The Qantas Airways Limited (ASX: QAN) share price is in the green on Friday morning, trading 3.94% higher to $5.80.

This morning, the national carrier announced it had agreed to sell its surplus land in Mascot, New South Wales to strengthen its balance sheet and pay down debt.

What did Qantas announce?

The Qantas share price is gaining after the airline entered into a binding agreement with a consortium led by LOGOS Property Group, one of Asia Pacific’s leading logistics property groups.

LOGOS will be acquiring 13.8 hectares of land in Mascot for $802 million.

The transaction is subject to some unspecified conditions. However, the vast majority of the lots is expected to settle in the first half of this financial year.

Qantas said it will provide further details on the expected financial benefit of the sale in its half-year results in February 2022.

In addition, Qantas advised it has entered into discussions with LOGOS about potential future development options on the land they are acquiring.

Qantas expects the evaluation of these proposals to be completed in early 2022, with the potential to raise the total value of today’s deal to more than $1 billion.

According to the release, the sale of the largely underdeveloped land follows a three-month period of expressions of interest. During this time, Qantas received 18 bids from a range of Australian and international syndicates.

Qantas ultimately decided “there is no long-term need for Qantas to develop the land, which is largely surplus to its operations”.

The proceeds from the sale will be used to pay off debt.

Management commentary

CEO Alan Joyce commented on the transaction possibly fuelling the Qantas share price today:

We went into this process open-minded about whether we’d sell some, all, or none of this land depending on the response from the market. That response was extremely strong and it has resulted in the sale of all the land.

We’ll use these funds to help pay down debt that we’ve built up during the pandemic. The strength of this sale and its impact on our balance sheet means we can get back to investing in core parts of our business sooner.

Joyce said Qantas could work with LOGOS for additional redevelopment plans.

Beyond the deal we’re announcing today, there’s potential for us to work with LOGOS on creating a Qantas Precinct as part of their redevelopment plans for the site. It could see a new headquarters combined with a relocated training centre and distribution hub, right next to the airport, rather than being spread across different parts of Mascot as they are now.

Qantas share price nears 20-month highs

Qantas and the broader travel industry were quick to re-rate amid hopes international borders could reopen as soon as November.

The Qantas share price is up 30% since late August, trading at similar levels as early March 2020.

The post Qantas (ASX:QAN) share price rises after $800 million land sale agreement appeared first on The Motley Fool Australia.

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• NSW cash splash, business confidence up, Qantas (ASX:QAN) down on Bonza news. Scott Phillips on Nine’s Late News
• Qantas (ASX:QAN) share price lifts despite Clive Palmer sell-off
• Qantas (ASX:QAN) share price falls amid new budget airline competition
• Will the Qantas (ASX:QAN) share price follow Ryanair’s surge on reopening?

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. 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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It certainly has been a disappointing year for the A2 Milk Company Ltd (ASX: A2M) share price.

Despite a strong rally this week, the infant formula company’s shares are down 41% in 2021 at $6.86.

Could the A2 Milk share price reach $8.00 by the end of the year?

One leading broker that believes the A2 Milk share price weakness in 2021 is a buying opportunity is Bell Potter.

According to a recent note, the broker has retained its buy rating and $7.70 price target on the company’s shares.

Based on the current A2 Milk share price, this implies potential upside of 12% for investors.

What did the broker say?

Bell Potter has been looking at recent industry and export data and appears optimistic that things are improving in the infant formula market.

Commenting on Australia-China exports, which are a Daigou proxy, the broker said: “Industry volumes rose +5% YOY in Aug’21, the second positive YOY outcome in the past four months. Volumes have been volatile in recent months, but in general terms are demonstrating signs of picking up from the lows seen in 2Q-3Q20. On a R3M basis, volumes are up +42% from the Jan’21 low.”

In addition to this, the broker felt that the A2 Milk share price was trading at an undemanding level. And while it has since rallied this week following a positive update from smaller rival Bubs Australia Ltd (ASX: BUB), Bell Potter is likely to still feel the same way given the potential upside on offer.

It commented: “There is no change to our Buy rating, earnings forecasts or A$7.70ps target price. In recent months we have seen a bottoming in trade flows into China and closer alignment of trade flows into and out of Australia. Trading at 14.3x FY22e EBITDA exMVM/US losses we don’t see A2M as particularly demanding relative to other China facing FMCG entities.”

