we remain on track to achieve full year volume and cost guidance. Amid record high prices, our Queensland metallurgical coal business delivered strong underlying performance and benefited from better weather in the quarter.

In copper, Spence production is increasing and the Olympic Dam smelter is performing strongly as it returns to full production following planned maintenance. These gains have been more than offset at Escondida by impacts from COVID-19 and public road blockades in Antofagasta, which are reflected in a revision to overall production guidance.”

Mr Henry also spoke about inflationary pressures that are impacting the sector. He commented:

“Market volatility and inflationary pressures have increased further as a result of the Russian invasion of Ukraine. We continue our work to mitigate cost pressures through a sharp focus on operational reliability and cost discipline. While we expect conditions to improve during the course of the 2023 calendar year, we anticipate the skills shortages and overall labour market tightness in Australia and Chile to continue in the period ahead.”

Outlook

BHP has reaffirmed its FY 2022 production guidance for iron ore, metallurgical coal, and energy coal. However, it has lowered its copper and nickel production guidance.

It has also reaffirmed its full year unit cost guidance for WAIO, Escondida, and Queensland Coal, but has increased its guidance for New South Wales Energy Coal. The latter reflects a targeted increase in the proportion of higher quality coal to capture more value from the record high prices for higher quality thermal coal.

The post BHP share price on watch following Q3 update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Own BHP shares? Here’s why this week’s operations update could disappoint
• How does the Fortescue dividend compare to its sector?
• These 2 blue-chip ASX shares are opportunities: expert
• What’s boosting the BHP share price 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 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 Rio Tinto Limited (ASX: RIO) share price was out of form on Wednesday.

The mining giant’s shares fell almost 3% to $118.30.

Why did the Rio Tinto share price tumble?

Investors were selling down the Rio Tinto share price in response to the release of the mining giant’s first quarter update.

As you might have guessed from the market’s reaction, that update was softer than analysts were expecting.

For example, Goldman Sachs commented: “RIO reported a softer 1Q vs. GSe/consensus, with iron ore and copper both down 15%/5% QoQ respectively.”

This was due to iron ore tie-in and commissioning activities in the Pilbara continuing to be impacted from labour shortages and equipment issues. Copper production was also impacted by lower mill throughput related to labour shortages.

One positive, though, is that Rio Tinto has reaffirmed its full year production guidance despite its soft start to the financial year.

Is this a buying opportunity?

While Rio Tinto’s first quarter update disappointed Goldman Sachs, its analysts remain positive on the company’s outlook.

So much so, the broker has retained its buy rating, albeit with a slightly trimmed price target of $135.10.

Based on the current Rio Tinto share price, this implies a potential return of 14% for investors before dividends.

Goldman said: “Despite ongoing operational issues and concerns over future growth (Pilbara heritage and replacement mines, Simandou, Oyu Tolgoi, Resolution) and uncertainty over decarbonisation capex, we rate RIO a Buy.”

The broker’s buy rating is based on Rio Tinto’s attractive valuation (~0.9x NAV), strong iron ore outlook, production growth potential, low emission aluminium exposure, and strong free cash flow. Goldman expects the latter to underpin double digit fully franked dividend yields in FY 2022 and FY 2023.

All in all, this could make Rio Tinto’s shares worth considering if you’re looking for exposure to the resources sector right now.

The post Is the Rio Tinto share price in the buy zone after its quarterly update? appeared first on The Motley Fool Australia.

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• Rio Tinto share price falls on weak Q1 update
• How does the Fortescue dividend compare to its sector?

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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This might feel counter-intuitive, but taking a look at ASX shares that have not performed well in recent times can sometimes be fruitful.

Those shares are obviously now cheaper, and the business may still be solid with excellent prospects. 

After all, the stock price might have tanked for external reasons that have nothing to do with the internal operations.

In a recent memo to clients, the team at Celeste Funds Management highlighted two such examples that they’re still keeping the faith in:

Astounding record of acquisitions

PSC Insurance Group Ltd (ASX: PSI) shares lost 8.3% during March as it raised $80 million to fund future acquisitions.

The dilution may have contributed to the stock price fall, but the Celeste team feels like the extra cash will eventually become a positive.

