ASX 200 insurance shares are taking a battering this week amid devastating floods in Queensland and New South Wales.

Three S&P/ASX 200 Index (ASX: XJO) shares facing thousands of insurance claims are QBE Insurance Group Ltd (ASX: QBE), Insurance Australia Group Ltd (ASX: IAG), and Suncorp Group Ltd (ASX: SUN).

Let’s take a look at how the floods could impact these three shares.

Insurance claims sky rocket

A flooding crisis is sadly devastating two eastern states in Australia. Half a million people are currently under evacuation orders in New South Wales, Nine News reports.

S&P Global Ratings predicts the damage bill of the floods could be between $1 and $2 billion, Insurance News reported.

More than 48,200 flooding insurance claims are in the works, Insurance Council of Australia figures show. Most of these are in Queensland, however, NSW claims are expected to skyrocket in the next few days.

QBE has boosted its team helping flood victims lodge claims. The company said:

We’re working hard to support our customers affected by the severe weather and flooding across Australia’s East Coast, which is causing devastating damage to homes, vehicles and businesses.

Insurance Australia is being inundated with thousands of claims. The insurer expects the total number to rise as the event unfolds. In a release to the market on Tuesday, the company reiterated it has a maximum event retention of $95 million. This is the maximum loss the insurer can be exposed to in an extreme event.

Suncorp predicts the maximum retained cost from the floods will be about $75 million. In a statement to the market on Monday, the company said:

The full year outlook for natural disaster hazard costs remains around $1.075 billion.

The QBE share price has descended 7.3% since market close last Friday, including a 0.82% fall today. The IAG share price edged 0.68% higher today but has tumbled 7.5% this week. Meanwhile, Suncorp shares are down 4.7% since Friday after losing 1.12% today.

Share price recap

The QBE share price has surged 18% in the past year, while Suncorp has climbed 4%. Meanwhile, IAG has fallen 9% in the last 52 weeks. For perspective, the benchmark ASX 200 has returned almost 5% in the past year.

In the year to date, QBE and Suncorp shares have fallen around 4%, while the IAG share price has climbed 4%.

The post ‘$2 billion cost’: How are the floods impacting ASX 200 insurance shares this week? appeared first on The Motley Fool Australia.

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• Why is the IAG (ASX:IAG) share price sliding this week?
• Why Betmakers, Fortescue, Suncorp, and Tyro shares are falling
• Here’s why the Suncorp (ASX:SUN) share price is slipping today
• 4 ASX shares that love rising interest rates: report

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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Thursday proved to be a good day for many shares on the market, with the S&P/ASX 200 Index (ASX: XJO) gaining 0.64% and the All Ordinaries Index (ASX: XAO) finishing 0.69% higher.

And while the S&P/ASX 200 Financials Index (ASX: XFJ) also finished in the green – having gained 0.13% – some of its constituents flopped to long forgotten lows.

Let’s take a look at 2 ASX 200 financial shares that tumbled to their lowest in more than 12 months.

These ASX 200 financial shares fell to 52-week lows today

Zip Co Ltd (ASX: Z1P)

The Zip share price plunged to yet another 52-week low on Thursday as multiple brokers posted bearish outlooks for the stock.

As The Motley Fool Australia reported today, UBS, Citi, and Macquarie are all warning the stock could slide.

While UBS slapped the ASX 200 company’s shares with a $1 price target and a ‘sell’ rating, Macquarie was slightly more optimistic, hitting it with a $1.85 price target.

Meanwhile, Citi analysts don’t believe the company’s acquisition of Sezzle Inc (ASX: SZL) will bring the extent of benefits the buy now, pay later (BNPL) providers predict.

The Zip share price fell to a low of $1.87 today. That’s 4% lower than where it closed Wednesday’s session.   

Pendal Group Ltd (ASX: PDL)

There’s been no such clear cut happening to explain the fall of the Pendal share price today.

The investment management company’s stock slumped 1.7% in intraday trade to reach a new 52-week low of $4.42. That’s 50% lower than the 52-week high it reached in September.