All in all, the broker appears to see potential for the A2 Milk share price to be trading close to $8.00 at the end of the year. A strong update at its investor event later this month or AGM next month could play a key role in that.

The post Could the A2 Milk (ASX:A2M) share price hit $8 by the end of 2021? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Thursday
• Why A2 Milk, HUB24, Netwealth & Perseus shares are storming higher
• Why is the A2 Milk (ASX:A2M) share price leaping again today?
• ASX 200 (ASX:XJO) midday update: HUB24 & Netwealth impress, A2 Milk surges again
• Why did the A2 Milk (ASX:A2M) share price have such a great FY22 first quarter?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. 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 Insurance Australia Group Ltd (ASX: IAG) share price is in the spotlight this morning as the Australian Securities and Investments Commission (ASIC) takes the company’s subsidiary to court.

ASIC has launched civil proceedings against Insurance Australia Limited, owned by IAG, in the Federal Court.

The watchdog alleges Insurance Australia Limited misled customers by applying discounts while simultaneously upping premiums. It is alleged NRMA customers missed out on more than $60 million worth of discounts.

As of Thursday’s close, the IAG share price is $5.08.

Let’s take a closer look at IAG’s latest legal battle.

ASIC launches legal action against IAG

ASIC claims Insurance Australia Limited increased the premiums of some NRMA customers while adding loyalty and ‘no claim bonus’ discounts. Thus, it ensured customers’ overall premiums didn’t fall below a set level.

The watchdog believes at least 596,000 NRMA Home, Motor, Caravan, and Boat Insurance customers were affected by the behaviour between March 2014 and September 2019.

IAG self-reported the seemingly deceptive behaviour to ASIC after a 2019 internal review identified it. The company is working to return a total of $377 million to affected customers. In a release to the ASX this morning, IAG stated:

IAG apologises for this failure, recognises the significance and that this was unacceptable, and is putting this right for its customers as soon as possible.

IAG is far from the only insurance company to be found not providing promised discounts. ASIC’s deputy chair, Sarah Court, commented:

This follows industry-wide failures that have led to insurers repaying more than $400 million to over 2 million home, car, and other insurance customers since 2018. All insurers should take urgent steps to ensure they can and do meet the pricing promises they make.

On top of NRMA, Insurance Australia Limited issues insurance through brands including CGU, RACV, and Coles Group Ltd (ASX: COL) Insurance.

IAG share price snapshot

Right now, the IAG share price is 7% higher than it was at the start of 2021. It has also gained 6% since this time last year.

The post IAG (ASX:IAG) share price on watch as ASIC launches legal action appeared first on The Motley Fool Australia.

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• IAG (ASX:IAG) share price lifts after Federal Court makes judgement
• 2 ASX 200 shares surging this week despite inflation worries

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET 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 Treasury Wine Estates Ltd (ASX: TWE) share price could be a mover on Friday after the company announced its first-quarter trading update for FY22.

Why the Treasury Wine share price is on watch

Treasury Wines flagged that trading channel conditions in the first quarter were slightly below expectations for a recovery.

The company pointed to segments such as wholesale in Asia and on-premise in the Americas as below expectations. It described these markets as “generally open, but with disruptions”.

The on-premise market in Australia and New Zealand was also below expectations. This segment was flagged as closed or significantly disrupted.

Despite the disruptions, Treasury Wine said its underlying divisional execution and overall trading performance was in line with expectations.

The company’s Penfolds segment experienced continued momentum in key growth markets, including Asia (excluding China).

Treasury Wine’s premium brands portfolio delivered an improvement in net sales revenue (NSR). This was underpinned by the introduction of new products in Australia and growing ahead of the market in the United Kingdom.

Treasury Americas continues to build momentum having made a number of changes to its business model and portfolio. The company advised that its Ten portfolio continues to outperform, growing 3% compared to a broader category decline of 5%.

Management commentary

Treasury Wine’s CEO Tim Ford was cautious in his commentary for FY22.

… the recovery of key luxury channels impacted by the pandemic are slightly behind the expectations we had at the beginning of the year.

