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.

Sure, there are cryptocurrencies with bigger market caps than Shiba Inu (CRYPTO: SHIB). But no digital coin has been a bigger winner this year. Shiba Inu’s remarkable gain of well over 66,000,000% puts it in a class of its own.

Past performance doesn’t always translate to future success, though. Here are two cryptocurrencies that could trounce Shiba Inu in 2022.

1. Avalanche

It wasn’t all that long ago that Shiba Inu ranked higher than Avalanche (CRYPTO: AVAX) based on market cap. However, Avalanche pushed Shiba Inu to the side in November and hasn’t looked back since. It’s now the 12th-biggest cryptocurrency on the market, while Shiba Inu is No. 13. 

The key to Avalanche’s momentum is its unique architecture. Avalanche has three interoperable blockchains that enable it to avoid scalability problems and high costs associated with some platforms (cough, Ethereum (CRYPTO: ETH), cough).

Its platform can already process more than 4,500 transactions per second. Its costs are super-low. And no blockchain beats Avalanche’s time to finality (how long it takes for a transaction to be irreversibly added) of less than two seconds.

Unsurprisingly, developers have flocked to Avalanche. There are now more than 150 projects in the Avalanche ecosystem, and the number continues to grow. We’re not just talking about small organizations opting to use Avalanche. Global accounting and consulting firm Deloitte plans to build a cloud-based disaster recovery platform using the Avalanche blockchain.

Some even refer to Avalanche as an “Ethereum killer.” I wouldn’t go that far. My hunch is that Ethereum will be alive and kicking for a long time to come. However, Avalanche just might be a “Shiba Inu beater” in the new year. 

2. Kadena

The most likely cryptocurrencies to fly out of nowhere as Shiba Inu did in 2021 are those that aren’t already the most popular. But these less-known tokens still must have a lot going for them to stand out from the crowd. I think that Kadena (CRYPTO: KDA) stands as one of the most likely contenders to break out in 2022.

Kadena isn’t exactly camping out in nowhere right now. It ranks No. 67 on CoinMarketCap’s list of the top cryptocurrencies. But with a market cap of around $1.8 billion, Kadena could still have plenty of room to run even after soaring more than 7,800% this year. 

This cryptocurrency platform has an impressive pedigree. Kadena was founded by Stuart Popejoy and Will Martino. The two men together developed JP Morgan‘s first blockchain. Popejoy previously led the firm’s emerging blockchain group. Martino served as the tech lead for the U.S. Security and Exchange Commission’s Cryptocurrency Steering Committee. Kadena’s advisory team includes Stuart Haber, the co-inventor of blockchain.

Pedigrees aren’t as important as performance, though. And Kadena shines on this front. It can process 480,000 transactions per second. It can scale to higher transaction speeds as more chains are added to its network. There is no ceiling on Kadena’s throughput. 

Kadena also excels with its real-world utility. It supports non-fungible tokens (NFTs), including fractional NFTs that aren’t tied to a single exchange. Kadena’s smart contracts are exceptionally safe. And its costs are super-low — only marginal transaction fees for consumers and businesses can completely eliminate the transaction fees for their customers. 

There’s no guarantee that Kadena will be one of the top breakout cryptocurrencies of 2022, of course. However, it definitely checks off the right boxes needed to potentially trounce Shiba Inu. 

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

The post 2 cryptocurrencies that could trounce Shiba Inu in 2022 appeared first on The Motley Fool Australia.

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Keith Speights has no position in any of the stocks mentioned. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Ethereum. 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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ASX gold shares could be poised to rebound in the new year after a top broker upgraded its forecasts for the sector.

The news could not come at a better time for gold bulls. ASX gold miners are exiting 2021 nursing losses even as the S&P/ASX 200 Index (ASX: XJO) is on track to deliver a respectable 12% gain.

Their woeful performance stands in stark contrast to this time last year. Back then, things were looking promising for the precious metal.

