The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is falling today amid reports the market is overlooking the value of land owned by the airport.

The Sydney Airport owns 907 hectares of land on the northern side of Botany Bay, some of which is reportedly ripe for development.

Right now, the Sydney Airport share price is $7.74, 0.64% lower than its previous close.

That’s also lower than the $8.25 per share takeover offer put to the airport by a consortium of infrastructure investors. The takeover offer was rejected last month, with Sydney Airport saying it undervalued the company.

Let’s take a closer look at the supposed forgotten value of the Sydney Airport.

Sydney Airport’s hidden value

The Sydney Airport share price is slipping today as reports the market has forgotten about its land holdings swirl.

According to reporting by the Australian Financial Review (AFR), analysts believe Sydney Airport is literally sitting on a $900 million asset.

The publication quoted Macquarie analysts. They’re said to believe if some land were to be developed the Sydney Airport share price could gain 33 cents.

The analysts said Sydney Airport has at least 2 parcels of land – around 54 hectares – that could potentially be developed.

The AFR quoted the analysts as saying:

Given the emerging road connections in the northern land parcels, it is an ideal freight/logistics hub, and possibly a catering location for the airport. However, its current earnings contributions are zero.

Additionally, the analysts said Sydney Airport is currently charging Qantas Airways Ltd (ASX:QAN) 4 times less than market rates for the airline to rent Jet Base. That could be costing the airport between 22 cents and 30 cents per share.

This means the Sydney Airport’s shares are lagging by between 55 cents and 65 cents each.

Sydney Airport share price snapshot

This year has been a good one for the Sydney Airport share price. It is currently 20% higher than it was at the start of 2021. It has also gained 52% since this time last year.

The airport has a market capitalisation of around $21 billion, with approximately 2.7 billion shares outstanding.

The post What’s being overlooked in the Sydney Airport (ASX:SYD) share price? appeared first on The Motley Fool Australia.

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• Why the Sydney Airport (ASX:SYD) share price is up 34% in a month
• ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high
• These were the best performing ASX 200 shares in July
• Own Sydney Airport (ASX:SYD) shares? Here’s what to look for during reporting season
• The Qantas (ASX:QAN) share price gained 3% on Tuesday morning

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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) share price is continuing its losing spree, down another 1.68% to $23.98 on Tuesday.

Unfortunately, shares in the iron ore major have tumbled 9.55% in the last three trading sessions, despite a record close of $26.50 last Thursday.

Why the Fortescue share price nose dived from record highs

A sharp fall in iron ore spot prices

Iron ore prices have dived from record levels in recent days, following China’s moves to reduce steel output to reduce its carbon emissions.

The all important iron ore spot price has tumbled from ~US$210/tonne last week, to a 2-month low of ~US$181.

Mining.com reported that China has asked its steel producers to limit this year’s production to no more than 2020 levels. However, production grew nearly 12% in the first half of 2021, meaning a significant cut is required in the second half.

“Shagang Group, the world’s fourth-largest steel mill, said this week that it’s curtailing production and overseas sales to comply with government efforts to cut emissions.”

“That is raising expectations that activity will need to be restricted significantly through the end of the year. At the same time, China has unveiled more measures to curb overseas shipments, with the aim of using lower exports and inventories to offset supply shortfalls.”

The sudden 17% slide in iron ore prices and anticipation that Chinese demand may soften in the second half is driving recent volatility in the Fortescue share price.

Weak Chinese manufacturing figures

China’s Caixin purchasing managers index (PMI) figures, a private gauge of the country’s manufacturing activity, could be another factor weighing on the Fortescue share price.

On Monday, it was reported that PMI figures fell to 50.3 in July, the lowest level since May 2020.

According to MarketWatch, China’s manufacturing activity has struggled to pick as “heavy floods, a resurgence of COVID cases and power shortages in some cities weighed on output and new orders”.

Diversification paying dividends

Diversified miners such as BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) have held up relatively well in wake of lower iron ore prices, down just 2.25% and 3% respectively in the last three trading sessions.

However, pure play iron ore miners including Mount Gibson Iron Limited (ASX: MGX) and Champion Iron Ltd (ASX: CIA) were quick to sell off, falling a respective 5.58% and 5.83% this week.

Fortescue share price snapshot

The Fortescue share price has unfortunately entered negative year-to-date territory, down 3.43% in 2021.

This compares to its peers such as BHP and Rio Tinto which have lifted a respective 22.62% and 14.26% year-to-date.