“This raising brings net leverage below 2.0x (compared to a stated threshold of 2.0 to 2.5x) and will be focused on Australian and UK commercial broking opportunities,” the memo read.

“Since January 2021, PSC has completed 12 acquisitions contributing $16 million in EBITDA at an average multiple of 7.5x.”

This astounding history gives analysts at Celeste much confidence.

“Given this track record, their solid pipeline of opportunities and a supportive operating environment, we are confident PSC will deploy the capital in an earnings accretive manner.”

PSC Insurance shares are down 4.7% for the year so far, while handing out a 2.44% dividend yield.

Other analysts aren’t completely convinced yet, with 3 of the 5 surveyed on CMC Markets rating PSC shares as a hold. The remaining two recommend as a buy.

Is it better to understock or overstock? 

There is no sugar-coating this. City Chic Collective Ltd (ASX: CCX) shares have lost half their value in 2022.

Celeste analysts watched in horror over March as the fashion retail stock lost another 13% that month.

“Despite delivering strong top line growth, the market recoiled in response to elevated inventory levels in response to global supply chain disruptions, and sentiment remains weak,” the memo read.

“However, prudent inventory stocking will enable CCX to participate in key sales periods like summer in the Northern Hemisphere, with CCX flagging positive early indications.”

The alternative to overstocking is understocking and underselling. But this has played havoc with their US rival Torrid Holdings Inc (NYSE: CURV)’s bottom line.

“Ultimately City Chic continues to deliver a quality product with high demand in a growing target market – evidenced by strong growth in online sales, particularly in its key growth market of USA,” stated Celeste analysts.

“We believe City Chic is ripe with opportunity despite short-term supply chain issues.”

The broader fund management community agrees, with 8 of 11 analysts surveyed on CMC Markets rating City Chic shares as a “strong buy”.

The post 2 ASX shares that were dogs last month but good to buy now: expert appeared first on The Motley Fool Australia.

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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 recommended PSC Insurance Group. 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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ASX dividend shares could be the place to find opportunities to pay attractive income for investors. There are some very large dividend-paying businesses on the ASX such as BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA).

But just because a company pays a dividend, this doesn’t automatically make it worth owning.

Here are two ASX dividend shares that are liked:

GQG Partners Inc (ASX: GQG)

GQG is one of the largest fund managers on the ASX. The US-based manager runs a number of different investment strategies including global shares, international shares, US shares and emerging market shares.

The business is rated as a buy by the broker Morgans with a price target of $2.15. That implies a potential rise of around 40%. The broker thinks it’s good value and recognises that its quarterly updates continue to show inflows.

GQG recently released its update for the period ending 31 March 2022. Over the month, it showed that funds under management (FUM) rose from US$89.8 billion to US$92.9 billion. For the three months to 31 March 2022, the ASX dividend share experienced net inflows of US$3.4 billion despite an “extremely challenging macro environment”.

In FY23, Morgans thinks that GQG is going to pay a dividend yield of 8.4%. In FY22, it could pay a yield of 7.8%.

Best & Less Group Holdings Ltd (ASX: BST)

Best & Less describes itself as a leading value apparel specialty retailer with a physical store network of 245 stores and a “fast-growing” online offering. Its aim is to be the number one choice for families buying baby and kids’ value apparel in Australia and New Zealand through two brands: Best & Less in Australia and Postie in New Zealand.

Despite all of the store closures during the first half of FY22, the company achieved growth with some of its reported financial statistics.

Like-for-like sales were up by 0.1% and online sales increased by 24%. Its gross profit margin went up by 210 basis points to 50.8%. It achieved its 2021 calendar year prospectus forecasts for earnings before interest, tax, depreciation and amortisation (EBITDA) and net profit after tax (NPAT).

With that result, the ASX dividend share declared a maiden interim dividend of 11 cents per share.

The company is focused on executing its growth strategy in the second half, by continuing to grow its market share in ‘baby’ and ‘kids’, improving the womenswear offer, investing in its online capabilities and securing new store sites.

It’s currently rated as a buy by the broker Macquarie with a price target of $4.10. That implies a potential upside of around 30% over the next year.