It’s been a rough few months on the market for the ASX 200 share.

Its stock tumbled 10% in mid-October when the company released a funds under management update, detailing a $2.3 billion outflow.

It slumped another 16% in January on the back of another funds under management update, noting a $6.8 billion outflow.

The post 2 ASX 200 financial shares that hit 52-week lows on Thursday appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• Why Coles, Dusk, Monadelphous, and Zip shares are dropping today
• Zip (ASX:Z1P) shares have tumbled 14% since the merger news. Top brokers offer possible reasons why
• ASX 200 (ASX:XJO) midday update: Corp Travel Management’s ACCC boost, Zip downgraded
• Why Domino’s, Magellan, PointsBet, and Zip shares are falling

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. 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 A2 Milk Company Ltd (ASX: A2M) share price is falling today amid comments from the company regarding implications of the New South Wales flooding.

Recovery could take months, if not years, a spokesperson for A2 Milk told The Australian today.

At the time of writing, the A2 Milk share price is down 0.91% at $5.45. To compare, the wider All Ordinaries Index (ASX: XAO) is up 0.72%.

Let’s take a look at what the company said.

A2 Milk products impacted by Queensland flooding

Chances are, you’ve already heard and seen images of the flooding in NSW — deemed the worst the state has ever seen.

And while many residents are evacuating, A2 Milk’s four farm sources in Lismore are currently all underwater. Thankfully, a spokesman for the dairy company told The Australian that all four of its suppliers “reported they are all safe and stock has been accounted for”.

However, there are serious ramifications for the sites themselves. These include “flooded paddocks, severe pasture damage, and rising floodwaters, which have cut off roads in low-lying areas, restricting access for milk tankers”, the A2 spokesman said.

A2 also warned there could be delays collecting milk from farms. Cows are milked twice a day and if milk cannot be collected or stored, it goes to waste.

It all adds up to a long recovery process, according to the spokesman:

The clean-up process on pastures can take months, sometimes years, before cropping or grazing can resume … our farmers are an important part of the A2 Milk Company, and our farm services team will continue to provide support to our farming families during these challenging times.

A2 Milk share price snapshot

The A2 Milk share price has dropped by 42% in the last 12 months. It fell from a high of $9.68 a year ago to a low of $4.97 last month.

Despite today’s news, Bell Potter still considers A2 Milk as a buy, anticipating an earnings rebound.

The company has a market capitalisation of $4.09 billion, a last reported revenue of $1.2 billion, and a price-to-earnings ratio (P/E) of 218.

The post A2 Milk (ASX:A2M) share price slips amid ‘long-term implications’ of flooding appeared first on The Motley Fool Australia.

More reading

• Why this top broker rates these ASX shares as buys in March
• What’s next for the A2 Milk (ASX:A2M) share price?
• Why the A2 Milk (ASX:A2M) share price can climb 40%: broker
• Top brokers name 3 ASX shares to buy next week
• Leading brokers name 3 ASX shares to sell today

Motley Fool contributor Alice de Bruin 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 A2 Milk. 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 share price of robotics technology company, FBR Ltd (ASX: FBR) is surging on news of its flagship robot.

A new generation of the company’s bricklaying robot, Hadrian X is set to be industrialised and commercialised under a potentially transformational partnership.

At the time of writing, the FBR share price is 3.8 cents, 8.57% higher than its previous close.

Let’s take a closer look at what’s piqued the market’s interest in the robotics small-cap today.

FBR’s stock gains on the future of Hadrian X

The FBR share price is in the green after the company announced a memorandum of understanding with manufacturer and supplier of concrete systems, Liebherr-Mischtechnik.

Liebherr-Mischtechnik is part of the Liebherr International Group – one of the world’s largest construction equipment manufacturers.

Together, the companies will be working on bringing the next rendition of Hadrian X to the global construction market.

They will do so in 2 phases. First, FBR, with the help of Liebherr-Mischtechnik, will develop the next generation of the robot.

