Bitcoin (CRYPTO: BTC) investors have been on another volatile ride in the year almost gone.

And we’re not exaggerating.

Over the past 12 months Bitcoin traded as high as its 10 November all-time high of US$68,789 (AU$96,882) and as low as US$19,080.

That’s some spread!

Crypto investors with cast iron stomachs who held onto their Bitcoin will be sitting on gains of some 61% since 1 January.

Those who bought at the 10 November record high will be nursing some significant losses yet.

That’s a look in the rear-view mirror for you.

But what can crypto investors expect from Bitcoin in the year ahead?

What’s next for Bitcoin in 2022?

That, of course, is a loaded question.

With myriad variables potentially pulling Bitcoin higher or lower next year, the crypto is likely to remain volatile. Though according to Josh Gilbert, crypto analyst at multi-asset investment platform eToro, that volatility could begin to smooth in 2022.

Asked on his outlook for the token in the year ahead, Gilbert told The Motley Fool:

We continued to see further adoption from Bitcoin in 2021, and we can anticipate that this will extend into 2022 as more tech companies such as Meta (WhatsApp) and Twitter integrate the cryptoasset into their functionality.

However, this is just the starting point for adoption, and it still has a long way to go.

In 2021, Bitcoin undertook its lightning upgrade which could really help the asset flourish in 2022, with now greater efficiency and privacy. I also believe that BTC’s volatility will start to decrease in 2022, as institutional adoption grows and the market matures.

Money managers will find it difficult to not allocate cryptoassets such as Bitcoin to their portfolios in 2022, given its significant performance in 2020 and 2021.

We already saw a lot of that institutional adoption happening Down Under this year. Including Commonwealth Bank of Australia (ASX: CBA), which became the first Australian bank to offer crypto services to its customers, in an announcement made on 3 November.

Bitcoin investors will be keenly watching that space to see how things progress in 2022.

The post After hitting new record highs in 2021, what’s next for Bitcoin (CRYPTO:BTC) in 2022? appeared first on The Motley Fool Australia.

More reading

• Bitcoin (CRYPTO:BTC) and Ethereum fall hard again. What’s going on?
• After a wild 2021, what can crypto investors expect in 2022?
• What is the better buy: Bitcoin vs. Ethereum
• Why cryptocurrencies like Bitcoin, Polygon, and Terra fell today
• Bitcoin, Ethereum, and Cardano continue to recover from late-week selloffs

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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 Corporate Travel Management Ltd (ASX: CTD) share price isn’t going anywhere on Wednesday.

This morning the corporate travel specialist requested a trading halt.

Why is the Corporate Travel Management share price halted?

The Corporate Travel Management share price was placed in a trading halt this morning so the company could undertake a fully underwritten equity raising.

The company is seeking to raise $100 million via a $75 million institutional placement and a $25 million share purchase plan. The $75 million placement will be undertaken at $21.00 per new share, which represents a 5.8% discount to the Corporate Travel Management share price at the close of play on Tuesday.

Whereas shares under the share purchase plan will be issued at the lower of $21.00 per new share or the 5-day volume weighted average price on the closing date.

Why is the company raising funds?

Corporate Travel Management is raising funds after entering into a binding agreement to acquire the corporate and entertainment travel businesses in Australia and New Zealand of Helloworld Travel Limited (ASX: HLO).

Management believes the acquisition will be highly complementary to its existing Australian and New Zealand corporate travel management operations. Furthermore, it adds industry verticals which are expected to perform strongly as the recovery from COVID-19 continues.

The two parties have agreed a deal that implies an enterprise value of $175 million, which represents a transaction multiple of 8x normalised pro forma FY 2019 EBITDA. Not all of this will be paid in cash. The release explains that Helloworld will receive transaction consideration of $100 million in cash and $75 million in Corporate Travel Management shares. The latter will be escrowed for 12 months from the date of completion.

Based on the above, management expects the deal to be approximately 3% earnings per share accretive excluding synergies and 7% including full run-rate synergies.

Trading update

Corporate Travel Management took this opportunity to provide a short update on current trading.