The post Why the Fortescue (ASX:FMG) share price has fallen off a cliff appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares are beating the iron ore majors – again
• This leading broker believes Fortescue Metals (ASX:FMG) shares can lift
• Own Fortescue (ASX:FMG) shares? Here’s what to look for during reporting season
• Fortescue (ASX:FMG) share price under most pressure as iron ore crashes to bear market
• The Fortescue (ASX:FMG) share price is falling on Monday

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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If you are looking for some new portfolio additions, then the ASX 200 shares listed below could be worth considering.

Here’s why these ASX 200 shares have been given buy ratings:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX 200 share to consider is Aristocrat Leisure. It is one of the world’s leading gaming technology companies with a portfolio of world class poker machines and digital games.

It has returned to form in FY 2021 thanks to the easing of restrictions as vaccines roll out and strong growth in its digital business.

For example, during the six months ended 31 March, the company reported a normalised net profit after tax (NPAT) of $362.2 million. This was an increase of 18.4% on the prior corresponding period. In respect to its revenue, almost 80% of it was derived from recurring sources during the period. This gives it a firm foundation to build on in the coming years.

Analysts at Citi remains positive on the company. The broker currently has a buy rating and $46.00 price target on its shares.

Goodman Group (ASX: GMG)

Another ASX 200 share to look at is Goodman Group. It is a global property group that owns, develops and manages industrial real estate including logistics and industrial facilities, warehouses, and business parks.

Goodman has been growing at a solid rate over the last decade thanks to its high quality portfolio. Over the long term, management has curated its portfolio that gives Goodman exposure to industries benefiting from structural tailwinds. These include areas such as online, logistics, food, consumer goods, and the digital economy.

Positively, with an occupancy rate of 98%, rental income growing nicely, and its development work in progress worth $9.6 billion, the future is looking very positive.

Credit Suisse appears confident in its future. Last week the broker retained its outperform rating and lifted its price target to $24.15. It believes Goodman can deliver above industry earnings growth over the coming years.

The post 2 top ASX 200 shares that could be buys in August appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia 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 Anson Resources Ltd (ASX: ASN) share price has jumped into the green during today’s session. At the time of writing, Anson shares are swapping hands for 8.4 cents, a gain of 12%.

Today’s gain comes as Anson announced a key update to its Paradox brine project to the market.

Quick refresher on Anson Resources

Anson is a minerals exploration company that has particular interests in lithium, zinc, lead, and gold assets, among a list of other minerals.

It has several projects dotted around Australia and abroad, such as the Paradox brine project in Utah in the United States, and the Bull nickel-copper-PGE project in Western Australia.

Anson has a market capitalisation of $67 million at the time of writing.

What did Anson announce?

Anson revealed it had entered into a collaboration with TETRA Technologies at the Paradox brine project.

The Paradox brine project is a collection of claims and leases owned by the US and Utah governments, coupled with other local municipality agreements.

Henceforth, Anson confirmed the pair had signed a memorandum of understanding (MOU) to progress development at the site, including potential investment by TETRA.

The MOU effectively establishes a “framework of discussing options to work together” in order to “jointly develop” the Paradox site.

Both parties can now “negotiate an off-take agreement”, in addition to the economics of TETRA’s “patented process technology”.

TETRA is a “global leader in the production of bromine derivative products”, according to Anson. These products are used in “a number of applications including oilfield completion services and zinc-bromide energy storage batteries”.

Investors seem to have embellished the collaboration and have immediately rewarded Anson shares as a result of the news.

Anson Resources share price snapshot

The Anson Resources share price has delivered outsized returns over the year to date, posting a return of 178% since January 1.

This extends the previous 12 month’s return of 317%, which has far outpaced the broad index. The S&P / ASX 200 Index (ASX: XJO) has seen a return of about 26% over the same time.

The post Anson Resources (ASX:ASN) share price leaps 12% on US project news appeared first on The Motley Fool Australia.

More reading

• Leading broker tips strong year ahead for 29Metals (ASX:29M) share price
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• Leading brokers name 3 ASX shares to sell today

The author Zach Bristow has no positions 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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A leading broker has put their weight behind the 29Metals Ltd (ASX: 29M) share price to outperform this year.

According to a recent note from Morgan Stanley, shares in the miner are poised to rise.

Let’s take a look at what analysts had to say about the 29Metals share price.

29Metals share price offering ‘compelling value’

Analysts at noted broker Morgan Stanley have lauded the potential latent in the 29Metals share price.

An article published in the Australian Financial Review earlier today elaborated on the note published by the broker.

According to the article, Morgan Stanley expects the 29Metals share price to rise sharply this year. Analysts from the broker noted that they perceive ‘compelling value’ in the share price of the copper miner.

