The Oil Search Ltd (ASX: OSH) share price is lifting from the market open, currently trading 0.67% higher at $4.51.

Oil Search’s shares are on the move this morning amid the release of its quarterly update for the period ended 30 September 2021.

Here are the details out of the oil and gas producer’s camp today.

Oil Search share price lifts amid quarterly results

The company outlined its progress for the quarter, including several investment takeouts. Here are the highlights:

• Full year production guidance narrowing from 25.5-28.5Mmboe to 26-28Mmboe
• Forecast full year investment expenditure of US$185-$275 million, down from estimates of US$250-$350 million
• Q3 production came in at 6.89Mmboe, a 4.6% quarter on quarter growth
• Sales volume up 2.1% from the previous quarter with 6.84Mmboe in Q3
• Operating revenue growth of 12% from the quarter prior at US$408.8 million
• Maintains full year production cost per barrel-of-oil equivalent of US$10.50 to US$11.50.

What happened in the third quarter for Oil Search?

Oil Search realised a healthy quarter of sales and operating revenue growth, supported by a strong commodity base.

Operating revenue for Q3 came in 12% higher than the previous quarter at US$409 million. This was propped up by an approximate 5% jump in total production to 6.89MMboe.

The company also saw a higher LNG and gas price on its sales this quarter, with pricing coming in 16% higher to US$10.02/mmBtu.

Oil Search also reported “good progress across all major growth projects”, particularly the ramp-up of its Papua LNG project’s activities “as operator targets FEED entry in 2022”.

The company’s update also notes Oil Search’s Pikka Phase 1 FEED technical work and assurance is nearing completion.

Perhaps the most important takeout in Oil Search’s growth engine is the progress being made with the Santos Ltd (ASX: STO) merger to form an oil and gas superpower.

Both parties signed a Merger Implementation Deed in early September after a period of extensive due diligence and what seemed like a game of deal-based ping pong throughout the year.

What’s the outlook for Oil Search?

The company also narrowed its guidance range for full-year production, now seeing a range of 26-28Mmboe, down from 25.5-28.5Mmboe.

In addition, Oil Search lowered its full-year investment expenditure guidance this quarter.

This is due to limited contractor mobility into PNG as a result of COVID-19 and reduced capital budgeting on the company’s Pikka project.

It now sees full-year investment expenditure of US$185 million to US$275 million, a roughly 24% decrease from its previous guidance range of US$250 million to US$350 million.

With respect to the Santos merger, the next step will be a first court hearing in PNG after which the documents related to the scheme will be distributed to shareholders.

What did management say?

Speaking on the announcement, Oil Search acting CEO Peter Fredricson said:

Oil Search delivered another strong quarter of production, which was up 5% on the previous quarter, demonstrating the resilience of our operations and sustained commitment to the safety of our people and maintaining safe and reliable production.

Regarding the company’s outlook into the full year and beyond, Fredricson added:

Our outlook for the 2021 full year remains positive as we tighten our production guidance and maintain our operating cost guidance despite the additional costs associated with the management of the impact of COVID-19. Both LNG and oil markets remain strong, with spot LNG markets continuing to exhibit high volatility and record highs which is a supportive environment for market soundings in respect of new medium-and-longer term LNG sales contracts.

The Oil Search share price has posted a return of 53% in the past 12 months, after rallying another 21% this year to date.

The post Oil Search (ASX:OSH) share price up amid tighter production forecast appeared first on The Motley Fool Australia.

More reading

• Broker note sends Oil Search (ASX:OSH) share price charging higher
• Big banks’ forecast could mean extended tailwinds for ASX 200 energy shares
• ASX 200 energy shares take a breather, broker sees “lot of upside risk” for oil
• 5 things to watch on the ASX 200 on Thursday
• This leading fund manager thinks these ASX shares might be buys

The author Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/3BfAkFp

The Ampol Ltd (ASX: ALD) share price is on the move on Tuesday.

At the time of writing, the fuel retailer’s shares are up 1% to $31.53.

What’s driving the Ampol share price higher?

Investors have been bidding the Ampol share price higher today following the release of its third quarter update.