How ASX gold shares performed in 2021

But a sudden jump in US government bond yields and the US dollar took the shine off gold and triggered a sell-off. The Evolution Mining Ltd (ASX: EVN) share price and Northern Star Resources Ltd (ASX: NST) share price slumped into a bear market with losses of 20% or more for 2021.

The Newcrest Mining Ltd (ASX: NCM) share price is faring a bit better with a loss of around 10%, although that’s still well behind the rest of the market.

But 2022 could be a more promising year for gold and ASX gold shares, according to Macquarie Group Ltd (ASX: MQG).

Gold on the upgrade path for next year

This isn’t to say that there are boom times ahead for gold. If anything, the broker still holds a somewhat negative outlook for the safe haven asset.

“We have upgraded our long-term gold prices by 7% and our long-term silver prices by 5%,” said Macquarie.

“Cyclically, our commodities team remains negative on gold, especially as a firm USD is likely to present an additional headwind.“

“However, it anticipates gold to bottom at historically elevated levels of around [US]$1,600/oz before embarking on its next upcycle.”

Large cap ASX gold shares to buy

Gold is currently trading around US$1,780 an ounce. It’s down sharply from its August 2020 price of US$2,075 an ounce, but it appears to have found good support around current levels.

Northern Star is the biggest beneficiary of Macquarie’s gold price forecast upgrade among the ASX gold shares it covers. Northern Star’s earnings per share (EPS) estimates got boosted by an average of 34% from FY22 to FY26.

This compares to the average upgrades of 15% for Newcrest and 14% for Evolution.

“We continue to prefer NST from the large-cap names, driven by relatively lower-risk production growth vs NCM and EVN,” added Macquarie.

Other opportunities among ASX small caps for 2022

Among the smaller cap ASX gold shares, the broker’s top picks for their low-cost production growth are the Silver Lake Resources Limited. (ASX: SLR) share price and the Perseus Mining Limited (ASX: PRU) share price.

Gold explorers that are also in Macquarie’s good books for their discovery potential include the Bellevue Gold Ltd (ASX: BGL) share price, De Grey Mining Limited (ASX: DEG) share price and Aurelia Metals Ltd (ASX: AMI) share price.

The post Macquarie (ASX:MQG) upgraded these ASX gold shares to ‘buy’ for 2022 appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns Macquarie Group Limited and Newcrest Mining 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 Macquarie 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 Talga Group Ltd (ASX: TLG) share price is leaping higher in early afternoon trade, up 7.67% to $1.62 per share.

Below we look at the battery anode and advanced materials company’s Memorandum of Understanding (MOU) announcement that looks to be driving ASX investor interest.

What MOU update was announced?

The Talga share price is soaring after the company reported it has extended its MoU with Mitsui & Co. Europe Plc. That’s a subsidiary of Japanese global trading and investment giant, Mitsui & Co., Ltd.

The MOU has been extended through to 31 August 2022. The companies will now continue to advance the potential co-development of Talga’s Vittangi Anode Project in Sweden via a joint venture (JV).

The extended MOU was also expanded and now includes “marketing, sales and partnership opportunities across Talga’s portfolio of lithium-ion battery products”.

Commenting on the extension, Talga’s managing director, Mark Thompson said:

Talga is very pleased to continue and expand our relationship with Mitsui as a trusted strong global partner in our goal of sustainable battery material technology and products. Since starting to work together much has been achieved, and as demand for battery materials such as Talga’s has grown it is timely to expand our co-operation to also explore new opportunities and developments.

Mitsui has the non-exclusive option to negotiate and enter into relevant binding agreements with Talga before the MOU expires.

Talga’s Vittangi Graphite Project in Sweden

ASX investors are also keeping a close eye on Talga’s Vittangi Graphite Project in Sweden. As The Motley Fool reported on 9 November, the Talga share price leapt 12% after the company reported ‘spectacular’ drilling results at the project.

Talga share price snapshot

The Talga share price has been up down in 2021, with more downs leaving shares 0.3% in the red. For comparison the All Ordinaries Index (ASX: XAO) is up 13% year-to-date.

Over the last month, Talga shares are down 23%.

