• Goldman Sachs names 2 ASX 200 shares as conviction buys

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    A group of business people face the camera clapping.A group of business people face the camera clapping.

    If you’re looking for some new ASX 200 shares to buy, then you may want to check out the ones listed below.

    These two ASX 200 shares are rated so highly by the team at Goldman Sachs, that its analysts have put them on the broker’s conviction list. They are as follows:

    Lifestyle Communities Limited (ASX: LIC)

    Goldman Sachs is a big fan of this retirement communities company. It believes Lifestyle Communities has a huge runway for growth over the long term.

    The broker currently has a conviction buy rating and $24.25 price target on its shares. Based on the current Lifestyle Communities share price of $18.33, this suggests there is 32% upside for its shares over the next 12 months.

    Goldman commented: “In our view the market is not capturing the long-term opportunity for this business to continue to grow its long-term annuity-style earnings with limited incremental capital. We believe the current share price is not pricing in the higher new home settlement potential of the group. 500-600 settlements (~2-3 communities) per year is very achievable with the company’s current resources land pipeline.”

    News Corp (ASX: NWS)

    Another ASX 200 share that makes Goldman Sachs’ conviction list is News Corp. Its analysts are confident that the media giant’s solid growth can continue over the next 18 months.

    In light of this, the broker has put a conviction buy rating and $42.20 price target on its shares. Based on the current News Corp share price of $32.51, this implies potential upside of 30% for investors over the next 12 months.

    Goldman commented: “With the business continuing to invest and grow its audience, we expect continued strong revenue growth in 2H22/FY23 (+8%/+10%) and increasingly grow earnings. Although some incremental News Media investment was flagged (particularly UK) and REA faces a tough 4Q listings comp, we still expect continued earnings momentum into the 2H (GSe +30% EBITDA growth).”

    The post Goldman Sachs names 2 ASX 200 shares as conviction buys appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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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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  • ‘Ideal partner’: Bendigo Bank (ASX:BEN) share price lifts amid new fintech deal

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    The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price closed higher today, ending the day’s session up 1.91% at $9.05.

    For perspective, Bank of Queensland Limited (ASX: BOQ) shares also finished in the green, up 1.38%, while Australia and New Zealand Banking Group Ltd (ASX: ANZ) climbed 1.47%. Westpac Banking Corp (ASX: WBC) rose 1.35%, National Australia Bank Ltd (ASX: NAB) elevated 0.58% and Commonwealth Bank of Australia (ASX: CBA) edged 0.32% higher.

    Let’s take a look at what’s happening at the bank.

    New finance invoice agreement

    Bendigo and Adelaide Bank has signed an agreement with Melbourne-based fintech Timelio. Timelio has acquired a $50 million small business loan book from the bank, the Australian Financial Review reported today.

    Existing customers of the bank will be shifted onto Timelio’s platform for invoice finance needs from March 1. However, Bendigo and Adelaide Bank will continue to provide all other banking services to the customers, a media release from Temelio stated.

    Bendigo and Adelaide bank head of specialist solutions Brian Buckle said:

    Timelio’s strong technical solution, expert industry knowledge and customer-focused culture make it an ideal partner for Bendigo and Adelaide Bank.

    Our agreement is part of a strategic move that aligns with our commitment to simplify our business, reduces complexity and demonstrates our shared commitment with Timelio to ensure that our valued customers are well supported to achieve their financial goals.

    Timelio founder and CEO Charlotte Petris added:

    The agreement will double the size of our business to $100 million in funding and enables both Timelio and Bendigo and Adelaide Bank to leverage our respective strengths to enhance outcomes for customers.

    In early February, Bendigo and Adelaide Bank announced its business bank and rural bank divisions would combine. A new role will be created in its executive team.

    The bank will release its half-year financial results on Monday 14 February.