Macquarie believes that the Best & Less share price is valued at under 9 times FY22’s estimated earnings with a projected grossed-up dividend yield for this financial year of 12.4%.

The post Brokers love these 2 ASX dividend shares right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. 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 market has been up and down this year, but one thing is for certain — uncertainty.

There is no shortage of guesses — but no one really knows how the war in Ukraine will turn out, nor how the economy and the share market will cope with multiple interest rate rises.

In such volatile times, it’s not such a bad idea to invest in ASX shares that provide the essentials of life.

If companies provide products and services people can’t live without, then at least you don’t have to worry about waning demand.

Here are a couple of such stocks Wilsons investment advisor Peter Moran currently rates as buys:

‘Outlook is improving’

Fruit and vegetable supplier Costa Group Holdings Ltd (ASX: CGC) has seen its shares rise more than 13.7% over the past month.

Moran isn’t surprised, with his team recently upgrading the stock to “overweight”.

“The outlook is improving for Australia’s biggest grower and marketer of fresh fruit and vegetables,” he told The Bull.

“Positive catalysts include increasing table grape exports and higher domestic pricing in the key categories of mushrooms, blueberries and tomatoes.”

There are some handy foreign tailwinds too.

“The international business is benefiting from increasing demand from China and from supply issues for competitors based in Chile.”

Costa Group shares also give out a tidy 2.65% dividend yield.

It seems Moran is not the only one bullish on Costa. According to CMC Markets, 10 out of 13 analysts rate the stock as either “strong buy” or “moderate buy”.

‘Well-positioned to compete’

As well as eating vegetables and fruit, Australians also need somewhere to live.

That’s where Moran’s recommendation of Resimac Group Ltd (ASX: RMC) shares comes in.

“Resimac is one of Australia’s largest non-bank financial lenders,” he said.

“The company’s [flexible] and attractively-priced loans have resulted in solid loan origination growth in recent years.”

Believe it or not, Moran rates Resimac as a buy despite expecting a financial downgrade in the short term.

“The lending environment is competitive and we expect a slight decrease in profitability for the current financial year,” he said.

“However, Resimac is well-positioned to compete in this environment and we expect profit growth to resume next financial year. We hold an overweight recommendation.”

Analyst coverage on the $680 million company is sparse. CMC Markets shows just one other fund manager other than Wilsons also rating it as a buy.

The share price has dipped 11.6% for the year so far.

The post Everyone needs to eat: Expert flags 2 ASX shares to buy now appeared first on The Motley Fool Australia.

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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 recommended COSTA GRP FPO. 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) continued its positive run with the smallest of gains. The benchmark index rose slightly to 7,569.2 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to have another positive day despite a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 25 points or 0.3% higher this morning. On Wall Street, the Dow Jones rose 0.7%, but the S&P 500 dropped 0.1% and the Nasdaq tumbled 1.2%. The latter was hit by a 35% decline by Netflix shares.

Oil prices flat

It could be a subdued day for energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices traded largely flat. According to Bloomberg, the WTI crude oil price is unchanged at US$102.56 a barrel and the Brent crude oil price is up slightly to US$107.31 a barrel. Traders appear unsure which direction oil will take given concerns over both supply and demand.

Zip Q3 update

The Zip Co Ltd (ASX: Z1P) share price hit a new multi-year low on Thursday. Investors will be hoping the release of the buy now pay later provider’s third quarter update this morning is the catalyst to getting its shares heading in the right direction again. The company’s shares are also due to start trading under the ticker code “ZIP” from today.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.1% to US$1,958.80 an ounce. Improving bond yields reduced the appeal of the precious metal.

Megaport’s third quarter update

The Megaport Ltd (ASX: MP1) share price will be one to watch when the network as a service provider releases its third quarter update. According to a note out of Goldman Sachs, its analysts are expecting Megaport’s second half revenue growth to accelerate. The broker expects revenue growth of 48% for the half, so a strong third quarter will be need to achieve this forecast. Elsewhere, also releasing a third quarter update today is mining giant BHP Group Ltd (ASX: BHP).