According to the release, the company delivered strong profit growth during the quarter despite battling lockdowns in New South Wales and Victoria.

Ampol reported unaudited Fuels & Infrastructure (F&I) earnings before interest and tax (EBIT) of $83 million. This was up from a loss before interest and tax of $19 million a year earlier and was driven by an improved performance by the Lytton refinery business.

Lytton Refinery RCOP EBIT came in at $22 million. This reflects the continued improvement in the Singapore Weighted Average Margin. The Lytton Refiner Margin (LRM) for the quarter was US$6.76/bbl, up from US$5.90/bbl during the first half. Total production for the quarter was 1,565 ML compared with nil in the third quarter last year.

Things weren’t quite as positive for the Convenience Retail (CR) business, which reported a 62% decline in EBIT to $33 million. This reflects the New South Wales and Victorian lockdowns, with fuel volumes down 16% compared with the same time last year.

Nevertheless, Ampol ultimately reported a 76% increase in unaudited third quarter EBIT to $102 million.

Management commentary

Ampol’s Managing Director and CEO, Matt Halliday, said: “The third quarter was a challenging period for many businesses and Ampol was no exception. In the face of extended lockdowns on the East Coast our business and our people responded, focusing on the safety of our team members and customers and cost control.”

Mr Halliday appears optimistic that the end of lockdowns will boost its performance.

He commented: “The recent announcements from the New South Wales and Victorian State governments to lift COVID restrictions linked to higher vaccination rates is encouraging. While we do expect volumes to begin to recover as consumer mobility increases, crude and refined product prices have continued to trend higher in recent weeks. This will benefit Lytton’s profitability but will temper retail margins in the short term.”

“Additionally, the reopening of domestic and international borders will be positive for jet demand. While it will take a little time to assess the strength of the recovery, we are optimistic about entering 2022 with improved momentum as restrictions are progressively eased,” the CEO concluded.

The Ampol share price is up 11% in 2021.

The post Ampol (ASX:ALD) share price higher following Q3 update appeared first on The Motley Fool Australia.

More reading

• What this top broker is saying about the Ampol (ASX:ALD) share price
• Why Ampol, Fortescue, IAG, & Perenti shares are charging higher
• Ampol (ASX:ALD) share price zooms higher on NZ$2.8bn Z Energy acquisition
• Z Energy (ASX:ZEL) share price leaps 6% on Ampol takeover news
• Ampol (ASX:AMP) share price on watch after Z Energy takeover agreement

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.

from The Motley Fool Australia https://ift.tt/3pCeauP

It was a historic moment overnight in the United States, as the Tesla Inc (NASDAQ: TSLA) stock price sailed across the US$1,000 mark. In the process, the electric vehicle (EV) maker has eclipsed the illustrious trillion-dollar club market capitalisation.

Following a deluge of broker updates and positive catalysts, Tesla is now a part of a distinguished group that is limited to a select few. The EV company joins the likes of other trillion-dollar companies including Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), and Amazon.com Inc (NASDAQ: AMZN).

Let’s take a look at what might have helped get Tesla fly past the trillion-dollar checkered flag.

Hertz so good

A contributing factor to the Tesla euphoria expressed overnight is Hertz move to make an initial order of 100,000 Teslas by the end of 2022. The car rental company shared the news in a press release last night — revealing its ambitions to offer the largest EV rental fleet in the United States, and one of the largest in the world. The choice to go with a Tesla fleet over other EV alternatives likely assisted the Tesla stock price overnight.

Commenting on this decision, Hertz interim CEO Mark Fields stated:

Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest. The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world.

According to the release, by early November customers will be able to rent a Tesla Model 3 from Hertz. These will be made available across Hertz airport and neighbourhood locations in major markets across the US and some European cities.

The Hertz fleet will be comprised of more than 20% of EVs based on the initial 100,000 vehicle order. Additionally, Hertz 100,000 order will go a long way towards helping Tesla surpass 1 million vehicle deliveries in 2022.

Analysts lifting Tesla stock price targets

The Tesla share price ascension accelerated following the release of its third-quarter results. These results beat both revenue and earnings expectations.