It will ensure it’s tough enough to live its life on job sites while still being cost-effective to manufacture.

Less than 2 years later, the companies will embark on phase 2.

That will see Liebherr-Mischtechnik appointed manufacturer of Hadrian X robots. It will also address intellectual property rights and commercialisation activities.  

During the life of the agreement, FBR will be free to manufacture its own Hadrian X prototype robots.

Commenting on the news driving the company’s share price today, FBR managing director and CEO, Mike Pivac said:

This memorandum of understanding demonstrates a clear pathway for FBR to achieve scale with the support of an aligned partner who understands the future construction industry landscape and has the technical capability, reputation, and professionalism to deliver 21st century machinery such as the Hadrian X to the world.

FBR share price snapshot

The FBR share price has had a rough start to this year.

It has fallen 11% year to date. It’s also 22% lower than it was this time last year.

The post Meet ‘Hadrian X’, the bricklaying robot sending the FBR share price 9% higher today appeared first on The Motley Fool Australia.

More reading

• The Strike Energy (ASX:STX) share price isn’t cooking with gas today. Here’s why
• Here are the 3 most heavily traded ASX 200 shares this Thursday
• Aussie coal is in hot demand, and these ASX coal shares are booming
• Heating up: Hot Chili (ASX:HCH) share price leaps 17% on new copper deal
• The Woodside (ASX:WPL) share price has smashed at least 8 52-week highs in the last month. What’s next?

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

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The Strike Energy Ltd (ASX: STX) share price isn’t going anywhere on Thursday after the energy producer requested a trading halt.

As such, the Strike Energy share price is frozen at 30 cents apiece. It’s worth noting that Strike Energy shares have gained 25% in value over the past month.

Why did Strike Energy request a trading halt?

Prior to the market opening, the company asked for the trading halt while it prepares an announcement.

According to the release, the company is planning to make an announcement regarding the South Erregulla 1 well drilling results.

Strike Energy has requested that the trading halt remain in place until Monday 7 March or following the release of the announcement, whichever comes first.

More on South Erregulla 1

Strike Energy holds a 100% interest in EP503. The gas project is located about 230 kilometres north-east of Perth in the North Perth Basin in Western Australia.

The area has significant resource potential in the Kingia Sandstones with a high chance of success. This is due to the strong data control over the Erregulla region, consistent geological outcomes, and recent identification of updip connectivity in the West Erregulla gas field.

Last month, the company drilled through the lower Carynginia Formation and the Irwin River Coal Measures.

Strike Energy bored a measured depth (MD) of approximately 4,859 meters at the site.

Through interpretation, management believes the target to be a short distance into the top of a higher quality sub-section in the Kingia Sandstone.

About the Strike Energy share price

Since this time last year, Strike Energy shares have moved sideways to register a loss of about 3%.

However, in 2022 the company’s shares have skyrocketed by 36% on the back of new strength and price gains in the global energy markets. The S&P/ASX 200 Energy (ASX: XEJ) sector is up 19% year to date.

Strike Energy has a market capitalisation of $607.53 million with approximately 2.02 billion shares outstanding.

The post The Strike Energy (ASX:STX) share price isn’t cooking with gas today. Here’s why appeared first on The Motley Fool Australia.

More reading

• Here’s why the Strike Energy (ASX:STX) share price has struck out this morning
• Here’s why the Strike Energy (ASX:STX) share price is edging lower today
• Here’s why the Strike Energy (ASX:STX) share price is 6% higher today

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 S&P/ASX 200 Index (ASX: XJO) is enjoying a day of relatively solid gains so far this Thursday. At the time of writing, the ASX 200 has risen by a healthy 0.67% at 7,164 points.

But let’s dig deeper and have a squiz at the company shares currently at the top of the ASX 200’s volume charts, according to investing.com.

