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.

Netflix (NASDAQ: NFLX) plans to spend $17 billion in cash on content production and licensing this year, but it could be just getting started. Management sees a long runway for growth across various television and film programming verticals and geographies, and it’s just beginning its gaming experiment. When asked if Netflix could double or triple its content spending during the company’s third-quarter earnings call, CEO Reed Hastings replied, “You’re definitely thinking too small.”

And he has a point. As the world’s biggest premium subscription video on demand service, it has a lot of room to grow that content budget well over $50 billion.

Entertaining the world

There’s still a tremendous opportunity to shift more entertainment time from linear television to streaming. Netflix expects to play a bigger and bigger role in people’s entertainment choices for years to come. 

Management points out in its letter to shareholders that streaming currently accounts for just 28% of TV time in the United States, while cable and broadcast television accounts for 64%. Netflix represents just 6% of the total viewing time.

And the U.S. is its most mature market. Netflix is increasingly a global company producing content all over the world. The Korean drama Squid Game is its biggest series ever. It plans to expand its local productions from 45 countries to more than 50 countries next year.

The total addressable market, according to management, is the 1 billion broadband households around the world. With 213 million total subscribers, it still has a long way to go. “Now, it will take a couple of decades to get there. It’s not overnight,” Hastings explained. But Netflix has always thought extremely long term.

Growing verticals and geographies

Netflix sees opportunities to grow its content spending across several different content categories and geographies.

The company only went fully global in 2016, and its efforts with local language content are really only a few years old. What’s more, it’s found incredible success creating series and films in a country for the local audience, and taking those successes worldwide. As more of Netflix’s growth comes from abroad, its local language content budget should expand along with it. But it can still monetize that content globally, including the valuable United States.

Furthermore, Netflix is exploring increased investments in animation. Kids animation, specifically. And it bought the Roald Dahl Story Company to produce films, series, and games based on the British author’s characters.

Management says it can continue growing the budget in every category it works in for the foreseeable future.

Tripling the content budget

Netflix is now self-funding its growing content budget, eschewing the debt market. It expects break-even free cash flow for the full year 2021, and to produce positive cash flow in 2022 and beyond.

” … we got to be able to have the revenue growth and margins,” Hastings said, moderating his tone about the potential size of the content budget. But Netflix has been consistently growing both revenue and margin for years. Management still expects to grow its top line 18.8% this year, despite the strong growth in 2020, and its full-year operating margin will expand 2 percentage points to 20%.

Growth going forward will need to come from a combination of subscriber growth and price increases. With a growing number of streaming services entering the global market, price increases may prove more difficult than in the past. That said, recent price increases haven’t resulted in any increase in subscriber churn, while the rest of the industry fights to keep customers. Netflix appears to have more pricing power than its peers.

If Netflix can maintain its double-digit revenue growth and continue its margin expansion over the next decade, it could easily triple the content budget in the long run, all while growing free cash flow and profits for investors. 

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

The post Netflix could spend over USD $50 billion on content appeared first on The Motley Fool Australia.

More reading

• What’s the latest from the current US earnings season?
• Netflix (NASDAQ:NFLX) reports 16% revenue growth after Squid Game success
• Why Netflix stock was soaring on Tuesday

Adam Levy owns shares of Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netflix. The Motley Fool Australia has recommended Netflix. 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 Mineral Resources Limited (ASX: MIN) share price is plummeting on the back of the company’s quarterly report.

Over the first quarter of financial year 2022, Mineral Resources’ realised iron ore price represented a realisation of 48% to the Platts average for the quarter.

The company was also negatively affected by COVID-19 travel restrictions over the 3 months ended 30 September.

At the time of writing, the Mineral Resources share price is $39.90, 7% lower than its previous close.

Let’s take a closer look at the last quarter for the mining company.

The quarter just been for Mineral Resources

The Mineral Resources share price is sliding despite the company reporting an increase in production.

Mineral Resources’ production volumes for the quarter were 7% higher than they were in the previous quarter. They were also 22% higher than those of the first quarter of financial year 2021.

The company produced and shipped 4.6 million dry metric tonnes of iron ore over the period, 40% more than in the prior corresponding quarter. It’s currently in line to meet its financial year 2022 guidance of between 21 and 22 metric tonnes.

