The Uniti Group Ltd (ASX: UWL) share price rocketed higher in early trade before being quickly placed into a trading halt.

The telco’s shares were up 17% to $3.69 prior to the pause in trading.

Why did the Uniti share price rocket higher?

Today’s rapid rise by the Uniti share price appears to have been driven by speculation that the company is in takeover talks.

However, on this occasion, the would-be suitor is rumoured not to be Vocus, which was taken private last year by Macquarie Infrastructure and Real Assets (MIRA) and Aware Super.

There was speculation that Uniti and Vocus were in talks regarding a takeover last month, but nothing eventuated. Though, this speculation appears to have prompted an unknown third-party to the table this week.

According to the Australian, Uniti is understood to have entered into exclusive talks with a party for a potential sale. The report suggests that the suitor has put forward an offer of between $4.00 and $5.00 per share. This compares to the 52-week high of Uniti share price of $4.69.

The report suggests that Canadian private equity firm Brookfield could be the party in question. Particularly given its recent penchant for Australian assets.

It recently acquired electricity company AusNet, bought a stake in Intellihub, snapped up La Trobe Financial, and made a play for AGL Energy Limited (ASX: AGL) with Mike Cannon-Brookes.

In addition, EQT has been touted as a potential buyer of Uniti, along with Kohlberg Kravis Roberts (KKR). The latter has just raised US$17bn for a new infrastructure fund, giving it plenty of firepower.

What’s next?

Uniti has requested a trading halt until tomorrow morning but has neither confirmed nor denied the speculation.

It stated that the trading halt was requested: “To enable an orderly release of information regarding an announcement in response to media speculation.”

Though, given how quickly an announcement could be made to refute speculation, it appears that this could prove to be more than just rumours. Stay tuned for that.

The post Why the Uniti (ASX:UWL) share price jumped 17% before being halted appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Uniti 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 Lynas Rare Earths Ltd (ASX: LYC) share price is in the red year to date but has surged more than 11% in the past month.

Lynas shares are currently swapping hands at $9.72, a 5.17% fall on yesterday’s closing price. In comparison, the S&P/ASX 200 Index (ASX: XJO) is also down 0.7% today.

So what does the future look like for Lynas?

Rare earths producer

Lynas is the only major producer of separated rare earths outside of China. The company’s Mt Weld mine in Western Australia is one of the highest grade rare earth deposits in the world, according to the company. Lynas also operates a rare earth processing plant in Malaysia. These materials are then exported to Asia, Europe, and the United States.

Red Leaf Securities chief executive John Athanasiou recently told my Foolish colleague Tony if the market closed tomorrow he would want to hold Lynas given its “global strategic importance”.

He explained:

Rare earth materials are required for all sorts of things that we consume on a daily basis — from electric cars, mobile phones to superconductors. And the western world really wants a producer outside of China, so it enhances strategic importance. 

They announced recent record sales revenue of, I think, $202 million dollars. And that’s despite supply chain [issues], which we think will be resolved fairly soon. So there’s even more upside to them. So I think if you hold Lynas now, you’ll be happy in four years’ time.

Speaking at the Australian Financial Review Business Summit in Sydney recently, Lynas CEO Amanda Lacaze said when she first joined Lynas her vision was to return to the ASX 100 and now the company is “knocking on the door of the 50”.

Lacaze, asked where she sees the company in 2050, said:

We have a 25-year mine life, right? We are exploring now so we can extend that mine life because we want to increase our production. Australia as a whole, we should be able to be very successful in this area. Because we do have this wonderful mineral endowment.

I think there’s a risk sometimes we think we have to compete with each other in business. There are enough competitors out there. We can all win together if we actually work in a positive fashion together.

In early March, Macquarie released a positive broker note on Lynas. The broker retained its outperform rating on the share and lifted its price target to $12.60. That suggests a potential upside of almost 30% on the current Lynas share price.

Lynas reported a record net profit after tax of $156.9 million in the company’s half-year 2022 results.

Lynas share price snapshot

The Lynas share price has rocketed nearly 60% over the past year but has fallen 10% since market open on 4 January.

In comparison, the benchmark ASX index has returned about 4% in a year.

Lynas has a market capitalisation of about $9.2 billion.

The post What’s the outlook for the Lynas (ASX:LYC) share price? appeared first on The Motley Fool Australia.

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• Lynas (ASX:LYC) share price jumps amid record interim net profit

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 Adore Beauty Group Ltd (ASX: ABY) share price is edging into the red on Tuesday morning.

