The 4DS Memory Ltd (ASX: 4DS) share price is rocketing on Monday. This comes after the memory storage company provided a technical update before market open.

At the time of writing, 4DS Memory shares are swapping hands for 8.6 cents, up 26.47%.

What did 4DS Memory announce?

Investors are buying up 4DS Memory shares this morning after the company revealed the technical achievements for the first quarter of 2022.

According to the release, 4DS Memory has, along with its partner Imec, been working diligently to address a number of technical issues. This relates to the partial failure of the second platform lot, which it announced to the ASX in August 2021.

As such, both companies undertook a memory stack etch mask change and further performed etch process optimisation.

The demonstration successfully eliminated the etch residues that caused electrical shorting of the memory devices in the second platform lot.

These positive results were crucial in allowing the third platform lot utilising Imec’s megabit memory platform to restart.

Subsequently, the mask change and process improvements have increased the likelihood that the third platform lot will be successfully processed.

4DS Memory noted that following the completed technical work, manufacturing of the third platform lot has now continued.

The lot is expected to reach the etch step in the next few weeks.

4DS expects to provide a further update to investors by the end of this month.

About the 4DS Memory share price

Since this time last year, 4DS Memory shares have fallen by 54%.

In 2022 alone, the company’s share price is down around 7.6%, despite today’s eutrophic gain.

4DS Memory presides a market capitalisation of roughly $98.61 million, with approximately 1.45 billion shares on its books.

The post Here’s why the 4DS Memory share price is rocketing 26% appeared first on The Motley Fool Australia.

More reading

• Missed out on Ethereum? Here’s what to consider buying instead
• ResApp share price rockets 28% on Pfizer takeover news
• Latin Resources share price surges 11% on ‘very positive’ lithium news
• The Lynas share price has rocketed 50% in six months. Can it keep rising?
• Why is the JB Hi-Fi share price having such a rough start to the week?

Motley Fool contributor Aaron Teboneras owns 4DSMEMORY FPO. 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.

from The Motley Fool Australia https://ift.tt/uDxrd7c

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

2021 was the year of Ethereum (CRYPTO: ETH).

The proof-of-stake cryptocurrency stormed the charts, gaining 400% to become a legitimate challenger to Bitcoin‘s (CRYPTO: BTC) crypto supremacy.

The NFT (non-fungible token) craze was a big reason for its surge last year as Ethereum became the preferred blockchain for minting and selling NFTs and making smart contracts. The boom also demonstrated that Ethereum has more utility than Bitcoin. In fact, so far, Ethereum seems to be the most useful cryptocurrency.

However, 2022 has been a different story. Year to date, Ethereum is down 14%. NFTs seem to be fading from the limelight, and most major cryptocurrencies have fallen as well, with Bitcoin down 10%. Risk assets, in general, have had a rough year, with the S&P 500 down 6% as high inflation, rising interest rates, and the war in Ukraine have all driven a flight to safety. 

If you’ve missed out on Ethereum’s big gains, don’t fret. There are still under-the-radar opportunities in cryptocurrency, and one of the most compelling ones today is Terra (CRYPTO: LUNA). 

What is Terra?

Terra is the ninth-biggest cryptocurrency in the world by market cap and the only one in the top 10 that has gained in value this year, up 10% through April 8.

Terra is different from Bitcoin, whose supporters think of it as a form of digital gold, or Ethereum, which is best known for serving as currency to buy and sell NFTs, valuable in the metaverse but mostly frivolous in the real world.

Terra, on the other hand, may have more real-world utility than any other investable cryptocurrency today. That’s because Terra’s ecosystem is made up of stablecoins, whose value is tied to fiat currencies, and Luna, its native token. By offering stablecoins, Terra solves the biggest problem with Bitcoin: utility. Because Bitcoin’s value is so volatile, it’s not a good store of value or a medium of exchange, and it’s unrealistic for such a volatile currency to displace the dollar. 

The UST stablecoin, Terra’s dollar stablecoin, solves that problem, but the existence of Luna also makes Terra valuable to investors because its value moves and has gained roughly 10,000% since early 2021. Luna is used to stabilize the price of the Terra stablecoins. Terra miners burn or create Luna tokens to keep the price of stablecoins pegged to the currencies they track. Demand for Terra stablecoins increases the value of Luna to keep the price stable since tokens are burned as demand for UST goes up. Therefore, demand for Terra stablecoins lifts the value of Luna.