The broker noted that 29Metals was in a tier 1 jurisdiction with plenty of room for diversification. Analysts cited the company’s Capricorn Copper and Golden Grove producing assets.

For 2022, analysts expect 58% of revenue from 29Metals to be generated from copper mining. Zinc (24%), lead (27%) and precious metals (16%) are expected to also contribute to the company’s bottom line.  

Analyst cited that the significant diversification in revenue generation has 29Metals poised for further growth.

In the article, an analyst from the broker stated;

“Although we acknowledge that 29Metal’s assets are old and high on cost, there is still significant margin to the current copper price and plans outlined by management indicate significant potential for low capex brownfield production growth if the asset strategy can be delivered, in-turn improving C1 costs from $US1.82 a pound in CY21 to $US0.94 a pound in CY25,”.

Analysts acknowledged that there were risks around mining rates and life-of-mine plans. However, the broker noted that risk-reward was favourable for the 29Metlas share price.

Morgan Stanley initiated coverage on 29Metals with an outperform rating for the company and a share price target of $3.10. At that target price, the company would be worth $1.49 billion.

Snapshot of the 29Metals share price

29Metals is a miner that owns copper projects in Australia and South America. Most of the company’s revenue is generated from its Golden Grove mine in Western Australia.

The 29Metals share price listed on the ASX at the start of July at $2 per share, 55% ahead of its listing price.

Shares in the miner recently received a boost after releasing its quarterly report.

At the time of writing, the 29Metals share price is trading near its record high of $2.42.  

The post Leading broker tips strong year ahead for 29Metals (ASX:29M) share price appeared first on The Motley Fool Australia.

More reading

• What’s up with the 29Metals (ASX:29M) share price today?
• Why the 29Metals (ASX: 29M) share price has surged 12% since its IPO

Motley Fool contributor Nikhil Gangaram 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 IOUpay Ltd (ASX: IOU) share price is soaring today despite no news having been released by the company.

Right now, IOUPay shares are trading for 24 cents apiece, 11.63% more than their previous close.

Additionally, more than 10.9 million IOUpay shares have swapped hands today. The average number of IOUpay shares traded per month is around 4.3 million.

Let’s take a look at what might be driving IOUpay’s shares higher today.

What might be driving IOUpay?

The IOUpay share price could be being boosted by a number of factors today.

The share price movement could be a belated reaction to IOUpay’s exciting news found within its quarterly report.

The report was released on Thursday. Within it, IOUpay detailed the successful launch of its myIOU buy now, pay later (BNPL) service.

As part of the service, IOUpay released a myIOU app to both the Apple App Store and the Google Play Store.

Despite only just launching the service, myIOU saw $584,459 worth of sales in June. After the end of the June quarter, IOUpay recorded another $1,609,431 worth of sales through myIOU.

Another factor that might be boosting the IOUpay share price is the broader BNPL market. Many BNPL shares are gaining at around the same rate as IOUpay today, likely spurred by the market’s excitement over Afterpay Ltd‘s (ASX:APT) takeover offer from Square Inc.

Afterpay’s board recommended Square’s acquisition offer on Monday.

The Afterpay share price is up 12% today. Fellow BNPL giant Zip Co Ltd (ASX:Z1P) is gaining 9.2%, while Sezzle Inc (ASX:SZL) is also performing better than the broader market, gaining 4.4%.

IOUpay share price snapshot

The IOUpay share price is having a good year on the ASX. Right now, it’s 20% higher than it was at the start of 2021. It has also gained 512% since this time last year.

The company has a market capitalisation of around $118 million, with approximately 551 million shares outstanding.

The post The IOUpay (ASX:IOU) share price is soaring 11% today. Here’s why appeared first on The Motley Fool Australia.

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• Here’s why the Zip (ASX:Z1P) share price is rocketing 8%
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• ASX 200 midday update: Afterpay jumps again, Qantas stands down crew
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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), Apple, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. 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 Galaxy Resources Ltd (ASX: GXY) share price continues its impressive run into the green from today’s market open.

Whereas the S&P/ASX 200 Index (ASX: XJO) has posted a return of around 26% over the last 12 months, Galaxy Resources shares have gained 340% over the same time.

Here we examine some of the tailwinds behind the Galaxy Resources share price.

Planned Merger with Orocobre

Back in April, Galaxy revealed it had entered into a binding merger deed with Orocobre Limited (ASX: ORE).

Under the scheme, Orocobre would acquire 100% of Galaxy shares. In response, Galaxy shareholders will receive “0.569 Orocobre shares” for each Galaxy share held.

In addition, there is a meeting on 6 August where shareholders can vote on the proposal — that’s just around the corner.