Mineral Resources’ average realised iron ore price for the quarter was US$78.32 per dry metric tonne. It was dragged down by shipments priced on the September Platts price. It also suffered from US$33.8 million of negative adjustments for the finalisation of financial year 2021 shipments.

Additionally, Mineral Resources’ 50%-owned Mt Marion lithium project was negatively impacted by rainfall over the quarter.

It produced 99,536 dry metric tonnes of spodumene, 13% less than in the previous period. However, the project is on target to meet its financial year 2022 production guidance of between 450 kilotons and 475 kilotons.

The average realised spodumene price was US$740.6 per dry metric tonne. Shipments of spodumene were also down 54% on those of the prior quarter due to delays.

Finally, the company’s operations were negatively affected by COVID-19 restrictions. Unplanned border closures and lockdowns saw the company’s staff’s movements limited and resulted in a shortage of road haulage drivers.

Exploration and development

Mineral Resources worked on several exploration and development projects over the quarter just been.

Excitingly, it made a significant gas discovery at its 80%-owned Lockyer Deep-1 exploration well over the quarter.

Mineral Resources has also started installing a 1.5-megawatt solar array and battery at the Wonmunna mine site. Right now, the mine’s powered by diesel. However, the solar installation will be able to provide around 30% of its energy needs.

The company continued its engineering and detailed design for the Ashburton Project. Mineral Resources is ready to start the project when approvals are obtained.

The company also noted consultations between the Western Australian government, the Pilbara Port Authority, and Port Hedland users of the Port Development Plan continued through the quarter. The company is confident approvals for the development of South West Creek will be granted soon.

Finally, it acquired Red Hill Iron Limited’s 40% interest in the Red Hill iron ore joint venture.

Mineral Resources share price snapshot

The quarter just been wasn’t a good period for the Mineral Resources share price. It fell 16.6% over the 3 months ended 30 September.

However, the company’s stock is currently trading for around 6% more than it was at the start of 2021.

The post Mineral Resources (ASX:MIN)share price slumps 7% on quarterly update appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Crown and Pilbara Minerals surge higher
• Why ASX lithium shares are surging higher on Tuesday
• Here are the top 10 ASX shares today
• Why Beach, Mineral Resources, Origin, and Telstra are storming higher
• ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps

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

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The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) or ‘Soul Pattinson’ share price is seesawing on Tuesday.

In early afternoon trade, the diversified investment company’s shares are being exchanged for $34.18 apiece — representing a fall of 0.03%. Earlier in the day, its shares were as high as $34.99. More than $16.6 million worth of Soul Patts shares has been traded so far today.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is 0.16% in the green, now fetching 7,452.8 points.

Although not price-sensitive, there is an announcement that investors might be reading into today from Soul Patts. Prior to the market opening, the iconic investment powerhouse released its 2021 annual report.

Let’s peer into some of the highlights.

What’s moving the Soul Pattinson share price?

Standing the test of time

The last 12 to 18 months have been eventful for Soul Pattinson and its share price. A multitude of developments in the company’s investment holdings has played out during this time.

These include the merger of TPG and Vodafone, forming TPG Telecom Ltd (ASX: TPG); Soul Patts’ own merger with Milton; a booming property market — helping its Brickworks Limited (ASX: BKW) investment; and rising thermal coal prices — boosting its value in New Hope Corporation Limited (ASX: NHC).

As a result, the Soul Pattinson share price has fared exceptionally well over the past year, despite the impacts imposed by COVID-19. Perhaps this demonstrates quite clearly the benefit of diversification during turbulent times.

In its annual report for 2021, the company was quick to point out its history of delivering impressive returns for shareholders over the years. In fact, the chair Robert Millner highlighted that the company’s objective is to provide superior returns to its shareholders by creating capital growth along with steadily increasing dividends over the long term.

Well, it appears the company has come good on that objective over the past 40 years. According to the report, $1,000 invested in 1981 with dividends reinvested would now be worth $239,132 — a compound annual return of 14.7%.

Additionally, over the past 20 years, the Soul Pattinson share price has delivered a total shareholder return of 1,140%. Meanwhile, the All Ordinaries Total Accumulation Index (ASX: XAOA) has increased by 429% during the same period. The extensive positive track record is hard to argue with.