In Q3, the company achieved US$13.76 billion in revenue and US$1.86 of earnings per share (EPS). This represented an increase of 57% and 145% respectively year-over-year. Hence, a handful of analysts had to go back to the drawing board and revise their Tesla stock price targets.

For instance, analysts at Morgan Stanley have now revised their price target to US$1,200. That is an upgrade of US$300 from the analysts’ prior target of US$900.

Likewise, analysts at Wedbush refined their target to US$1,100 from US$1,000. The team of Dan Ives and John Katsingris anticipate a “green tidal wave” for 2022.

Finally, the Tesla share price is up more than 143% over the past 12 months. Whereas, the S&P 500 Index is up 34.3% during the same timeframe.

The post Tesla stock price rally places it in the trillion-dollar club appeared first on The Motley Fool Australia.

More reading

• Why Tesla stock jumped on Thursday
• EV stocks may not be as infallible as you think
• Tesla (NASDAQ:TSLA) breaks record for cars delivered in September quarter
• This Aussie fund manager values Tesla (NASDAQ:TSLA) share price at over US$3,000
• Top 5 global shares held by Aussie investors in Q3 revealed: eToro

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler owns shares of Apple and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon, Apple, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3maa4b4

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 

Shares of Nvidia (NASDAQ: NVDA) rose 2% on Monday following bullish analyst commentary.

So what 

Piper Sandler analyst Harsh Kumar reiterated his overweight rating on Nvidia’s stock. He now expects the semiconductor titan’s share price to jump more than 12% to $260.

Kumar sees a major overhang on Nvidia’s shares abating as Bitcoin (CRYPTO: BTC) mining’s impact on its business lessens in the coming quarters. He believes more of the company’s graphics processing units (GPUs) could be made available for its key gaming customers ahead of the all-important holiday shopping season. This, in turn, could bolster Nvidia’s market share in this prized segment.

It would also likely dampen the volatility in Nvidia’s GPU sales that often accompany Bitcoin’s wild price swings, which investors would no doubt welcome.

Now what

It can be difficult to identify which market its GPUs are being purchased for since most customers don’t specify why they’re buying its chips. However, investors tend to value Nvidia’s gaming-related sales more highly than its crypto-based revenue. The market sees the tech giant’s gaming business as more durable and dependable than its sales to crypto miners, which have been known to rapidly reduce purchases when cryptocurrency prices fall.

This unpredictability of crypto sales has weighed on Nvidia’s profits — and, in turn, its share price — in the past, particularly when mining-related sales plunged. So, if this volatility was to be reduced, investors might be willing to pay a higher price for Nvidia’s stock.

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

The post Why Nvidia stock climbed on Monday appeared first on The Motley Fool Australia.

More reading

• Tesla stock price rally places it in the trillion-dollar club
• Here’s why the 90-year old CBA (ASX:CBA) school banking program is no longer
• GQG Partners (ASX:GQG) share price on watch amid highly anticipated IPO
• 2 ASX shares to boom from new shopping habits: experts
• Broker gives its verdict on the Telstra (ASX:TLS) share price following Digicel acquisition

Joe Tenebruso 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 Bitcoin and Nvidia. The Motley Fool Australia has recommended Nvidia. 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.

from The Motley Fool Australia https://ift.tt/3mfKt0y

The Commonwealth Bank of Australia (ASX: CBA) school banking program is set to wrap up at the end of 2021. The popular scheme has helped children take their first steps in learning about money and reinforced the importance of saving.

However, the Australian Securities and Investments Commission (ASIC) and some state and territory governments have decided to disconnect from the program.

Despite the negative news released on Sunday, CBA shares ended yesterday’s market session 0.55% higher to $105.46.

CBA moves youth financial education online

While losing key support to continue running its national program in schools, CBA will transition its educational tools to an online platform. This will provide teachers and parents with information about youth banking solutions and financial resources.

Established in 1931, CBA’s school banking program has connected with 15 million children across 1,450 schools in Australia.

A 2-year review conducted by ASIC concluded the scheme did little to help children improve their financial behaviour. The report noted that CBA’s program was nothing more than a ploy to gain new customers by using sophisticated advertising tactics.

