Shares in Novonix Ltd (ASX: NVX) have been out of favour this year — in stark contrast to last year.

By this time last year, the battery technology company had already climbed approximately 90% in value. Whereas in 2022, the Novonix share price has gone the other way. The company which was formerly surrounded by an avalanche of optimism is now down 41% year-to-date (YTD).

The tectonic shift in sentiment prompts a look at what has been bubbling away inside the $3 billion battery developer.

Excitement now turns to execution

From the speculative small-cap sitting at 20 cents per share to the $6.22 per share battery tech titan of the ASX today, Novonix shares have ridden the wave of excitement built on a booming electric vehicle market.

However, the wind in Novonix’s sails appears to have subsided since the company’s share price reached its all-time high on 2 December 2021. Although perhaps this indicates shareholders are looking for some results before bidding the Novonix share price higher.

For context, even with the retracement in valuation, the battery tech company holds a market capitalisation of $3.03 billion. In February, Novonix reported $4 million of revenue from contracts with customers in the first half. That took revenue for the 12-month trailing period to around $6.9 million.

In other words, the company is trading at 439 times price-to-sales (P/S). There are few multi-billion-dollar companies on the ASX trading at such multiples. Hence, shareholders might be looking for further confirmation that Novonix shares are worth the valuation.

In its half-year financial report to 31 December 2021, Novonix said it is aiming to grow its synthetic graphite production capacity to 10,000 metric tonnes per annum (tpa). Subsequent goals include 40,000 tpa by 2025 and 150,000 tpa by 2030.

Is this the first time Novonix shares have fallen steeply?

In short, this is the most significant fall that Novonix shares have suffered in recent times. However, the high-flyer is not unaccustomed to volatility.

As shown in the chart above, the Novonix share price has fallen more than 40% on two prior occasions in the past year. Prior to the recent landslide, the battery tech player’s share price took a sudden 23% step downwards before charging up to its all-time high.

Finally, shares in the company remain 165% higher compared to a year ago.

The post Have investors fallen out of love with Novonix shares in 2022? appeared first on The Motley Fool Australia.

More reading

• Why is the Novonix (ASX:NVX) share price charging 6% higher?
• These were the best performers on the ASX 200 last week
• The ASX 200 just had its longest winning streak since 2017. What’s doing?
• Novonix (ASX:NVX) share price shoots up 20% this month amid tech snapback
• Buying ASX shares to cash in on the EV and battery metals craze? Read this

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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ASX bank shares have pushed higher on Monday in an impressive lunge out of the starting blocks this week.

The S&P/ASX 200 Banks Total Return Index (XBT) is up around 1% on the day, with Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB) leading the way, each up around 1% as well.

Elsewhere, Australia New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) are also net gainers on the day but trail the other majors.

What’s driving bank shares lately?

The prospects of rising interest rates have investors piling into ASX financials on the potential for stronger profit margins and higher earnings.

That’s the view of analysts at Citi and Macquarie, whom each reckon that net interest margins (NIMs) are set to recover sharply over the coming years as the Reserve Bank of Australia (RBA) reshuffles its interest rate regime.

NIMs have been a contentious issue for Aussie banks these past two years. With the cash rate 1 basis point above 0% and real yields on treasury bonds offering similar pessimism, fixed-rate markets have become saturated since the pandemic, a shift that has started to change, Macquarie analysts say.

“With rising fixed rates, mortgage competition has shifted to variable rates,” the broker said in a recent note.

“This tightening cycle is set to reshape the sector’s earnings profile over the next 2.5 years,” Citi analysts wrote in extension, in a separate note.

JP Morgan is onto the same theme, and notes competition has already led to challenges at the NUM level for the larger players.

“There are early signs however that competition in [term deposit] TD markets is beginning to intensify, particularly amongst 2nd tier banks, which have recently started to raise their rates,” the broker noted.

“In previous cycles deposit spreads have tended to deteriorate alongside cash rate rises, as competition increases,” it added.

“Overall, we expect the more mortgage-heavy major banks (CBA/WBC) to face greater NIM pressure in the ST than NAB/ANZ.”

In the meantime, yields on long-dated Australian government bonds crept past 3% for the first time in more than 7 years last week.