The Galaxy Resources board unanimously recommends shareholders vote in favour of the scheme. Should the vote be successful, the new Orocobre/Galaxy shares will commence trading on 26 August.

As a result of the merger announcement, Galaxy Resources shares initially took a nosedive into the red soon after 19 April.

However, the share price rose again on the back of a court ruling in early July which allowed shareholders to vote on the merger. The Galaxy Resources share price has shot up 49% since then.

Lithium spot prices running hot

Underlying lithium prices in the spot markets continue to deliver upside on the charts for Australian lithium miners.

Using Orocobre as a case study, it recently realised a 45% sequential increase in lithium prices from March this year.

This resulted in a 117% year-on-year increase in realised lithium prices from the same time a year prior.

The entire basket of ASX-listed lithium exploration, development and mining shares have been major benefactors of these strengths in lithium spot prices.

Galaxy has expertise as a resource company with expertise in lithium. Therefore, it stands to reason that it has also been a major benefactor of this run-up in lithium markets.

To illustrate, since its quarterly activities report was released on 22 July, Galaxy Resources shares have jumped a further 21% from the market open on that day.

Galaxy Resources share price snapshot

The Galaxy Resources share price has posted a return of 27% over the past month, extending the year to date return of 117%.

Given the recent fundamental momentum, Galaxy Resources shares hit their 52-week high today.

Galaxy shares are now exchanging hands at $4.83 apiece, a 3% jump into the green from the market open.

The post Why the Galaxy Resources (ASX:GXY) share price hit a 52 week high appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares are beating the iron ore majors – again
• The Pilbara Minerals share price (ASX:PLS) is booming 8%. Here’s why
• These ASX 200 lithium shares have all surged more than 20% in a month
• ASX 200 shares in this sector pushing into record highs on Friday
• ASX lithium shares are surging this Friday. Here’s why.

The author Zach Bristow has no positions 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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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.

Facebook (NASDAQ: FB) blew away estimates in its second-quarter earnings report.

Revenue jumped 56% year over year to $29.1 billion, beating expectations, while earnings per share doubled from the lockdown-afflicted quarter a year ago to $3.61, ahead of the consensus at $3.02.

In spite of that strong performance, Facebook share prices fell 4% on the results as its growth lagged that of Google-parent Alphabet and as it said it expected revenue growth to decelerate significantly in the second half of the year.

The second-quarter results were revealing in more ways than just the headline numbers, however. Let’s take a look at three of the biggest takeaways from the report.

1. The end of IDFA wasn’t a big deal

For a long time, Facebook had relied on identity tracking tools known as Identity for Advertisers to help personalize ads. With its rollout of iOS14, Apple gave users the ability to opt out of ad tracking, essentially killing IDFA.

Facebook CEO Mark Zuckerberg had warned about this in dire terms back on the January earnings call, saying back then: “Apple has every incentive to use their dominant platform position to interfere with how our apps and other apps work, which they regularly do to preference their own. This impacts the growth of millions of businesses around the world, including with the upcoming iOS14 changes, many small businesses will no longer be able to reach their customers with targeted ads.” Chief operating officer Sheryl Sandberg said that if personalized ads disappeared entirely, advertisers would lose 60% of their website sales.

Based on those forecasts, it seemed like Apple’s new policy, which rolled out at the end of April, was going to have a dramatic effect on Facebook’s performance, but as the quarterly results show, that wasn’t the case. IDFA also barely warranted a mention on this earnings call. CFO David Wehner did say he expected the headwinds from the ad tracking transparency policy to increase, but based on the Q2 performance and the adjustments Facebook has made in ad tracking, the impact from the end of IDFA seems unlikely to be material.

2. Mark Zuckerberg will see you in the metaverse

Zuckerberg had laid out his view of the future on previous earnings calls, saying that the dominant computing platforms have historically shifted every 15 years — from personal computers to the internet to mobile technology. The next computing platform he believes will be virtual reality, and that is why Facebook is investing heavily in Oculus and other VR tools at Facebook Reality Labs.

However, Zuckerberg went even deeper this time around, describing a “metaverse,” or a digital world where people will interact with each other in the future. The Facebook chief described it as:

…[a] virtual environment where you can be present with people in digital spaces. You can kind of think about this as an embodied internet that you’re inside of rather than just looking at. We believe that this is going to be the successor to the mobile internet.

Facebook and others must build this world before they can monetize it, but there is plenty of potential for monetization, including ads, e-commerce, and the potential for a creator platform. Right now, Oculus and Facebook Reality Labs are among the biggest focuses of its research and development spending, so investors should expect big things in this area in the coming years.