This comes as insiders have recently taken advantage of the share price weakness to purchase more shares.

At the time of writing, the online beauty retailer’s shares are down 1.5% to $1.97 apiece.

Directors top up on Adore Beauty shares

In a statement last week, Adore Beauty revealed that two of its directors, James Height and Kate Morris, have each bought a portion of new shares.

Executive director Height picked up 46,265 Adore Beauty shares through an on-market acquisition on 9 March at $2.054 apiece. He further added to his holding by buying another 153,735 shares at $2.11 each the following day.

In total, Height increased his portfolio by 200,000 Adore Beauty shares. This means that the executive director now has 10.4 million fully paid ordinary Adore Beauty shares.

In addition, executive director Morris also supplemented her portfolio with 46,266 shares on 9 March, and 153,734 shares on 10 March. The price paid per share was the same as in Height’s transactions, outlined above.

The 200,000 Adore Beauty shares were purchased via an on-market trade, bringing Morris’s total to 10.4 million shares.

Both transactions equate to a value of almost $840,000.

It appears the directors believe that Adore Beauty shares may have bottomed out, particularly after UBS’s latest recommendation.

Adore Beauty share price snapshot

Over the past 12 months, the Adore Beauty share price has sunk by around 62%, with year-to-date losses at 50%.

The company’s shares have been moving along on a downhill trajectory, particularly since the start of 2022.

Although, currently the relative strength index (RSI) is at 30, indicating the company’s shares have been oversold.

The RSI is a momentum oscillator that is used to assess the strength or weakness of a share price. Normal levels range between 30 and 70, as anything outside that range reveals if the share price is attractive to buy, or expensive.

Adore Beauty commands a market capitalisation of roughly $186 million.

The post 135% upside? Adore Beauty (ASX:ABY) insiders pounce on beaten-up shares appeared first on The Motley Fool Australia.

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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 recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty 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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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.

Investors are getting hit on all sides by news that raises big concerns, and stocks haven’t been able to inspire much confidence from traders on Wall Street.

The Nasdaq Composite (NASDAQINDEX: .IXIC) is now back to being down more than 20% from its highs, with a drop of more than 2% at 1.45pm ET that shows just how little conviction many investors have in high-growth stocks right now.

However, some stocks in the Nasdaq managed to hold up well even in Monday’s decline. Moderna (NASDAQ: MRNA) was once again a beneficiary of troubling news on the health front, this time from China. Meanwhile, investors continued to look for safe havens, and that helped consumer products giant PepsiCo (NASDAQ: PEP) maintain a modest gain Monday afternoon.

China’s COVID-19 cases boost vaccine stocks

Shares of Moderna were up more than 11% on Monday afternoon. The vaccine maker wasn’t alone, with BioNTech (NASDAQ: BNTX) seeing gains of more than 12%.

The news that was behind the upward move for vaccine stocks came from China, where an outbreak of the Omicron variant of COVID-19 has prompted government officials to impose new lockdown measures and travel restrictions. More than 1,300 cases have appeared, with the majority coming from the northeastern province of Jilin. In addition, the city of Shenzhen has seen new cases, prompting a lockdown of the city. Even though the number of cases is relatively small, China has been adamant in following its zero-COVID policy.

Even more troubling is the fact that many of these cases involve a new subvariant of Omicron that shows signs of being more transmissible and more harmful for those who become infected. It’s unknown how well Moderna and BioNTech’s vaccines will protect against this “stealth Omicron” variant, but investors believe the companies can work to potentially refine their vaccines over time.

Meanwhile, Moderna announced a study with the goal of making a vaccine to protect people against HIV. Such a breakthrough would show that Moderna isn’t a one-trick pony and prove once and for all the efficacy of its mRNA technology.

Pepsi is fizzing higher

Elsewhere, shares of PepsiCo were up a more modest 2%. The soft drink and snack foods manufacturer has traditionally had some defensive characteristics that make it an attractive investment for those seeking shelter from tough market environments.

PepsiCo has become a staple for millions of consumers around the world, and its brand name strength gives it a competitive advantage over many smaller companies in the food and beverage space. With many consumers devoted to its brands, PepsiCo is better able to pass on any cost increases in the ingredients that go into its products. That helps PepsiCo sustain its profit margin even when rival companies have to suffer declining earnings.

Dividend investors also appreciate PepsiCo. The stock yields 2.8% currently, and the company has an impressive streak of consistently boosting the amount of its quarterly dividend payments that dates back decades.