This is particularly the case in the US where re-openings continued at a gradual pace, but with on-premise depletions growth slower than we had anticipated, and in Australia, where extended lockdowns in Sydney and Melbourne have resulted in the closure of the on-premise channel, delaying our execution plans outside of the large retailers, particularly for Penfolds. In Asia, significant disruptions to key luxury sales channels continue across large parts of the region.

Ford also flagged moderating sales growth across key sales channels.

… retail and e-commerce channels continue to perform strongly, albeit with moderating growth rates compared to the prior year where there were significant shifts in consumer purchasing behaviour.

Treasury Wine share price snapshot

The Treasury Wine share price has been trading sideways since early June, hovering around the low $12.00 level.

Despite the lack of recent traction, Treasury Wine shares are up 28.4% year-to-date, driven by a solid rally taking place between May through to August.

The post Treasury Wine (ASX:TWE) share price on watch after first-quarter update appeared first on The Motley Fool Australia.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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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All eyes are on the Australian share market for Friday after US markets posted large rises. This follows a strong start to the US earnings season. Investor sentiment was positive as third-quarter results flowed from companies such as Bank of America, Wells Fargo, Citi, Dominos, and Morgan Stanley.

It appears Australian shares will follow in tow, with S&P/ASX 200 Index (ASX: XJO) futures indicating a 0.55% move higher to 7366.9 points.

What happened overnight?

The S&P 500 quickly rose after opening overnight after a flurry of earnings reported on Wall Street. Investors were treated to the biggest rally in the US market since March as a number of earnings exceeded expectations.

For instance, financial services giant Wells Fargo & Co (NYSE: WFC) posted a 60% increase in profits, with revenue topping expectations. This was a commonality among many US companies that reported overnight, instilling optimism in the market. Consequently, optimism among investors has spilled over to ASX futures on Friday.

At the end of the US session, the S&P 500 finished 1.71% higher. Meanwhile, the Nasdaq Composite and Dow Jones Industrial Average climbed 1.73% and 1.56% respectively. Pulling these indexes higher were some of the bigger financial services companies in the United States. These included a 4.5% gain in Bank of America Corp (NYSE: BAC), a 2.5% rise in Morgan Stanley (NYSE: MS), and a 2.4% rally in Charles Schwab Corp (NYSE: SCHW).

Bank of America said Thursday its third-quarter earnings rose to $7.7 billion, or 85 cents a share, from $4.9 billion, or 51 cents a share, in the year-ago period. Revenue increased to $22.8 billion from $20.3 billion. https://t.co/mh9esD32jh pic.twitter.com/gjutPIDk4L

— MarketWatch (@MarketWatch) October 14, 2021

https://platform.twitter.com/widgets.js

Commenting on the performance overnight, Oanda senior market analyst Edward Moya said:

The banks painted a strong and healthy picture of the US consumer. Wall Street can’t turn negative on the economy after seeing reserve releases, moderating trading revenue, mixed loan growth, and a consumer willing to take on debt.

Meanwhile, ASX futures are pointing higher despite Rio Tinto Limited (ASX: RIO) cutting its iron ore production guidance on Friday morning. The mining giant shared this information in its quarterly update this morning.

Moving ASX futures today

Aussie energy shares will be in the spotlight again today as the price of oil continues to ascend. According to Bloomberg, the price of WTI crude oil per barrel is now US$81.36. As a result, companies such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be in focus.

On top of this, gold miners will likely have their fair share of attention today as the price of the precious commodity inched higher overnight. The spot gold price gained 0.2% to US$1,798.9 an ounce as inflation fears circle.

For the full list of what is ahead on Friday, check out our other article, summarising the ASX markets.

The post Here’s what the ASX futures are pointing towards today appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX shares today

Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Charles Schwab and Domino’s Pizza. 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 National Australia Bank Ltd (ASX: NAB) share price has been on form in 2021 and is up almost 25% year to date.

Despite this, one leading broker believes its shares still have room to climb higher.

Who is bullish on the NAB share price?

According to a note out of Goldman Sachs from last week, its analysts have retained their conviction buy rating and $30.62 price target on the bank’s shares.

Based on the current NAB share price of $28.58, this suggests that there is still 7.1% upside for investors.

And that isn’t including dividends. Goldman is forecasting a fully franked $1.40 per share dividend in FY 2022. This will mean a yield of 4.9%, which stretches the total potential return to 12% over the next 12 months.

