The parabolic Pilbara Minerals Ltd (ASX: PLS) share price has added 23% in the past week to a fresh all-time high of $2.46 on Wednesday.

Perhaps what’s more impressive is the fact that Pilbara Minerals shares have doubled in just over three months, from $1.21 on 27 May.

Good news keeps piling up

The Pilbara Minerals share price continues to leverage the bullish news for the lithium sector and spot prices.

A major catalyst for the lithium sector last week was President Joe Biden’s executive order, targeting at least half of all new vehicles sold in the United States to be electric by 2023.

The Pilbara Minerals share price rallied 10.95% on Tuesday in wake of bullish commentary for the lithium sector from JPMorgan.

The broker upgraded all the ASX 200 lithium shares under its coverage to an overweight rating, citing a significant supply-demand imbalance in the medium-term and upgrading its long-term lithium spot price forecasts.

A bigger theme at hand

The surging Pilbara Minerals share price could play into a much bigger thematic, that is climate change.

In the words of the Eureka Report’s Alan Kohler, “It’s not often an investing theme comes along that is both certain and certainly huge, but we’ve got one right now. The theme is climate change, or more specifically, the transition to a zero-carbon world.”

The International Energy Agency’s world energy outlook 2020 cited that, “A structural transformation of the energy sector will require massive investment in new, more efficient and cleaner capital stock. Drawing on the IEA Sustainable Recovery Plan, the Sustainable Development Scenario (SDS) sees a near-term surge of investment in clean energy technologies over the next ten years.”

Going back to Pilbara Minerals, the company has signed a number of offtake agreements with leading players in the renewable technology space including Gangfeng Lithium and CATL.

The post The Pilbara Minerals (ASX:PLS) share price is up 23% in a week appeared first on The Motley Fool Australia.

More reading

• Why ASX 200 lithium shares are surging to new highs
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares were the most traded this Tuesday
• Here’s why ASX 200 lithium shares surged higher on Tuesday
• Which shares are leading the ASX 300 on Tuesday?

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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The Novonix Ltd (ASX: NVX) share price obviously had more in the reserve tank after lifting off yesterday.

After emerging from its trading halt, the lithium-ion battery tech company gained 15.6% yesterday. The momentum has clearly rolled into trading today, with the company adding an additional 12.6% to its share price.

Big investment for the future

The ignition for investors’ excitement appears to stem from the Novonix announcements yesterday. These included a capital raising program and a strategic investment, which go hand in hand.

Pertaining to the capital raising, Novonix is intending to issue 77,962,578 new ordinary shares. These shares are being priced at A$2.60 per share which, some quick math suggests, is roughly $202.7 million of capital raised.

It was revealed that United States energy company Phillips 66 (NYSE: PSX) will purchase the new Novonix shares, taking a 16% equity stake in the ASX-listed company in the process. This news catapulted the Novonix share price higher.

While Phillips 66 is an oil company, by and large, it also develops carbon anodes and materials for lithium-ion batteries using the by-products of its main business. Reportedly, the US company’s rationale for the investment is to advance its commitment to pursuing lower-carbon solutions.

Additionally, the partial acquisition will support its endeavour to sure-up a domestic supply chain for the growing electric vehicle market in the US. In the process, Phillips 66 will be providing Novonix capital for expansion, according to the company:

Phillips 66’s investment will provide Novonix with the capital needed to support growth and ongoing R&D as the group continues to scale synthetic graphite production and develop new technologies for higher-performance energy storage applications.

These efforts are certainly heavily in focus after the alarming climate report released by the IPCC yesterday. Essentially, the in-depth study called for a swift and decisive shift away from oil, gas, and coal within this decade.

Novonix share price in review

Any lucky shareholders that have retained their holdings in Novonix over the last year have enjoyed significant share price appreciation. The past year has seen the Novonix share price increase an astonishing 231%. Comparably, the S&P/ASX 200 Index (ASX: XJO) has climbed 23.5%.