Pleasingly, as of 30 November, the company has maintained positive monthly underlying EBITDA during the second quarter of FY 2022. This was despite being impacted by the onset of the Omicron COVID-19 variant.

Furthermore, the company has maintained a strong balance sheet, with operational cash of $102 million and no debt drawn at 30 November.

The post Why is the Corporate Travel Management (ASX:CTD) share price halted? appeared first on The Motley Fool Australia.

More reading

• Why has the Webjet (ASX:WEB) share price had such a lousy start to December?
• 3 ASX travel shares to buy while Omicron scares everyone
• Why have investors been saying goodbye to Helloworld (ASX:HLO) shares lately?
• Why is the Helloworld (ASX:HLO) share price tumbling 6% on Friday?
• Here’s why the Webjet (ASX:WEB) share price is getting hammered on Friday

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

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

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

What happened

Around 5:30 a.m. ET today, Elon Musk woke up and chose peace. This time, rather than spouting his concerns about the environmental impact of crypto mining, or otherwise disparaging crypto, he chose to once again provide Dogecoin (CRYPTO: DOGE) speculators with something to cheer.

Elon Musk tweeted, “Tesla will make some merch buyable with Doge & see how it goes.” This single tweet resulted in Dogecoin jumping from $0.1593 to $0.1949 within a few minutes. As of 8:20 a.m. ET, DOGE trades at $0.2021, having peaked at $0.2129 earlier this morning. This amounts to a move of 24.3% over the past 24 hours.

So what

The timing of this move is certainly interesting for Musk. A day after being named the Person of the Year by Time magazine, perhaps Musk is feeling invincible. Or just happy. Or both.

Whatever the case, it’s also clear that Musk is currently in the midst of a number of battles right now. Crypto may be the one frontier Musk can win at — simply by issuing a tweet. This move to offer Doge merchandise is likely less about the revenue opportunity and more about changing the topic of discussion when it comes to Elon Musk.

Musk continues to battle Raptor engine production issues at SpaceX. Tesla has been embroiled in what has turned into multiple sexual harassment lawsuits. And Elon Musk has proven to be his own worst enemy, picking fights with the Securities and Exchange Commission and politicians like Bernie Sanders frequently in recent months. 

Now, all anyone is talking about when it comes to Musk is his love for dog-inspired meme tokens.

Now what

For investors in Dogecoin, perhaps an inundated Elon Musk is the best thing for this token. Should Musk focus more of his tweeting energy on this meme token, investors stand to benefit.

There’s seemingly no real value to this tweet from a purely fundamental perspective. Dogecoin stands to benefit in no other way from Elon Musk’s merchandise campaign, other than to raise awareness for this token. That said, as the original meme token, Dogecoin’s notoriety has proven to be the primary driver of its success. Accordingly, speculators now have something to cheer, once again. 

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

The post Dogecoin jumps more than 20% in minutes on renewed Elon Musk backing appeared first on The Motley Fool Australia.

More reading

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• An electric car ETF is coming to the ASX: Here’s what we know
• What this EV forecast could mean for top ASX 200 resource shares
• Is the RBA about to join the digital currency revolution?

Chris MacDonald 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.

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

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The Piedmont Lithium Inc (ASX: PLL) share price is falling on Wednesday morning.

At the time of writing, the lithium developer’s shares are down 2% to 77.5 cents.

Why is the Piedmont Lithium share price falling?

The Piedmont Lithium share price has come under pressure today following the release of its bankable feasibility study (BFS) for the Carolina Lithium Project in North Carolina, United States.

According to the release, the study confirms that Carolina Lithium could be one of the world’s largest and lowest-cost producers of lithium hydroxide in a highly favourable location to supply the rapidly growing electric vehicle supply chain in the United States. It also highlights that the project has a sustainability footprint that is superior to incumbent producers.

The BFS indicates that the after tax net present value of the project is US$2 billion and expected to generate steady-state EBITDA of US$459 million over the first 10 years of operations. The latter is expected to be achieved with steady-state lithium hydroxide cash costs of US$3,657 per tonne and an all-in sustaining cost (AISC) of US$4,377 per tonne for the first 10 years.

