Today, the S&P/ASX 200 Index (ASX: XJO) was a bleak site as investors brace for additional Russian sanctions. At the end of the session, the benchmark index finished 1.02% lower at 7,038.6 points.

In an abrasive start to the week, the Aussie market showed little in the way of optimism with nine of the 11 sectors closing lower. The pain was mostly felt by the tech sector as investors decided to continue their shift out of risk-on investments.

Fortunately, the energy corner of the index thrived under the conditions, as concerns of a constrained oil supply mount. From this, share prices across oil, gas, and coal companies were bid higher.

However, the question is: which shares managed to stay in the green on the ASX today? Here are the top ten stocks that pulled through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Coronado Global Resources Inc (ASX: CRN) was the biggest gainer today. Shares in the metallurgical coal producer surged 12.26% following another new record high coal price of US$430 per tonne being set. Find out more about Coronado Global Resources here.

The next biggest gaining ASX share today was Woodside Petroleum Ltd (ASX: WPL). The oil and gas giant set yet another 52-week high today amid the growing energy crisis. Shares in the company rallied 9.52% to cement their place at a market cap of more than $33 billion. Uncover the latest Woodside Petroleum details here.

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

ASX-listed company	Share price	Price change
Coronado Global Resources Inc (ASX: CRN)	$2.06	12.26%
Woodside Petroleum Ltd (ASX: WPL)	$34.41	9.52%
Zimplats Holdings Ltd (ASX: ZIM)	$28.27	7.08%
IGO Ltd (ASX: IGO)	$13.00	6.73%
Beach Energy Ltd (ASX: BPT)	$1.77	6.31%
Northern Star Resources Ltd (ASX: NST)	$10.74	6.13%
Incitec Pivot Ltd (ASX: IPL)	$3.46	5.49%
Santos Ltd (ASX: STO)	$8.17	5.28%
Newcrest Mining Ltd (ASX: NCM)	$27.37	5.19%
Whitehaven Coal Ltd (ASX: WHC)	$4.18	4.76%

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

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

More reading

• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Why is the Fortescue (ASX:FMG) share price having such a stellar start to the week?
• Woodside (ASX:WPL) share price surges another 9% today as oil resumes rally
• These 3 ASX 200 shares are topping the volume charts this Monday
• Glitch! Why are ASX tech shares getting hammered on Monday?

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

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As the market continues its shakeup in 2022, shares in Lovisa Holdings Ltd (ASX: LOV) fell hard on Monday and finished 9.79% in the red at $17.70 apiece.

Shares in the $1.9 billion company by market cap have taken a downward turn in 2022, now 12% lower since trading recommenced on January 4.

Lovisa share price is struggling amid sector weakness

The fashion jewellery retailer is feeling the squeeze on retail shares that set in as soon as trade restarted in January.

The S&P/ASX 300 Retailing index (AXRTKD) has fallen 17% from its former highs on 4 January and has shown no signs of reversal, even with a small bounce last month.

It is now trading at its lowest levels in more than a year. At the same time, many ASX retail shares in the consumer cyclical and consumer discretionary sectors are taking similar hits in 2022.

Lovisa isn’t immune to the headwinds and investors have sold off their positions after the stock jumped to its previous closing high of $20.43 on 1 March.

It seems not even an 85% jump in the company’s dividend to 37 cents a share, announced in its earnings results last month, was enough to keep investors on board today.

Lovisa is now trading on a respectable 1.94% trailing dividend yield following the sharp pullback in its share price.

Don’t worry, it’s not all downbeat

Yet it seems not everyone is worried about the downturn in the short term. Analysts at Citi reckon Lovisa is one for the future, noting huge growth potential if the company expands globally.

The broker updated its rating to buy from neutral in a recent note to clients

It identified the Chinese market as a key catalyst for Lovisa’s growth, stating this “could represent a $108 million sales and $13 million (11% of FY23 group EBIT) opportunity for Lovisa”.

Citi reckons investors need to hold a long-term view with Lovisa, especially seeing as the company is yet to fully expand internationally.

“The long-term earnings opportunity could be even more significant should Lovisa be able to expand beyond key cities,” analysts said.

It values the costume jewellery player at $21.45 per share after increasing its targets by roughly 4% recently.

Meanwhile, Bell Potter and UBS also raised their valuations on Lovisa to $21.70 and $21 per share respectively. Both brokers are urging their clients to buy Lovisa shares at the current prices.