These 3 ASX 200 shares are topping the volume charts on Thursday

Pilbara Minerals Ltd (ASX: PLS)

Our first ASX 200 share up today is the lithium producer Pilbara Minerals. So far, a hefty 18.32 million Pilbara shares have been exchanged on the markets this Thursday. There has been no major news or announcements out of the company today.

However, the movements of the Pilbara share price itself have been substantial. Pilbara shares are currently up a pleasing 4.63% at $2.94 a share, putting this company’s 5-day gain at 8.5%. It’s likely that it is this strong move upwards that is responsible for the elevated volumes we are seeing.

Telstra Corporation Ltd (ASX: TLS)

Telecom company Telstra is net up this Thursday. So far today, a sizeable 18.98 million of this company’s shares have found a new home on the markets. Again, there’s been no major news or announcements out of Telstra to speak of.

That’s apart from a routine share buyback notice that itself might explain why this ASX 200 share is experiencing such high volumes. The telco has lost 0.76% so far today after the company traded ex-dividend yesterday. Telstra has a relatively low share price compared to its size, so this always helps push the company to the top of the volume tables too.

Whitehaven Coal Ltd (ASX: WHC)

Last but certainly not least in terms of trading volumes today is the ASX 200 energy share Whitehaven. Whitehaven Coal has seen a whopping 26.6 million of its shares swap owners as it currently stands. This is almost certainly the result of the notable share price appreciation we have witnessed over the trading day thus far.

Whitehaven shares are presently up a very impressive 9.92% at $3.94 each after the company hit a new 52-week high earlier this morning. It’s this combination that we can probably thank for Whitehaven’s pole position today.

The post Here are the 3 most heavily traded ASX 200 shares this Thursday appeared first on The Motley Fool Australia.

More reading

• Aussie coal is in hot demand, and these ASX coal shares are booming
• Why IGO, Lake Resources, Talga, and Whitehaven Coal shares are charging higher
• Are ASX green energy shares losing their appeal amid rising oil and gas prices?
• Battle for 5G: here’s why Telstra (ASX:TLS) is ruffling feathers of its rival
• Why is everyone suddenly talking about Whitehaven Coal (ASX:WHC) shares?

Motley Fool contributor Sebastian Bowen owns Telstra Corporation 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 owns and has recommended Telstra Corporation 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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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”

————

The green streak continues for ASX-listed coal shares on Thursday, with many reaching new 52-week highs.

Remarkably, the price of coal has now reached an all-time high of US$400 per tonne, representing an increase of 370% from a year ago. However, it is only in the last week that coal prices have gone vertical with the onset of Russia’s invasion of Ukraine.

The imposition of sanctions on Russia has meant many countries are now competing to find an alternative supplier. It might mean higher prices, but for ASX-listed coal shares, it could mean higher profits.

We’re going to need a whole lotta’ coal

As the Western world ramps up sanctions on Russia to deter it from further attacks on Ukraine, markets are reacting to what it could mean for commodity prices.

However, Russia’s role in the energy resource world is a big one — with it being the third-largest exporter of coal on the planet.

The reliance on Russia’s coal is pronounced across the European Union (EU). For example, Ukraine’s neighbour — Poland — draws 90% of its thermal coal supply from Russia. Yet, this hasn’t stopped Poland from urging the EU to apply sanctions on coal imports.

A blanket ban from the EU on coal from Russia has been noted as unlikely by analysts. Though, if it were to come to fruition, would likely create a burdensome gap in the region’s supply. On the other hand, this would likely be an opportunity for ASX coal shares.

According to an analysis conducted by Wood Mackenzie, Russia makes up more than 60% of thermal coal imports across the EU. In addition, the situation is worsened by the region’s requirement for high-quality coal.

Russia coal customers outside of Europe are already knocking on Australia’s door to help out with an alternative source. Yancoal Australia Ltd (ASX: YAL) CEO David Moult revealed interest from overseas customers, stating:

We are already hearing noises from a couple of our Asian customer bases like Japan and Korea and I think that will do two things, it will increase our market, but it will also underpin the current high price.

How are ASX coal shares performing?