Judging by the Piedmont Lithium share price performance, it appears as though investors were hoping for even stronger numbers.

Though, it is worth noting that management sees opportunities for further economic upside at higher lithium prices. For example, based on current spot prices, the project has a net present value of US$4.55 billion.

What’s next?

Piedmont Lithium is now looking ahead to making a final investment decision on the project in 2022.

President and Chief Executive Officer, Keith D. Phillips, commented: “We will soon commence detailed engineering for the Project with a view to a final investment decision in 2022. We are actively engaged in project financing discussions, including possible debt finance via the U.S. Department of Energy’s Advanced Technology Vehicle Manufacturing loan program, and potential strategic equity investments via the partnering process being coordinated by our financial advisors.”

“An important priority for 2022 will be the evaluation of expansion opportunities incorporating the spodumene concentrate assets we control in Quebec and in Ghana. Our ambition is to build America’s largest lithium hydroxide business, and the spodumene resource base we’ve assembled during 2021 should underpin substantial growth,” he concluded.

The post Piedmont Lithium (ASX:PLL) share price drops following Carolina Lithium Project BFS results appeared first on The Motley Fool Australia.

More reading

• Why is the Piedmont Lithium (ASX:PLL) share price struggling of late?

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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The Evolution Mining Ltd (ASX: EVN) share price is falling on Wednesday.

In morning trade, the gold miner’s shares are down 4% to $3.86.

Why is the Evolution share price falling?

Investors have been selling down the Evolution share price today after a pullback in the gold price offset the release of a positive announcement this morning.

The price of the precious metal fell overnight amid concerns that the US Federal Reserve could increase interest rates sooner than expected.

It isn’t just the Evolution share price falling. At the time of writing, the S&P/ASX All Ords Gold index is down 2.2%.

What did Evolution announce?

Failing to boost the Evolution share price today was news that it has successfully completed the sale of the Mt Carlton gold mine to Navarre Minerals Limited (ASX: NML).

As per the agreement, Evolution has received the upfront consideration of A$40 million, comprising A$26.8 million in cash and 176,565,396 Navarre shares. The latter equates to a 12.9% shareholding in Navarre.

In addition, the agreement includes up to A$25 million contingent consideration payable on cumulative gold production milestones from Crush Creek. This comprises A$5 million payable upon achievement of 50,000 ounces, A$5 million payable upon achievement of 100,000 ounces, and A$15 million payable upon achievement of 175,000 ounces.

Finally, Evolution will receive up to an additional A$25 million in the form of a 5% gold price linked royalty when the average spot gold price is greater than A$2,250/oz in a given quarter. The royalty is payable on production from both Mt Carlton and Crush Creek from 1 July 2023 for up to 15 years.

Why is Evolution selling Mt Carlton?

Evolution’s Executive Chairman, Jake Klein, has previously explained the rationale for the asset sale.

He said: “Mt Carlton was Evolution’s first development project and has generated excellent returns for shareholders since it was commissioned in 2013. With the Company focussed on delivery of growth projects at the cornerstone assets in the portfolio, we believe now is the time to hand Mt Carlton over to an emerging gold producer who can focus on extending the operation’s mine life.”

“The exposure we have retained will enable Evolution shareholders to benefit from the future success of the operation. Evolution would like to thank our employees, contractors, suppliers, the traditional custodians of the land the Birriah People, and the local community for their contribution to Mt Carlton’s success. We are confident that Navarre will be a great partner for those stakeholders in the future,” he added.

The Evolution share price is down 27% in 2021.

The post Evolution (ASX:EVN) share price falls despite completing Mt Carlton sale appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
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• Macquarie (ASX:MQG) upgraded these ASX gold shares to ‘buy’ for 2022
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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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The Wesfarmers Ltd (ASX: WES) share price is on watch on Wednesday after the company reiterated its intent to win Australian Pharmaceutical Industries Ltd (ASX: API), despite facing major competition.

Woolworths Group Ltd (ASX: WOW) recently entered the battle to take over the Priceline owner, outbidding Wesfarmers by more than $100 million.