What did the broker say?

The broker’s most recent note was in response to news that APRA is increasing bank loan serviceability expectations.

Positively, Goldman doesn’t expect these changes to have any meaningful impact on NAB or its peers.

It commented: “Overall, we are of the view that this increased serviceability buffer should have limited impact on housing credit growth, and we remain constructive on the banks, with four of the six listed retail banks on Buy (NAB (on CL), ANZ, WBC and BOQ). We also highlight our Buy on PPM, which has been explicitly excluded from the restrictions announced today.”

Why does Goldman like NAB?

Goldman has previously stated that it is bullish on the NAB share price due largely to its cost management initiatives.

It explained: “NAB’s cost management initiatives, which seem further progressed relative to most of its peers, should drive productivity benefits sooner and free up investment spend to be directed more towards customer experience, as opposed to infrastructure (3Q21 update shows NAB is tracking well against this).”

In addition, the broker likes NAB due to its strong position in business banking and its mortgage capability.

Goldman said: “Given NAB’s position as the largest business bank and investment in its mortgage capability, we believe it is strongly positioned to benefit from the current recovery in both housing and commercial volumes (3Q21 update showed continued volume momentum).”

Finally, it also likes NAB due to the way it “continues to effectively manage the balance between volumes and margins as well as any peer.”

Overall, the broker feels this makes the NAB share price good value at the current level.

The post Why Goldman thinks the NAB (ASX:NAB) share price is undervalued appeared first on The Motley Fool Australia.

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• 3 buy-rated ASX dividend shares for income investors
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• Could the NAB share price hit $30 before the end of 2021?
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• Westpac and other ASX 200 banks face renewed shareholder pressure over climate policies

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 Brickworks Limited (ASX: BKW) share price may be a good one to consider. There are some compelling reason to like the business.

What is Brickworks?

Brickworks is a S&P/ASX 200 Index (ASX: XJO) company. It has a few different segments to it.

The part that captures most of the attention is the building products division in Australia. It is the largest brick manufacturer in Australia. But it’s also known for other products as well. There are various businesses including: Austral Bricks, Austral Masonry, Austral Precast, Bristle Roofing, Southern Cross Cement, Bowral Bricks, Daniel Robertson, Nubrik, Terracade, Pronto Panel, GB Masonrym Urban Stone and Capital Battens.

After making some acquisitions, it also has a large presence in the north east of the US. The businesses it operates there includes Glen Gery, Sioux City Brick, Lawrenceville Brick and Cushwa Brick.

It also has other assets, but those will be covered as one of the potentially compelling points below:

Reliable and growing assets

There are two asset groups that underpin the Brickworks share price.

Brickworks owns just over a quarter of the recently-enlarged Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). The investment house provides Brickworks with increasing dividends and diversification.

Soul Patts is invested in a number of sectors including telecommunications, building products (being Brickworks), mining and energy, financials, health and property.

The investment conglomerate is looking at a number of areas to invest in including health and ageing, the energy transition, agriculture, financial services and education.

Brickworks also owns half of a property trust along with Goodman Group (ASX: GMG). After including borrowings, Brickworks’ half of the net asset value of the trust was $911 million at 31 July 2021.

Brickworks sells surplus land into the trust at market value, whilst Goodman funds the infrastructure works, to create serviced land ready for development. Once a lease pre-commitment is secured, the serviced land can then be used as security, with debt funding to cover the cost of constructing the facilities. The completion of pre-committed developments over the next two years will result in an increase of around 60% in rent and leased asset value from the current level.

The new developments are increasingly sophisticated, with things like robotics, automation and multi-storey warehousing.

Good value

On 7 October 2021, Brickworks said that its current inferred asset backing was around $32 per share. That included the Soul Patts shareholding value of $3.41 billion, $911 million for the property trust, $1.03 billion of building product assets and $519 million of net debt.

The company also noted that the building products asset value includes land, both operational and surplus, with the market value “significantly higher” than the book value.

The share prices of Brickworks and Soul Patts are changing all the time. However, the current Brickworks share price is at a discount of around 25% from that value that was stated a week ago.

Long-term dividend record

Brickworks says that it’s proud of its long history of dividend growth and the stability that this provides to its shareholders.