In fact, the number of analysts advocating to buy Lovisa shares has crept up from 43% this time last year to 73%, according to Bloomberg Intelligence.

This represents a consensus price target of $21.27 per share, an upside potential of 20% at the time of writing.

Lovisa share price snapshot

In the last 12 months, the Lovisa share price has surged more than 25%, however, it has collapsed 12% this year to date.

In the past month of trading, the company’s shares have struggled to remain flat. During the past week alone, they have fallen 11%.

The post Lovisa (ASX: LOV) share price falters 10% but brokers still say buy appeared first on The Motley Fool Australia.

More reading

• Why Morgans rates this ASX lithium share and this retail share as buys
• Top ASX shares to buy in March 2022
• 2 compelling ASX shares that could be buys in March 2022
• Broker says Lovisa (ASX:LOV) could become a ‘global force’
• Brokers name 3 ASX shares to buy 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 recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Magnis Energy Technologies Ltd (ASX: MNS) share price has had a horror month, falling 18%.

The Magnis share price hovered under the line in today’s trade, finishing the day down 1.16% at 42.5 cents. In comparison, the S&P/ASX 200 Index (ASX: XJO) finished the day down 1.02%.

Let’s take a look at the news sparking joy for Magnis today.

Magnis to join the All Ords ranks

Lithium-ion battery company Magnis will be added to the All Ordinaries Index (ASX: XAO). This news was released after market close on Friday as part of the S&P Dow Indices quarterly rebalance.

Other inclusions to the index include Boss Energy Ltd (ASX: BOE), Galan Lithium Ltd (ASX: GLN), Metals X Limited (ASX: MLX) and Carbon Revolution Ltd (ASX: CBR). The update will take effect prior to the open on 21 March.

On Friday, my Foolish colleague Alice de Bruin reported details of an Australian Securities and Investments Commission (ASIC) investigation into the company’s financial activity.

Recently, Magnis updated the market on the Imperium3 New York (iM3NY) lithium-ion battery plant, of which Magnis is the major shareholder. The project is 57% complete as at the end of January.

Magnis chair Frank Poullas said:

Significant progress continues on all fronts as the project ramps up towards gigawatt hour production. The iM3NY team is working with investors, looking at funding the next stage, above 10GWh of annual production.

Magnis share price snapshot

In the last 12 months the Magnis share price has surged 39%, but is crashing 26% year to date.

In comparison, the benchmark ASX 200 index has climbed nearly 5% in the past year.

Magnis has a market capitalisation of $410.4 million based on the current share price.

The post The Magnis (ASX:MNS) share price has lost 18% in a month, but there was some good news today appeared first on The Motley Fool Australia.

More reading

• The Magnis (ASX:MNS) share price has climbed 5% this week. What’s been happening?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Carbon Revolution Limited. The Motley Fool Australia has recommended Carbon Revolution 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 founder and boss of Wilson Asset Management, Geoff Wilson, has told S&P/ASX 200 Index (ASX: XJO) companies to put the cash they’re sitting on to good use.

Plenty of businesses have seen strong profit and cash flow since the onset of COVID-19.

However, the pandemic has also caused interest rates to sink to almost 0%, with the Reserve Bank of Australia (RBA) in no rush to raise interest rates back to ‘normal’ levels.

Would it be a good idea for businesses to keep their cash in the bank in this environment? According to reporting by The Age, Geoff Wilson said:

The current return on cash, as anyone who has any cash in the bank knows, is close to zero. They’re better off handing it back to shareholders as fully franked dividends, or investing in their business or buying other businesses.

Big shareholder returns

There have been significant shareholder return announcements over the last year from ASX 200 shares.

For example, each of the big four ASX banks of Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) announced share buy-backs last year.

The mining giants of Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) both announced very large dividends in reporting season last month.

Wesfarmers Ltd (ASX: WES) recently completed a $2.3 billion capital return, returning $2 per share.

Acquisitions

There has been plenty of corporate activity by ASX 200 shares in recent months as well.

Buy now, pay later business Zip Co Ltd (ASX: Z1P) has launched a takeover attempt to buy Sezzle Inc (ASX: SZL).

Woodside Petroleum Limited (ASX: WPL) is on course to buy BHP’s petroleum business, though this is an all-share deal.

Telstra Corporation Ltd (ASX: TLS) has bought Digicel Pacific and MedicalDirector.