That’s sent an impulse throughout equity markets, as investors seek to price in the new levels of risk/reward into portfolios.

As such, analysts say a flavoursome recipe made up of fatter margins and wider profits at the bottom line is ready to serve up to investors this year. That also serves as a good indication of why investors are piling into the sector during the last month.

“We upgrade our sector view to positive with earnings changes [greater than] 10%,” Citi analysts wrote to clients.

In that time, the sector has spiked up by 7.5% to the time of writing, leading the majority of other segments.

As a group, the banking sector is estimated to yield 4.37% from dividends in FY22, delivering a median 9.78% return on equity (ROE) in the process, according to Bloomberg data.

It also currently trades on a price to earnings ratio (P/E) of 15.95x and 1.59x its book value of equity.

Compared to the S&P/ASX 200 Index (ASX: XJO), which is trading on an 18.16x P/E ratio, 2.3x book value and looks to offer a 4.08% dividend yield, Bloomberg data shows. Although, it is set to produce a 16% ROE in FY22, according to estimates.

The post Why are ASX 200 bank shares having such a stellar start to the week? appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• 3 ASX 200 shares starting the week with new 52-week highs
• Here’s how CBA shares stacked up over the March quarter
• Is the NAB share price entering a ‘sweet spot’?
• How much are Westpac shares worth in April?

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 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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The Adore Beauty Group Ltd (ASX: ABY) share price has dropped another 9% today. That means it has now fallen 64% over the last six months to an all-time low.

But the online beauty product retailer isn’t the only one suffering today. Others in the ASX tech share space have also fallen.

For example, the Cettire Ltd (ASX: CTT) share price has fallen by 5.1%. And the Pointsbet Holdings Ltd (ASX: PBH) share price is down 2.5%.

What’s happening to the Adore Beauty share price?

It has been a challenging period for ASX tech shares. Temple & Webster Group Ltd (ASX: TPW), Xero Limited (ASX: XRO) and Kogan.com Ltd (ASX: KGN) have all fallen since the start of 2022.

The last time the company updated the market was when it released its FY22 half-year result for the six months to 31 December 2021. Revenue increased 18% to $113.1 million for the half, which was a slower growth rate than previous COVID-affected periods.

However, Adore Beauty was optimistic when it told the market about its trading in the second half of the year and its outlook.

Adore Beauty said that it continues to benefit from the structural shift to online shopping. It said that it is positioned for future growth through a combination of new customer growth, high retention levels, and growing brand awareness.

In the first six weeks of FY22, Adore Beauty saw revenue increase 14% year on year. It’s looking to “cement its market leadership position” and capture market share in a large and growing market.

There has been a lot of market focus on interest rate changes and inflation since the start of the year.

Could the company rebound?

UBS has a price target of $4.70 on the Adore Beauty share price. That implies a possible rise of more than 150% over the next 12 months.

The post Why is the Adore Beauty share price tumbling 9% to an all-time low? appeared first on The Motley Fool Australia.

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• Are these 2 ASX tech shares great buys in April 2022?
• Analysts name 2 excellent ASX growth shares to buy and hold
• 2 retailer ASX shares ready to make you rich: experts
• 2 ASX growth shares experts think have exciting futures
• 135% upside? Adore Beauty (ASX:ABY) insiders pounce on beaten-up shares

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. owns and has recommended Cettire Limited, Kogan.com ltd, Pointsbet Holdings Ltd, Temple & Webster Group Ltd, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns and has recommended Kogan.com ltd and Xero. The Motley Fool Australia has recommended Adore Beauty Group Limited, Cettire Limited, Pointsbet Holdings Ltd, and Temple & Webster Group 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. At the time of writing, the benchmark index is up a fraction to 7,480.8 points.

Four ASX shares that haven’t fared as well today are listed below. Here’s why they are dropping:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 4.5% to $4.80. This decline appears to have been driven by a broker note out of Credit Suisse this morning. In response to lockdowns in China and lower birth rate assumptions, its analysts have trimmed their earnings estimates and valuation accordingly. The broker has retained its neutral rating and cut its price target down by 10% to $5.15.