It has maintained or increased its normal dividend every year for the last 45 years. That means no cuts for over four decades.

In FY21, it grew its total dividend by 2 cents per share to 61 cents per share.

At the current Brickworks share price, the trailing grossed-up dividend yield is 3.65%.

The post 3 reasons why the Brickworks (ASX:BKW) share price could be a buy appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why did the Woodside (ASX:WPL) share price slide today?
• Why ASX 200 tech shares have outperformed today
• Here are the top 10 ASX shares today
• Rio Tinto (ASX:RIO) share price climbs amid news of latest green push

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Rio Tinto Limited (ASX: RIO) share price will be one to watch on Friday.

This follows the release of the mining giant’s third quarter update this morning.

Rio Tinto share price on watch after downgrading guidance

The Rio Tinto share price could come under pressure today after it downgraded its full year guidance following a difficult quarter.

In respect to its performance, below is a summary of what happened during the third quarter:

• Pilbara iron ore shipments of 83.4Mt, up 2% year on year (YoY) and 9% quarter on quarter (QoQ)
• Bauxite production down 3% YoY but up 2% QoQ to 14kt
• Aluminium production of 774kt, which is down 3% YoY and 5% QoQ
• Mined copper came in at 125.2kt, down 3% YoY but up 8% QoQ
• Titanium dioxide slag down 29% YoY and 30% QoQ to 209kt

Guidance downgraded

In light of the above, the company has downgraded its guidance for a number of key commodities.

The key one is its Pilbara iron ore shipments guidance which is now expected to be in the range of 320 to 325Mt. This compares to its previous guidance of 325 to 340Mt. This follows modest delays to the completion of the new greenfield mine at Gudai-Darri and the Robe Valley brownfield mine replacement project due to the tight labour market in Western Australia.

Elsewhere, its guidance for Bauxite production has been trimmed to 54 to 55Mt (from 56 to 59Mt) and its Mined Copper production guidance has been reduced to 500kt (from 500 to 550kt).

Management commentary

Rio Tinto’s Chief Executive, Jakob Stausholm, commented: “The third quarter has demonstrated the resilience of our people in dealing with ongoing COVID-19 challenges. It has been another difficult quarter operationally and despite improving versus the prior quarter, we recognise the opportunity to raise our performance. We have consequently modestly adjusted our guidance.”

“We are progressing against our four pillars and striving to make Rio Tinto even stronger, notably to become the best operator. This will ensure we continue to deliver attractive returns to shareholders, invest in sustaining and growing our portfolio, and make a broader contribution to society, particularly in relation to the drive to net-zero carbon emissions,” he added.

The Rio Tinto share price is down 13% in 2021.

The post Rio Tinto (ASX:RIO) share price on watch after Q3 update & guidance downgrade appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
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• Why this top broker says the Rio Tinto (ASX:RIO) share price is a buy despite weak iron-ore outlook
• ASX 200 (ASX:XJO) midday update: Westpac’s $1.3bn earnings hit, Ansell sinks

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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AGL Energy Limited (ASX: AGL) shares closed down 0.5% yesterday, having recouped intraday losses of 1.5%.

The S&P/ASX 200 Index (ASX: XJO), meanwhile, ended in the green, up 0.5%.

AGL, and Australia’s other energy companies including Origin Energy Ltd (ASX: ORG), are in the spotlight as the nation looks to cut its carbon emissions, potentially to net zero by 2050.

Below we take a look at some key takeaways from Capgemini’s 23rd edition of the World Energy Markets Observatory.

Clean, reliable and affordable

Among the core measures stressed in the report is the need for Australia, and the world, to keep a lid on energy prices “while accelerating the global transition to clean energy”.

And if you thought that the global pause many of us took to mitigate the impacts of the pandemic put a big dent in CO2 emissions, think again.

According to Capgemini:

Consumption and emissions decreases stemming from the COVID-19 pandemic did not lead to a sustained emissions decrease compatible with the 1.5°C global warming objective for 2100.

In a dire warning, the report notes, “If current trends continue, the world may experience a temperature increase of 1.5 °C as early as 2025–2030.”

And while renewable costs have been falling, Capgemini expects costs will level out in “coming years” as capital costs and, importantly, critical green energy metal prices rise.

Overall, the transition away from fossil fuel based energy sources to renewables isn’t going to come cheap.