Today, Wesfarmers reminded the market of its 19.3% holding in API and vowed to vote its stake against the supermarket giant’s takeover.

As of yesterday’s close, the Wesfarmers share price is $58.41.

Let’s take a closer look at today’s announcement from the company.

All eyes on the Wesfarmers share price

The Wesfarmers share price is in the spotlight this morning after the company announced it won’t back down from its attempt to acquire API despite Woolworths’ $872 million bid.

Wesfarmers states it believes its own $763 million bid is a superior proposal and confirmed it will be voting its shareholding, and “any other API shares that it may acquire” against the competitor.

The company also said its takeover will “significantly benefit community pharmacists and Priceline franchisees.”

That might be a jab at Woolworths after the Pharmacy Guild of Australia questioned the company’s intentions. In a statement, a Guild spokesperson asked:

Why is a company with interests in the alcohol, tobacco, gambling, and nightclub industries wanting to move into healthcare?

In today’s release, Wesfarmers managing director Rob Scott said:

[W]e’re confident our proposal supports community pharmacists and their businesses, for the long-term. Pharmacists face various competitive pressures and Wesfarmers is uniquely placed to support the growth of community pharmacies including Priceline franchisees.

Additionally, the company addressed potential data privacy issues.

Key stakeholders apparently voiced concerns that data from Priceline’s Sister Club might be shared with Wesfarmers’ 50%-owned Flybuys loyalty program. Flybuys is co-owned by Coles Group Ltd (ASX: COL), which was demerged from Wesfarmers in 2018.

The worries were due to an overlap of non-prescription products sold in both supermarkets and pharmacies.

However, Wesfarmers assures it will keep API data entirely separate from all supermarket-based loyalty programs. It noted:

This assurance provides API and its community pharmacists, including current and future Priceline franchisees, with comfort that their customer data will be protected from supermarket competitors.

Right now, the Wesfarmers share price is 13.4% higher than it was at the start of 2021. Though, it’s only gained 0.7% since it posed its takeover offer to API in July.

The post Goliath vs Goliath: All eyes on Wesfarmers (ASX:WES) share price as conglomerate vows to vote against Woolies appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Cardno, Mesoblast, and Woolworths shares are falling
• Why is the Wesfarmers (ASX:WES) share price having a day to forget?
• ASX 200 (ASX:XJO) midday update: Afterpay takeover vote, Woolworths crashes
• Why is the Coles (ASX:COL) share price sinking 4% today?
• ASX shares that could be impacted by AdBlue shortage

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 owns and has recommended COLESGROUP DEF SET and 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

The metaverse is gaining popularity among consumers and investors after the company formerly known as Facebook announced it was making a significant investment in resources to become a metaverse leader. Now known as Meta Platforms (NASDAQ: FB), the company that started all the commotion is one of my favorite metaverse stocks to buy in 2022.  

My other favorite is one of the pioneers of the metaverse, Roblox (NYSE: RBLX). The company is a favorite with kids 16 and younger although it’s increasingly being adopted by an older demographic as well. What follows is a more detailed look into what makes these two my metaverse stock picks for 2022. 

Meta Platforms 

Already the titan of the social-media world, Meta Platforms has made a bold move into the metaverse industry. The company announced it will have spent at least $10 billion on the expansion in fiscal 2021 and is likely to spend more in the years to follow. The move could be in response to decelerating revenue growth in the company’s core social-media business.

CEO Mark Zuckerberg has said the metaverse is something he’s long been interested in, and the timing could be perfect right now. Zuckerberg also said that he aims to help over 1 billion people be active on the metaverse before the decade is over.  While this is a bold ambition, it’s not an unreasonable one from someone leading a company with over 3.5 billion monthly active users across its family of apps, including Facebook, Instagram, and WhatsApp.

What’s more, Meta Platforms has the resources to invest in growing its new line of business. Between 2016 and 2020, the company has generated over $100 billion in operating income. And as of Sept. 30, Meta Platforms had over $58 billion in cash and equivalents on its balance sheet.