After years of underperformance due to a strong green narrative, ASX-listed coal shares are now some of the best performers on the market.

Taking a look at how some of these companies have performed in the last year:

• Yancoal Australia: up 98%
• Whitehaven Coal Ltd (ASX: WHC): up 145%
• New Hope Corporation Limited (ASX: NHC): up 142%
• Coronado Global Resources Inc (ASX: CRN): up 92%

This signifies an outperformance of the S&P/ASX 200 Index (ASX: XJO) by more than an order of magnitude.

The post Aussie coal is in hot demand, and these ASX coal shares are booming appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Thursday
• Why IGO, Lake Resources, Talga, and Whitehaven Coal shares are charging higher
• Are ASX green energy shares losing their appeal amid rising oil and gas prices?
• Black gold! 3 ASX energy shares pumping new 52-week highs today
• Why is everyone suddenly talking about Whitehaven Coal (ASX:WHC) shares?

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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The Hot Chili Ltd (ASX: HCH) share price is soaring after the miner announced an offtake agreement for its Chilean copper site.

Hot Chili is an ASX-listed copper exploration and development company operating in Chile’s Atacama Region.

At the time of writing, the Hot Chili share price is up 17% at $1.60. To compare, the broader S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.74%.

So, what did the copper explorer announce?

Largest shareholder to buy 60% of copper production

Hot Chili has announced it will enter into an offtake agreement with its largest shareholder, Glencore. The agreement covers 60% of future copper concentrate production from Hot Chili’s Costa Fuego copper-gold project.

As of August last year, Glencore holds a 9.96% stake in Hot Chili.

Costa Fuego is a large-scale copper site that includes the Cortadera copper site and the Productora copper-gold project.

Chili says the site is ideal in a “low altitude, coastal range of Chile, infrastructure rich, low capital intensity” area.

The agreement will be in place for eight years and effective from the start of commercial production.

During that time, Glencore will be able to have Board representation and participate in a technical steering committee, as long as it maintains at least a 7.5% stake in Hot Chili.

What did management say?

Hot Chili managing director Christian Easterday said:

The quality of Costa Fuego continues to be externally validated with Glencore’s 2021 equity investments and the execution of this Offtake Agreement on commercially competitive terms.

We ensured project financing flexibility with 40% of our first eight years of concentrate production remaining uncommitted ahead of initiating project financing discussions in 2022, following completion of the Costa Fuego Pre-Feasibility Study.

Glencore’s expertise and support is welcomed and is an important part of our strategy to successfully transform the Company into a material copper-gold producer.

Hot Chili share price snapshot

The Hot Chili share price has seen a volatile 12 months, trickling down by 32%. In fact, the shares hit a 52-week low of $1.25 just last week.

The company has a market capitalisation of $149.77 million.

The post Heating up: Hot Chili (ASX:HCH) share price leaps 17% on new copper deal appeared first on The Motley Fool Australia.

More reading

• The Woodside (ASX:WPL) share price has smashed at least 8 52-week highs in the last month. What’s next?
• Why Morgans rates this ASX lithium share and this retail share as buys
• Santos (ASX:STO) share price rockets to a new 52-week high. Here’s why
• Top brokers name 3 ASX shares to sell today
• Could this ASX defence share be set to benefit from the Ukraine crisis?

Motley Fool contributor Alice de Bruin 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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While the S&P/ASX 200 Index (ASX: XJO) has had something of a rocky month, the Woodside Petroleum Limited (ASX: WPL) share price has been on fire. Over the past 4 weeks or so, Woodside shares have gained a very impressive 21.2%. That’s including the pleasing 3.45% Woodside shares have added today so far. And that monthly performance included at least 8 instances when Woodside broke its previous 52-week high.

So what’s been sparking this succession of new high watermarks?