To reach net-zero emissions in line with the Paris climate agreements, Capgemini estimates investments in low carbon technologies will have to ramp up 5 to 10 times every year between now and 2040.

As for AGL shares?

The report notes that the number 1 priority is, “Utilities transformation roadmaps must be reconsidered in a post-COVID world” for the energy transition to carbon neutrality.

Philippe Vié, Vice-President energy and utilities sector at Capgemini said:

In this year’s World Energy Markets Observatory, we see the need to maintain energy affordability while accelerating energy transition efforts. Emerging technologies and new use cases across the energy value chain, including green hydrogen, CCUS, storage, and e-mobility, will play a critical role in helping the world achieve a net zero future.

Australia’s big 3 energy producers

The big 3 energy producers down under, the report notes, are AGL, Origin and EnergyAustralia.

It says that together these 3 companies hold 64% of the small electricity and 83% of the small gas market.

And Australia has some way to go before reaching the lofty goals set in the Paris Accord.

In 2020, according to Capgemini, renewable energy was responsible for 24% of Australia’s total electricity generation.

AGL’s sustainability stance

The ASX 200 energy giant, addressing its responsibilities to move towards a low carbon future, notes:

At AGL, sustainability means thinking about our long-term responsibilities towards our customers, our people, our investors and to our community, and to the environment in which we all work and live.

We’re focused on delivering affordable, reliable, lower-carbon and innovative energy solutions for all of our customers, including those experiencing financial hardship…

We are also committed to taking a conscientious approach to the environment by actively working to reduce greenhouse gas emissions and manage our environmental footprint.

How have AGL shares been performing?

AGL shares have struggled since hitting all-time highs in May 2017.

Over the past 12 months, shares are down 55%, compared to a gain of 19% posted by the ASX 200.

The past month has been kinder to AGL shareholders, with the share price up 3% while the ASX 200 fell 1%.

The post Own AGL shares? Here are the World Energy Markets Observatory’s future priorities appeared first on The Motley Fool Australia.

More reading

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• Why is the AGL (ASX: AGL) share price sliding lower on Monday?
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• Why this broker sees 30% upside for the AGL (ASX:AGL) share price

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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Looking for a growth share or two to buy this month? Three that could be worth considering are listed below.

All three have been tipped to grow strongly over the 2020s. Here’s what you need to know about them:

Appen Ltd (ASX: APX)

The first growth share to look at is Appen. It is a leading developer of high-quality, human annotated datasets for machine learning (ML) and artificial intelligence (AI). Appen was growing at a rapid rate until the pandemic put a dampener on demand from some of its biggest customers. While this is disappointing, management appears confident that demand will rebound post-pandemic. Especially given how the AI and ML markets are expected to continue their explosive growth for many years to come.

Earlier this week, the team at Citi retained their buy rating and lofty $17.00 price target on the company’s shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services. As with Appen, IDP Education was hit hard by the pandemic. However, its performance has been improving greatly since the peak of the crisis and analysts expect the company to come out the other side of the pandemic in a much stronger position. IDP Education has also just boosted its offering with a key acquisition in the lucrative India market.

Morgan Stanley is very positive on the company’s prospects. Earlier this week, the broker retained its overweight rating and lifted its price target to $40.20.

Kogan.com Ltd (ASX: KGN)

A final growth share to look at is Kogan. It is one of Australia’s leading ecommerce companies and appears exceptionally well-positioned to benefit from the structural shift to online shopping. And while inventory issues are weighing on its near term performance, the company’s long term outlook remains very positive. Particularly given its strong market position, acquisitions, its growing private label offering, and the shift to online.

It is for these reasons that Credit Suisse remains positive on the company. Its analysts currently have an outperform rating and $14.06 price target on its shares.

The post Analysts name 3 excellent ASX growth shares to buy appeared first on The Motley Fool Australia.

More reading

• Why ASX 200 tech shares have outperformed today
• Could the Appen (ASX:APX) share price jump to $17 by Christmas?
• Why is the Kogan (ASX:KGN) share price struggling lately?
• These ASX tech shares are lighting up the ASX 200 today
• Leading brokers name 3 ASX shares to buy today

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 shares of and has recommended Appen Ltd, Idp Education Pty Ltd, and Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd and Kogan.com 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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