Looking to the future

In its report, Soul Patts shared the outlook for various companies that it holds a stake in. Across the board, the investment company is quite positive on most of its holdings in the short term.

For instance, it believes TPG is now in a strong position to be a fierce competitor in the Australian telecommunications sector. Likewise, thermal coal pricing forecasts indicate further strength, boding well for its New Hope holding.

However, the Soul Pattinson share price might be weighed on in the short term from uncertainty in the building products business of Brickworks. Although, the company remains optimistic that pressures will alleviate with the continued rollout of vaccinations.

The post Soul Pattinson (ASX:SOL) share price wobbles as company touts track record appeared first on The Motley Fool Australia.

More reading

• Can the Brickworks (ASX:BKW) share price hit $30 by Christmas?
• Own Brickworks (ASX:BKW) shares? Here’s what you’re invested in
• Why has the Brickworks (ASX:BKW) share price slumped 5% in 9 days?
• ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound
• Soul Patts (ASX:SOL) share price slips amid completed Milton merger

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. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom 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 Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price is up 1.85% at time of writing to $1.93 per share. That’s a lift of more than 5% from its low of $1.83 in early morning trade.

Below, we take a look at what’s helping drive today’s rebound for the ASX healthcare share.

What did Paradigm report to the market?

The Paradigm share price is gaining after the company released a positive update on its Phase 2 Synovial Fluid Biomarker study.

The study involves participants with knee osteoarthritis (OA) and is “investigating changes in synovial fluid biomarkers associated with pain, inflammation and disease progression of OA”.

Paradigm said it has received approval from the ethics committee for its amendment to the Phase 2 study to evaluate the effectiveness of pentosan polysulfate sodium (PPS) (Zilosul) compared with a placebo.

The now approved amendments will see a once aweek dosing regimen along with a follow-up period of 12 months, up from the previous 6-month follow-up. A new site will also operate in New South Wales to increase patient recruitment which the company said has been hampered by COVID lockdowns in Victoria.

In addition, Paradigm also received approval from the ethics committee to conduct a parallel clinical trial in dogs. The company said the pathophysiology of OA is similar in humans and dogs. It expects to gain “relevant translational data” from the canine study.

Commenting on the trial progression, Paradigm’s chief medical officer Donna Skerrett said:

Paradigm is embarking on a number of approaches to further value PPS in the knee OA indication by exploring synovial biomarkers and evaluating duration of effect in clinical studies. Simultaneously, we are enhancing our understanding of mechanism of action and disease modifying potential by evaluating PPS in a canine OA study.

The combined information of these two studies will allow us to assess the potential disease modification capability of our OA program while we initiate the phase 2/3 pivotal study activity to assess PPS safety and efficacy for the pain and function indication.

Paradigm share price snapshot

The Paradigm share price has struggled this calendar year, down 24%. By comparison the All Ordinaries Index (ASX: XAO) has gained 12% year-to-date.

Over the past month, Paradigm shares are down 4%.

The post Why the Paradigm (ASX:PAR) share price is pushing higher today appeared first on The Motley Fool Australia.

More reading

• The Paradigm (ASX:PAR) share price is up 11% on Tuesday
• Why Limeade, Paradigm, Sandfire, & Vita shares are falling
• Paradigm (ASX:PAR) share price sinks 8% on FDA update

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 Liontown Resources Limited (ASX: LTR) share price is a gift that keeps on giving, surging 340% year-to-date with only momentary breathers along the way.

Earlier, the Liontown share price has added another 7.85% on Tuesday, lifting to a fresh all-time high of $1.855. At the time of writing, it has given up some of its gains and is now trading for $1.80, up 4.8%.

What’s driving the Liontown share price?

The broader ASX lithium sector is surging on Tuesday following some bullish overnight news.

Last night, the Tesla Inc (NASDAQ: TSLA) share price experienced a frenzy of buying after rental car company Hertz, revealed plans to buy 100,000 Teslas.

Tesla shares surged 12.66%, breaking above both the US$1,000 a share level and US$1 trillion market capitalisation for the first time on record.

The jump in valuation was on the back of significant volumes, with 62.85 million shares trading hands, the highest since early March.

The cheapest Tesla models cost around US$40,000, which implies that Hertz would splurge US$4 billion on its new electric vehicle fleet.

ASX lithium shares surged sharply following the news, with heavyweights Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS) surging 7.4% and 4% respectively.