Well, it’s likely that rising energy prices are the culprit. Commodity and energy prices have soared over the past month, largely due to the ongoing crisis in Ukraine, as well as inflationary pressures. At the start of 2022, Brent crude oil was going for under US$80 a barrel. Today, it’s well over US$100 a barrel, close to a 10-year high. What’s more, according to Bloomberg, Brent futures contracts are now pricing in Brent crude at over US$115 a barrel. 

That’s bad news for anyone filling up their car or truck at the bowser. But it happens to be very good news for an ASX 200 oil driller like Woodside.

What’s next for the Woodside share price?

So now that we’ve seen such a robust rise in the Woodside share price, many investors might be wondering how much is left in the tank, pardon the pun. Well, let’s see what an ASX broker reckons.

As my Fool colleague Tristan covered earlier this week, broker Morgans is bullish on Woodside shares. It recently rated Woodside as a ‘buy’. But its 12-month share price target was $30.35. Now when this opinion was released, Woodside shares were well below that share price. But, they have subsequently blown through it. Then again, crude oil prices have also since spiked. 

Remember, when Woodside reported its full-year earnings results last month, it revealed a realised price of $60.30 per barrel of oil equivalent compared to a unit production cost of $5.30 per barrel of oil equivalent. US$100 a barrel equates to around $137.15 on current exchange rates. So if these prices keep up, Woodside looks set for a very lucrative year indeed in 2022. 

At the current Woodside share price, this ASX 200 energy share has a market capitalisation of $30.52 billion, with a dividend yield of 5.94%. 

The post The Woodside (ASX:WPL) share price has smashed at least 8 52-week highs in the last month. What’s next? appeared first on The Motley Fool Australia.

More reading

• Are ASX green energy shares losing their appeal amid rising oil and gas prices?
• 5 things to watch on the ASX 200 on Thursday
• The price of oil is soaring to new highs and these ASX shares are cashing in
• Black gold! 3 ASX energy shares pumping new 52-week highs today
• Woodside (ASX:WPL) shares are up 6% today. Here’s the lowdown

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 team at Morgans has been very busy in recent weeks responding to results and updating their forecasts and recommendations.

Two ASX shares that came out of the process favourably are listed below. Here’s why the broker thinks they are buys now:

Allkem Ltd (ASX: AKE)

This lithium giant is held in high regard by analysts at Morgans. So much so, this week the broker retained its add rating and lifted its price target by 24% to $14.83.

Its analysts were pleased with Allkem’s update and believe that lithium prices will remain strong for some time to come. Particularly given how rising oil prices are likely to accelerate the structural shift towards electrification.

Morgans commented: “AKE is a pure play lithium producer with diversified products (spodumene, LiCO and borax) and geographies (WA and Argentina) that is set to expand. The almost completed Naraha plant will allow AKE to grow vertically into the lithium hydroxide market, supported by increased Argentinian brine production. The lithium market has seen strong price increases in CY21 but we don’t see signs of a break to this momentum yet. We expect EV demand to remain strong with geopolitical events and a potentially tight oil market accelerating the shift towards electrification.”

Lovisa Holdings Ltd (ASX: LOV)

This fashion jewellery retailer is another ASX share that Morgans rates highly. The broker currently has an add rating and $24.00 price target on its shares.

Morgans has suggested that the company could prove to be one of the biggest success stories in Australian retail. It sees a huge opportunity for Lovisa to expand internationally and appears confident that it has the management team to execute on this.

It said: LOV may just prove to be one of the biggest success stories in Australian retail. With ambitious (and financially well-incentivised) new leadership in place, we think now is the time LOV steps up to become a global force. Investment will be needed to expand LOV’s network in the US and Europe and to take it into new markets, but the returns could be stellar.”

The post Why Morgans rates this ASX lithium share and this retail share as buys appeared first on The Motley Fool Australia.

More reading

• Top broker tips another 28% upside for the Allkem (ASX: AKE) share price
• How did ASX lithium shares perform in February?
• Lithium bonanza! Broker says the Allkem (ASX:AKE) share price could double
• Top ASX shares to buy in March 2022
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor James Mickleboro owns Orocobre 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 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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