Shares in Insurance Australia Group Ltd (ASX: IAG) are trading down today and are currently around 1% in the red at $4.56 apiece.

Whilst other sectors have struggled this year to date, financial stocks like IAG have out-crept most peers, with the insurance giant gaining 7% in 2022 so far.

After a choppy year last year, IAG shareholders will surely be hoping the future holds a better outcome than the volatility of 2021.

One broker is cautious, but bullish on IAG shares

Analysts at JP Morgan are overweight on IAG shares and reckon the stock has room to grow on grounds of valuation and earnings.

After IAG provided its most recent claims update following the east coast flooding events, the broker was satisfied the insurer has most of its bases covered but still thinks reinsurance costs and perils allowances will increase.

“We think that there will be increases in both reinsurance costs for IAG’s aggregate due to renew in July 2022, and some increase in perils allowances for FY22 to reflect the experience likely being around $335 million worse than the $765 million originally guided,” it said.

“We think this could be worth perhaps a $90 million headwind to underlying insurance profit in FY22; equal to 1.1% of NEP in the absence of the government cyclone and related flood damage pool”.

JP Morgan also said there’s “no doubt” direct pricing on home premiums will rise, but there might be a lag effect considering the outplay of similar events in the past, it reckons.

Offsetting these pressures, the broker says, “will be strong upward pressures evident in commercial insurance pricing.”

Even with these points in mind, its analysts are bullish on the stock, valuing the company at $5.50 on a blend of its discounted cash flow model and forward earnings multiples.

However, despite its enthusiasm on valuation, the broker is treading carefully and cautioned its investors on the uncertainties moving forward.

“We maintain an element of caution in setting our price target, reflecting uncertainty as to how personal lines insurers may trade coming as economies emerge from COVID-19 induced lockdowns, and mobility increases,” JP Morgan said.

IAG share price snapshot

In the last 12 months, the IAG share price has fallen more than 6% into the red but it is up 7% this year to date.

During the past month, the IAG share price slid again and is 4% down.

The post Why is this broker ‘cautiously bullish’ on IAG (ASX:IAG) shares? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Why expert says this supermarket ASX share is a better bet than Woolworths (ASX:WOW)
• Top brokers name 3 ASX shares to sell today
• Is it time to sell IAG (ASX:IAG) shares following the recent flood events?
• Why is the IAG (ASX:IAG) share price edging higher today?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Insurance Australia 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 National Australia Bank Ltd (ASX: NAB) share price dropped into the red, along with the sector, despite a valuation upgrade by a leading broker.

The NAB share price surrendered its morning gains to trade 0.85% lower at $30.94 in late afternoon trading on Monday.

It isn’t the only bank share that’s slipped. The Commonwealth Bank of Australia (ASX: CBA) share price is 0.26% lower while Westpac Banking Corp (ASX: WBC) shares are 0.42% in the red.

Only the Australia and New Zealand Banking GrpLtd (ASX: ANZ) is treading water at $27.62, up 0.16% at the time of writing.

It’s marginally ahead of the S&P/ASX 200 Index (ASX: XJO)’s small gain of 0.05%.

NAB share price gives up gains

The ASX big banks are retreating as US share futures fell and the oil price jumped. The anticipated weak start on Wall Street and rising cost pressures are weighing on market sentiment.

The NAB share price lost ground even after Morgan Stanley reported ASX banks could enjoy a larger benefit from rising interest rates, according to The Australian.

“With about $800bn of capital and rate insensitive deposits in Australia, we estimate that every 25bp (basis points) increase in the RBA cash rates adds about 3bp to the major banks’ margins,” said the broker.

“All else equal, our new forecasts assume an average margin benefit from rate hikes of +20bp by the end of FY24E, versus +11bp previously.”

ASX bank valuation increase offset by headwinds

But the margin benefit may be partly eroded by a few headwinds. These include higher funding costs, fiercer mortgage competition, and modestly higher loan losses.