While a number of explorers are lifting double digit percentages including Piedmont Lithium Inc (ASX: PLL) and Lake Resources N.L. (ASX: LKE).

What does this mean for Liontown?

The Liontown share price is joining in on the buying frenzy, marking a new all-time high on Tuesday.

The surging demand for electric vehicles and lithium-ion batteries spells good news for the company, which is targeting lithium production by 2024.

Liontown owns the “globally significant” Kathleen Valley Project, a world-class lithium deposit with an initial ~40 year life of mine and competitive costs.

According to its recent company presentation, the company is “well progressed” with offtake agreements, with interest indicated for volumes far in excess of its production capacity.

The company’s planned production has made firm ESG commitments, targeting 50% renewable power for its first production in 2024. And scaling towards 100% renewable power and clean mining/fleet by 2034.

The post Why is the Liontown (ASX:LTR) share price roaring 5% higher today? appeared first on The Motley Fool Australia.

More reading

• Why ASX 200 tech shares are leading the charge higher today
• Why ASX lithium shares are surging higher on Tuesday
• Core Lithium (ASX:CXO) share price jumps as project construction begins
• Tesla stock price rally places it in the trillion-dollar club
• Why Tesla stock jumped on Thursday

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. 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 Bluechiip Ltd (ASX: BCT) share price is rocketing to a 3-month high today. This comes after the company announced a lucrative contract with California-based Fujifilm Irvine Scientific, Inc. (FISI).

At the time of writing, Bluechiip shares are surging 63.33% higher to 4.9 cents apiece.

Bluechiip signals strong growth opportunity ahead

Bluechiip develops temperature and tracking solutions for biosamples in the health and life sciences industries. Today, investors are driving up the Bluechiip share price following the company’s latest news to the ASX.

In its statement, Bluechiip advised it has signed a two-year licence and development agreement with FISI.

Founded in 1970, FISI is the world’s leading manufacturer of cell culture media, reagents, and medical devices. These products are used across cell therapy, regenerative medicine, assisted reproductive technology (ART), and industrial cell culture markets.

Under the agreement, FISI will pay Bluechiip to customise and develop a range of technologies for the ART (also known as in-vitro fertilisation, or IVF) market segment. The goal is to improve the traceability of samples and simplify workflows for FISI.

During this initial licence and development period, the companies will work together to agree on a supply agreement for the sale and distribution of the customised Bluechiip products including minimum volumes, pricing, and detailed commercial terms.

Commenting on the news fuelling the Bluechiip share price today, managing director Andrew McLellan said:

Our agreement with FISI will make some contribution to our revenues by way of licence and development fees over the next 18-24 months, but most importantly this agreement provides Bluechiip a solid foothold in a lucrative worldwide market, with a strong international partner.

With more than 2.5 million IVF cycles performed globally each year, the total potential market for a new FISI system incorporating Bluechiip enabled technology is attractive and is expected to result in significant business growth.

About the Bluechiip share price

Over the past 12 months, Bluechiip shares have moved sideways, resulting in a 2% loss for the period. However, its shares have gained around 13% this year to date.

Based on today’s price, Bluechiip has a market capitalisation of roughly $29.3 million, with approximately 597.9 million shares on issue.

The post Bluechiip (ASX:BCT) share price explodes 63% on Fujifilm deal appeared first on The Motley Fool Australia.

More reading

• Why is the ASX All Ordinaries lifting to a fresh 7-week high?
• GQG Partners (ASX:GQG) share price storms 6% higher after IPO
• BHP (ASX:BHP) share price lifts as Morgans tips 20% upside
• Macquarie (ASX:MQG) share price booted from $200 club after only one day
• Tempus Resources (ASX:TMR) share price leaps 6% on new gold discovery

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

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The All Ordinaries Index (ASX: XAO) is having a strong day so far on the ASX boards this Tuesday. At the time of writing, the All Ords is up a healthy 0.23% to 7,772 points. That’s the highest level the ASX’s oldest market index has been at since 8 September, a good 7 weeks ago.

While it’s still 1.5% or so from the all-time high of 7,902 points that we saw back in early September, today’s development will still no doubt be welcomed by most ASX investors.

So what’s been pushing the All Ords up to this new 7-week high?