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

More reading

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• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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. owns and has recommended Megaport Ltd and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Megaport Ltd. 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 don’t have the funds to build a truly diverse portfolio, then exchange traded funds (ETFs) could be a quick fix. This is because ETFs allows you to invest in a large number of shares through just a single investment.

With that in mind, listed below are three ETFs that could be good options for investors. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF could be a great option if you’re wanting to gain exposure to the growing Asian economy. That’s because this ETF gives investors access to a number of the best tech shares operating in the Asian market. By buying this ETF you’ll be owning a slice of well-known companies such as ecommerce giants Alibaba and JD.com, search engine company Baidu, and WeChat owner Tencent.

BetaShares Global Energy Companies ETF (ASX: FUEL)

Another ETF to look at is the BetaShares Global Energy Companies ETF. This ETF provides investors with a way to gain exposure to rising oil prices. This is by allowing investors to own a slice of some of the biggest energy companies in the world. BetaShares notes that these are larger, more geographically diversified, and more vertically integrated than Australian-listed energy companies. Among the fund’s holdings are the likes of BP, Chevron, ExxonMobil, and Royal Dutch Shell.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to a massive ~1,500 of the world’s largest listed companies, which could make it a good option for investors seeking to add some diversification to a portfolio. Among the companies you’ll be investing in are giants such as Amazon, Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

The post 3 high quality ETFs for ASX investors to buy today appeared first on The Motley Fool Australia.

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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. owns and has recommended BetaShares Global Energy Companies ETF – Currency Hedged and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and Vanguard MSCI Index International Shares ETF. 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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Today, the S&P/ASX 200 Index (ASX: XJO) barely snuck through with a positive finish after losing steam throughout the day. At the end of the session, the benchmark index finished 0.05% higher at 7,569.2 points.

It was a booming day for the healthcare sector as it returned 2.6% for the day — making it the best performing area of the market. The superior performance was largely thanks to a $20 billion takeover bid for Ramsay Health Care Ltd (ASX: RHC) (more on that later).

Whereas, materials were the most red of all sectors on Wednesday. Investors decided to take some profits from the high-flying lithium sector as prices for the battery commodity cool off, according to Benchmark Minerals Intelligence.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Ramsay Health Care was the biggest gainer today. Shares in the private hospital operator took flight following a confirmed takeover bid at $88 per share from a consortium led by KKR. At the end of the day, shares in the company finished 24.24% higher. Find out more about Ramsay Health Care here.

Following from afar as the second-best performing ASX share of the day was medical imaging company, Pro Medicus Ltd (ASX: PME). Despite a lack of announcements, shares in the company rallied 5.20% to $51.61. Uncover the latest Pro Medicus details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Ramsay Health Care Ltd (ASX: RHC)	$80.00	24.24%
Pro Medicus Ltd (ASX: PME)	$51.61	5.20%
Healius Ltd (ASX: HLS)	$4.56	3.64%
Corporate Travel Management Ltd (ASX: CTD)	$25.35	3.60%
Ansell Ltd (ASX: ANN)	$26.14	3.44%
Whitehaven Coal Ltd (ASX: WHC)	$4.80	3.00%
Bapcor Ltd (ASX: BAP)	$6.78	2.73%
The A2 Milk Company Ltd (ASX: A2M)	$4.72	2.61%
Webjet Ltd (ASX: WEB)	$5.96	2.58%
Block Inc (ASX: SQ2)	$167.75	2.53%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns Block, Inc. and Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc. and Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Block, Inc. and Pro Medicus Ltd. The Motley Fool Australia has recommended A2 Milk, Ansell Ltd., Bapcor, Corporate Travel Management Limited, Ramsay Health Care Limited, and Webjet Ltd. 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 CSL Limited (ASX: CSL) share price has edged lower since this time last month, down 2.38%.

While the global biotech didn’t release any market-sensitive news, investors appeared to be mixed about the company’s shares.

At market close on Wednesday, CSL shares finished trading at $264.50, up 0.82%.

What’s weighing down CSL shares?

A number of factors are playing against CSL shares for the moment as the COVID-19 pandemic begins to subside.

First and foremost, the S&P/ASX 200 Health Care Index (ASX: XHJ) has moved sideways since the start of 2022.