Terra is based in South Korea and has gained significant traction in that market. Early in its history, it attracted the Terra Alliance, a group of 15 large e-commerce companies in Asia that handles $25 billion in payments annually and has 45 million users. In other words, Terra has already built institutional buy-in for its payment platform in a way that no other cryptocurrency has, along with its combination of a stablecoin and its fluctuating native token.

A unique cryptocurrency asset

Terra has the ability to do what many cryptocurrencies aspire to do but can’t — be a functioning payment system and attract adoption by using Luna as a reward.

The coin appears to be picking up momentum. Not only is its value up more than 500%, bringing it to a market cap of $32 billion, but the token also recently passed Ethereum to become the second-most staked cryptocurrency behind Solana.

If you missed out on the Ethereum rally last year, take a closer look at Terra. Even as much of the cryptocurrency sector is struggling, Terra has the potential to explode by offering real utility. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Missed out on Ethereum? Here’s what to consider buying instead appeared first on The Motley Fool Australia.

More reading

• Fancy buying a Porsche with Bitcoin or Ethereum? Here’s how you can
• Why Bitcoin, Ethereum, and Dogecoin are singing the blues today
• Own CBA shares? Here’s why the bank’s crypto rollout is facing delays
• How these top cryptos stacked up against Bitcoin and Ethereum in March
• Why Bitcoin, Ethereum, Dogecoin, and Shiba Inu are down today

Jeremy Bowman owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin, Ethereum, and Solana. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/x7SBnUD

The ResApp Health Ltd (ASX: RAP) share price has exploded higher on Monday morning.

At the time of writing, the digital health company’s shares are up a whopping 28% to 11.5 cents.

Why is the ResApp share price rocketing higher?

The ResApp share price is rocketing higher this morning after the company revealed that it has received a takeover offer from healthcare giant Pfizer.

According to the release, ResApp has entered into a binding scheme implementation deed with Pfizer, under which it will be acquired by way of a scheme of arrangement for 11.5 cents per share in cash. This represents a total equity value of approximately $100 million.

Subject to the independent expert determining that the scheme is in the best interests of ResApp shareholders, and in the absence of a superior proposal, the company’s directors unanimously recommend that ResApp shareholders vote in favour of the scheme. They intend to vote shares under their control in favour of the proposed scheme.

This takeover approach comes less than three weeks after ResApp announced positive results for a new novel smartphone-based COVID-19 screening test. These results appear to have caught the eye of Pfizer, which has moved quickly to acquire the company.

ResApp’s CEO and Managing Director, Tony Keating, commented: “We are excited by the prospect of this acquisition by Pfizer, a leading biopharmaceutical company that shares our vision and belief that technology can help transform healthcare and improve patients’ lives.”

“The proposed acquisition recognises the years of dedicated work by the ResApp team to build ResApp into a leader in audio-based analysis of respiratory health. We believe that the material premium and certainty of an all-cash consideration is an attractive outcome for our shareholders,” Keating added.

ResApp has advised that shareholders needn’t take any action at the present time. A scheme meeting is expected in mid June.

Today’s gain means the ResApp share price is now up over 80% since this time last month.

The post ResApp share price rockets 28% on Pfizer takeover news appeared first on The Motley Fool Australia.

More reading

• Why Beach, BHP, New Hope, and ResApp shares are charging higher
• Here’s why the ResApp (ASX:RAP) share price is skyrocketing 60% 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.

from The Motley Fool Australia https://ift.tt/eOaFUil

The Latin Resources Ltd (ASX: LRS) share price is soaring on Monday morning on the back of more promising drilling results.

The lithium company’s shares surged 10.53% to 21 cents in early trade before retreating to 20.5 cents at the time of writing. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.58% so far today.

Let’s take a look at why this ASX lithium share is in the green.

Why is the Latin Resources share price rising?

Latin Resources reported “outstanding” results from two diamond drill holes at the Salinas Lithium Project in Brazil.

The company said the results show more high-grade lithium in pegmatites including a peak of two metres at 3.07% lithium oxide in drill hole SADD004. At the SADD003 site, drilling intersected a peak of 1.9m at 2.13% lithium oxide.