All ordinary companies? The All Ords in focus

To understand that, let’s break down how the All Ords is constructed.

Like most market indexes, the All Ordinaries is weighted by market capitalisation. That means the largest companies by market cap get the largest weighting and influence in the index. Unlike the S&P/ASX 200 Index (ASX: XJO), which covers the largest 200 companies on the ASX, the All Ords extends to the largest 500 companies.

That means that the biggest ASX companies get slightly less weighting in the All Ords than they do in the ASX 200. But there’s not a lot of difference in practice. As such, the All Ords is still very much dominated by the largest 10 companies on the ASX.

According to the index’s provider S&P Global, those 10 companies are presently (as of 30 September) the following:

1. Commonwealth Bank of Australia (ASX: CBA)
2. CSL Limited (ASX: CSL)
3. BHP Group Ltd (ASX: BHP)
4. Westpac Banking Corp (ASX: WBC)
5. National Australia Bank Ltd (ASX: NAB)
6. Australia and New Zealand Banking Group Ltd (ASX: ANZ)
7. Macquarie Group Ltd (ASX: MQG)
8. Wesfarmers Ltd (ASX: WES)
9. Woolworths Group Ltd (ASX: WOW)
10. Telstra Corporation Ltd (ASX: TLS)

Together, these 10 companies constitute 38% of the All Ords’ weighting (for the ASX 200, it’s 44.3%). Commonwealth Bank alone accounts for 7.8% of the All Ords right now (8.9% in the ASX 200). As such, we can say that wherever these 10 companies go, the All Ordinaries is probably going to follow.

So, let’s see how they’ve performed over the past month. CBA shares have gained a healthy 0.94% since 27 September. CSL has lost around 3.04%. BHP has managed to eke out a 1.46% gain. Westpac, NAB 0.73% and ANZ are up by 1.65%, 4.84% and 2.48% respectively.

Meanwhile, Macquarie Group is up a solid 10.51%, with Wesfarmers gaining a more muted 1.27%. Woolworths has managed a 4.15% gain which is almost exactly mirrored by Telstra’s 4.02% loss.

Looking at these numbers, it seems we have the ASX banks, Macquarie and Woolworths to mostly thank for the All Ords’ new 7-week high today.

The post Why is the ASX All Ordinaries lifting to a fresh 7-week high? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Crown and Pilbara Minerals surge higher
• 5 things to watch on the ASX 200 on Tuesday
• Can the All Ords hit 8,000 points by the end of the year?
• Here are the top 10 ASX shares today
• How do ASX share prices typically perform in November?

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited and Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited, Telstra Corporation Limited, 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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The GQG Partners Inc. (ASX: GQG) share price has commenced trade on the Australian share market today after completing its highly anticipated initial public offering (IPO).

The good news for investors that took part in the IPO, is that the fund manager’s shares have started very strongly.

At the time of writing, the GQG Partners share price is fetching $2.13. This is 6.5% higher than its listing price of $2.00 per share.

What is GQG Partners?

GQG Partners is a global boutique asset management firm with a focus on active equity portfolios.

It was founded by Executive Chairman and CIO Rajiv Jain and CEO Tim Carver in 2016 and is now managing a total of US$85.8 billion across its investment strategies. The company counts many of the largest pension funds, sovereign funds, wealth management firms, and global financial institutions as clients.

GQG Partners raised approximately $1.2 billion at a price of $2.00 per share from its IPO giving it a market capitalisation of $5.91 billion. The offer price was the bottom end of its IPO price range of $2.00 to $2.20 per share.

Judging by the GQG Partners share price performance this afternoon, it seems that investors saw this as good value and have been picking up shares today.

Furthermore, based on the current GQG Partners share price, the fund manager’s market capitalisation has now increased to $6.3 billion. This brings it a step closer to matching rival Magellan Financial Group Ltd (ASX: MFG), which has a ~$6.6 billion market capitalisation.

The GQG strategy

Mr Jain has previously commented on the GQG strategy.

He explained: “Our goal is quite simple: to compound our clients’ capital over time. To do this, we need to protect assets in difficult markets and participate in rising markets. We have developed an investment approach that strives to do just that, based on a lens we call Forward Looking Quality. This concept ignores the traditional investment constraints associated with growth and value and instead focuses on investing in companies that we believe are going to be successful over the next 5 years and beyond.”