Investors appear to have focused their efforts on other performing sectors on the ASX such as the S&P/ASX 300 Metals & Mining Index (ASX: XMM). This consists of the top 300 ASX companies that are involved with gold, steel and precious metals.

And it is no surprise given the war in Ukraine, and inflationary movements that commodity prices have skyrocketed.

Market psychology can be a powerful force when crowd behaviour chases market rallies or sell-offs during downturns.

In addition, the company’s first half results provided an update on its plasma collection issues. It noted that plasma numbers were 18% higher than H1 FY21, but still slightly down on 2019 levels.

CSL opened 18 new facilities in the first half of FY22 to attract lapsed and new donors through its doors. For the remainder of the financial year, the company plans to open another 35 centres, expanding its presence, mostly across the United States.

Nonetheless, a number of brokers rated the company’s shares to pick up over the course of the year.

Morgan Stanley raised its outlook to “overweight” from “equal weight”, adding 7.9% to a 12-month price target of $302.

Based on the current CSL share price, this implies a potential upside of 14.2%.

Meanwhile, Citi cut its rating on CSL shares by 1.5% to $335. Based on Citi’s assessment, this implies an upside of almost 27% from where it trades today.

CSL share price summary

When looking from this time last year, the CSL share price has moved in circles registering a less than 15 gain.

Year to date has not fared well, losing 9% in value across the 4-month period. 

CSL commands a market capitalisation of roughly $127.41 billion, making it the third largest company on the ASX.

The post Why has the CSL share price struggled in the past month? appeared first on The Motley Fool Australia.

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• How is the CSL share price performing against its sector in 2022?

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. owns and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Of all the US shares that have captured the minds of Aussie investors in recent years, electric vehicle and battery manufacturer Tesla Inc (NASDAQ: TSLA) surely comes close to topping the list.

For one, Tesla’s meteoric rise from US$38 a share back in May 2019 to the all-time high of US$1,243.49 that we saw in November last year was enough to turn some heads. And there are also the meme-friendly antics of eccentric Tesla CEO Elon Musk over the years to consider as well. Throw in the rabid interest that investors have developed for ‘clean and green’ companies, and we can begin to understand the fascination over Tesla that many investors have developed.

But with such a steep share price rise over the past few years, many investors might be wondering where this now-US$1.06 trillion company is headed next. What could possibly follow a three-year return of close to 1,800%?

Well, according to Cathie Wood, another quadrupling. Wood is a US-based investor and fund manager well-known for her bullish outlook on tech shares in particular. She runs ARK Invest, which is a firm that specialises in creating US tech-based ETFs such as the flagship ARK Innovation ETF (NYSE: ARKK). Wood has never been shy to spruik Tesla before. Her fund was an early investor in the company and has likely already made windfalls on investing in Tesla.

Cathie Wood: Tesla stock price to hit US$4,600, possibly US$5,800

But according to a report in the Australian Financial Review (AFR) this week, Wood is doubling down on Tesla. She is calling a US$4,600 Tesla stock price by 2026, which would be more than a four-fold increase on where the shares sit today. That’s up from ARK’s previous prediction of a US$3,000 Tesla stock price by 2025. ARK reportedly also has a ‘bull‘ and ‘bear‘ case for Tesla too. Its bear case still has the company at US$2,900 by 2026, but its bull case scenario is a whopping valuation of US$5,800 by the same year.

These revised valuation models reportedly factor in Tesla’s prospective ‘robotaxi’ business, as well as its “capital efficiencies”.

So could the company really reach those heights? Well, we can’t know for sure today. But Wood was one of the few voices arguing Tesla would be a multi-bagger in 2019 when few others were.

However, the AFR report also cites a more pessimistic analyst in David Trainer, CEO of investment researcher New Constructs. Trainer sees Tesla shares at just US$150-$200 in the future, citing Tesla’s loss of its first-mover advantage in the electric vehicle space, and intensifying competition. 

Time will only tell who proves to be right on Tesla’s stock price. But no doubt it will still have investors’ attention, whichever way it goes. 

The post Can the Tesla share price really quadruple from here? appeared first on The Motley Fool Australia.

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

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