The risk of higher loan losses will force the NAB and its peers to increase impairment charges by around 15% in FY24, warned Morgan Stanley.

Nonetheless, earnings per share (EPS) for the ASX big four are tipped to increase by 1% to 3% in FY23 and FY24.

Price target increases for NAB share price and its peers

That in turn sees the broker’s 12-month price target on the NAB share price rise by $0.50 to $31.50 a share.

The other big banks also get an uplift. The CBA price target increases to $92 from $91, the ANZ Bank share price lifts to $30.30 from $30, and Westpac gets a $0.40 boost to $22.40 a share.

But investors shouldn’t be too upset with the underperformance of ASX bank shares today. Citigroup noted that our banks have outpaced their global peers over the last five weeks.

ASX banks beating other global banks

“The Russia/Ukraine conflict has ushered in sharply rising commodities prices and accelerating inflation,” said Citi.

“Spooked investors have shifted to a risk-off position, selling down the global banks sharply. The Australian banks have surprisingly bucked this trend.

“We believe this is due to Australia’s commodities-dependent economy, an accelerating inflation & rates story as well as a strong capital adequacy & NPL combination.”

However, given Citi’s view that revenue growth will be hard to find in this environment, the only bank the broker thinks is worth buying is Westpac.

The post The National Australia Bank (ASX:NAB) share price target upgraded by a top broker appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Monday
• Cha-ching! The NAB share price just hit a multi-year high
• Rollercoaster! Zip share price pops then drops
• The ASX quarterly rebalance takes effect today. Here’s what you need to know
• ASX 200 (ASX:XJO) midday update: Hamish Douglass resigns from Magellan, Block jumps

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.

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The CSL Limited (ASX: CSL) share price has been a bit of a disappointing investment in 2022 thus far. As it stands today, CSL shares are currently down 9.42% year to date. That includes the rather nasty 1.05% haircut we’ve seen so far today, which currently puts CSL at $268.12. 

What might be even more disappointing for CSL investors though is the cool off we’ve seen since the ASX 200 healthcare giant reported its half-year earnings back in February. CSL dropped its numbers on 16 February. These were exceedingly well received at the time, evidenced by the CSL share price’s 14% rise between 15 and 17 February.

However, investor sentiment has cooled since then. At today’s share pricing, CSL is now more than 3% off of those highs reached on 17 February.

So what’s possibly gone awry at CSL that has caused this seeming share price malaise? 

Why can’t the CSL share price get out of neutral?

Well, unfortunately, we can’t say for sure. The company hasn’t really given investors any major news since its earnings report, apart from a minor update to its ongoing quest to acquire the Swiss biotech company Vifor Pharma. But that doesn’t seem to have had much of an impact on CSL shares then or since.

But what we do know is that one expert ASX investor is eyeing off what she sees as a bargain. Writing in the Australian Financial Review (AFR) today, Jun Bei Liu of Tribeca Investment Partners, calls CSL a quality company that investors have still chosen to sell off. She noted how the CSL share price “outperformed expectations by over 10 per cent” at its earnings, so questions why its shares have fallen since then. That’s despite what she describes as an “exceptionally defensive global growth profile”.

Ms Liu estimates that CSL will “deliver in excess of 20 per cent returns” this year, here’s why:

As we move through the market uncertainty and geopolitical conflicts, confidence will return, and quality names will be the first to close the valuation gap.

At the current CSL share price, this ASX 200 health care share has a market capitalisation of $130.52 billion. 

The post The company outperformed when it last reported, so why has the CSL share price been languishing? appeared first on The Motley Fool Australia.

More reading

• 3 buy-rated blue chip ASX 200 shares according to experts
• Why expert says this supermarket ASX share is a better bet than Woolworths (ASX:WOW)
• Do ASX biotech shares offer ‘good buying’ after the sell-off? Experts weigh in
• Is the CSL share price heading back over $300 in 2022?
• 3 quality blue chip ASX 200 shares analysts are tipping as buys

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 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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The S&P/ASX 200 Index (ASX: XJO) is having a very odd day indeed to kick off the trading week in style. At the time of writing, the ASX 200 is up by 0.13% at just over 7,300 points after many stints above and below the breakeven line today. 