    Bendigo Bank share price snapshot

    The Bendigo Bank share price has slumped around 8% in the past 12 months, dropping 0.5% year to date. In the past month, the company’s shares have fallen 1.3% but they have climbed more than 5% in the past week.

    In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned 4.6% in the past year.

    Bendigo Bank has a market capitalisation of roughly $5 billion based on the current share price.

    The post ‘Ideal partner’: Bendigo Bank (ASX:BEN) share price lifts amid new fintech deal appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bendigo and Adelaide Bank right now?

    Before you consider Bendigo and Adelaide Bank, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bendigo and Adelaide Bank wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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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 owns and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Why are Sydney Airport (ASX:SYD) shares such hot property today?

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    a group of people walk rapidly in a line with airport trolleys and carting baggage as they appear to excitedly set off at the airport on a trip.a group of people walk rapidly in a line with airport trolleys and carting baggage as they appear to excitedly set off at the airport on a trip.

    Why are Sydney Airport (ASX: SYD) shares such hot property today?

    Well, you wouldn’t think it from a glance at the Sydney Airport share price. The company finished trading at $8.71 a share, up just 0.11%. It hasn’t swung too dramatically either. It opened at $8.71 a share this morning and went as high as $8.72 a share, and as low as $8.70 over the course of the trading day. Nothing one would write home about, you would think.

    But looking at the S&P/ASX 200 Index (ASX: XJO) trading volume data so far today, we see something quite remarkable. As we covered earlier this afternoon, Sydney Airport is currently the most traded ASX 200 share on the market. And by a mile too.

    Today, a whopping 69.75 million Sydney Airport shares have been traded on the markets. That’s more than triple the next company BHP Group Ltd (ASX: BHP) with just over 20 million shares traded.

    As such, we can effectively call Sydney Airpot shares ‘hot property’ today.

    So why might this company be experiencing such an elevated level of trading volume? Especially when its share price is so lethargic?

    Why are Sydney Airport shares such hot property today?

    Well, the answer might be a simple one. Tomorrow is officially Sydney Airport’s last day on the ASX boards. And that means it is the last day that most ASX investors can own this company’s shares. At the end of tomorrow’s trading day, Sydney Airport will be delisted from the ASX 200 Index and the ASX boards.

    This follows the long process of a consortium known as the Sydney Aviation Alliance (SAA) taking over the Airport in its entirety. The SAA is made up of IFM Investors and a few other super funds, including AustralianSuper and QSuper.

    Its bid to acquire Sydney Airport at a price of $8.75 a share has now received the green light from regulatory authorities and Sydney Airport shareholders (as of last week). As such, the deal is going full-steam ahead and will effectively conclude at the end of tomorrow’s trading day.

    Sydney Airport has been listed on the ASX for 20 years, so this marks the ‘end of an era’ as it were. So the red-hot trading volumes we see this Tuesday are a likely consequence of investors making their final preparations for the shares to be taken off-market tomorrow.

    At the current Sydney Airport share price, this company has a market capitalisation of $23.48 billion.

    The post Why are Sydney Airport (ASX:SYD) shares such hot property today? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Sydney Airport right now?

    Before you consider Sydney Airport, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Sydney Airport wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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    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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  • Is Wesfarmers (ASX:WES) share price in the buy zone after recent weakness?

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    A female executive smiles as she carries out business on her mobile phone.A female executive smiles as she carries out business on her mobile phone.

    The Wesfarmers Ltd (ASX: WES) share price was out of form again on Tuesday.

    In late trade, the conglomerate’s shares are down 1% to $52.55.

    This means the Wesfarmers share price is now down 11% since the start of the year and 22% from its 52-week high.

    Is the Wesfarmers share price in the buy zone?

    While the weakness in the Wesfarmers share price is disappointing for shareholders, it could be a buying opportunity for non-shareholders.

    That’s the view of the team at Morgans, which recently upgraded the company’s shares to an add rating with an improved price target of $60.80.