3. Take guidance with a grain of salt

Facebook didn’t give specific guidance, but investors reacted poorly to its warning about a slowdown in revenue growth. Naturally, the social media titan was expected to put up slowing year-over-year growth after it lapped the weakest quarter in the pandemic, but it’s also worth remembering that Facebook has a habit of sandbagging its guidance for all kinds of reasons, including limits on ad load, IDFA, regulatory pressure, or slowing user growth. It almost always puts up impressive growth regardless.

This time around, Wehner said two-year revenue growth rates would decelerate modestly in the second half of the year. In the first quarter, its two-year revenue growth rate was 74% and in Q2 it was 72%. If that trend continued, it would be 70% in the third quarter and 68% in the fourth quarter. That would imply 40% revenue growth in the third quarter and 26% in the fourth quarter. Those are still very strong numbers, and Facebook could easily top those if the economic recovery continues to be strong.

The company also said its expense would be higher in the second half of the year, but it’s still on track to make about $25 billion in operating income based on the numbers above and its spending forecast, which is better than the $23.7 billion it made in the first half of the year.

Whatever happens, there’s no reason to overthink guidance here. Management called the macro environment “very strong” on the call, and the results back that up. With IDFA nearly a non-factor and the metaverse gradually moving into focus, Facebook has no plans to slow down anytime soon.

While the 4% share price drop may be disappointing, there’s no reason for long-term investors to change their thesis here.

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

The post 3 key takeaways from Facebook’s earnings report appeared first on The Motley Fool Australia.

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Jeremy Bowman owns shares of Facebook. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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On Monday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Credit Suisse, its analysts have retained their underperform rating and $5.50 price target on this infant formula company’s shares. Although the broker acknowledges that there have been improvements on Chinese ecommerce platforms, it doesn’t see a big enough improvement to become more positive. It continues to believe that demand will be weak and weigh on its earnings in the near term. The A2 Milk share price is currently fetching $6.01.

Bubs Australia Ltd (ASX: BUB)

A note out of Citi reveals that its analysts have retained their sell rating and cut their price target on this junior infant formula company’s shares to 33 cents. According to the note, the broker has reduced its estimates to reflect a slower than expected recovery due to international border closures. In addition, the broker has concerns about the prospect of lower gross margins and the potential for inventory provisions. Citi also highlights that Bubs’ sales were down 2% over the prior corresponding period in the fourth quarter. The Bubs share price is trading at 41 cents today.

Mineral Resources Limited (ASX: MIN)

Analysts at Morgan Stanley have retained their underweight rating but lifted their price target on this iron ore and lithium focused mining company’s shares to $49.70. According to the note, the broker has increased its earnings estimates for the coming years. However, that isn’t enough for a more positive rating. The broker continues to believe that the market is overlooking project execution risks and the potential for widening discounts for low grade iron ore. The Mineral Resources share price is fetching $59.72 this afternoon.

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

More reading

• Why ASX lithium shares are beating the iron ore majors – again
• These are the 10 most shorted ASX shares
• Why a2 Milk, Afterpay, Dicker Data, & Oil Search shares are charging higher
• Up 275% today, Red Hill Iron (ASX:RHI) share price enters stratosphere
• Why the Mineral Resources (ASX:MIN) share price will be on watch 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 Xero and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Xero. 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 Commonwealth Bank of Australia (ASX: CBA) share price has been contending with the $100 mark for the last couple of months.

Yesterday, the banking giant’s shares reclaimed the century price tag. Though, the latest broker notes indicate the triumph may be brief for CBA investors.

What brokers are saying about the CBA share price?

Despite blazing a 45% share price gain over the past year, some analysts aren’t looking favourably on CBA.

According to a recent note, Morgan Stanley analysts have retained their underweight rating and price target for this banking giant’s shares. The broker’s price target represents roughly a 12% indicative downside to the current CBA share price.

The broker expects a solid result from Australia’s largest bank later this month, but it has concerns over the current lockdowns, with outlook commentary potentially shaky at best.

Additionally, Morgan Stanley considers CBA to be expensive with it trading on a price-to-earnings ratio (P/E) of 27.1. Whereas the average P/E ratio for Australian banks is around 15.7. Analysts from the investment bank suggest investors look elsewhere for ‘value’.  

Earnings just around the corner

The CBA share price will come into focus next week as the company gets set to report its FY21 results. The big four bank will release its full-year financials on Wednesday 11 August.

According to Bloomberg, net profit after tax is estimated to be $9.57 billion with dividends of $2.09 per share. However, we will have to wait to see what CBA reports and how the share price reacts.

The post Leading broker slaps $89 target on CBA (ASX:CBA) share price appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. 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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