But let’s dig a little deeper into these curious market moves and have a look at the ASX 200 shares that are currently at the top of the market’s volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume on Monday

Nickel Mines Ltd (ASX: NIC)

Nickel Mines is our first share up for discussion this Monday. So far today, a hefty 15.96 million Nickel Mines shares have swapped hands. This move seems to have been sparked by some bouncing around. Nickel Miens shares opened higher this morning at $1.28 each and rose as high as $1.32 soon after.

But the company has been falling back to earth ever since. It’s still in the green, but only just, going for $1.27 a share right now, up 0.16%. It’s this volatility that is probably the smoking gun behind this elevated volume we are seeing.

Liontown Resources Limited (ASX: LTR)

Another miner in Liontown is our next ASX 200 share to check out. A sizeable 17.61 million Liontown shares have changed homes today as it currently stands. This might have been caused by the announcement the miner released this morning. 

Liontown revealed that it has now received the results from a drilling campaign at its Buldania Lithium Project in Western Australia, which look to be promising. As a result, the Liontown share price is currently up a healthy 6.75% or so at $1.77 a share. It’s this combination that has probably elicited the high trading volumes we are witnessing.

AVZ Minerals Ltd (ASX: AVZ)

ASX 200 newcomer AVZ is our final share to check out today. This lithium hopeful had experienced 36.53 million of its shares trading on the markets today. This doesn’t seem to be the result of anything out of the company itself.

But looking at the AVZ share price, we see some immense volatility that might be the cause of this volume. AVZ shares are currently up 4.4% at 95 cents each. The company spiked at open this morning, before falling into negative territory, and subsequently rising to its current pricing. What a day! 

The post These 3 ASX 200 shares are topping the volume charts this Monday appeared first on The Motley Fool Australia.

More reading

• Why Block, Core Lithium, Liontown, and Qube shares are rising
• Rollercoaster! Zip share price pops then drops
• The ASX quarterly rebalance takes effect today. Here’s what you need to know
• ‘Exciting’ results: Here’s why the Liontown (ASX:LTR) share price is climbing 6% today
• ASX 200 (ASX:XJO) midday update: Hamish Douglass resigns from Magellan, Block jumps

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

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The Flight Centre share price has declined in a difficult COVID-19 operating environment, but could there be room for upside?

Flight Centre shares are currently swapping hands at $18.82, down 0.48%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.12% at the time of writing.

Let’s take a look at what analysts are predicting for the Flight Centre share price.

Could the Flight Centre share price go higher?

Analysts at Goldman Sachs believe the Flight Centre share price could lift beyond its current level.

Goldman has a $19.50 price target on the travel company and a neutral rating. That’s around 3.6% more than the current share price.

Commenting on the outlook for Flight Centre, the broker said:

We remain positive on the longer-term outlook for corporate recovery being ahead of pre-COVID levels driven by new contract wins, but more conservative on the leisure outlook. 

The stock remains fairly valued vs. global travel peers.

In other travel shares, the Webjet Ltd (ASX: WEB) share price is down 0.88% at the time of writing while Qantas Airways Ltd (ASX: QAN) is 0.78% in the red. The Corporate Travel Management Ltd (ASX: CTD) share price is down 1.42% at the time of writing.

Since market close on 5 October, Flight Centre’s shares have slid nearly 23%.

Flight Centre also continues to be one of the top shorted shares on the ASX, as my Foolish colleague James reported today. James noted it appears short sellers are not confident with the company’s valuation or travel market recovery.

Flight Centre CEO Graham ‘Skroo’ Turner recently predicted the corporate travel recovery from COVID-19 could take a few years. He said:

Within a couple of years, business travel globally will get somewhere close to 80 per cent or 90 per cent. It won’t get back to pre-COVID levels straight away in the next few years.