Perhaps best of all, PepsiCo hasn’t been afraid to set trends rather than react to them. When consumers started demanding healthier options, PepsiCo was among the first major companies to respond aggressively by moving away from sugary soft drinks toward carbonated water and other now-popular beverage alternatives. Similar moves on the snack side of the business have built up even more loyalty for the company.

As inflation hits hard, PepsiCo is in a better position than most to avoid the brunt of higher prices. Stock investors appreciate that kind of protection now more than ever.

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

The post 2 Nasdaq stocks bucking Monday’s market drop appeared first on The Motley Fool Australia.

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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. 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.

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

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The Imugene Limited (ASX: IMU) share price is marching higher in early trade. Imugene shares are up 4% even as the All Ordinaries Index (ASX: XAO) tumbles 1%.

The Imugene share price closed yesterday at 25 cents and is currently trading at 26 cents.

Below we look at the immuno-oncology company’s clinical trial collaboration announcement.

What collaboration was announced?

The Imugene share price is gaining after the company reported that it’s entered into a new clinical trial collaboration and supply agreement with US pharmaceutical giant Merck & Co. Inc. (NYSE: MRK), under its tradename MSD.

The collaborative trial will treat patients with HER-2 positive gastric cancer with Imugene’s HER-Vaxx, combined with MSD’s pembrolizumab. The trial will evaluate both the safety and efficacy of the combined treatment approach.

Commenting on the collaboration, Leslie Chong, Imugene’s CEO, said:

HER-Vaxx has already shown a tolerable safety profile and encouraging efficacy in patients with metastatic HER-2 positive gastric cancer, and we look forward to further evaluating HER-Vaxx with pembrolizumab in a relapsed/refractory metastatic setting.

This collaboration with MSD is significant for our company as it provides the opportunity to optimize and enhance our formulations and utility in an additional setting in an effort to improve outcomes for more patients.

Imugene said the main goal of the study is to evaluate the safety and response rate of the combination therapy. It will also assess patients’ “duration of response, progression free survival, overall survival, and biomarker evaluation”.

In accordance with the agreement, Imugene will sponsor and fund the clinical study. It said this will be done from its existing budgets and resources.

In return, MSD will provide pembrolizumab for the duration of the study, which is expected to run for at least 24 months.

Imugene share price snapshot

The Imugene share price has been a stellar performer over the past 12 months, up 112%. By comparison, the All Ordinaries has gained 5% over that same time.

The post Imugene (ASX:IMU) share price lifts on major collaboration announcement appeared first on The Motley Fool Australia.

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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 News Corp (ASX: NWS) share price is heading south during early Tuesday trading.

This comes despite the media giant not releasing any market-sensitive news today.

At the time of writing, News Corp shares are down 0.9% to $29.65 apiece.

Why are News Corp shares falling today? 

Following the company’s second-quarter and half-year results released on 4 February, investors are eyeing News Corp shares as they go ex-dividend today.

Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased shares. If the investor does not buy News Corp shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

What does this mean for News Corp shareholders?

For those eligible for News Corp’s interim dividend, shareholders will receive a payment of 9.83 cents per share on 13 April. Although, the dividend is unfranked, which means investors won’t receive any tax credits from this.

The dividend is slightly higher when compared against the prior corresponding period despite recording lower free cash flow.

Management said the decline was primarily due to lower cash provided by operating activities and higher capital expenditures.

Are News Corp shares a buy now?

Following the company’s financial scorecard, a couple of brokers weighed in on the News Corp share price.

The team at Macquarie raised its 12-month price target by 16% to $50.00 for the media company’s shares. Its analysts believe there is still more upside in News Corp shares in line with its sound performance recently.

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

Furthermore, UBS also lifted its rating on News Corp shares by 2.4% to $42.50 a pop. This also implies an upside of around 42% from where the company trades today.

News Corp shares price summary

Since the beginning of 2022, News Corp shares have lost more than 4% on the back of weak investor sentiment on the ASX.

The company’s shares reached a 52-week low of $28.18 last week, before rebounding slightly higher thereafter.

On valuation grounds, News Corp commands a market capitalisation of around $1.36 billion, with approximately 45.32 million shares outstanding.

The post Why the News Corp (ASX:NWS) share price is edging lower today? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Tuesday

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

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The Rio Tinto Limited (ASX: RIO) share price is falling on Tuesday morning despite announcing acquisition plans.

At the time of writing, the mining giant’s shares are down 4% to $106.36.

Rio Tinto share price lower despite acquisition proposal

The Rio Tinto share price is falling on Tuesday despite announcing a proposed acquisition.