Roblox

While Meta Platforms is just now building its metaverse, Roblox has had a several-year head start. Roblox’s metaverse platform has been primarily focused on kids and teenagers — 48.9% of its daily active users are 13 years old or younger. It is growing users at a healthy rate, from 18.4 million in the third quarter of 2019 to 47.3 million in its most recent quarter ended Sept. 30.

Roblox is free to join and generates revenue by selling an in-game currency called Robux. The company is perhaps demonstrating the lucrative, cash-generating ability of the metaverse. It earned $181 million in cash flow from operations on revenue of $509 million in the third quarter. That’s even before Roblox has developed a mechanism for generating income from players that never deposit money on the platform.

Nevertheless, Roblox increased revenue by over 100% in the third quarter. If the company can find a way to earn revenue from non-paying players — for instance, showing them advertisements — this could be a catalyst for boosting revenue growth even higher.

The metaverse industry is in its infancy and could spend decades expanding. Investing in metaverse stocks could be risky, but the potential reward could be worth the risk. For those of who want to dive into it in 2022, Meta Platforms and Roblox are my two favorite stocks to buy. 

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

The post 2 Metaverse stocks to watch in 2022 appeared first on The Motley Fool Australia.

More reading

• Wall Street’s bullish take on the metaverse fuels big moves in these 3 cryptocurrencies today
• What are Metaverse stocks and why is everyone talking about them?
• Why multiple experts are HOT on this ASX tech share right now

Parkev Tatevosian has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Meta Platforms, Inc. and Roblox Corporation. The Motley Fool Australia has recommended Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Insurance Australia Group Ltd (ASX: IAG) share price has been suffering lately amid lawsuits, weather events, and business interruption claims.

In fact, the company’s stock is only 3% higher than its 52-week low of $4.21.

As of Tuesday’s close, the IAG share price is $4.34. And at that price, one expert believes the company is in a prime position to be acquired.

Here’s why Joseph Koh, portfolio manager of Schroders’ Australian equities team, has reportedly picked the company has “an appealing takeover target”.

Could the IAG share price herald takeover offers?

According to Koh, the IAG share price has been damaged by numerous happenings, but it’s not beyond repair.

That means it might be a tempting takeover target for other businesses.  

Koh told the Australian Financial Review (AFR) court decisions from business interruption cases that have plagued the company were “at worst mixed”. He continued:

[E]ven in cases where IAG may be liable, damages may well be quite limited given the large government handouts that supported businesses during COVID-19 lockdowns. On top of all that, IAG has already set aside a sizeable provision for potential business interruption claims.

The New South Wales Court of Appeal ruled that insurance companies have to pay businesses claims for pandemic related disruptions last year.

Additionally, a class action is being brought against the company for its handling of the business interruption case. Its subsidiary is also facing court action brought about by the Australian Securities and Investments Commission (ASIC).

Finally, the IAG share price was dragged 7% lower in early November when the company announced that severe weather events had put a bigger than anticipated dint in its bottom line. The AFR quoted Koh as saying:

On weather-related claims costs, it’s clear that some years will be worse than others, and over time this should either even out, or premiums in the industry will rise to reflect more disruptive weather patterns.

Right now, the IAG share price is 7.6% lower than it was at the start of 2021. It has also fallen 1.3% over the last 30 days.

The post It’s trading at around 9-year lows, could the IAG (ASX:IAG) share price be a takeover target? appeared first on The Motley Fool Australia.

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

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The team at Bell Potter has been busy this week looking at its top ASX share picks for 2022.

On this occasion, I’m going to look at what the broker is saying about the banking sector. Here are its top picks in the sector:

Which ASX bank shares are buys?

Bell Potter notes that its top picks in the sector possess proven risk management capabilities, defensive qualities, strong growth prospects, and health balance sheets. The latter includes surplus capital that could eventually be returned to shareholders.

Those top picks are Australia and New Zealand Banking GrpLtd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB). The broker has a buy rating and $30.00 price target on ANZ’s shares and a buy rating and $31.00 price target on NAB’s shares.