Lastly, the market capitalisation on Novonix is now residing at around $1.58 billion.

The post Novonix (ASX:NVX) share price surges another 12%. Here’s why appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Which shares are the biggest movers on the ASX 300 this Wednesday?
• These 3 ASX 200 shares were the most traded this Tuesday
• Which shares are leading the ASX 300 on Tuesday?
• Why BlueBet, James Hardie, Megaport, & Novonix shares are racing higher

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 Origin Energy Ltd (ASX: ORG) share price gained 4% today after the company released news of a green ammonia partnership.

Origin has partnered with Mitsui O.S.K. Lines (MOL). The two companies plan to look into creating a green ammonia supply chain in Australia.

The Origin Energy share price finished today trading at $4.42.

Let’s take a closer look at Origin Energy’s latest venture.

Is this the green future?

The Origin share price had a great day after the energy company announced it’s looking into creating green ammonia.

Ammonia can be used as a renewable energy. It’s often called ‘green’ when it’s produced using renewable energy.

The companies will come up with a feasibility study outlining their plan to supply “key downstream markets” with green ammonia. They expect the feasibility study, which will look at beginning supplying green ammonia from 2026, to be completed by December.

Additionally, Origin is already undergoing a $3.2 million feasibility study looking into producing green ammonia in Bell Bay, Tasmania.

Origin’s general manager of future fuels, Tracey Boyes commented on the benefits that may come from producing ammonia in Australia:

With our abundance of renewable resources and proximity to Asian markets, Australia is in the box seat to develop a world-leading hydrogen sector…

Transport is one of the biggest opportunities globally to achieve emissions abatement through the use of green and renewable fuels such as hydrogen and ammonia.

Boyes also noted Origin is in a prime position to explore producing green ammonia, due to its experience in exporting LNG.

Origin share price snapshot

Today’s boost hasn’t been enough to get Origin back into the red on the ASX.

Right now, shares in Origin are going for 8% less than they were at the start of the year. They have also fallen 24% since this time last year.

The company has a market capitalisation of around $7.4 billion, with approximately 1.7 billion shares outstanding.

The post Origin (ASX:ORG) share price lifts following green ammonia news appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Origin (ASX:ORG) share price falls as climate goals put to shareholder vote
• The AGL (ASX:AGL) share price just hit its lowest point in 17 years
• Why A2 Milk, Marley Spoon, Origin, & Sezzle shares are tumbling lower
• Here are 3 heavily traded ASX 200 shares on the markets today

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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

BlueBet Holdings Ltd (ASX: BBT)

According to a note out of Morgans, its analysts have retained their add rating and $2.44 price target on this sports betting company’s shares. This follows news that BlueBet has signed an agreement with the Colorado River Indian Tribes and BlueWater Resort and Casino to pursue online sports betting access in Arizona. Morgans was pleased with the news, noting that this follows a similar development in Virginia. The broker believes the company has a huge opportunity in the US market. The BlueBet share price is trading at $2.00 at present.

Novonix Ltd (ASX: NVX)

Another note out of Morgans reveals that its analysts have retained their (speculative) add rating and lifted their price target on this lithium company’s shares to $4.53. Morgans notes that US energy company Phillips 66 is investing in Novonix, with the proceeds expected to support an increase in Novonix Anode Materials production capacity. The broker feels the deal de-risks the company’s growth plans. It also believes Novonix is well-positioned in the US market to benefit from increasing demand for battery materials. The Novonix share price is fetching $3.93 currently.