As such, the New South Wales, Victorian, ACT, and Queensland governments have discontinued school banking programs.

CBA refuted the decision and indicated its own research went against the ASIC findings. It stated its research shows 95% of parents with a child believe it’s vital for kids to learn about money.

Nonetheless, CBA is set to pull the plug on the scheme at the end of the current school year. All educational resources are now available for teachers and parents in the new CommBank Youth Hub.

CBA group executive retail banking services Angus Sullivan commented:

For some time, we have been working with a range of experts to evolve our approach to financial education, and will have exciting new tools available to families in 2022 to empower parents and further support young people’s financial wellbeing in a digital world.

We continue to believe that financial capability is a critical part of every Australian child’s education and we will continue to work with teachers and parents to support them in this endeavour, now and into the future, both in the home and the classroom, as appropriate.

CBA share price snapshot

It has been a solid 12 months for CBA shares, rising by 51% despite moving in circles since mid-June. However, when looking at year to date, the company’s shares have travelled close to 30% higher.

Based on today’s price, CBA commands a market capitalisation of roughly $179.96 billion and has approximately 1.7 billion shares outstanding.

The post Here’s why the 90-year old CBA (ASX:CBA) school banking program is no longer appeared first on The Motley Fool Australia.

More reading

• Is the CBA (ASX:CBA) share price a great deal right now?
• Own Afterpay (ASX:APT) shares? Here’s how the big banks are honing in on the BNPL sector
• What’s happening with the CBA (ASX:CBA) share price this week?
• Top broker tips CBA (ASX:CBA) share price slide to $80
• CBA (ASX:CBA) share price gains amid ‘smart’ new payments launch

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.

from The Motley Fool Australia https://ift.tt/2Zxthe9

The GQG Partners Inc. (ASX: GQG) share price will be one to watch closely on Tuesday.

At 12:30pm today. the fund manager’s shares will hit the ASX boards following one of the most highly anticipated initial public offerings (IPO) of the year.

The GQG Partners IPO

GQG Partners’ shares will begin trading today after the company raised approximately $1.2 billion at a price of $2.00 per share via its IPO. The latter was at the low end of its IPO price range of $2.00 to $2.20 per share.

This gives the fund manager a market capitalisation of $5.91 billion, which is just a touch short of rival Magellan Financial Group Ltd (ASX: MFG) and its ~$6.6 billion market capitalisation.

It also means that upon listing, the company’s shares will be trading on a pro forma distributable earnings per share multiple of 16.5x and a forecast dividend yield of 5%.

What is GQG Partners?

GQG Partners is global boutique asset management firm with a focus on active equity portfolios. It was established in 2016 by Executive Chairman and CIO Rajiv Jain and CEO Tim Carver. The former is the company’s largest shareholder with a total of 2,030,616,054 shares. This equates to a 68.8% stake.

At the end of September, the company was managing a total of US$85.8 billion across its investment strategies. Among its clients are many of the largest pension funds, sovereign funds, wealth management firms, and other global financial institutions.

The company notes that since its founding in 2016 and through to the end of June, the company has achieved strong risk-adjusted returns in its categories for four primary investment strategies compared to peers and benchmarks over the same period.

This strong performance has allowed the company to build a client base with many prominent institutions and important wholesale platforms, leading to significant funds under management (FUM) growth.

Shareholders will no doubt be hoping this strong form continues as a listed company.

The post GQG Partners (ASX:GQG) share price on watch after highly anticipated IPO appeared first on The Motley Fool Australia.

More reading

• Can the All Ords hit 8,000 points by the end of the year?
• Sydney Airport (ASX: SYD) share price slips amid ACCC’s latest findings

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.

from The Motley Fool Australia https://ift.tt/3GinCcJ

As the nation’s 2 largest cities burst out of long lockdowns, evidence is emerging that the COVID-19 pandemic has altered the shopping behaviour of Australians.

Many Australians are now more at ease with ordering goods online, and this adoption may stick around long after the coronavirus is out of the headlines.

At the same time, pent-up demand has seen strong physical patronage for some sectors, such as hairdressing and department stores.