Sonic Healthcare Ltd (ASX: SHL) has made a number of smaller acquisitions with its COVID testing cash flow.

Hub24 Ltd (ASX: HUB) has acquired SMSF accounting business Class.

Fortescue Metals Group Ltd (ASX: FMG) recently bought the battery business Williams Advanced Engineering.

As you can see, there have been plenty of ASX shares that have decided to go for an acquisition or two.

What are some of the ASX shares that WAM likes right now?

The flagship investment vehicle that Wilson Asset Management runs is the listed investment company (LIC) WAM Capital Limited (ASX: WAM).

Each month, WAM Capital reveals its top 20 holdings. At 31 January 2022, these were some of those top 20 holdings:

Aristocrat Leisure Limited (ASX: ALL), ARB Corporation Limited (ASX: ARB), Brickworks Limited (ASX: BKW), Carsales.com Ltd (ASX: CAR), PEXA Group Ltd (ASX: PXA) and TPG Telecom Ltd (ASX: TPG).

The post WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends appeared first on The Motley Fool Australia.

More reading

• 5 ASX 200 shares slipping to 52-week lows today
• Own Rio Tinto (ASX:RIO) shares? Here’s why the miner has been hit with a $750,000 fine
• Why is the Fortescue (ASX:FMG) share price having such a stellar start to the week?
• Top broker says NAB (ASX:NAB) share price has 20% upside. Here’s why
• Woodside (ASX:WPL) share price surges another 9% today as oil resumes rally

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks, Hub24 Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Brickworks and Telstra Corporation Limited. The Motley Fool Australia has recommended ARB Corporation Limited, Hub24 Ltd, Sonic Healthcare Limited, TPG Telecom Limited, Westpac Banking Corporation, and carsales.com 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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Monday proved to be a rough day for many listed companies, with the S&P/ASX 200 Index (ASX: XJO) sliding 1.17%.

Unfortunately, the downturn sent some stocks crashing to the lowest they’d been in at least a year.

Here are 5 ASX 200 shares that slumped to new 52-week lows today.

These ASX 200 shares hit new 52-week lows on Monday

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

The ANZ share price was one of the better performers of the S&P/ASX 200 Financial Index (ASX: XFJ) on Monday.

Sadly, that wasn’t enough to save it from hitting its lowest point of the last 12 months.

The bank’s stock slipped 2.5% to $24.65 in intraday trade – a new 52-week low.

That’s 16.8% lower than its 52-week high of $29.64.

REA Group Limited (ASX: REA)

The REA share price also struggled on Monday. At one point it tumbled 4.4% to a new 52-week low of $127.04.

There’s no clear explanation for the company’s suffering today. However, it might have been caught up in the broader tech sell-off.

While not technically a tech share, REA operates real estate advertising websites and often gets lumped in with the technology sector.

The S&P/ASX 200 Info Tech Index (ASX: XIJ) plunged 4.6% on Monday. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) slid 4.1% lower.

Codan Limited (ASX: CDA)

Another share caught up in today’s tech mayhem was Codan.

Its share price tumbled to a new 52-week low of $6.96.

That’s 4.5% lower than it was at the end of Friday’s session and 64% lower than its 52-week high of $19.43.

The communications focused ASX 200 tech stock has had a shocking start to 2022. It has fallen 26% year to date.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

Another ASX 200 share that has suffered through 2022 so far is Fisher & Paykel.

The healthcare giant’s share price has tumbled 20% since the start of this year. Today, it hit a new 52-week low of $24.61.

That’s 4.4% lower than where the stock finished last week’s trade.

Boral Limited (ASX: BLD)

Finally, the Boral share price knocked 10 cents off its previous 52-week low today, dragging it down to $3.43 in intraday trade.

The ASX 200 building products and construction materials manufacturer’s stock has been trading at or around its 52-week low since it issued a $3 billion capital return to its shareholders last month.

The post 5 ASX 200 shares slipping to 52-week lows today appeared first on The Motley Fool Australia.

More reading

• ANZ (ASX:ANZ) share price trails benchmarks, melts to another 52-week low
• 5 ASX 200 shares slumping to 52-week lows on Friday
• Why is the ANZ (ASX:ANZ) share price getting battered more than the other banks this week?
• Australia’s newest tech unicorn, Zeller, is taking on the ASX banks. Here’s how
• Can this ASX 200 bank share flame 20% higher?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA 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 Rio Tinto Limited (ASX: RIO) share price is hovering in negative territory today following a $750,000 penalty notice. This comes as the verdict from the Federal Court case was handed down to the mining giant for breaching its continuous disclosure obligations.