Ionic Rare Earths Ltd (AX: IXR)

The Ionic Rare Earths share price is down 5% to 7.8 cents. This morning the rare earths explorer announced the completion of a $30 million institutional placement. These funds were raised a 7.4 cents per new share, which represents a 10% discount to its last close price. Ionic will use the proceeds for a number of activities including completing the Makuutu Feasibility Study and its application for a mining licence.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 3.5% to $3.08. This morning the lithium miner provided an update on its joint venture with Korea’s Posco. The two companies will push ahead with the construction of a downstream lithium chemicals conversion facility in South Korea. Management believes the facility will put it in a very strong position to participate as one of the few near-term lithium fine chemicals producers with underwritten raw materials supply. However, the cost of the facility was higher than previous estimates.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is down 4% to $1.49. This follows weakness in the tech sector, which has offset the release of the payments company’s weekly trading update. The latter revealed that payment volumes were up 53% over the prior corresponding period last week.

The post Why A2 Milk, Ionic Rare Earths, Pilbara Minerals, and Tyro shares are dropping appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: IGO increases Western Areas offer, BlueScope makes US acquisition
• Pilbara Minerals share price higher on lithium conversion facility update
• Guess how much you’d have today if you’d bought $10,000 of A2 Milk shares 5 years ago
• Top brokers name 3 ASX shares to sell next week
• These were the worst performers on the ASX 200 last week

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 Tyro Payments. The Motley Fool Australia has recommended A2 Milk and Tyro Payments. 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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Although its reputation has taken a battering in recent years, Appen Ltd (ASX: APX) is still one of the most prominent ASX tech shares on the share market. This annotated dataset company made itself into an investing household name a few years ago when it delivered back-to-back double-digit (sometimes triple-digit) share price rises over 2015, 2016, 2017, 2018, and 2019.

But the wheels have arguably fallen off the Appen share price ever since. 2020 was the last time Appen had a record high share price. Back then, this ASX tech share hit a high of more than $40 a share. But that was in August 2020, and it has been downhill for Appen ever since.

Today, the company’s shares are trading at $6.54 each at the time of writing. That’s on par with the pricing we saw back in early 2018.

A series of earnings downgrades, a lack of earnings certainty, and compression of Appen’s price-to-earnings (P/E) ratio have all arguably contributed to Appen’s recent woes.

Is Appen an ASX dividend share?

But even though Appen’s status as a top ASX growth share has taken a battering, its dividend history is an entirely different tale. Unlike many ASX tech shares, Appen does pay a dividend. And what’s more, the company has been able to keep its shareholder payouts growing fairly consistently, despite the difficulty it has had with its share price.

Appen has been an ASX dividend share for years. In 2015, the company doled out dividends worth just 1.2 cents per share. But a series of consecutive annual increases saw the company end 2021 having paid out 10 cents per share – an almost ten-fold increase in six years.

2021 saw an interim dividend of 4.5 cents per share, as well as a final dividend of 5.5 cents. Both payments were partially franked at 50%. But Appen has also paid out one dividend in 2022 so far. That was the company’s final payment, which came in at 5.5 cents per share. It was paid out on 18 March.

At the current Appen share price, that gives this ASX 200 tech share a dividend yield of 1.53%.

The post Do Appen shares pay dividends? appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 tech shares having such a dire day?
• Tech recovery? Appen share price jumps 4% higher
• These were the worst performing ASX 200 shares during the first quarter
• Why is the Appen (ASX:APX) share price surging 6% higher today?
• 3 ASX growth shares down more than 50% in a year

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. owns and has recommended Appen 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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The Webjet Limited (ASX: WEB) share price is back in the red on Monday despite the company’s silence.

Though, it’s not alone in its slip. Many S&P/ASX 200 Index (ASX: XJO) travel stocks are also trading lower today.

At the time of writing, the Webjet share price is $5.29, 1.86% lower than its previous close.

For context, the ASX 200 has spent most of Monday’s session in the green. It’s currently up 0.07%.

Meanwhile, Webjet’s home sector – the S&P/ASX Consumer Discretionary Index (ASX: XDJ) – has slipped 0.76%.

But what else could be weighing on the ASX 200 travel agency’s stock today? Let’s take a look.

What’s going on with the Webjet share price?