These results give the company confidence to scale up the drilling team to fast track mineral resource definition drilling.

Latin Resources also intersected more spodumene at drill hole SADD011 to the north of previous drilling at the site.

Commenting on the results, Latin Resources managing director Chris Gale said:

These new assay results from the latest two holes drilled in the South Target Area of the Salinas Lithium Project, are once again extremely pleasing.

We have now confirmed our initial observations that the logged lithium bearing pegmatites are increasing in thickness as we move south, while maintaining the very high-grades seen in the first two holes.

We have now confirmed spodumene bearing pegmatites over a continuous strike length approaching one kilometre.

The company expects to report more results within the next few weeks.

Latin Resources share price snapshot

The Latin Resources share price has soared 294% in the past year while rocketing 607% year to date.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 7.5% in the past year.

Latin Resources has a market capitalisation of about $332 million based on its current share price.

The post Latin Resources share price surges 11% on ‘very positive’ lithium news appeared first on The Motley Fool Australia.

More reading

• Why did this ASX lithium share soar 18% today?
• Why Eagers Automotive, Firefinch, Latin Resources, and Piedmont Lithium are rising today
• Latin Resources (ASX:LRS) share price shoots 28% higher on potential ‘major new lithium discovery’

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.

from The Motley Fool Australia https://ift.tt/RCwgWTX

The Lynas Rare Earths Ltd (ASX: LYC) share price has surged around 50% over the past six months. Could shares in the miner keep rising?

A rare earths miner, Lynas is the world’s second-largest producer and the only significant separated rare earths producer of scale outside China.

Lynas explains that rare earths are essential inputs to​ high-growth global manufacturing supply chains, including ‘digital age’ and green technologies such as electric vehicles and wind turbines.

Its products include neodymium and praseodymium (NdPr), lanthanum, cerium and mixed heavy rare earths.

What’s happened to the Lynas share price lately?

Lynas shares have soared in the first half of 2022 as the company saw a jump in revenue and net profit after tax (NPAT). In the FY22 first half, revenue increased from $202.5 million to $314.8 million and NPAT went up from $40.6 million to $156.9 million.

Lynas CEO and managing director Amanda Lacaze said the company had benefited from the “continued buoyancy of the market and strong customer demand for a sustainable supply of rare earths”.

In November 2021, the NdPr market price rose above US$100 per kilo for the first time since 2011.

The company said that its customers expected demand would “grow strongly” as FY22 continues. The company was positioned to meet accelerating demand through its ‘Lynas 2025’ growth projects.

This includes investment in its Mt Weld resource, constructing a Kalgoorlie rare earths processing facility and a Malaysian permanent disposal facility for water leach purification residue.

Could it keep rising?

Brokers are mixed on the Lynas share price.

On the positive side is Macquarie, which has a rating of ‘outperform’ on the rare earth ASX mining share.

The broker thought the HY22 result was good and noted that rare earth prices have jumped. This could help Lynas shares.

Macquarie’s price target on Lynas is $12.60, suggesting a possible rise of almost 30% over the next year.

But Ord Minnett has a different opinion on the miner. Its rating is ‘lighten’ and the Lynas share price target, for now, is $4.50. That implies a potential decline of approximately 50% due to expected higher spending and doubts about the longevity of high rare earth prices.

Lynas share price valuation

According to Macquarie, the Lynas share price is valued at 12x FY23’s estimated earnings.

Ord Minnett’s numbers show that the Lynas share price is valued at 23x FY23’s estimated earnings.

The post The Lynas share price has rocketed 50% in six months. Can it keep rising? appeared first on The Motley Fool Australia.

More reading

• These were the worst performers on the ASX 200 last week
• Why is the Lynas share price backtracking 5% today?
• Why A2 Milk, IGO, Lynas, and Sayona shares are dropping
• ASX 200 (ASX:XJO) midday update: IGO dealt blow, Block’s data breach, Xero jumps
• The Lynas Rare Earths (ASX:LYC) share price just hit a 10-year high!

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.

from The Motley Fool Australia https://ift.tt/IhWlBuC

The JB Hi-Fi Limited (ASX: JBH) share price is slumping amid the completion of the company’s off-market buyback.

Following strong demand, the buyback ­– worth $250 million – will be scaled back to only include shares tendered at a discount of at least 14%.