    Based on the current Wesfarmers share price, this implies potential upside of almost 16% over the next 12 months.

    In addition, the broker is forecasting a fully franked $1.51 per share dividend in FY 2022. This represents a 2.9% yield, which lifts the total potential return to over 18.5%.

    What is the broker saying?

    Morgans sees a lot of value in the Wesfarmers share price following recent weakness.

    At the time of its upgrade, the broker commented: “We continue to see WES as a high-quality company with its share price down 6% over the past month and 15% versus its peak of A$64.98 on 20 August 2021. While not cheap based on FY22 forecasts (30.3x PE and 2.7% yield), the stock looks more attractive on FY23 forecasts (26.7x PE and 3.1% yield). We expect the market will turn its focus to FY23 estimates over the coming months.”

    “We see WES as a high-quality company with a healthy balance sheet and well-regarded management team. Despite short term challenges related to COVID, we think the recent pullback in the share price provides a good entry point for longer-term investors,” it added.

    The post Is Wesfarmers (ASX:WES) share price in the buy zone after recent weakness? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Wesfarmers right now?

    Before you consider Wesfarmers, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Wesfarmers wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    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 owns and has recommended Wesfarmers 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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  • Why is the South32 (ASX:S32) share price surging to all-time highs today?

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    a business person in a suit and tie directs a pointed finger upwards with a graphic of a rising bar graph and an arrow heading upwards in line with the person's finger.a business person in a suit and tie directs a pointed finger upwards with a graphic of a rising bar graph and an arrow heading upwards in line with the person's finger.

    The South32 Ltd (ASX: S32) share price rose to $4.28 earlier today, meaning the resources company has reached an all-time high.

    If you don’t know, South32 works with a number of different commodities including alumina, aluminium, bauxite, metallurgical coal, lead, nickel, manganese, silver and zinc. It will soon have exposure to copper.

    Every commodity behaves differently, however some of them have seen strong price action with increased demand and inflation over the past couple of years.

    South32 recently said that it experienced record aluminium pricing the half-year to December 2021, while managing the impact of third-party port and freight congestion for its South African smelters.

    Strong production

    There are two main components to a resource company’s revenue – the price of the commodity and how much it produces. Therefore, production can have an important impact on profit and the South32 share price.

    In the miner’s quarterly report to December 2021, it revealed increased production for several segments.

    There was a 4% increase in quarterly alumina production, with record production at Brazil Alumina as it returned to normalised rates after the prior quarter’s bauxite unloader outage.

    It revised the Cannington mine (one of the world’s largest producers of silver and lead) production guidance for FY22 to be higher by 5% with the operation on-track to transition to 100% truck haulage in the quarter for the three months to June 2022.

    There was increased payable nickel production at Cerro Matoso by 26% with plant availability benefiting from the completion of the furnace refurbishment in FY21.

    However, Australian manganese FY22 production guidance was lower by 9% due to COVID-19 and weather impacts, preventing the re-build of stockpiles ahead of the wet season.

    Expansion plans

    South32 has added copper exposure to the portfolio, announcing the acquisition of a 45% interest in the Sierra Gorda joint venture, which is expected to complete in the March 2022 quarter.

    It has also finalised the zinc-lead-silver Taylor Deposit’s pre-feasibility study following the end of the period, confirming its potential to be the first development option at its Hermosa project.

    Is the South32 share price a buy?

    South32 is a highly rated ASX right now, with buy ratings from many of Australia’s brokers.

    One of the most positive is Credit Suisse, with a price target of $5.30. That implies a rise of another 25% over the next year, if the broker is right.

    On Credit Suisse’s numbers, the South32 share price is valued at 8x FY22’s estimated earnings with a projected grossed-up dividend yield of 7.25%.

    The post Why is the South32 (ASX:S32) share price surging to all-time highs today? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in South32 right now?