The post Here’s why the Talga (ASX:TLG) share price is surging 8% today appeared first on The Motley Fool Australia.

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

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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a solid gain. The benchmark index is currently up 0.8% to 7,411.9 points.

Here’s what is happening on the ASX 200 today:

CSL confirms acquisition talks

The CSL Limited (ASX: CSL) share price is trading flat after confirming media speculation that it is in talks to acquire Swiss-based Vifor Pharma. While no further details have been provided, there is speculation that a $10 billion deal could soon be reached. Vifor Pharma is a leader in iron deficiency, nephrology and cardio-renal therapies.

Charter Hall upgrades guidance again

The Charter Hall Group (ASX: CHC) share price is charging higher today after upgrading its guidance for FY 2022 once again. According to the release, almost all of its properties have been independently valued, leading to a net valuation uplift of ~$3.5 billion. This is expected to have a positive impact on funds under management and performance fees. As a result, it now expects FY 2022 operating earnings per share no less than 105 cents. This is up from its previously upgraded guidance of 83 cents per share.

Brickworks guidance

The Brickworks Limited (ASX: BKW) share price is pushing higher after it provided first half earnings guidance for its Property business. Management advised that it expects to report record Property EBIT in the range $290 million to $310 million for the half. This compares to Property EBIT of $253 million in the whole of FY 2021.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Charter Hall share price with a 4.5% gain following its guidance upgrade. The worst performer has been the Insurance Australia Group Ltd (ASX: IAG) share price with a 3.5% decline. This follows news that UBS has downgraded its shares to a sell rating.

The post ASX 200 (ASX:XJO) midday update: CSL acquisition talks, Charter Hall guidance upgrade appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks and CSL Ltd. The Motley Fool Australia owns and has recommended Brickworks and 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 Zip Co Ltd (ASX: Z1P) share price is in focus. What is the outlook for the buy now, pay later company?

It has been a tricky year for the BNPL business. Whilst the Zip share price only shows a 12% drop this calendar year, there has been a much bigger decline over shorter time periods. Over the last six months it has dropped 32% and it’s down 64% since 16 February 2021.

What is the outlook for Zip in 2022?

The business itself is confident about growth in the short-to-medium-term.

Just this month, Zip said that it remains steadfast in its mission to disrupt the “unfair and broken” credit card with a better and fairer digital alternative, with the goal of becoming the first payment choice everywhere and everyday.

The Zip managing director and CEO Larry Diamond said:

We enter calendar year 2022 with strong momentum, in a solid financial position, with continued focus on execution, unit economics and global synergies.

It is now processing annualised volume of more than $10 billion. After a number of expansions and acquisitions, it now has one of the largest BNPL footprints geographically.

But one expert is not so bullish about the BNPL industry’s prospects.

McLean Roche sounds the warning bell

Grant Halverson is the founder of the payments consultancy organisation McLean Roche.

Mr Halverson believes that the buy now, pay later companies may see higher bad debts next year, which snowballs into lower credit ratings and higher funding costs.

The Australian Financial Review reported why Mr Halverson is negative on the industry:

The moment their bad debts go up their cost of funding will go up three or four times faster than the actual rate rises and the rating agencies will downgrade them, and then they’ll get to junk status.

Because they’re all frantically going at the US they’re racing to the bottom. And that means probably more bad debts because they’ve gone after customers who haven’t got credit ratings.

They’re going to have to try to raise a lot of money. It partly depends on how quickly interest rates go up, because if they go up quickly there could be carnage. If there’s a slower uptick then obviously the carnage will be slower in my view.

There is also concern for the buy now, pay later players that the sector may soon have to face the prospect of merchants being allowed to apply surcharges for the BNPL costs they pay on behalf of customers.

Zip continues to grow quickly

Whilst the Zip share price is falling, operationally it continues to deliver a high level of growth.

In November 2021, Zip achieved record monthly transaction volume of $906.5 million, which was a 52% increase year on year.

Customer numbers increased by 71% year on year to 9.2 million. Zip Business transaction volume grew 44% month on month to $15.2 million.