At the time of writing, the JB Hi-Fi share price is $51.15, 1.06% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.15% while the electronics retailer’s sector – the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) – has slipped 0.67%.

Let’s take a closer look at the non-price sensitive news released by JB Hi-Fi on Monday.

JB Hi-Fi completes off-market buyback

The JB Hi-Fi share price is in the red this morning. Its fall comes after the company announced the scaling back of its off-market buyback following strong demand.

The electronics retailer will repurchase 5.5 million of its shares back from investors – representing 4.8% of its issued shares.

The market price for the buyback was set at around $52.38 at Friday’s close. That means – at a 14% discount – JB Hi-Fi will pay $45.05 for each share bought through the offer.

All successful tenders will be scaled back. Involved shareholders will see 100 shares bought back through a priority allocation before an 88.5% scale back is applied.

As a result, successful shareholders will have 11.5% of the shares they tendered – beyond their priority allocation – bought back.

Though, shareholders who tendered their entire holding at a 14% discount and who would be left with 40 shares or fewer will have all their shares bought back.

JB Hi-Fi also stated the Australian Tax Office is expected to allow $41.87 of the buyback price to be treated as a fully-franked dividend.

The sale consideration of each share would, therefore, be $7.20 for capital gains tax purposes. That meets the shares’ tax market value of $49.07.

Cash from the sale of involved investors’ stock is expected to be sent out to shareholders on 20 April.

JB Hi-Fi share price snapshot

So far, 2022 has been good for the JB Hi-Fi share price.

It has gained 4.8% since the start of the year. Though, it’s fallen 1.9% over the last 12 months.

The post Why is the JB Hi-Fi share price having such a rough start to the week? appeared first on The Motley Fool Australia.

More reading

• How retirees can maximise returns from ASX dividend shares: fund manager
• JB Hi-Fi (ASX:JBH) share price up amid acquisition rumours
• Federal budget: Goldman Sachs names 4 ASX shares to buy
• ‘Popping the champagne’: ASX retail shares leap following budget consumer handouts
• 5 things to watch on the ASX 200 on Wednesday

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

from The Motley Fool Australia https://ift.tt/RFO2Na9

Commonwealth Bank of Australia (ASX: CBA) shares outperformed the S&P/ASX 200 Index (ASX: XJO) over the March quarter, while underperforming two of the three other big banks.

From the opening bell on 4 January through to the closing bell on 31 March, CBA shares gained 3.2%. That compares to a loss of 1.2% posted by the ASX 200 over that same period.

CommBank shareholders also saw a better return than those holding Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares. The ANZ share place finished the quarter down 1.4%.

However, the other two big banks performed far more strongly.

The National Australia Bank Ltd (ASX: NAB) share price gained 10.0% during Q1 while the Westpac Banking Corp (ASX: WBC) share price led the charge, gaining 11.9%.

What moved CBA shares during the quarter?

By far the biggest day for CBA shares in the quarter just past was 9 February, a day that saw the bank close up 5.6%.

That’s the day the bank released a stellar set of figures for its half year financial results.

Highlights included a 23% increase in cash profit after tax, which came in just over $4.7 billion for the six-month period. This was achieved alongside a slight (0.1%) reduction in operating costs.

The strong performance saw CBA boost its interim dividend by 17% from the prior corresponding period, to $1.75 per share. (Note, at the current price, CBA shares pay a 3.6% trailing dividend yield, fully franked.)

But perhaps the biggest news of the day was the bank’s announcement of a $2 billion on-market share buyback. This followed a $6 billion off-market share buyback in 2021.

Commenting on the strong results at the time, CommBank’s CEO, Matt Comyn said, “Higher cash profits were a result of continued volume growth across the business in home lending, business lending and deposits, flat operating costs and significantly lower loan impairment expense due to the improving economic outlook.”

During the quarter, CBA also continued to progress with the rollout of its Australia first crypto service. However, the official launch continues to face regulatory delays.

How has the CommBank share price performed longer term?

As long-term investors it’s good to take a step back to see the bigger picture. And that bigger picture looks quite good for CBA shares.

Over the past 5 years the CBA share price is up 23.1%.

As for its big three rivals, the ANZ share price is down 13.6%; the NAB share price is down 1.8%; and Westpac shares have lost 28.8% over the 5 years.