    Before you consider South32, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and South32 wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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  • Forget toilet paper, now we’re ‘panic buying’ lithium! Here’s how ASX lithium shares are tracking

    a young boy crouches behind a wall made of toilet rolls and uses two rolls as binoculars to hold up to his eyes as if guarding his stockpile.a young boy crouches behind a wall made of toilet rolls and uses two rolls as binoculars to hold up to his eyes as if guarding his stockpile.a young boy crouches behind a wall made of toilet rolls and uses two rolls as binoculars to hold up to his eyes as if guarding his stockpile.

    ASX lithium shares are in the spotlight as lithium looks to have upended toilet paper in a global ‘panic buying’ spree.

    Demand for the metal, a crucial element in most electric vehicle (EV) batteries, is surging alongside the rapid growth in EVs.

    With new supplies failing to meet the ramp-up in demand, lithium prices are rocketing as global battery manufacturers compete to secure enough inventory, piquing investor interest in ASX lithium shares.

    Why isn’t more supply coming online?

    As news.com reports:

    Prices for lithium salts, lithium carbonate, and lithium hydroxide rose by between 400-500 per cent last year, and show no signs of slowing down as supplies struggle to keep up with demand.

    Indeed, in the mid-term, Saxo Capital Markets Australian market strategist Jessica Amir expects lithium prices will increase by another 80% this year.

    Those figures will come as welcome news to leading ASX lithium shares like Pilbara Minerals Ltd (ASX: PLS), Mineral Resources Limited (ASX: MIN), and Allkem Ltd (ASX: AKE).

    But there are tailwinds at work here as well.

    Restrictions put in place to mitigate the spread of COVID-19, including a largely closed Western Australia border, have brought about significant labour shortages for the mining industry.

    With those concerns in mind, as the Motley Fool reported last week, Pilbara’s management cautioned “that it is reviewing its FY 2022 guidance for production of 400,000 to 450,000 dmt and shipments of 380,000 to 440,000 dmt.”

    Guidance may well be revised downwards.

    How have these ASX lithium shares been performing?

    Amid the rocketing lithium prices, Allkem’s share price has soared 88% over the past 12 months.

    Competing ASX lithium share Mineral Resources, meanwhile, is up 57% since this time last year.

    And the Pilbara share price has rocketing an eye-popping 227%.

    For comparison the S&P/ASX 200 Index (ASX: XJO) has gained 4% over that same time.

    The post Forget toilet paper, now we’re ‘panic buying’ lithium! Here’s how ASX lithium shares are tracking appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Pilbara right now?

    Before you consider Pilbara, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    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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  • Why Appen, Nanosonics, Nearmap, and Temple & Webster are sinking

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    A bright graphic showing neon green and red arrows in a downwards direction with a world map behind them in neon blueA bright graphic showing neon green and red arrows in a downwards direction with a world map behind them in neon blue

    The S&P/ASX 200 Index (ASX: XJO) is having a great day and is on course to record a strong gain. In late trade, the benchmark index is up 1% to 7,183.4 points.

    Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:

    Appen Ltd (ASX: APX)

    The Appen share price is down a further 7% to $8.27. Investors have been selling off this artificial intelligence data services company’s shares this week amid concerns that demand could be falling for its offering. This follows Meta’s weak quarterly result and a recent announcement from the Facebook owner regarding advances it has made with data labelling algorithms.

    Nanosonics Ltd (ASX: NAN)

    The Nanosonics share price is down over 5% to $4.77. This follows news that the infection prevention specialist is revising its deal with GE Healthcare in North America from today before it terminates in June. The new sales model will see Nanosonics become responsible for all inventory, shipping, installations, and training of new customers. The changes are expected to impact its sales in the second half and lead to an increase in costs as its builds up its direct sales capabilities.

    Nearmap Ltd (ASX: NEA)

    The Nearmap share price is down 6.5% to $1.30. This appears to have been driven by a broker note out of Macquarie this morning. Its analysts have downgraded the aerial imagery technology and location data company’s shares to an underperform rating and slashed the price target on them to $1.30. It believes Nearmap will have to increase its costs to compete in the North American market.