Its geographic expansion markets delivered $50 million more of volume than the AGM projections.

Zip is now in numerous markets including the USA, Australian, New Zealand, the UK, Canada, Mexico, Poland, Czech Republic, UAE, Saudi Arabia and South Africa.

What do analysts think of the Zip share price?

Opinions are mixed about the business.

UBS is neutral (after thinking it was a sell for a while) on the company’s prospects now that the Zip share price has fallen so much. It recognises the progress that Zip is making in the US. It has a price target of $5.20 on the BNPL business.

Morgans rates it as a buy, with a price target of $8.56. It thinks Zip can deliver good growth over time, even if growth is slowing down now.

The post What is the outlook for the Zip (ASX:Z1P) share price in 2022? appeared first on The Motley Fool Australia.

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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. 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 Senex Energy Ltd (ASX: SXY) share price is climbing today after the company announced its takeover by a South Korean company.

The energy producer’s shares are up 2.7% trading at $4.57 at the time of writing.

Senex is a Brisbane-based national gas producer operating in the Surat Basin near Roma, central Queensland.

What did Senex announce today?

Senex advised it has signed off on an $852 million acquisition deal with Posco International Corporation.

The South Korean company will acquire all Senex shares at $4.60 apiece, with Senex agreeing to pay shareholders a dividend of up to 5 cents per share as part of the agreement.

The deal will depend on approval from shareholders, the Korea Exchange (KRX) and the Foreign Investment Review Board.

In another twist, Senex announced today that Hancock Energy Corporation, owned by Gina Rinehart, intended to acquire a 49.9% indirect interest in Senex if the deal went ahead. However, this is not a condition of approval.

Commenting on the news, Senex chair Trevor Bourne said:

Throughout our discussions with Posco International Corporation, the Senex board has been focused on maximising value for our shareholders.

The offer announced today, which is recommended by the board, reflects an attractive value for Senex and the opportunity for our shareholders to realise a certain cash price for their shares.

Deal with Shell Energy

In another release to the ASX today, Senex announced a new domestic gas sales agreement with Shell Energy Limited.

The company will supply roughly 8 petajoules of natural gas at Wallumbilla Hub at a fixed market price.

Senex CEO and managing director Ian Davies welcomed the Shell deal, saying:

We are proud to continue supporting the economy and jobs in local communities, and helping Australia transition to a lower carbon future.

Senex share price snapshot

Investors have seen positive returns in the past year. The Senex share price has lifted 68% over the past 12 months and is up around 81% this year to date.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned 11% in the past year.

The post Senex share price (ASX:SXY) lifts on new $852 million acquisition deal appeared first on The Motley Fool Australia.

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

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The Mineral Resources Ltd (ASX: MIN) share price had clawed back a 0.6% loss in early trade to be up 0.99% at the time of writing.

Below, we take a look at the company’s refinery agreement announcement together with its joint venture (JV) partner Neometals Ltd (ASX: NMT).

Neometals shares are up around 7% this morning.

What agreement was announced?

The Mineral Resources share price isn’t getting a lift from the agreement of its wholly-owned subsidiary Process Minerals International with Bondalti Chemicals, S.A. to evaluate commercialisation of its ELi lithium process in Europe.

The agreement was reached with Neometals’ and Mineral Resources’ JV company (70% Neometals, 30% Mineral Resources), Reed Advanced Materials Pty Ltd (RAM).

The planned lithium refinery, to be located in Portugal, would have a capacity of 25,000 tonnes per annum (tpa). It will be the first ELi deployment to produce battery quality lithium hydroxide and lithium carbonate.

With lithium demand and production increasing amid the global move to electrification, the company highlights that its system uses electrolysis to produce lithium chemicals. This means it has a smaller carbon footprint than conventional chemical conversion of lithium chloride solutions.

The company also said the pilot plant could use renewable energy, which would further decrease greenhouse gas emissions.