The Webjet share price is slipping lower again on Monday. It follows the stock’s 2.8% tumble on Thursday and 0.7% slip on Friday.

It comes amid reports of major delays facing Australians looking to travel in the lead up to the Easter holidays.

According to the Guardian, Sydney Airport has warned travellers that recent delays causing passengers to miss flights could last for weeks amid a shortage of security staff.

The airport previously said the Easter school holidays will be its busiest period for domestic air travel in more than 2 years.

Meanwhile, Qantas Airways Limited (ASX: QAN) apologised to customers facing long waits when trying to contact the airline on Thursday.

“Our call volume has increased from an average of 7,500 calls a day to 14,000 calls a day,” said Qantas.

“[C]alls on average [are] taking 50% longer to resolve than pre-COVID given the complexity of some itineraries across more than one airline where routes are re-opening and flights are re-starting at different times.”

Another factor that could be weighing on the Webjet share price is the company’s short position.

As The Motley Fool Australia’s James Mickleboro reported earlier today, Webjet is currently the ASX’s fourth most shorted stock. 10.2% of its shares are in the hands of short sellers, meaning market participants are betting against its future performance.

Additionally, international travel shares struggled at the end of last week, potentially driving sentiment for their Aussie counterparts lower today.

The share prices of Booking Holdings Inc (NASDAQ: BKNG), Expedia Group Inc (NASDAQ: EXPE), and Airbnb Inc (NASDAQ: ABNB) fell 2%, 1.2%, and 2% respectively on Friday.

Finally, the Webjet’s ASX travel peers are also seeing their share prices tumble today.

That of Flight Centre Travel Group Ltd (ASX: FLT) and Corporate Travel Management Ltd (ASX: CTD) are currently down 0.49% and 1.19%.

The post Why is the Webjet share price having such a lousy start to the week? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• What went so wrong for ASX travel shares today?
• The Webjet share price is tumbling 5% on Thursday. Could this be why?
• ASX travel shares have been flying higher over the past month. Here’s why
• Why this broker thinks the Webjet share price can fly 26% higher

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Airbnb, Inc. and Booking Holdings. The Motley Fool Australia has recommended Booking Holdings, Corporate Travel Management Limited, Flight Centre Travel Group 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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Australian markets continue punching higher into the green in 2022, with the benchmark S&P/ASX 200 Index (ASX: XJO) up 5% in the last month.

Here’s a quick overview of the top-performing ASX sectors during the last quarter. Below is charted the three-month returns of just about every sector index on the ASX.

Top-performing ASX sectors

Commodities and mining roared home last quarter as the S&P/ASX 300 Metals & Mining Index (ASX: XMM) spiked 10% in that time.

The sector has been buoyant all year and took off again towards the end of the period, spurred on by further rallies in the commodities sector.

Unsurprisingly, the S&P/ASX 200 Materials Index (ASX: XMJ) also headed north. This was in almost direct correlation with the metals and mining sector.

In a similar vein, consumer staples stocks were net winners in the previous quarter, seeing the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) land 3% in the green.

These three sectors strung up the wider market last quarter, with each of the other major corners of the market posting a loss.

Ranging from top to bottom, here are the best to worst performing sectors/industries over the three trading months until 1 April 2022:

Sector / Industry	Quarterly return	Year-to-date return
S&P/ASX 300 Metals & Mining Index (ASX: XMM)	10.24%	15.30%
S&P/ASX 200 Materials Index (ASX: XMJ)	8.14%	12.32%
S&P/ASX 200 Consumer Staples Index (ASX: XSJ)	2.91%	0.27%
S&P/ASX 200 Financials Index (ASX: XFJ)	1.97%	3.94%
S&P/ASX 200 Index (ASX: XJO)	0.43%	0.46%
S&P/ASX 200 Industrials Index (ASX: XNJ)	-3.28%	-4.67%
S&P/ASX 200 Communication Services Index (ASX: XTJ)	-5.47%	-8.12%
S&P/ASX 200 Health Care Index (ASX: XHJ)	-7.40%	-11.40%
S&P/ASX 200 Information Technology Index (ASX: XIJ)	-11.53%	-18%
S&P/ASX All Technology Index (ASX: XTX)	-13.80%	-18.99%

What a difference a quarter makes on the ASX

With mining, materials and now financials leading the way in returns since January, some might argue that it reflects the bigger macroeconomic picture at play.