At the time of writing, the mining giant’s shares are swapping hands for $126.06, down 0.40%.

Rio Tinto agrees Federal Court result

Investors are sending the Rio Tinto share price lower during Monday afternoon following the decision to penalise Rio Tinto.

According to the Australian Securities and Investments Commission (ASIC) media release, the Federal Court found that Rio Tinto failed to disclose material information to the ASX between 21 December 2012 and 17 January 2013.

This relates to the mining assets held by Rio Tinto Coal Mozambique which overstated its coal reserves.

ASIC deputy chair, Sarah Court commented:

Rio Tinto had obligations to the market to keep it adequately informed about its mining projects overseas.

When Rio Tinto was aware of information that Rio Tinto Coal Mozambique was no longer economically viable as a long-life, large-scale, Tier 1 coking coal resource, the market should have been properly informed in a timely manner.

Rio Tinto agreed to resolve the settlement along with ASIC’s costs of the proceeding. The company filed joint penalty submissions.

Furthermore, ASIC’s claims against two former Rio Tinto officers, Mr Albanese and Mr Elliott, have been dismissed. Each of the parties will bear their own legal costs.

At the time, the maximum penalty for a single breach of continuous disclosure laws was $1 million. This has since been increased.

Rio Tinto share price summary

Despite today’s slight loss, it has been a solid year to date performance for Rio Tinto shares, gaining 25%.

Based on today’s price, Rio Tinto has a market capitalisation of $46.79 billion and approximately 371.22 million shares outstanding.

The post Own Rio Tinto (ASX:RIO) shares? Here’s why the miner has been hit with a $750,000 fine appeared first on The Motley Fool Australia.

More reading

• Why is the Fortescue (ASX:FMG) share price having such a stellar start to the week?
• Time is running out to secure the Rio Tinto (ASX:RIO) monster dividend. Here’s why
• Own Rio Tinto (ASX:RIO) shares? Here’s why the miner is ‘closely monitoring’ the Ukraine situation’
• Why is the iron ore price hitting 6-month highs?
• ASX 200 dives to 4-day low following Ukraine nuclear power plant crisis

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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ASX gold shares are bucking the wider selling trend gripping share markets today.

While the All Ordinaries Index (ASX: XAO) is down 1.2% in afternoon trading, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has gone the other way, up 4.3%.

ASX gold shares are enjoying the fruits of fast rising gold prices.

Gold’s historic haven status has been on clear display over the past month.

Investors, already skittish about unexpectedly fast rising inflation figures, have been piling into gold following Russia’s invasion of Ukraine.

The continued buying spree sent the price of the yellow metal up another 1% over the past 24 hours, to US$1,990 (AU$2,687) per troy ounce, according to data from Bloomberg. That’s up from US$1,820 per ounce this time last month. And it’s up from US$1,684 per ounce a year ago.

That’s creating a big lift for the ASX Gold Index, and it’s seeing 3 ASX gold shares hit new 52-week highs today.

3 ASX gold shares hitting 52-week highs

The first ASX gold share notching up new 52-weeks high is Perseus Mining Ltd (ASX: PRU).

Perseus has numerous gold projects underway in West Africa. In February, the miner reported strong half year results, including a 90% year-on-year leap in revenue ($564 million in H1 FY22) and a 101% increase in earnings before interest, tax, depreciation, and amortisation (EBITDA).

The Perseus share price is up 4.1% in afternoon trading, currently at $1.90. That gives the miner a market cap of $2.24 billion.

The second ASX gold share hitting fresh 52-week highs is Capricorn Metals Ltd (ASX: CMM).

Capricorn has projects in Australia and Madagascar. Its Karlawinda gold project is located in Western Australia.

For the December quarter, Capricorn reported a boost in its gold production to 30,316 ounces, up from 24,329 ounces the previous quarter.

The Capricorn share price is up 2.2% to $3.86 per share. That gives the company a current market cap of $1.41 billion.

Rounding off the list of ASX gold shares hitting 52-week highs today is Gold Road Resources Ltd (ASX: GOR).

The Gold Road share price is soaring 5.7% in late afternoon trade, currently at $1.68 per share. At that price that gold miner has a market cap of $1.40 billion.