Commenting on the agreement, Reed’s managing director Chris Reed said:

We are eager to take another step towards commercialising our ELi process and building a globally competitive, high purity ‘battery quality’ lithium chemical facility. Bondalti is a highly credentialed chemical producer and operator of chlor-alkali facilities which use electrolysis to produce sodium hydroxide.

Moreover, Bondalti’s existing by-product hydrogen and chlorine gases provide a ready market for the by-products of the ELi Process. The synergies of first-class technical skills and infrastructure at Estarreja maximise the probability of technical success in the full-scale pilot plant trials and enhance the potential financial metrics of its first commercial application.

The US$4 million costs for construction and operation along with the 18-month evaluation studies will be co-funded by Bondalti and RAM.

Mineral Resources share price snapshot

The Mineral Resources share price is up 28% in 2021. That compares to a year-to-date gain of 11% posted by the S&P/ASX 200 Index (ASX: XJO).

Over the past month alone, shares in Mineral Resources are up 20%.

The post Minerals Resources (ASX:MIN) share price wobbles on lithium agreement appeared first on The Motley Fool Australia.

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

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The CSL Limited (ASX: CSL) share price is underperforming on Monday.

In morning trade, the biotherapeutics company’s shares are down ever so slightly to $297.89.

This is despite the company responding to mergers and acquisition (M&A) speculation this morning.

CSL confirms acquisition talks

This morning CSL finally confirmed that it is interested in acquiring Swiss based biotechnology company Vifor Pharma.

Earlier this month, there was speculation that CSL was in talks with Vifor Pharma. However, in response to this speculation, management downplayed any impending deals being made.

It commented: “CSL regularly assesses strategic opportunities that can improve its business, improve the health of people around the world and provide value to shareholders. There is no certainty that any transaction will result from CSL’s consideration of such opportunities and, if any transaction does result, when such a transaction would occur.”

This rhetoric changed slightly on Monday after further reports claimed that a deal was close to being made.

On this occasion, management responded by saying: “CSL confirms that it is in discussions with Vifor Pharma Ltd regarding a potential transaction, however at this time there remains no certainty that any transaction will result and, if a transaction does result, when such a transaction would occur.”

What would a deal look like?

Previous speculation suggested that CSL would look to acquire the iron deficiency, nephrology and cardio-renal therapies developer for $10 billion.

Were a deal to be made for Vifor Pharma, the reports indicated that CSL would look to part-fund the deal with a capital raising. A figure of $3 billion to $4 billion has been touted with the balance being covered by its existing cash reserves, debt facilities, or shares.

Though, whether an agreement is ultimately signed, only time will tell. But things certainly appear to be progressing, so all eyes will be on the CSL share price in the lead up to 2022.

The post CSL (ASX:CSL) share price lower after responding to M&A speculation appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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What a year it’s been for the Australian healthcare sector in 2021. It has had to come to grips with the lasting effects of COVID-19, and has experienced a wave of disruption and innovation at levels not seen before. Meanwhile, surging case numbers have plagued the operations of many ASX-listed healthcare names.

Consequently gains and losses have been non-discriminatory in ASX healthcare shares in 2021. Several large-cap names have struggled, whilst the small-cap division of the sector has shown equally choppy results.

However, as the effects of the pandemic begin to diminish and vaccination numbers continue creeping upwards, overall sentiment on ASX healthcare shares appears to be shifting towards a more bullish tone.

Expert commentary on the sector shows many investors are banking on a year of continued innovation and recovery after a sluggish year on the charts.

Moreover, the S&P/ASX 200 Health Care Index (ASX: XHJ) bounced off its 3-month low in October and has climbed back towards its single-year highs at 45,535 points at last check, indicating strength in the broad sector at the back end of 2021.

With that in mind, let’s take a walk through what the experts are saying on the outlook for these ASX healthcare shares in 2022.

Ramsay Healthcare Limited (ASX: RHC)

The Ramsay Healthcare share price closed last week at $69.50 after climbing 5% in the previous 5 trading days.

Shares in the global healthcare company have been on a wavy run these past 3 months, closing as high as $73.42 and trading as low as $65.94 in that time.