The post Here’s how CBA shares stacked up over the March quarter appeared first on The Motley Fool Australia.

More reading

• Is the NAB share price entering a ‘sweet spot’?
• How retirees can maximise returns from ASX dividend shares: fund manager
• Here are the 5 best performing ASX 200 bank shares of the March quarter
• Own CBA shares? Here’s why the bank’s crypto rollout is facing delays
• Why CBA, Kelsian, PolyNovo, and Weebit Nano shares are pushing higher

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.

from The Motley Fool Australia https://ift.tt/SoanpvH

The BlueScope Steel Limited (ASX: BSL) share price is trading higher on Monday morning after the company announced a binding agreement to buy the second-largest metal painter in the US.

The US$500 million ($671 million) acquisition of the Coil Coatings business from Cornerstone Building Brands, Inc (NYSE:CNR) will allow BlueScope to supply another 900,000 tonnes of paint a year to that market.

The BlueScope share price is 1.76% higher to $20.84 in early trade as the company hosts a webcast to sell the merits of the takeover. In comparison, the S&P/ASX 200 Index (ASX: XJO) is trading 0.57% higher at the time of writing.

BlueScope’s acquisition hits a “sweet spot”

BlueScope’s managing director Mark Vassella said this transaction hits the group’s “sweet spot”:

The acquisition of Coil Coatings is a significant step forward in our growth plans for North America.

It almost triples our US metallic coating and painting capacity to over 1.3 million metric tonnes per annum, from around 475,000 tonnes per annum at present, and gives us immediate and direct access to the large and growing Eastern US region.

BlueScope believes that Coil Coatings complements its existing businesses in North America. It is also consistent with its previously-flagged strategy of expanding painting operations into the eastern US region via a greenfield paint line.

How much BlueScope is paying for Coil Coatings

Further, the group believes the acquisition will generate cost savings of around US$12 million annually by year three.

While the amount may sound modest, Vassella pointed out the focus is the medium to longer-term opportunity the acquisition provides.

The price tag on Coil Coatings represents around 8.9 times CY21 pro-forma earnings before interest, tax, depreciation and amortisation (EBITDA) of $56 million.

However, the multiple is technically higher as BlueScope’s calculations include the year-three synergies.

Post the takeover, Cornerstone Building will remain a key customer of the business.

Acquisition takes BlueScope’s investment to $4.5bn

BlueScope will fund the acquisition from its cash holdings and said the deal will be immediately earnings per share (EPS) accretive. If all goes to plan, the transaction will be completed in calendar year 2022.

The group has been aggressively expanding into the North American market. Following the takeover of Coil Coatings, it will have invested over $4.5 billion in the region.

The BlueScope share price has been largely flat over the past 12 months, gaining around 2%. Over the same time, the ASX 200 has gained 7.5%.

The post BlueScope (ASX:BSL) share price jumps on $671m acquisition news appeared first on The Motley Fool Australia.

More reading

• 3 reasons the Bapcor share price could be an ASX 200 winner
• 5 things to watch on the ASX 200 on Monday
• These were the worst performers on the ASX 200 last week
• These were the best performers on the ASX 200 last week
• Here are the top 10 ASX shares today

Motley Fool contributor Brendon Lau owns BlueScope Steel Limited. 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.

from The Motley Fool Australia https://ift.tt/Ggei50w

The IGO Ltd (ASX: IGO) share price is on form on Monday morning.

At the time of writing, the battery materials producer’s shares are up over 4% to $14.28.

Why is the IGO share price charging higher?

Last week the battery materials miner’s proposed takeover of nickel producer Western Areas Ltd (ASX: WSA) collapsed after the independent expert ruled that the proposal was not in the best interests of the latter’s shareholders.

This morning, IGO decided to up the ante and return with a better offer which it believes will be acceptable to the independent expert.

According to the release, IGO has agreed to increase its offer to $3.87 cash per share, which is 15.2% higher than its previous proposal of $3.36 per share.

Positively, the amended proposal has been unanimously recommended by the Western Areas board. This is in the absence of a superior proposal and subject to the independent expert concluding that it is in the best interests of shareholders.

Also supporting the proposal is Wyloo. It will vote all the shares it owns through its 9.8% stake in favour of the deal pending the same conditions above.