In other company news, Flight Centre recently revealed a new investment in a Dubai-based travel technology business. The investment is aimed at lowering costs, improving margin, and providing new revenue schemes.

Flight Centre share price summary

The Flight Centre share price has dropped nearly 3% in the last year but has jumped nearly 7% year to date.

For perspective, the benchmark ASX index has returned almost 9% over the past year.

In the past month, Flight Centre shares have dropped more than 8% although they’ve clawed back almost 2% in the past week.

The company has a market capitalisation of about $3.8 billion.

The post The Flight Centre share has tumbled 23% in less than 6 months. Is it now cheap? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Goldman Sachs tips Webjet (ASX:WEB) share price to rise over 20%
• Why is the Flight Centre share price lifting off today?
• Why are ASX travel shares taking off today?
• ASX 200 (ASX:XJO) midday update: Magellan jumps on buyback news, travel shares take off

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It’s no secret ASX 200 mining shares have been the star performers of the new trading year since play resumed in January.

The S&P/ASX 300 Metals & Mining Index (ASX: XMM) has jumped almost 6% this year to date. That’s after trucking it up north from its low points in November 2021. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has fallen around 2%.

The fierce rally the commodities sector is staging in 2022 is underscoring much of the upside. Many commodity baskets now sit well within a supercycle, surpassing previous highs and setting new records.

Leading the charge are underlying markets in energy, precious metals and industrials. And many of these are under pressure due to the conflict in Ukraine.

However, the sector is starting to cool off as market pundits finish digesting the news.

So, is it too late to jump on board? Take a look.

Is the party over for ASX 200 mining shares?

The question isn’t if the party is over for some Aussie mining stocks, but rather if the hangover has started. Many markets are starting to equalise, but volatility can dampen the mood fairly quickly.

Underlining the most recent spike in global commodity baskets was the tension in Ukraine. Of course, Russia is one of the largest exporters of metals in the world.

Many of the pricing strengths are transposing into earnings upgrades on ASX 200 mining shares. This includes BHP Group Ltd (ASX: BHP), Santos Ltd (ASX: STO) and Rio Tinto Limited (ASX: RIO), whose shares are up 12%, 21% and 11% YTD respectively.

However, these gains are paltry in size compared to the gains on some of the commodities these giants produce. We’re talking here of steel, iron ore, oil and nickel, for instance.

Or is the party just getting started?

The lag of ASX commodity producers to the underlying assets could be an opportunity for the sector to stage a further rally, according to Ben Cleary of the Tribeca Natural Resources Fund.

Cleary noted this gap plus the dislocation in company pricing versus market-forward pricing in what ASX producers are estimating in 2022, speaking to the Australian Financial Review (AFR).

“If you look at oil producers, Santos and Woodside are only pricing in about $US65 a barrel crude at their current share prices, which is way below spot price,” he said.

Given the widespread growth, Cleary reckons there could be “material earnings upgrades in the sector”. He thinks energy could be potentially undervalued.

“We like energy because it is very undervalued, particularly in Australia,” Cleary said.

Romano Sala Tenna of Katana Asset Management said coal could be one specific energy pick.

“If you picked out one in particular, it would be coal because met coal prices are over $US600 a tonne, which is off the scales,” portfolio manager Sala Tenna said, also speaking to the AFR.

Levelling off

However, the run may soon be starting to level off in some corners of the sector. That’s according to ANZ senior commodity strategist Daniel Hynes.

Speaking to Bloomberg Media today, Hynes was asked where he sees equilibrium in commodities moving forward, after he noted oil markets have already started to cool.

“You have to look at some of the markets that haven’t had the supply risk premium built into their price, and you could look at some of the smaller metals outside of nickel and aluminium… and those prices haven’t moved as much and we’re starting to see them stabilise as well,” he said.

Hynes was prompted on his view regarding the impact of a recent surge in COVID-19 cases out of China. He responded that the Shenzen lockdown might push demand for key metals higher.