Suncorp Group Ltd (ASX: SUN)

Analysts at Credit Suisse have upgraded this insurance giant’s shares to an outperform rating and lifted the price target on them to $14.00. This follows the release of a strong full year result earlier this week. Credit Suisse appears confident this strong form will continue, underpinning further growth in earnings and dividends in the near term. The Suncorp share price is trading at $12.77 on Wednesday.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Why Accent, Bluebet, IAG, & Megaport shares are tumbling lower
• Which shares are the biggest movers on the ASX 300 this Wednesday?
• These 3 ASX 200 shares were the most traded this Tuesday
• Which shares are leading the ASX 300 on Tuesday?
• Why BlueBet, James Hardie, Megaport, & Novonix shares are racing higher

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

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Since becoming its own ASX 200 listing back in late 2018, the Coles Group Ltd (ASX: COL) share price has become known as an ASX dividend heavyweight. Being a large, mature blue chip ASX company, this probably wouldn’t have been much of a surprise.

After all, even before Coles’ ASX listing, its arch-rival Woolworths Group Ltd (ASX: WOW) had been paying its shareholders with hefty, fully franked dividends for decades. It wasn’t a stretch to see Coles pursuing a similar path.

But now we have put a few years between Coles’ spin-off from its old parent company Wesfarmers Ltd (ASX: WES), it’s probably a good time to assess how Coles is tracking in the dividend department. So exactly what kind of dividends is Coels offering its investors this August?

Well, it’s first worth noting that Coles is scheduled to report its FY2021 earnings in exactly a week’s time (18 August). We’ll probably hear what kind of dividends investors can expect from Coles later this year from the company’s management then.

But let’s go with what we do know today. So Coles’ last two dividend payments came in at 33 cents a share (the March 2021 interim payout) and 27.5 cents per share (the September 2020 final dividend).

Together, these two payouts come to a total of 60.5 cents per share for the previous 12 months. That gives Coles a trailing dividend yield of 3.33% (or 4.76% grossed-up with full franking) on the current Coles share price.

Not bad for Coles shareholders, especially considering Woolworths’ trailing dividend yield stands at 2.51% today.

But what of the future?

Are Coles shares a buy for dividends this August?

Well, as I stated, we don’t yet know for sure. But one broker has given it a ‘best guess’. Investment bank Goldman Sachs. Goldman currently rates the Coles share price as a ‘buy’, with a 12-month share price target of $19.40 a share, implying a potential upside of 6.65% on the current Coles share price. 

When it comes to dividends, Goldman is also bullish. The broker reckons that Coles will be able to keep raising its dividend over the next few years. It is estimating a potential dividend payout of 62 cents per share for FY2022, growing to 73 cents per share by the 2023 financial year.

No doubt Coles shareholders will be hoping Goldman is right!

At the current Coles share price, the compnay has a market capitalisation of $24.1 billion

The post Should you buy Coles (ASX:COL) shares in August for the dividend yield? appeared first on The Motley Fool Australia.

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• 3 high conviction ASX 200 shares that could be buys this August
• ASX 200 Weekly Wrap: Blockbuster Afterpay deal turbocharges ASX to new record highs
• 2 buy-rated ASX dividend shares for August
• How does the Coles (ASX:COL) share price perform during lockdowns?
• Analysts name 2 growing ASX dividend shares to buy

Motley Fool contributor Sebastian Bowen 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 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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ASX tech shares have certainly become more than a passing fancy for ASX investors. With fabled success stories like Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO) and WiseTech Global Ltd (ASX: WTC), it’s certainly hard to ignore this sector in these strange times.

But could we just be seeing the start of the ASX tech revolution? My Fool colleague Mitchell Lawler reported this morning that the movers and shakers at Afterpay and fellow Aussie (albeit US-listed) tech company Atlassian Corporation PLC (NASDAQ: TEAM) have teamed up in a “push for Australia to become an irresistible hub for tech startups”.

The best heads at Afterpay and Atlassian will be joined by the best and brightest from 22 other tech leaders to form the Tech Council of Australia (TCA). As well as Afterpay and Atlassian, the members of the new TCA include many ASX-listed tech companies. These include the likes of Airtasker Ltd (ASX: ART), Redbubble Ltd (ASX: RBL) and Megaport Ltd (ASX: MP1). But it will also include some unlisted ASX tech players like Canva and SquarePeg. As well as some global tech titans like Microsoft Corporation (NASDAQ: MSFT) and Alphabet Inc‘s (NASDAQ: GOOG)(NASDAQ: GOOGL) Google.