So how can ASX investors take advantage of this?

Fortunately for The Motley Fool readers, a pair of experts have nominated a pair of shares they would buy right now:

All those packages have to start somewhere

Industrial real estate provider Goodman Group (ASX: GMG) has seen its shares rise nearly 17% so far this year.

According to Bell Potter Securities advisor John Anderson, Goodman has more than $5 billion of work in progress. 

“We view Goodman as a core portfolio holding,” he told The Bull.

“The long term outlook for industrial and logistics properties is favourable given the continuing growth in e-commerce and a growing middle class in developing countries.”

The warehousing business is looking strong, with Goodman boasting US behemoth Amazon.com, Inc. (NASDAQ: AMZN) as one of its major clients.

Earlier this month, fund managers at Citi also indicated their bullish sentiment about Goodman.

“Its analysts currently have a buy rating and $26.00 price target on the company’s shares,” reported The Motley Fool’s James Mickelboro.

Australians are heading back to the shops

Meanwhile Burman Invest chief investment officer Julia Lee likes the look of department store chain Harvey Norman Holdings Limited (ASX: HVN).

“A strong residential market and savings should drive home goods and furniture sales as New South Wales and Victoria emerge from lockdowns.”

Harvey Norman shares have lost about 15% over the past couple of months. It’s now up just 3.8% for the year.

“Re-opening retail stores should underpin a brighter outlook and an improving share price,” said Lee.

“Success in offshore expansion is another potential growth lever for the share price.”

Lee is not the only one optimistic about the Australian retailer. Five out of 8 analysts rate the ASX share as a “strong buy”, according to CMC Markets.

The post 2 ASX shares to boom from new shopping habits: experts appeared first on The Motley Fool Australia.

More reading

• Why Harvey Norman, IAG, Pendal, and Treasury Wine are dropping
• 5 things to watch on the ASX 200 on Friday
• 3 buy-rated blue chip ASX shares
• These 7 ASX shares are going ex-dividend this week
• Top broker upgrades the Super Retail (ASX:SUL) share price to buy

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns shares of Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia owns shares of and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2Zfsiil

The Telstra Corporation Ltd (ASX: TLS) share price was on form on Monday.

The telco giant’s shares rose 2% to $3.81 after announcing the acquisition of Digicel Pacific for US$1.6 billion in partnership with the Australian Government.

This means the Telstra share price is now up almost 27% in 2021.

Where next for the Telstra share price?

Positively for shareholders, the Telstra share price could still push higher from here.

According to a note out of Goldman Sachs this morning, the broker has retained its buy rating and $4.40 price target on the company’s shares.

Based on the current Telstra share price, this suggests that there’s still 15.5% upside ahead for investors. And with Goldman expecting another fully franked 16 cents per share dividend in FY 2022, this brings the total potential return to approximately 20%.

What did the broker say?

Goldman appears happy with Telstra’s acquisition of Digicel Pacific. And while it doesn’t expect the deal to have a material impact on the company’s earnings, it appears to see it as a low risk boost to its financial performance.

Goldman notes: “As part of this structure, TLS is entitled to receive a preferred return of US$45mn p.a. for 6 years (17% ROE) with significant risk mitigants in place (FX, political, operational risk etc.). Management notes that the transaction meets all of Telstra’s M&A criteria including: i) EPS/FCF accretion, ii) generates ROIC > WACC; and iii) is superior for shareholders vs. a buyback, while also being iv) incrementally positive to the companies’ FY22/25E targets.”

“Although the proposed transaction would have a relatively small contribution to Telstra (4% of FY21 PF underlying EBITDA), we note that: 1) the transaction has significant risk mitigants; 2) is within Telstra’s core competency; and 3) is FCF/EPS accretive according to management,” it concludes.

The post Broker gives its verdict on the Telstra (ASX:TLS) share price following Digicel acquisition appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• These 3 ASX 200 shares are topping the volume charts this Monday
• Why Beach, Mineral Resources, Origin, and Telstra are storming higher
• ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps
• Telstra (ASX:TLS) share price higher following Digicel Pacific acquisition news

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of 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.

from The Motley Fool Australia https://ift.tt/3GnVLb5

Are you looking for dividend shares to buy? If you are, then you may want to look at the two blue chips listed below.