“The metals exposed to the construction sector will probably see some sort of downside,” Hynes said. “We’ve already heard of construction activity in several areas being impacted.”

“That’s why we’ve seen prices [in these markets] weighed down particularly as those fears of supply shock have eased in recent times,” he added

“I would certainly expect to see further downside over the coming days or weeks on the metals side considering their exposure to China.”

Where to next for ASX 200 mining shares?

But taking a long-term view, many portfolio and fund managers have tilted their positioning to commodity baskets. They are taking into account themes like ‘energy transition’ and ‘resources boom’.

“Over 50 per cent of [our] portfolio is invested in companies exposed to copper, nickel, lithium and uranium,” David Franklyn, chief investment officer at Argonaut Funds Management told the AFR.

Whereas investment bank Merrill Lynch just released its FAANG 2.0 analysis. Merrill Lynch has assigned its own FAANG group to represent fuels, aerospace, agriculture, nuclear/renewables and gold/metals/minerals. (Instead of the original acronym representing Facebook, Amazon, Apple, Netflix, and, what was then, Google.)

Each of these experts points to a bullish stance on the long-term outlook of particular commodities, most notably energy. And this makes an interesting case for ASX 200 commodity players.

The post Is it too late to jump on surging ASX 200 mining shares in 2022? appeared first on The Motley Fool Australia.

More reading

• ‘Highly improbable’: Why Rio Tinto (ASX:RIO) shares are in focus again
• Are 2021’s monster dividends from ASX 200 mining shares sustainable in 2022?
• What’s impacting the Santos (ASX:STO) share price on Monday?
• BHP shareholders set for $30 billion windfall: Macquarie
• 2 ASX 200 dividend shares analysts are urging income investors to buy

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Zach Bristow owns Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Amazon, Apple, Meta Platforms, Inc., and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Netflix. 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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Shares in Global Lithium Resources Ltd (ASX: GL1) are surging north today and now trade more than 22% in the green at $2.46 each.

That marks a 64% gain since January for the company which has seen its equity explode this year, after a period of flat activity for over 12 months.

Why are Global Lithium shares charging north?

The Global Lithium share price has been catching bids lately as the company drip-fed the market two important updates.

Last week the company advised it had received firm commitments for a $29.9 million capital raising with respect to its Marble Bar Lithium project in the Pilbara, and its Manna Lithium Project.

It also noted that ASX resources player Mineral Resources Limited (ASX: MIN) had joined its register as a shareholder after committing to invest $13.6 million for a 5% stake in the company after the equity raise.

As a result of the placement, Global Lithium’s share count will now increase by 22.18 million new ordinary shares, after the placement was issued at a discount of $1.35 per share.

Prior to the update last week, the company advised it had entered into a 10-year spodumene concentrate offtake agreement with its largest shareholder, Suzhou TA&A Ultra Clean Technology Co.

Under the agreement, Suzhou TA&A will acquire and take delivery of a least 30% of available inventory from Global Lithium, with an option to increase by an additional 15% each year.

The move is set to advance Global Lithium’s operations in Western Australia, the company’s non-executive chair, Warrick Hazeldine said.

“As Global Lithium continues to advance our significant West Australian lithium portfolio, having the continued support of a world leader like Suzhou TA&A is truly an exceptional vote of confidence in our company, our people and our assets,” he said.

Global Lithium shares extend their rally today as volume surges to more than 2,227,000 shares – 152% higher than the 4-week average.

Global Lithium share price snapshot

In the last 12 months, the Global Lithium share price has soared 1,130% higher and is up almost 159% this year to date.

Over the past month, alone shares have soared 64% after climbing another 54% this previous week.

The post Why are Global Lithium (ASX: GL1) shares striding 22% higher today? appeared first on The Motley Fool Australia.

More reading

• Why is the Global Lithium (ASX:GL1) share price powering ahead by 7% today?
• Here’s why the Global Lithium (ASX:GL1) share price is soaring 18% today

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Lake Resources N.L. (ASX: LKE) share price is cruising more than 3% higher today with the company’s shares now trading at $1.60 apiece.