An ASX tech A-team

The council’s board will reportedly be made up of Atlassian’s Scott Farquhar, Mina Radhakrishnan from :Different, Afterpay’s Anthony Eisen, and Canva co-founder Cliff Obrecht. And its chair will be Robyn Denholm, who is one of the most famous tech stewards in the world in her position as chair of Elon Musk’s Tesla Inc (NASDAQ: TSLA).

So what does this ‘A-team’ of Aussie tech have in mind for the future of the ASX tech sector?

Well, according to a report from news.com.au, the TCA has 3 overarching goals:

• To “help position Australia as the startup capital of the world within 10 years”
• Aussie tech to employ 1 million people by 2025
• To grow the value of the Aussie tech industry to $250 billion by 2031

As my Fool colleague discussed this morning, Atlassian co-founder Mike Cannon-Brookes reckons Aussie tech is worth around $167 billion today, so an increase to $250 billion would represent a meaningful expansion of the local tech sector. According to the news.com.au report, the TCA will aim to reach its goals by:

• supporting growth of, and investment in, Australia’s tech sector
• generating more jobs
• helping develop regulation for new and emerging technologies, and
• taking on the responsibilities of not-for-profit organisation StartupAus

Good news indeed for any ASX tech investors out there today!

The post Aussie tech could grow to $250b. What does this mean for ASX tech shares? appeared first on The Motley Fool Australia.

More reading

• Afterpay (ASX: APT) and Atlassian team up in Aussie tech push
• Up 20% in 10 days: Can the Zip (ASX:Z1P) share price keep rising?
• Afterpay and Zip were among the most traded ASX shares last week
• Bank dividends to rise, and Climate Change in focus. Scott Phillips on Sky News First Edition
• Why we just sold all our Afterpay (ASX:APT) shares

Suzanne Frey, an executive at Alphabet, 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 Sebastian Bowen owns shares of Alphabet (A shares) and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Alphabet (A shares), Alphabet (C shares), Atlassian, MEGAPORT FPO, Microsoft, Tesla, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and MEGAPORT 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 Thomson Resources Ltd (ASX: TMZ) share price began a meteoric rise higher right as most Aussie were sitting down to lunch today.

At 12:34pm AEDT, the Thomson Resources share price was flat for the day, at 11 cents per share. At time of writing shares for the ASX resource explorer are trading for 12 cents. That’s up 10% since lunchtime, after earlier posting gains of more than 14%.

Below we take a look at the company’s ASX market announcement, released at 1:00 pm, that appears to be driving investor interest.

What did Thomson Resources report?

The Thomson Resources share price is surging after the company reported on the first Mineral Resource estimate in accordance with JORC 2012 for its Conrad silver polymetallic deposit, located in New South Wales.

The promising results build on a 2008 Mineral Resource estimate delivered by a previous resource company at the site which was reported in accordance with JORC 2004.

According to the release, the results – which include assays from 6 drill holes completed since the 2008 resource estimate, reported silver, lead, zinc, copper and tin metals.

Conrad’s total Mineral Resource estimate contains 3.33 Mt at 86 g/t Ag, 1.22% Pb, 0.62% Zn, 0.11% Cu, and 0.17% Sn.

Commenting on the progress, Thomson Resources’ executive chairman, David Williams said:

We are very pleased to deliver this strong outcome for the Conrad project with a 20.72 million ounce AgEq [silver equivalent calculations] Mineral Resource Estimate within an Optimised Pit and underground mining configuration, and a significant upgrade of the resource confidence, with 51% in the higher confidence indicated category.