Based on the current ANZ share price, this implies potential upside of 9.2%. Whereas based on the latest NAB share price, Bell Potter’s price target suggests upside of 9%.

Don’t forget the dividends

The broker is expecting the banks to provide attractive fully franked dividend yields next year. Its analysts are forecasting a fully franked 4.7% yield for ANZ’s shares and a fully franked 5.1% yield for NAB’s shares.

This brings the total return on offer for both bank shares to approximately 14% over the next 12 months.

Bell Potter Analyst TS Lim, commented: “Our 2022 top picks once again possess proven risk management capabilities, defensive qualities including healthy balance sheets and surplus capital that could be returned to shareholders in due course, and strong growth prospects.”

“These companies have undergone massive transformation since the GFC to improve earnings quality and consistency. Our selection comprises two major banks. The longer term operating environment post COVID-19 remains positive for ANZ and NAB. Both are well-provisioned and well-placed to capitalise on post-pandemic opportunities in retail and SME banking,” Lim added.

The post Leading broker names the ASX bank shares to buy in 2022 appeared first on The Motley Fool Australia.

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• What is the outlook for the ANZ (ASX:ANZ) share price in 2022?
• December has been a great month so far for the NAB (ASX:NAB) share price
• Could the CBA share price peak have been and gone?
• 2 ASX 200 dividend shares to buy
• 5 things to watch on the ASX 200 on Friday

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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Since the beginning of 2021, the Telstra Corporation Ltd (ASX: TLS) share price has risen from its past state of hibernation. Fuelled by the telco’s first net profit increase in five years, investors are hopeful of a return to growth.

The renewed optimism in one of Australia’s most recognisable blue chips has landed the company a 34.8% increase in value in 2021. This places the telecommunications giant as the fifth best-performing ASX-listed company in the S&P/ASX 20 Index (ASX: XJO).

While one good year is good, long-term shareholders would be wondering if this outperformance has the potential to continue. To determine what next year could look like for the Telstra share price, we review what analysts are expecting.

But first, let’s look into the company’s own roadmap for 2022.

What does Telstra have planned for the year ahead?

The plan for Telstra’s future was laid out for all to see at its T25 investor day on 16 November. While the event focused on a longer-term strategy around the company achieving a compound annual growth rate in the high-teens for its earnings per share during FY 2021 and FY 2025, it also touched on next year’s goals.

In short, Telstra plans to come good on six key priorities by the end of FY22, these include:

• Complete digitisation
• Group restructure
• 5G leadership
• Return Enterprise to growth
• Grow services business
• Deliver on cost reduction

These aims are on top of already drastic overhauls of the business since the introduction of the T22 plan. Since 2018, Telstra has been reshaped with a consolidation of its products from 1,800 to 20, removal of a third of its workforce, and $2.3 billion stripped from the company’s costs.

In speaking with The AFR, Telstra CEO Andy Penn has described his plans for the company loud and clear.

Penn said:

I’d say three things – one is that it’s absolutely front and centre about continuing to transform customer experience and just taking that to the next level. Secondly, it’s about growth, both within the core but also some of our new business investments are really starting to help to get some traction.

Making a call on the Telstra share price in 2022

One fund manager that is bullish on Telstra for the upcoming year is Pengana Capital’s Rhett Kessler. The experienced fundie recently labelled the telco a buy for the fund, naming Telstra one of its biggest holdings in the portfolio.

In describing his case for why Telstra is still appealing at its current share price, Kessler said:

We like the fact that the two main assets are the mobile phone network, and let’s face it, mobile data is the new oxygen. I have four kids. Try and take it away from them. So that’s a very good business, and they’re obviously good engineers, because they’ve got the best network, and they’re very good marketers because they managed to get a 15-20% premium for the same data that their competitors sell.

Dividend investors might also be gravitating towards the Telstra share price in 2022. According to analysts at Goldman Sachs, the company looks well-placed to grow its dividend in the coming years.

The post Is the Telstra (ASX:TLS) share price set to dial in another big year in 2022? appeared first on The Motley Fool Australia.

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• Telstra (ASX:TLS) just rejoined this exclusive, top-10 club

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 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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