The clean lithium developer’s shares nudged past their all-time high and peaked at $1.66 each in early trade before settling at their current level.

The high follows a sustained period of upward movement, as illustrated by the chart below.

Another all-time high

The Lake Resources share price has taken off in the past month, up more than 70% during that time.

Its equity curve has shot higher with the company now trading well ahead of many of its sector peers in the S&P/ASX 300 Metals & Mining Index (XMM). [For reference, an equity curve is a graphical representation of how a stock, asset class, portfolio, or investment strategy performs over time.]

This year to date, the sector has climbed around 6% while Lake Resources shareholders have enjoyed a 58% return over the same time frame.

Investors have been piling into the company these past few weeks amid a successful capital raise and updates on its Argentinian lithium operations.

Lithium carbonate prices continue to rise and have stretched to US$78,150/tonne at the time of writing — an all-time high. Meantime, the Bloomberg Lithium Price Index has surged more than 441% year on year.

In a note from January, mining analyst at Red Cloud Securities David A. Talbot also noted Lake offers long-term upside potential.

At that time, he upgraded the broker’s outlook and said it forecast feasibility studies to “demonstrate even stronger economics and [was] therefore increasing [the] target price for Lake to A$2.20/share (from A$1.25/share)”.

Investors are piling in

Lake’s trading volumes have also shot up markedly. Total March volume is already more than 397 million shares – far ahead of the 129 million shares swapping hands in February, according to Bloomberg data.

Most of that has been on the buying side. So far today, 52% of investors are seeking to buy Lake Resources shares, Bloomberg data shows.

Analysts at Bell Potter are also constructive on Lake Resources. The broker is attracted to the company’s key lithium asset, the Kachi Lithium Brine project in Argentina.

Bell Potter said there are enormous ESG benefits to the project’s lithium extraction technology over alternative incumbent brine and hard rock lithium production methods.

It values the company at $1.82 with a speculative buy, baking in an upside potential of almost 17% at the time of writing.

Meanwhile, analysts at Lodge Partners are equally as bullish on the stock, valuing Lake at $1.77 per share.

The broker had previously valued Lake using a lithium price of US$15,000/tonne. However, it recently said it felt more suitable to increase lithium price input “considering recent activity in the spot price”.

In Lodge’s model, each US$1,000/tonne movement, up or down, gives a 20% variation to its valuation in the same direction. Thus, a price range of US$16,000/tonne to US$20,000/tonne sees the valuation range from $1.25 to $2.28.

In fact, at the time, Lodge was valuing Lake at a lithium carbonate input price of US$20,000/tonne. That’s far below the current price of more than US$78,000/tonne.

The consensus of analyst estimates values Lake at $1.79 per share over the next 12 months, according to Bloomberg data.

Lake Resources share price snapshot

In the last 12 months, the Lake Resources share price has climbed more than 376% and is up a mammoth 58% this year to date.

Just this past month alone, shares have jumped another 70% to set a series of new all-time highs.

The post Lake Resources (ASX:LKE) share price throttles to record high, up 70% this month appeared first on The Motley Fool Australia.

More reading

• Up 68% in March so far, why this top broker sees more upside for the Lake Resources (ASX:LKE) share price
• Brokers name 3 ASX mining shares to buy today
• Why has the Lake Resources (ASX:LKE) share price soared 30% in a week?
• 3 ASX lithium stocks that brokers rate as buys
• Why CSL, Incitec Pivot, Lake Resources, and St Barbara are pushing higher

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 Bitcoin (CRYPTO: BTC) price is down 2.7% over the past 24 hours, currently trading for US$40,810 (AU$56,915).

That leaves Bitcoin up 7.3% since this time last week and down 14.4% year-to-date.