Among its projects, the gold producer has a Tier 1 mine and exploration projects in Western Australia.

Gold Road pays a 1.2% dividend yield, fully franked.

The post 3 ASX gold shares rocking new 52-week highs today appeared first on The Motley Fool Australia.

More reading

• 3 ASX mining shares breaking new 52-week highs today
• This ASX 200 mining share is combatting the carnage to rise 13% today. Here’s why
• 2 ASX mid-cap shares hitting new 52-week highs today
• 2 All Ordinaries mining shares smashing all-time highs 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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The Fortescue Metals Group Limited (ASX: FMG) share price is bucking the market sell-off today as the outlook for the iron ore price recently improved.

While Russia’s invasion of Ukraine is adding to global stagflation fears and dragging on share markets, the conflict may be boosting the iron ore price.

This could explain why the Fortescue share price is up almost 2% to $19.58 at the time of writing.

ASX iron ore shares defying market weakness

In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 1.24% in late afternoon trading as it appears investors continue to lose their appetite for risk.

However, it’s not only the Fortescue share price that’s getting a boost from the iron ore thematic. The BHP Group Ltd (ASX: BHP) share price jumped 0.92% to a seven-month high of $50.40 at the time of writing. The Rio Tinto Limited (ASX: RIO) share price is trading flat but that’s still way better than the ASX 200.

How Ukraine is boosting the Fortescue share price

The positive sentiment towards iron ore is due to two macro factors. The first is Ukraine, even though the country only produces 40 million tonnes of the commodity a year.

Russia produces even less at 25 million tonnes a year. Their combined output accounts for a mere 3% of the global market.

But the balance between demand and supply is so finely tuned that it doesn’t take much to tip the sentiment scale. This is especially on news that the disruption to Ukraine’s supply is driving iron ore pellet prices higher.

Japan’s Nippon Steel is scrambling to look for new supply of the high-grade product as Ukraine makes up 14% of its supply, as reported in the Australian Financial Review.

Chinese stimulus adds to bullish sentiment

Then there’s China’s economic growth target that was just released. The Asian giant is aiming for 5.5% growth in its GDP this year – its lowest in 30 years.

While that’s well down from the 8.1% increase last year, some experts believe the lower target is still very ambitious, according to the Sydney Morning Herald.

What investors take this to mean is that China will need to rachet up stimulus spending if it wants to achieve its 2022 goal.

Outlook for the Fortescue share price

There’s nothing like talk of Chinese stimulus to fire up the imaginations of iron ore bulls. History has shown that China tends to target infrastructure construction when it’s supporting economic growth. And we know that infrastructure construction adds to demand for the steel-making mineral.

This comes at a time when Brazil is still struggling to lift exports of ore due to ongoing COVID-19 disruptions.

The stars seem to be aligning for iron ore and the Fortescue share price could stay higher for longer if the commodity stays comfortably over US$100 a tonne for 2022.

The post Why is the Fortescue (ASX:FMG) share price having such a stellar start to the week? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Monday
• Glitch! Why are ASX tech shares getting hammered on Monday?
• Adjusting your ASX share portfolio in response to the Ukraine crisis might not be beneficial: expert
• Has Zip (ASX:Z1P) got this key metric wrong in the Sezzle takeover?
• The oil price just hit a 13-year high, and these ASX 200 shares are surging

Motley Fool contributor Brendon Lau owns BHP Billiton Limited, Fortescue Metals Group Limited, and Rio Tinto Ltd. 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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Shares in National Australia Bank Ltd (ASX: NAB) are walking lower today, currently trading 2.3% in the red at $28.22.

NAB shares have taken a beating over the past month in line with the wider ASX banking sector, as the global financial system is turned on its head in response to conflict in Europe.

As such, the NAB share price has fallen sharply from its peak of $30.85 in mid-February – also its 52-week high.

Is NAB a buy in 2022?

According to analysts at investment bank JP Morgan, NAB is absolutely a buy for 2022. The broker is overweight on NAB shares and sees a respective amount of upside for the remainder of this year.

In fact, NAB is JP Morgan’s top pick among the banking majors for this year.

“We have an overweight recommendation on NAB reflecting stronger-than-peer revenue growth prospects, likely sound cost control, and ongoing capital management,” the firm said in a recent note.

The stronger revenue profile reflects NAB’s tilt towards small business banking, which should insulate it from ROE [return on equity] pressures in retail banking, as well as strong execution in its market leading SME franchise where it continues to take market share.