JP Morgan notes that Ramsay’s operating results “remain at the mercy of COVID-19,” especially due to its United Kingdom and European divisions taking an unexpected hit as new cases are again on the rise there.

Yet, despite these headwinds, JP Morgan has not lost any confidence in Ramsay’s expected recovery, “given the success of vaccine roll-outs and reports of growing waiting lists.”

It values Ramsay a buy at $74 a share and reckons the market will recognise these tailwinds and bid up the share price to that level.

JP Morgan says that Ramsay’s ability to “continue to generate solid earnings growth is augmented by the group’s ongoing brownfield development program, potential for acquisitions and cost savings. We believe the company has a good track record of delivering growth through the aforementioned measures.”

Jarden also has Ramsay at a buy alongside Macquarie, with price targets of $84.30 and $75.50, respectively, whereas Morgans and Credit Suisse each have it as a hold.

Consensus has it valued at $71.36 a share, implying an upside potential of around 3% at the time of writing, and 8 analysts have it as a buy from a list provided by Bloomberg Intelligence.

Sonic Healthcare Limited (ASX: SHL)

Shares in Sonic Healthcare have outperformed the broad healthcare indices and bounced off a 3-month low of $38.58 in late November. Sonic shares are trading at $44.07 in early morning trade today.

As such, the diagnostics and imaging giant was a serious performer out of the healthcare majors over the last month and is now up 37% since 1 January.

Given its performance, backed by fundamental tailwinds in COVID-19 testing, Morgans is constructive on the shares into 2022, viewing a “growth potential in COVID serology testing”.

Morgans also likes Sonic’s balance sheet at “gearing of 21.6x” giving a spacious $1.3 billion of headroom, that effectively “opens the door to acquisitions, contracts and JVs”.

JP Morgan is equally as constructive on the shares but is yet to bump its rating from neutral at this stage. It recently raised its estimates on Sonic to “allow for the sharp lift in COVID PCR testing in Australia” but notes recent weakness in the Aussie dollar as a potential headwind for the company moving into 2022.

“The [AUD] has risen sharply against most major currencies, suggesting there may be downside risk to our forecasts if current rates prevail for the remainder of FY22” it says.

Morgans rates Sonic as an add with a $47.05 price target whereas JP Morgan remains neutral and values the company at $45 per share.

In the list of analysts provided by Bloomberg Intelligence, the sentiment ratio is evenly split among buy to sell at approximately 50% each, with an average price target of $43.93.

Sigma Healthcare Ltd (ASX: SIG)

Shares in health and pharmaceutical distributor Sigma Healthcare have been walking on a downward slope over the past 3 months.

In that time its share price has plunged from a high of 64.5 cents to its current level of 43 cents per share.

Adding more fuel to Sigma’s recent demise is the company’s recent guidance downgrade, coming just 2 months after it had reaffirmed its FY22 outlook. Sigma warned investors it is now experiencing issues with the introduction of its enterprise planning resource system due to COVID-19 restrictions.

Sigma expects one-off costs of $25 million to $30 million from the setbacks, and now forecasts earnings before interest, tax, depreciation and amortisation (EBITDA) to come in 10% lower than previous guidance – in stark contrast to its previously forecasted 5% growth in September.

The downward revision in guidance saw Citi slash its earnings per share (EPS) estimates on the company for FY22 by 24%. Furthermore, Citi cut its FY23 and FY24 EPS estimates by 15% and 2% respectively.

As such, Citi subsequently cut its price target on the company by 17% to just 50 cents, in line with Morgan Stanley who has Sigma as equal weight at 48 cents per share.

Cochlear Limited (ASX: COH)

Shares in Aussie healthcare success story Cochlear have been sliding these past few months. Cochlear shares are falling hard from previous highs of $256 back in August. In morning trade they are continuing their decline, down to $213.67.

Given that Cochlear’s hearing implant surgeries are considered elective, they have been put on the backburner as a non-priority as the Australian hospital system comes to grips with COVID-19.