According to the release, the company has made a non-binding C$34 per share proposal to acquire the remaining ~49% of the issued and outstanding shares of Turquoise Hill that it doesn’t already own. This equates to a total consideration of ~US$2.7 billion in cash.

If the deal were to complete, it would mean Rio Tinto’s share of the Oyu Tolgoi copper operation in Mongolia increases to 66%.

The release notes that the proposed transaction follows the recent comprehensive agreement reached between Rio Tinto, Turquoise Hill, and the Government of Mongolia to move the Oyu Tolgoi project forward, reset the relationship between the partners, and approve commencement of underground operations.

Management believes it would simplify the Oyu Tolgoi ownership structure, strengthen Rio Tinto’s copper portfolio, and reinforce its long-term commitment to Mongolia.

In addition, Rio Tinto highlights that the proposed transaction provides Turquoise Hill minority shareholders with the ability to realise compelling, immediate and certain value for their shares at a time when uncertainties inherent in the development of the underground operations and funding of such development remain.

However, it warned that no agreement has been reached between Rio Tinto and Turquoise Hill, and there can be no assurance that any transaction will result from these discussions. Furthermore, it stressed that even if a transaction is agreed, there can be no assurances as to its terms, structure or timing.

Management commentary

Rio Tinto’s Chief Executive, Jakob Stausholm, commented: “Rio Tinto strongly believes in the long-term success of Oyu Tolgoi and Mongolia, and delivering for all stakeholders over the long-term. That is why we want to increase our interest in Oyu Tolgoi, simplify the ownership structure, and further strengthen Rio Tinto’s copper portfolio. We believe the terms of proposal are compelling for Turquoise Hill shareholders.”

“The Proposed Transaction would enable Rio Tinto to work directly with the Government of Mongolia to move the Oyu Tolgoi project forward with a simpler and more efficient ownership and governance structure. With our relationship reset and the underground operations commenced, this transaction demonstrates our clear and unequivocal long-term commitment to Mongolia,” he added.

Response

Analysts at Goldman Sachs have responded to the news. And despite what the Rio Tinto share price performance may indicate, the broker appears to believe the deal is a good one and at a sizeable discount to its true value.

It commented: “OT [Oyu Tolgoi] is one of RIO’s most important growth assets as the project will double RIO’s earnings from copper to over 25% on our estimates, will be long life (+40yrs), low cost (1st quartile), has +50% expansion potential, and in our view is under explored.”

“We value OT at US$23.8bn (before capex revisions/project finance) on a 100% basis at our long run copper price (US$4.12/lb real $ from 2026), and RIO’s current 34% effective share at US$9.1bn (A$8.1/sh; incl. fees). The ~US$2.7bn offer equates to an EV of US$9bn including TRQ’s net debt as at 31 Dec of US$3.6bn, which implies a valuation of US$13.6bn for 100% of OT; the offer therefore represents a 43% discount to the valuation contained in our price target,” it adds.

The post Rio Tinto (ASX:RIO) share price tumbles despite Oyu Tolgoi transaction news appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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What does an ASX-listed skin laser clinic have in common with a logistics business?

They’ve both been named as ASX shares to buy right now by experts.

And they’re both named Silk.

Silky 59% upside in share price

The share price for Silk Logistics Holdings Ltd (ASX: SLH) has plunged 5.9% for the year so far, but Morgans investment advisor Jabin Hallihan reckons it’s a buying opportunity.

“Silk Logistics utilises an asset-light, technology-enabled, flexible business model that guards against increasing costs as they are passed through to customers with a margin,” he told The Bull.

The Melbourne-headquartered business handles logistics from the port and wharf to warehousing and supply chain distribution.

Hallihan thought Silk Logistics had a positive February reporting season.

“The company generated revenue of $182.5 million in the 2022 first half — an 18.5% increase on the prior corresponding period,” he said.

“The full-year outlook is for solid growth. Our 12-month price target is $3.31 a share.”

That is a stunning 59% upside from the closing stock price on Monday. 

Silky move into New Zealand and Victoria 

The Silk Laser Australia Ltd (ASX: SLA) share price has dropped a painful 30.6% already this year.

But Wilsons investment advisor Peter Moran is still recommending the laser clinic network to clients as “overweight”.

He liked the look of the first-half result despite potential customers being unable to visit due to COVID-19 lockdowns and precautions.

“The company also benefited from the acquisition of Australian Skin Clinics (ASC), which moved under Silk Laser’s control in September,” Moran said.