Ethereum (CRYPTO: ETH), the world’s number 2 crypto by market cap, is losing ground today too. The Ethereum price is down 3.1% to US$2,838. Ethereum is still up 12.5% over 7 days, while the price is down 24.6% since 1 January.

The Bitcoin price and that of most major cryptos (outside the stablecoins) have followed a similar trajectory to risk-assets like ASX tech shares, this year.

And with the spectre of multiple interest rate rises now looming over the coming year, the S&P/ASX All Technology Index (ASX: XTX) has lost 17.9% year-to-date.

Which brings us back to…

Will inflation take a bite out of the Bitcoin price in 2022?

It’s not inflation, so much, that might throw up headwinds for any potential gains in the Bitcoin price in 2022. But rather the higher interest rates on the cards to keep inflation in check.

Addressing the difficult macro conditions facing crypto investors, Marcus Sotirou, analyst at digital asset broker GlobalBlock, said (quoted by Bloomberg), “Bitcoin is consolidating under $41,000 as the percentage of long-term holders in the market continues to increase. But for 2022, I can’t expect an aggressive uptick in prices, because of the macro conditions.”

Wilfred Daye, head of Securitize Capital, added, “For Bitcoin to breakout, a tech rally and macro risk-on sentiment are the key ingredients.”

Asked about the impact of higher rates on the Bitcoin price and other cryptos, Josh Gilbert, crypto analyst at multi-asset investment platform eToro told The Motley Fool:

While rate hikes generally equate to a lower investor appetite for higher risk assets like crypto, it’s unlikely to change the long-term picture for the asset.  It’s expected that we will continue to see a period of consolidation with crypto, as long as geopolitical tensions ensue. In the situation that they do ease, a crypto relief rally is anticipated to occur.

Gilbert noted that the Ethereum and Bitcoin price are likely to perform better under an environment of increasing interest rates than some of the lesser-known altcoins.

Altcoins will be more susceptible to investors rotating out of crypto, as they tend to carry more risk than the larger capped crypto assets such as Bitcoin and Ethereum. This is because larger capped crypto assets are more established and their use cases to the everyday investor are much clearer as shown by their rise in recent months.

The post Will higher interest rates take a bite out of the Bitcoin price in 2022? appeared first on The Motley Fool Australia.

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• 2 top cryptocurrencies to buy and hold forever
• Why Bitcoin, Ethereum, and Dogecoin dropped today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. 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.

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Shares in Incannex Healthcare Ltd (ASX: IHL) are pushing higher today and now trade almost 5% in the green at 69 cents apiece.

The Incannex share price has now climbed more than 50% this past week of trade and has locked an 11% gain for the year to date.

Why is the Incannex share price charging higher?

Last week the company announced it will be issuing a set of ‘loyalty options‘ in order to “reward loyal shareholders who have supported Incannex” over the year.

Obviously, that’s not the only reason – the company will raise cash off the issue as well, confirmed by CEO Joel Latham in yesterday’s release.

“The loyalty option is intended to reward our loyal shareholders whilst simultaneously assisting Incannex with the funding requirement for the next phase of development,” he said.

The options will be distributed for nil consideration and the exchange ratio is 1 option for every 15 shares held.

These options will have an exercise price at 35 cents each – almost half in value of the company’s share price at the time of writing.

Not only that, but the company will issue a set of ‘piggy-back options’ that are designed to be set at a ratio of 1 option for every two loyalty options exercised before expiry.

Unlike the loyalty issue, the piggy-back issue has a strike price of $1 per share and is due to expire on 28 April 2023.

Incannex looks set to utilise the funds to advance its clinical research programmes to get its pipeline converted onto the market.

Incannex share price snapshot

In the last 12 months, the Incannex share price has soared over 239% and is now up more than 11% for the year to date.

During the past month of trading, shares have spiked a further 18% and are now up more than 52% this past previous week.

The post The Incannex (ASX:IHX) share price is up a whopping 50% in a week. What’s the deal? appeared first on The Motley Fool Australia.

More reading

• What’s going on with the Incannex (ASX:IHL) share price today?

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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