This strategy has worked very well and generated strong returns since 2016. Shareholders will be hoping for more of the same over the next five years.

The post GQG Partners (ASX:GQG) share price storms 6% higher after IPO appeared first on The Motley Fool Australia.

More reading

• GQG Partners (ASX:GQG) share price on watch amid highly anticipated IPO

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 BHP Group Ltd (ASX: BHP) share price is rising on Tuesday.

In early afternoon trade, the mining giant’s shares are up over 1% to $38.36.

Why is the BHP share price rising?

Today’s gain appears to have been driven by a reasonably positive night for a number of key commodities. This led to the Big Australian’s London and US listed shares rising during overnight trade.

In addition to this, some investors may be sensing an opportunity following a recent broker note out of Morgans.

According to the note, the broker has upgraded the company’s shares to an add rating with an improved price target of $46.05.

Based on the current BHP share price, this implies potential upside of 20% for its shares before dividends. This increases to 30% if you include the ~$3.95 per share fully franked dividend the broker is forecasting in FY 2022.

Why is Morgans bullish?

The broker is bullish on BHP’s shares due to their valuation. Its analysts believe recent weakness has created a buying opportunity for investors.

Morgans commented: “Our cautious view on iron ore remains, but the relative value on offer in BHP has grown as: 1) BHP’s share price has fallen (now implying a US$61/t iron ore price), 2) the value of the petroleum demerger has grown with WPL’s share price outperformance (the guided 52/48 WPL/BHP merger split suggests the value attributed to BHP has grown US$3.8bn), and 3) BHP’s robust dividend profile of +10% at the current share price. With these factors in mind, and BHP now trading at a sizable discount to our target price, we upgrade our rating to Add (from Hold).”

All in all, this could make BHP’s shares worth considering if you’re looking for exposure to the resources sector.

The post BHP (ASX:BHP) share price lifts as Morgans tips 20% upside appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 2 blue chip ASX dividend shares rated as buys
• BHP (ASX:BHP) share price lifts as iron ore prices rebound on Monday
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week

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 Macquarie Group Ltd (ASX: MQG) share price has slumped today, handing back the gains that saw it achieve a major, and relatively rare, milestone this week.

Just yesterday, the Macquarie share price gained 0.7% to reach a new all-time high of $202.50, breaking the $200 barrier for the first time.

By soaring beyond the substantial price point, Macquarie became the third ASX-listed stock to trade at more than $200 apiece.

Right now, only shares in Cochlear Limited (ASX: COH) and CSL Limited (ASX: CSL) trade at more than $200 apiece. They are currently going for $223.44 and $296.88 respectively.

Unfortunately, Macquarie’s stint in the $200 club was short-lived. At the time of writing, the Macquarie share price is $199.78, 0.34% lower than its previous close.

Let’s take a closer look at how Macquarie has been performing on the ASX lately.

Macquarie share price slips below $200 once more

It likely goes without saying the Macquarie share price has been on a roll lately.

Macquarie is a global financial services group. It’s made up of several segments including banking, wealth management, commodity trading, and principal investments.

The company’s stock has been soaring on the ASX this month. Macquarie’s shares are currently trading for 9.7% more than they were at the end of September.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 1.7% in that time. The S&P/ASX 200 Financials Index (ASX: XFJ) has performed slightly better, gaining 1.9% this month so far.

Macquarie’s strong performance comes despite the company not releasing any price-sensitive news to the market.

However, as the Motley Fool Australia recently reported, Morgan Stanley analysts retained their overweight rating and $240 target on the Macquarie share price last week.  

They stated the financial services company’s green credentials will likely see it with higher revenues as demand for climate-conscious investing increases.

The post Macquarie (ASX:MQG) share price booted from $200 club after only one day appeared first on The Motley Fool Australia.

More reading

• Macquarie (ASX:MQG) share price breaks $200 mark for first time ever, sets new record high
• Brokers name 3 ASX shares to buy today
• ASX 200 (ASX:XJO) midday update: BHP and Rio Tinto fall, Qantas higher
• Aurizon (ASX:AZJ) share price rises amid transformative $2.35bn acquisition
• Another day, another all-time high for the Macquarie (ASX:MQG) share price

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 shares of and has recommended CSL Ltd. and Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Cochlear 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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