Here’s why these dividend shares could be in the buy zone:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is BHP. This mining giant’s shares have come under significant pressure since the middle of August. This has of course been driven by a sharp pullback in the iron ore price.

While the is disappointing for shareholders, it could be a buying opportunity for non-shareholders. This is because the iron ore price is still at a level that generates significant free cash flow for BHP. In addition, the prices of other commodities have been rising, offsetting some of iron ore’s decline.

So much so, the team at Morgans still believe BHP will be able to pay a very generous dividend again in FY 2022. Its analysts are forecasting a dividend of $3.95 per share this financial year. Based on the current BHP share price of $37.93, this will mean a yield of 10.4% for investors.

Morgans has an add rating and $46.05 price target on the miner’s shares.

Coles Group Ltd (ASX: COL)

Another blue chip ASX dividend share that Morgans is positive on is Coles.

It likes the supermarket giant due to its strong market position, attractive valuation compared to rival Woolworths Group Ltd (ASX: WOW), and its attractive dividend yield.

In respect to the latter, the broker is forecasting a fully franked 61 cents per share dividend in FY 2022. Based on the current Coles share price of $17.83, this will mean a yield of 3.4% for investors.

Morgans has an add rating and $19.80 price target on its shares.

The post 2 blue chip ASX dividend shares rated as buys appeared first on The Motley Fool Australia.

More reading

• 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
• Why is the Woolworths (ASX:WOW) share price underperforming Coles lately?
• Is Coles (ASX:COL) a must-buy dividend share for income investors?

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

from The Motley Fool Australia https://ift.tt/3EjZSmF

The old adage goes, you should buy ASX shares when they’re cheap, not when prices have already risen.

But how can you tell whether a stock is currently cheap because it’s underappreciated by investors, or if it genuinely represents a dud business?

Fortunately, there are professionals who evaluate that question for a living.

Here are 2 pummelled ASX shares that Stock Doctor analysts have picked that they believe are tempting buys at the moment:

Taliban’s takeover of Afghanistan was a headache for this stock

Shares for metal detection and communications equipment provider Codan Limited (ASX: CDA) have plunged more than 26% since its results announcement on 19 August.

Revenue and profits were up in the 2021 financial year, but the presentation also revealed chief executive Donald McGurk would retire within a few months.

The company also had military customers that were working in Afghanistan.

“The withdrawal of [US] troops from Afghanistan represents a marginal headwind to the communications segment,” analyst Jacob Simonsen told a Stock Doctor video.

“Despite this, we believe the share price weakness represents some opportunity, with earnings expected to grow by nearly 20% this year.”

Codan will hold its annual general meeting on Wednesday, where more information may come that might send its stocks one way or another.

Can one person justify a 22% drop in share price?

Shareholders for software company Infomedia Limited (ASX: IFM) have watched in horror as almost 22% has been wiped off the value in just the last 2 weeks.

On 18 October alone the shares lost 14% after chief executive and managing director Jonathan Rubinsztein quit.

Stock Doctor head of research Kien Trinh said the low liquidity for shares has also contributed to jerky price movements.

“The sudden resignation has led to share price volatility, but the company has reaffirmed its earnings guidance for the full year, with revenue expected to rise by about 23%,” said Stock Doctor head of research Kien Trinh.

“We remain optimistic about the business with earnings expected to remain intact for now, so possibly another opportunity for investors.”

Infomedia makes cloud software for clients in the automotive parts and services industry. Its annual general meeting is coming up on 25 November.

The post 2 ASX shares having a shocker that could be bargain buys right now appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Which ASX 300 shares are the major movers today?
• Why Audinate, Home Co Daily Needs, Infomedia, and Temple & Webster are falling
• Infomedia (ASX:IFM) share price sinks 14% on shock resignation
• 2 small cap ASX shares with a lot of potential

Motley Fool contributor Tony Yoo 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 Infomedia. The Motley Fool Australia has recommended Infomedia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3jDh7HH