Goldman Sachs recognises these challenges and reckons Cochlear is a sell in a recent note to clients. The firm says that Cochlear’s surgery volumes remain at risk due to their elective nature. It notes that Australian surgery numbers are yet to recover to pre-pandemic volumes.

It also reckons Cochlear’s share price is trading at lofty valuations that make it unattractive right now. Subsequently, it values the company at $197 a share.

Citi is also neutral on the shares but holds a slightly more positive tone in a recent analysis of Cochlear. Analysts at the firm note a recent implant recall of Cochlear’s rival, Demant. They say this highlights the high barriers to entry and competitive moat Cochlear has formed on its operations from years of research and development.

Not only that, Cochlear maintained an approximate 65% market share of the implant sector throughout the pandemic, even with the threat of several “well-funded” competitors, Citi says.

It rates the shares neutral with a $220 price target. Whereas Jarden and Macquarie have Cochlear as a buy with valuations of $258 and $256 respectively.

Cochlear shares have gained 7% in the past 12 months and are up 13% this year to date.

The post What’s the outlook for ASX healthcare shares in 2022? appeared first on The Motley Fool Australia.

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The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd., Ramsay Health Care Limited, and Sonic Healthcare 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?

This weekend, most major cryptocurrencies, including Dogecoin (CRYPTO: DOGE), saw yet another bout of selling early Saturday morning. However, Dogecoin appears to be finding its feet today, trading flat over the past 24 hours, and down only marginally over the past week. The 24-hour trading range works out to a 2.5% span between the top and bottom prices. That would be a thrilling day for many investments but it’s a rare helping of calm for the volatile Dogecoin.

Some experts are now pointing to Dogecoin’s valuation as being more attractive at these levels, for two reasons. First, Dogecoin’s market capitalisation relative to its total mining revenue (a key metric used to determine how overvalued or undervalued for proof-of-work cryptocurrencies) is actually lower than Ethereum (CRYPTO: ETH) right now. Additionally, Dogecoin’s total aggregate mining revenue just surpassed the crucial $1 billion mark, suggesting that perhaps at least some of the hype around this token was warranted.

So what?

Dogecoin’s popularity as a meme token has brought about miner interest in this network. One may suggest that the use cases that have risen this year with Dogecoin are a direct result of the meme status of this token. In other words, if Elon Musk never tweeted about Dogecoin, perhaps this token would simply just be the “joke” its founders intended.

Instead, we are now left with a proof-of-stake token that has seen $1.08 billion of miner revenue (in the form of fees, newly minted coins, and all other revenue sources) generated all-time, to Dec. 9. Compared to Ethereum, this is a drop in the bucket — the Ethereum network is reportedly 18 times larger than Dogecoin’s at the time of writing. That said, Ethereum is valued at roughly 21-times the market capitalisation, on this relative basis.

Now what?

There are not many fundamental metrics cryptocurrency investors can point to for perspective on just how overvalued or undervalued a specific token is. However, looking at total miner revenue relative to the market capitalisation of a given token is an interesting way to assess how cryptocurrencies are valued. Ethereum, being the gold standard it is, certainly provides a good benchmark.

Looking at Dogecoin’s parabolic rise this year, one interesting thing to note is that this rise took place as mining activity picked up. Perhaps that’s simply correlation rather than causation. One might argue that the rising interest in this token, as a result of its meme status among crypto enthusiasts, led to increased mining activity as more investors looked to benefit from Dogecoin’s rise. Fair enough.

However, the fact that Dogecoin appears to be stabilising right now could be due, at least in part, to investors recognising that the underlying fundamentals with this token can be justified. Like any investment, it’s important to consider the fundamentals driving a given company (or blockchain network, for that matter). 

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

The post 2 fundamental reasons Dogecoin is stabilising today appeared first on The Motley Fool Australia.

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Chris MacDonald owns Ethereum. The Motley Fool Australia’s parent company Motley Food Holdings Inc. owns and recommends Ethereum. The Motley Fool has a disclosure policy.

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

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