Noteworthy is the tech and IT sectors, with both segments recently sliding hard off their all-time highs in 2022. Since the same time last year, the tech sector is down more than 19%, with the IT sector sliding a similar amount.

The post Here are the best and worst performing ASX sectors of the quarter appeared first on The Motley Fool Australia.

More reading

• Why is the Macquarie share price underperforming today?
• The Endeavour share price has notched up 4 all-time highs in a week. What’s happening?
• ASX 200 midday update: IGO increases Western Areas offer, BlueScope makes US acquisition
• Hoping to bag the monster New Hope dividend? Read this
• BlueScope share price jumps on $671m acquisition news

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

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The Macquarie Group Ltd (ASX: MQG) share price is currently down 1.02%, underperforming the S&P/ASX 200 Index (ASX: XJO) which is up 0.06% at the time of writing.

The big four ASX bank shares are all in the green today. The Commonwealth Bank of Australia (ASX: CBA) share price is up 1%, Westpac Banking Corp (ASX: WBC) shares are up 0.46%, the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is up 0.84%, and National Australia Bank Ltd (ASX: NAB) shares are 0.95% higher. That’s after the NAB share price hit its 52-week high in intraday trade today.

What’s happening with the Macquarie share price?

Macquarie hasn’t released any ‘price sensitive’ news for a couple of months.

However, we recently learned that the Australian Securities and Investments Commission (ASIC) was commencing legal action against the bank, alleging Macquarie’s “limited monitoring” of transactions made through one of its systems.

As well, there has been plenty of volatility on the ASX share market this year amid the Russian invasion of Ukraine and an intense focus on inflation and what that might mean for interest rates.

Since the start of 2022, the Macquarie share price has fallen 2%. However, it had fallen much further in early March. Since 7 March 2022, shares in the global investment bank have gone up 15%.

The latest we’ve heard from Macquarie was its update for the three months to December 2021. It said that quarter was a record quarter, with improved overall market conditions.

Record quarter

Macquarie has two sides to the business – annuity-style businesses and market-facing businesses.

The annuity side includes Macquarie Asset Management and its banking and financial services. This side of the business saw its net profit contribution drop year on year, mainly due to the timing of performance fees and investment-related income.

As at 31 December 2021, Macquarie Asset Management had A$750.1 billion of assets under management (AUM).

The bank’s ‘markets-facing businesses’ refer to commodities and global markets, and Macquarie Capital. This side of Macquarie’s business saw its FY22 third-quarter net profit contribution rise “substantially”.

Macquarie also said that its markets-facing business’s FY22 year to date net profit contribution was up substantially due to higher principal income in Macquarie Capital. This included “exceptionally strong” investment realisations in the infrastructure (including green energy), business services, and technology sectors. Commodities and global markets experienced strong commodities income too.

Can the Macquarie share price deliver outperformance from here?

Citi rates the global investment bank as a buy, with a price target of $226. That implies a possible upside of more than 10% over the next 12 months.

One of the reasons for the optimism is that the broker thinks the commodities and global markets division could generate good profit because of the high prices of commodities amid the Russian invasion of Ukraine.

Citi thinks that the Macquarie share price is valued at 17x FY22’s estimated earnings.

The post Why is the Macquarie share price underperforming today? appeared first on The Motley Fool Australia.

More reading

• Here are the best and worst performing ASX sectors of the quarter
• The Endeavour share price has notched up 4 all-time highs in a week. What’s happening?
• ASX 200 midday update: IGO increases Western Areas offer, BlueScope makes US acquisition
• Hoping to bag the monster New Hope dividend? Read this
• BlueScope share price jumps on $671m acquisition news

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price has continued to move in circles since the start of 2022. This is despite the company reporting relatively positive numbers in its FY22 half year results on 24 February.

While the travel agent’s company’s shares have risen 3% in the last month, it hasn’t been so great of late.

In fact, Flight Centre shares have now recorded three consecutive trading days of losses, tumbling by almost 5%.

At the time of writing, its share price is down 0.41% to $19.47 apiece.