    Temple & Webster Group Ltd (ASX: TPW)

    The Temple & Webster share price has continued its slump and is down a further 2% to $8.01. Investors have been selling this online furniture retailer’s shares ahead of its half year update tomorrow. They appear concerned that Temple & Webster could release a disappointing result. Particularly after Goldman Sachs tipped the company as one of four that could negatively surprise this month.

    The post Why Appen, Nanosonics, Nearmap, and Temple & Webster are sinking appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    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. owns and has recommended Appen Ltd, Nanosonics Limited, Nearmap Ltd., and Temple & Webster Group Ltd. The Motley Fool Australia owns and has recommended Appen Ltd, Nanosonics Limited, and Nearmap Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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  • Here are the 3 most heavily traded ASX 200 shares on Tuesday

    Man looks shocked as he works on laptop on top a skyscraper with stockmarket figures in graphic behind him.Man looks shocked as he works on laptop on top a skyscraper with stockmarket figures in graphic behind him.Man looks shocked as he works on laptop on top a skyscraper with stockmarket figures in graphic behind him.

    The S&P/ASX 200 Index (ASX: XJO) has pushed higher this Tuesday in what might be a much-needed break for investors. At the time of writing, the ASX 200 has risen a healthy 1.09% and is currently sitting at 7,188 points.

    But let’s dive a little deeper and have a look at the shares that are topping the ASX 200’s trading volume charts right now, according to investing.com.

    The 3 most traded ASX 200 shares by volume so far today

    Telstra Corporation Ltd (ASX: TLS)

    ASX 200 telco Telstra is the first cab off the rank so far today. At the time of writing, a hefty 12.33 million Telstra shares have swapped hands this Tuesday. There has been no price-sensitive news or announcements out of Telstra today.

    As such, we can probably put this volume down to the movements of the Telstra share price. This telco has enjoyed a healthy rise upwards in line with the broader market. Telstra shares are currently up a robust 1.49% at $4.09 each. This is probably why we see the company feature on this list today.

    BHP Group Ltd (ASX: BHP)

    BHP is next up this Tuesday. This ASX 200 mining giant has had a sizeable 18.21 million of its shares change owners at this point of the trading day. Again, there is no official news or announcements out of BHP so far. But the BHP share price has exploded higher today.

    It’s currently up a very pleasing 3.6% at $49.10 a share, its highest share price since August last year. This, together with the ongoing machinations of BHP’s recently-completed unification, is probably what is behind this elevated volume we see.

    Sydney Airport (ASX: SYD)

    Our final and most traded ASX 200 share of the day thus far goes to Sydney Airport. This no-introduction-needed company has seen a whopping 15.31 million of its shares bought and sold this Tuesday. That’s despite the fact not too much is happening with the Sydney Airport share price thus far today.

    The company is currently up 1 cent at $8.71 a share. So this volume is a likely byproduct of the upcoming delisting of this company from the ASX boards. Its last day of trading will be tomorrow before the Sydney Aviation Alliance takes full ownership. That’s probably why so many Sydney Airport shares are taking off today.

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

    Should you invest $1,000 in BHP right now?

    Before you consider BHP, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    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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  • Why this top broker is ‘cautious’ on the outlook for CSL (ASX:CSL) shares

    a woman rugged up in a woolen hat and gloves with a thermometer in her mouth props her hand under her chin as she looks dejectedly at the camera,, as though she is miserable from feeling sick.a woman rugged up in a woolen hat and gloves with a thermometer in her mouth props her hand under her chin as she looks dejectedly at the camera,, as though she is miserable from feeling sick.a woman rugged up in a woolen hat and gloves with a thermometer in her mouth props her hand under her chin as she looks dejectedly at the camera,, as though she is miserable from feeling sick.