Thomson is now firmly focused on delivering metallurgical results and new MRE’s reported in accordance with the 2012 JORC Code for the Texas, Silver Spur and Webbs projects, as the next milestones toward our objective of aggregating 100 million ounces silver equivalent resource available to the New England Fold Belt Hub and Spoke central processing strategy.

The company said higher grade mineralisation remains open at depth beneath 5 of the 6 known shoots at Conrad and “open along strike to the NW adjacent to the Moore and Mystery shoots”.

This indicates the potential for step out and down plunge drilling in these areas to expand the Conrad underground resource.

Thomson Resources share price snapshot

Over the past 12 months Thomson Resources’ share price is up 188%, far surpassing the 25% gains posted by the All Ordinaries Index (ASX: XAO).

Year-to-date the Thomson Resources share price is down 4%.

The post Why the Thomson Resources (ASX:TMZ) share price rocketed 14% higher at lunchtime appeared first on The Motley Fool Australia.

More reading

• Why Accent, Bluebet, IAG, & Megaport shares are tumbling lower
• Why the Bank of Queensland (ASX:BOQ) share price hit its 52-week high
• Why the NAB (ASX:NAB) share price is closing in on a 52-week high
• CBA (ASX:CBA) share buyback ahead of forecast: broker
• WAM Leaders (ASX:WLE) share price returns to trading after capital raise

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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In late afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a gain. At the time of writing, the benchmark index is up 0.2% to 7,577.6 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

Accent Group Ltd (ASX: AX1)

The Accent share price is down almost 7% to $2.61. This decline has been driven by a broker note out of Citi this morning. According to the note, the broker has downgraded the footwear retailer’s shares to a sell rating and cut the price target on them by 19% to $2.50. Citi has a number of concerns such as lockdowns and potential supply chain issues. It notes that Adidas’ production has been impacted by lockdowns in Vietnam.

Bluebet Holdings Ltd (ASX: BBT)

The Bluebet share price is down 3% to $2.00 despite there being no news out of the sports betting company. However, with its shares shooting higher this week following a positive US development, this decline could be due to profit taking.

Insurance Australia Group Ltd (ASX: IAG)

The Insurance share price has fallen 2.5% to $5.14. Investors have been selling the insurance giant’s shares following the release of a mixed full year result. IAG reported a 3.8% increase in gross written premium to $12,135 million but a net loss after tax of $427 million. The latter was driven by a range of one-offs. Excluding these one-offs, its cash earnings rose 170% to $747 million.

Megaport Ltd (ASX: MP1)

The Megaport share price has sunk 7% to $16.68. This decline is likely to have been driven by a broker note out of Ord Minnett. According to the note, the broker has downgraded the network as a service provider’s shares to a sell rating and cut the price target on them to $15.00. The broker made the move on the belief that Megaport may need to continue to invest for longer than previously expected to drive its growth.

The post Why Accent, Bluebet, IAG, & Megaport shares are tumbling lower appeared first on The Motley Fool Australia.

More reading

• Which shares are the biggest movers on the ASX 300 this Wednesday?
• The Megaport (ASX:MP1) share price slides 5% on Wednesday
• ASX 200 midday update: CBA results and $6bn buyback, IAG falls
• IAG (ASX: IAG) share price falls after earnings despite dividend boost
• IAG (ASX:IAG) share price on watch after 170% jump in cash earnings

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 MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool Australia has recommended Accent Group and MEGAPORT 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 Bank of Queensland Limited (ASX: BOQ) share price is enjoying fresh new 52-week highs today. This comes despite no news being released from the regional bank since its board appointment in late July.

At the time of writing, Bank of Queensland shares are up 1.8% to $9.62 apiece.

What’s driving Bank of Queensland shares higher?

You would be forgiven for thinking that with half of Australia currently in lockdown, the Bank of Queensland share price would suffer.

However, the company’s shares have rallied higher to reach pre-COVID levels, reflecting optimism among investors.