Flight Centre shares take top spot in open ASX short positions

The negative investor sentiment on the Flight Centre share price can be attributed to the slow recovery of the travel market. This has ultimately attracted a large number of short sellers to the company’s registry.

Short-selling is a common trading strategy that aims to profit from the fall in the price of a security. The goal is for an investor to borrow and sell the shares, and then buy them back at a lower price for a profit.

Last week, the Australian Securities & Investments Commission (ASIC) released its short position report revealing the level of short interest within companies.

As such, Flight Centre remained in the top spot with 17.89% of its shares being heavily shorted by investors.

In comparison, the government body recorded a short interest of 8.84% in Flight Centre shares last year on 6 April.

Given the large increase in short positions being taken up, it appears investors believe the company’s performance could be underwhelming. This is due to the COVID-19 pandemic’s ongoing impact on the Flight Centre business.

What do the brokers think?

A couple of brokers have rated the company’s share price with varying price points over the last couple of months.

The team at Bell Potter raised its 12-month price target for Flight Centre shares by 2.5% to $20.50 in March.

The broker retained its positive view of the company’s outlook and competitive position as global travel begins to improve.

In addition, Bell Potter highlighted Flight Centre’s growing corporate business and the restructuring of its leisure operations. It believes that the market is underestimating the strength of its corporate business.

On the other hand, analysts at Citi put out a more bearish tone, slashing its rating by 1.4% to $15.77. It seems that Citi considers that the travel agent’s shares are overvalued for the time being. Based on the current Flight Centre share price, this implies a downside of around 19%.

Flight Centre share price snapshot

Over the past 12 months, the Flight Centre share price has risen by about 5%.

In comparison, the Webjet Limited (ASX: WEB) share price has lost around 2% across the same time frame.

It’s worth noting that Flight Centre shares hit a multi-year high of $25.28 in October 2021, before treading lower. This is a huge difference from when its shares were trading at the $13 mark in August 2021.

Flight Centre presides a market capitalisation of about $3.89 billion and has approximately 199.75 million shares outstanding.

The post Why is the Flight Centre share price still the most shorted on the ASX? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• What went so wrong for ASX travel shares today?
• The Flight Centre share price is diving 5% today. What’s next in April?
• ASX travel shares have been flying higher over the past month. Here’s why
• Why the Flight Centre share price travelled 12% higher in March

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group 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 Santos Ltd (ASX: STO) share price has surged 28% year to date, but could it climb higher?

Santos shares are currently trading at $8.10, a 1.12% gain. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.07% at the time of writing.

Let’s take a look at the outlook for Santos.

Could the Santos share price go higher?

The Santos share price is climbing today despite sliding oil prices. At the time of writing, the Brent crude oil price has slipped 2.22% to US$100.50 a barrel, according to Bloomberg. Meanwhile, the WTI crude oil price has dropped 2.37% to US$95.93 a barrel.

Woodside Petroleum Limited (ASX: WPL) shares are also 1.23% in the red at the time of writing.

However, according to Tribeca Investment Partners, Santos is “undervalued”.

In fact, Tribeca sees the company as the number one oil company on the ASX. In an interview with Livewire, Tribeca’s lead portfolio manager Jun Bei Liu said Santos is a company that is very attractive in the energy sector:

We think the business has been significantly undervalued given how much the oil price has gone up.

And also because of what it’s doing in that whole decarbonization space, that is incredibly valuable. So that’s our number one pick for the oil space. 

Morgans recently named Santos as a share to add with a $9 price target. The broker expressed positivity on the company’s diversified earnings base and the resilience of the company’s growth profile.

Share price snapshot

Santos shares have gained 14% in the past 12 months, while they have climbed almost 6.5% in the past month.

In contrast, S&P/ASX 200 Index (ASX: XJO) has returned around 7% in the past 52 weeks.

In the last week, Santos shares are 2.3% higher.

Santos has a market capitalisation of about $27.3 billion based on the current share price.

The post With oil prices surging in 2022, are Santos shares now ‘significantly undervalued’? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• What’s impacting the Santos share price on Friday?
• Black gold! Here’s how well ASX energy shares performed over the March quarter
• 5 things to watch on the ASX 200 on Thursday
• Broker names 3 more of best ASX 200 shares to buy in April

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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