    Top broker Ord Minnett has dropped its expectations for CSL Limited (ASX: CSL) shares by 9.5% today, reportedly citing concerns about its plasma and flu divisions.

    The biotechnology company’s stock has tumbled 12% since the start of 2022.

    At the time of writing, the CSL share price is $257.66, 1.2% higher than its previous close.

    For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 1.14%.

    Let’s take a closer look at what’s undermined Ord Minnett’s confidence in CSL’s stock.

    Broker lowers expectations of CSL stock

    The top broker has dropped its price target for CSL shares from $315 to $285, maintained a “cautious view” of the company’s stock, and kept its ‘hold’ rating, according to reporting by The Australian.

    The lowered expectations are reportedly a reflection of an anticipated gross margin drop from the company’s plasma division.

    The broker is also said to be expecting CSL’s Seqirus – creator of the company’s flu vaccines – to contribute less.

    In financial year 2021, Seqirus’ revenue increased 30% on a constant currency basis, driven by a record number of flu jabs administered.

    The Australian quoted Ord Minnett analysts as telling clients:

    We have reduced our [financial year 2023 (FY23)] [earnings per share (EPS)] forecast by 4%.

    We have adjusted our Vifor forecasts to reflect the expected treatment of minorities and amortisation.

    After these revisions, we continue to forecast a strong uplift in earnings in FY23 as plasma volumes recover and the Vifor business starts to contribute.

    In December, CSL announced its bid to acquire Swiss company Vifor Pharma for US$11.7 billion ($16.4 billion at today’s exchange rate).

    However, not all brokers’ expectations of CSL are falling.  

    As The Motley Fool Australia’s James Mickleboro recently reported, Macquarie analysts have slapped CSL shares with a $325 price target.

    CSL share price snapshot

    The CSL share price has limped into 2022, down almost 12% year to date. However, its medium-term performance isn’t much better.

    It has fallen 7% since this time last year. Though long term investors rejoice — it’s has gained 124% since February 2017.

    The post Why this top broker is ‘cautious’ on the outlook for CSL (ASX:CSL) shares appeared first on The Motley Fool Australia.

    Should you invest $1,000 in CSL right now?

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    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CSL wasn’t one of them.

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    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 CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Leading brokers name 3 ASX shares to sell today

    Business man marking Sell on board and underlining it

    Business man marking Sell on board and underlining itBusiness man marking Sell on board and underlining it

    Yesterday we looked at three ASX shares brokers have given buy ratings to this week.

    Unfortunately, not all shares are in favour with brokers right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

    Commonwealth Bank of Australia (ASX: CBA)

    According to a note out of Credit Suisse, its analysts have retained their underperform rating and $92.50 price target on this banking giant’s shares ahead of its half year results. The broker believes that the market may be expecting too much from the bank’s net interest margins. In light of this, it is expecting CBA’s earnings to come in below consensus expectations. The CBA share price is trading at $94.34 this afternoon.

    Magellan Financial Group Ltd (ASX: MFG)

    A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $17.20 price target on this fund manager’s shares. This follows news that its Chief Investment Officer, Hamish Douglass, is taking indefinite medical leave. Morgan Stanley appears to have concerns about the impact this could have on its funds under management, particularly given how its investment performance remains soft. The Magellan share price is fetching $17.42 on Tuesday.

    Nearmap Ltd (ASX: NEA)

    Analysts at Macquarie have downgraded this aerial imagery technology and location data company’s shares to an underperform rating and slashed the price target on them to $1.30. While the broker believes Nearmap is operating in a growing market, it sees competition increasing in the ANZ region and believes higher costs will be required in the North America region. In light of this and litigation risks, it doesn’t see enough value in its shares at the current level. The Nearmap share price has fallen heavily today and is now trading in line with this price target at $1.30.

    The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

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    More reading

    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. owns and has recommended Nearmap Ltd. The Motley Fool Australia owns and has recommended Nearmap 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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