Management commentary

Western Areas’ Chairman, Ian Macliver, was pleased with the new proposal.

He said: “The Western Areas Board is pleased to have negotiated an agreement with IGO considering the recent volatility in the nickel price and the positive impact this has had on Western Areas cashflow position and fundamental asset value since the Initial Scheme was announced on 16 December 2021. Forrestania is capturing the upside in near and medium term nickel prices, while Odysseus is positioned to capitalise on the longer-term nickel price driven by growth in electric vehicles.”

IGO’s Managing Director and CEO, Peter Bradford, believes that the higher takeover proposal will still create value for the company and its shareholders.

He commented: “The Revised Scheme Consideration shares value with WSA shareholders, while maintaining a very strong value proposition for IGO shareholders over the longer term. IGO looks forward to building WSA shareholder support for the transaction, while in parallel continuing the important integration workstreams that have already commenced, as we work toward transaction completion.”

Mr Bradford highlights that the acquisition is aligned with IGO’s strategy focused on metals critical to clean energy and is expected to free cash flow accretive from FY 2024 once the ramp up of the Odysseus underground mine development is complete.

The post IGO share price charges higher after lifting its Western Areas takeover offer appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Why is the IGO share price underperforming on Friday?
• Why Block, IGO, Navigator Global, and Platinum shares are dropping
• ASX 200 lunch update: GrainCorp jumps on earnings upgrade, Pro Medicus signs $32m deal
• Top brokers name 3 ASX shares to sell 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.

from The Motley Fool Australia https://ift.tt/ZedcjNW

The National Australia Bank Ltd (ASX: NAB) share price and those of its banking peers have held up well, but the best may be yet to come, according to a top broker.

ASX bank shares have outperformed recently even as the S&P/ASX 200 Index (ASX: XJO) struggled against the threat of rising rates, yield inversion and geopolitical conflict.

The interesting thing is that the risk of higher interest rates roiling markets may actually be a blessing to banks.

NAB share price and other ASX banks on an upgrade cycle

That’s the view of Citigroup, which upgraded its position on the bank sector to ‘positive’ with earnings changes of more than 10% for FY24. The broker said:

This tightening cycle is set to reshape the sector’s earnings profile over the next 2½ years.

NIMs [net interest margins] are expected to return to pre-pandemic levels, materially above consensus. Asset quality is a natural concern, but we see a ‘sweet spot’.

Default risk not as big a threat

There are a few reasons why the broker isn’t worried about asset quality – or the risk of loan defaults as rates rise. It noted that most mortgages were written post the Hayne Royal Commission and that banks have used higher rates to stress-test applicants before approving loans.

Further, many borrowers have a large equity buffer due to surging residential house prices.  Citi also pointed out that the ratio of interest payments as a percentage of household disposable income is at a record low of just 5.2%.

If bad debts remain benign and bank profit margins expand thanks to higher rates, the broker thinks sector could enjoy a re-rate.

Good news not priced into NAB share price or other big banks

Citi thinks the market has not woken up to this fact. If the broker is right, we could see ASX banks, including NAB, continue to outperform.

The NAB share price has jumped more than 10% since the start of calendar 2022 and is not far off a four-year high.

The Westpac Banking Corp (ASX: WBC) share price is another outperformer. It’s rallied more than 11% over the period.

The Commonwealth Bank of Australia (ASX: CBA) share price delivered a more modest 3% increase. But Australia and New Zealand Banking Group Ltd (ASX: ANZ) is the outlier as it dipped by nearly 2%.

Which ASX bank should you buy?

If you wonder which of the ASX big four banks is best placed to deliver solid returns, Citi favours the ‘cheaper’ majors.

These are the Westpac share price and ANZ Bank share price. The broker is recommending both as “buy”.

Meanwhile, it has a “neutral” rating on the NAB share price and a “sell” on the CBA share price.

The post Is the NAB share price entering a ‘sweet spot’? appeared first on The Motley Fool Australia.

More reading

• How much are Westpac shares worth in April?
• How retirees can maximise returns from ASX dividend shares: fund manager
• Why these ASX bank shares could outperform over the next 6 weeks
• Here are the 5 best performing ASX 200 bank shares of the March quarter
• Who owns ANZ shares? Take a look. You might be surprised

Motley Fool contributor Brendon Lau owns Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/YBkHzpC