“The 56 ASC clinics are being smoothly integrated and provide a growth opportunity in Victoria and New Zealand, which had been previously missing from Silk’s footprint.”

While coverage for the $158 million small-cap company is scarce, both analysts surveyed on CMC Markets rate Silk Laser as a “buy”.

The Silk Laser share price closed Monday at $2.97.

The post 2 ASX shares to buy for CHEAP that have the same name: experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended SILK Laser Australia Limited. The Motley Fool Australia has recommended SILK Laser Australia 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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Fortescue Metals Group Limited (ASX: FMG) is reportedly in discussions with Egypt’s prime minister about potential green hydrogen opportunities.

According to reporting by Ahram Online, Fortescue founder Andrew Forrest was in Cairo on Monday to meet with Mostafa Madbouly.

Why is Fortescue thinking about green hydrogen?

Fortescue Future Industries (FFI) is the division of Fortescue that is looking to decarbonise Fortescue’s operations.

But, it also wants to invest to create a global portfolio of green energy projects to supply 15 million tones per year of renewable green hydrogen by 2030.

Potential Egypt projects

Ahram Online reported that Egypt is keen on exploring opportunities to work with international partners in renewable and “especially green hydrogen”.

The Egyptian prime minister said that Egypt is going to announce a national strategy to grow the production, use and export of clean energy, particularly green hydrogen. In November 2022, Egypt will be hosting COP27, the UN conference about the climate.

It was reported by Ahram Online that Egypt wants Fortescue to “establish and expand” green hydrogen projects in Egypt. One example given was the Benban Solar Park in Aswan in Upper Egypt. This is where there are 32 solar energy projects that come with a total capacity of 1,465 MW.

Dr Forrest reportedly said that the ASX share is ready to start putting money into Egypt to make green hydrogen energy. He said that Egypt is an ideal choice to make green hydrogen, become a regional hub and export that energy to Europe.

The meeting supposedly ended with an agreement between Fortescue and Egypt to finalise a plan for these proposed projects to be done in Egypt.

Fortescue Future Industries has been busy

It has been a busy few months for the business.

FFI recently completed the acquisition of Williams Advanced Engineering (WAE). It’s being vertically integrated into Fortescue and will be managed by FFI. WAE has critical technology and expertise in high-performance battery systems and electrification to help decarbonise Fortescue.

The WAE acquisition will also establish a significant new global battery growth business opportunity for Fortescue.

The ASX share has also announced a zero-emission infinity train – it’s developing a regenerating battery electric iron ore train.

It will use gravitational energy generated on the downhill loaded sections of the iron ore miner’s rail network to recharge its battery electric systems, without any additional charging requirements for the return trip to reload. This self-sustaining system will increase operational efficiency, lower maintenance costs and eliminate diesel and CO2 emissions from Fortescue’s iron ore trains.

The post What’s going on with Fortescue (ASX:FMG), green hydrogen and the Egyptian prime minister? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns Fortescue Metals Group 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.

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The Bank of Queensland Limited (ASX: BOQ) share price could be great value.

That’s the view of the team at Morgans, which sees material upside for its shares over the next 12 months.

What did the broker say about the Bank of Queensland share price?

According to a note, Morgans has retained its add rating and $11.00 price target on the regional bank’s shares.

Based on the current Bank of Queensland share price of $8.01, this implies potential upside of 37% for investors.

And that’s before dividends. Morgans is expecting a fully franked dividend of 48 cents per share in FY 2022. This represents a generous 6% yield, which brings the total potential return on offer with its shares to 43% over the next 12 months.

Why is Morgans bullish?

Morgans believes the Bank of Queensland share price offers significant value for money right now. Particularly given how it is “trumping peers on growth momentum” and realising cost synergies from the acquisition of ME Bank at a quicker than expected rate.

The broker commented: “We see exceptional value in Bank of Queensland’s stock. The Company has been executing well on its transformation program, it continues to grow its home loan book at above-system levels, we don’t expect its NIM to fare worse than the industry-wide trend, and cost synergies associated with the ME Bank acquisition are being realised at a faster rate than originally anticipated.”

“Over the next 12 months, we expect good operational momentum relative to peers to be supportive of the share price. Beyond the next 12 months, we expect cost efficiency improvements in particular to be supportive of the share price,” it added.

All in all, Morgans appears to see the Bank of Queensland share price as a top option for investors looking for exposure to the banking sector right now.

The post Bargain buy? Broker tips Bank of Queensland (ASX:BOQ) share price to rise 37% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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