The Bank of Queensland completed its acquisition of ME Bank in July, achieving a critical milestone in its multi-brand strategy. It aims to compete with the big banks offering portfolio diversification and a common digital retail bank technology platform.

In addition, the company moved to strengthen its board, with the inclusion of ME Bank director Deborah Kiers.

Bank of Queensland also provided its quarterly capital update for the period ending May. It noted that it expanded the common equity tier 1 (CET1) to 14.1% compared to 10% at the end of February.

The total capital ratio increased to 18%, up from 13.8% from the prior period.

What do the brokers think?

Following the APRA Basel III Pillar 3 in late July, two brokers rated the company with varying price points.

First up, investment bank JPMorgan raised its 12-month price target for Bank of Queensland shares by 2.1% to $9.80.

Credit Suisse rated the company’s shares with a more bullish outlook, adding 15% to $11.50. Based on the current share price, this implies an upside of approximately 19.5%.

Bank of Queensland share price summary

The last 12 months have seen Bank of Queensland shares continue their upward growth trajectory, up over 60%. Year-to-date has also lifted, gaining close to 28% for shareholders.

Bank of Queensland commands a market capitalisation of roughly $6.1 billion, making it the 88th largest company on the ASX.

The post Why the Bank of Queensland (ASX:BOQ) share price hit its 52-week high appeared first on The Motley Fool Australia.

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• Why the Bank of Queensland (ASX:BOQ) share price is climbing today
• Is the BOQ (ASX:BOQ) share price a buy for dividends?
• Top brokers name 3 ASX shares to buy next week

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 National Australia Bank Ltd (ASX: NAB) share price is on form again on Wednesday.

In afternoon trade, the banking giant’s shares are up over 1% to $27.30.

This means the NAB share price is now trading within a whisker of its 52-week high of $27.84.

Why is the NAB share price pushing higher?

Today’s gain by the NAB share price appears to have been driven by the release of a strong full year result by rival Commonwealth Bank of Australia (ASX: CBA) this morning, which has given investor sentiment in the banking sector a boost.

In case you missed it, Australia’s largest bank reported cash earnings growth of 19.8% to $8,653 million. This was stronger than expected, with the analyst consensus estimate at $8,464 million.

Also catching the eye of investors was Commonwealth Bank’s decision to return $6 billion to shareholders via a share buyback. This was significantly higher than what the market was expecting.

What else has been driving its shares higher?

Also giving the NAB share price a boost this week was an announcement on Monday.

That announcement reveals that the bank has signed an agreement to purchase Citigroup’s Australian consumer business.

The proposed acquisition includes a home lending portfolio, unsecured lending business, retail deposits business, and private wealth management business. The deal will add deposits of $9 billion and lending assets of approximately $12.2 billion. The latter comprises residential mortgages of approximately $7.9 billion and unsecured lending of approximately $4.3 billion.

Goldman Sachs was positive on the deal. In response, the broker held firm with its conviction buy rating and $30.34 price target on its shares. Based on the current NAB share price, this implies potential upside of 9% before dividends.

Goldman said: “We see strategic merit in the transaction, which would contribute to an improvement in the returns drag NAB has suffered vs. peers from being underweight Consumer Banking and having a Consumer Bank that relatively under-earns, given a lower exposure to unsecured lending. We calculate that the transaction would result in a c. 1.5% better EPS outcome than if the equivalent capital was bought back on-market.”

The post Why the NAB (ASX:NAB) share price is closing in on a 52-week high appeared first on The Motley Fool Australia.

More reading

• Westpac (ASX:WBC) share price lags the big banks’ after NZ ‘formal warning’
• Is now a good time to buy Bendigo and Adelaide Bank (ASX:BEN) shares?
• Is the NAB (ASX:NAB) share price in the buy zone after its Citi acquisition?
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 flat, Suncorp surges, NAB makes Citi acquisition

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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