JP Morgan analysts also reckon NAB is well positioned to benefit from any increase to interest rates, calling this “leverage to rates” a net positive to net interest income (NII).

Not only that, on the customer level NAB is looking strong, it says, particularly when examining trends on individual metrics.

“Customer metrics are very sound with strategic NPS showing strong improvement in recent periods,” the broker said.

The bank’s Q1 FY22 results were also a standout for analysts at the firm, particularly at the net interest margin (NIM) level – a headwind that most analysts are baking in for ASX banks to face in 2022.

…underlying NIM performance which at negative 2 basis points half on half was well ahead of ANZ at minus 4 basis points and Westpac’s negative 10 basis points in the quarter, as well as CBA’s negative 9 basis points in the December half.

What made the margin performance more compelling was it came alongside strong loan growth of 3% quarter on quarter.

Whilst NAB could potentially “walk away” from its cost targets for FY22-24, this shouldn’t be an issue for shareholders, the broker says. And NAB should avoid “short-termism” in its forecasts anyways.

“While costs may rise from here on volume-driven expenses we are comfortable with management planning for the long term and see a strong case for consistent above-peer earnings growth which we think justifies a re-rating,” analysts remarked.

While we think it possible that NAB walks away from its cost targets, this is already factored into our forecasts and still we see NAB’s pre-provision profit growth outstripping peers.

JP Morgan values NAB at $33.50 per share. This suggests an upside potential of 20% for investors to sink their teeth into this year, should the broker’s thesis come to life.

NAB share price snapshot

In the last 12 months the NAB share price has held gains, up 7%. This year to date it has struggled, however, and is down 3% since trading recommenced on 4 January.

During the past month of trading shares have gained 1%, but NAB is still trailing the broad indexes so far in 2022.

The post Top broker says NAB (ASX:NAB) share price has 20% upside. Here’s why appeared first on The Motley Fool Australia.

More reading

• The NAB (ASX:NAB) share price has only gained $3 in 12 years. Have the dividends been worth it?
• Why brokers rate these ASX 200 dividend shares as buys
• Australia’s newest tech unicorn, Zeller, is taking on the ASX banks. Here’s how
• Why did the NAB (ASX:NAB) share price leap 7% in February?
• ‘A lot of headroom to grow’: Is 2022 the year ASX investors turn to ESG shares?

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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Big news for Aurizon Holdings Ltd (ASX: AZJ) shares dropped over the weekend.

Following its March quarterly review, S&P Dow Jones Indices announced the company is about to be booted from the S&P/ASX 50 Index (ASX: XFL).

Aurizon will be waving goodbye to the exclusive group of some of the ASX’s biggest and most renowned shares on 21 March.

Let’s take a closer look at the upcoming change facing the rail freight operator and what it could mean for its shares.

Aurizon to be removed from the ASX 50

The Aurizon share price is slipping on Monday as the market reacts to news that the company is to be dropped from the ASX 50.

At the time of writing, the Aurizon share price is $3.54. That’s 1.9% lower than it was as of Friday’s close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also in the red on Monday. It is currently down around 1.1%.

The company’s impending removal from one of the ASX’s most exclusive cliques was announced on Friday evening.

It means trading of the company’s stock might soon increase as funds tracking the ASX 50 Index sell out Aurizon in favour of its replacement – BlueScope Steel Limited (ASX: BSL).

Thus, eagle-eyed market watchers might see funds buying into BlueScope to maintain their mirroring of the index.

Additionally, fund managers mandated to only trade in ASX 50 shares might soon be forced out of Aurizon and have to consider BlueScope.

Aurizon share price snapshot

2022 has been a rollercoaster for the Aurizon share price.

Right now, it’s 1% lower than it was at the start of this year. It has also fallen 2% since this time last year.

According to the ASX, the company has a market capitalisation of around $6.6 billion.

The post Here’s why Aurizon (ASX:AZJ) shares will soon be booted from this exclusive club appeared first on The Motley Fool Australia.

More reading

• 5 ASX 200 shares trading ex-dividend today
• 3 ASX shares to buy before the market rockets up again
• Deal or no deal? Aurizon (ASX:AZJ) share price falls amid sale rumours
• A fair price? Aurizon (ASX:AZJ) share price gains despite 27% dividend dive
• Interest rate anxiety? 3 ASX shares to stay calm and carry on

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 recommended Aurizon Holdings 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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