If you’re a retiree, you might be looking for a way to generate an income after the interest rates on traditional interest-bearing investment products collapsed over the last few years.

One way you could potentially do this is by investing in dividend shares.

Luckily, the Australian share market is home to a large number of them. But which ones should you buy? Here are two that have been rated as buys recently:

Coles Group Ltd (ASX: COL)

The first high quality option for retirees to consider is Coles. It could be a top option for a retirement portfolio due to its defensive qualities, attractive dividend yield, and solid long term growth prospects.

In respect to the latter, Coles has been tipped for growth over the 2020s thanks to its long track record of delivering same store sales growth, strong market position, and its refreshed strategy. This strategy is embracing automation, cutting costs, expanding its online business, and supporting margin expansion.

A recent note out of Goldman Sachs reveals that its analysts are forecasting consistent dividend growth for the foreseeable future. The broker has pencilled in fully franked dividends per share of 62 cents, 67 cents, and then 73 cents over the next three financial years. Based on the latest Coles share price of $17.02, this will mean yields of 3.6%, 3.9%, and 4.3%, respectively.

Goldman Sachs has a buy rating and $19.40 price target on its shares.

Goodman Group (ASX: GMG)

Another quality option for retirees to consider is Goodman Group. It is a property company that owns, develops, and manages industrial real estate across several countries. This includes properties with exposure to markets with very favourable outlooks such as ecommerce thanks to deals with Amazon and DHL.

Given how these assets are predicted to be in demand for a long time to come, it bodes well for income and distribution growth in the future. As does it development pipeline, which is filled with a large number of very promising projects.

Citi is positive on Goodman and has a buy rating and $22.10 price target on its shares. The broker is forecasting dividends per share of 30 cents, 32 cents, and 35 cents over the next three years. This represents yields of 1.4%, 1.5%, and 1.7%, respectively.

The post 2 high quality ASX 200 shares for a retirement portfolio appeared first on The Motley Fool Australia.

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• 2 top ASX dividend shares with attractive yields
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• ASX 200 Weekly Wrap: Share market breaks 5 week winning streak
• 2 growing ASX dividend shares for income investors
• Why the Coles (ASX:COL) share price is pushing higher 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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Star Entertainment Group Ltd (ASX: SGR) endured a lacklustre day after an announcement by the company that it will be impacted by Queensland’s lockdown.

At the closing bell, the Star share price was down by 0.27% to $3.63.

Let’s take a look at the lockdown facing parts of Queensland and how it could affect Star Entertainment.

Home you go, Queensland

Queensland’s Premier Annastacia Palaszczuk announced at a press conference earlier today parts of the state will go into lockdown from 6pm tonight until 6pm on Friday.

Southeast Queensland, Townsville, Magnetic Island, and Palm Island will be entering a 3-day lockdown after a travelling hospital worker was found to have COVID-19.

The state’s stay-at-home order will take place while Greater Sydney is undergoing a 2-week lockdown.

The current lockdowns have already caused many ASX travel shares to drop, and investors will be weighing up the possible impact on Star Entertainment.

Star’s lockdown woes

Star Entertainment’s businesses are based in 3 of Australia’s east-coast cities, which are normally a blessing for the hotel and casino operator.

Unfortunately, given the current COVID-19 situation, those cities are Sydney, Brisbane, and the Gold Coast.

Yesterday, Star restated its Sydney casino and hotel, The Star Sydney, will be closed to the public until the end of Greater Sydney’s lockdown. However, it will continue to operate limited hotel facilities.

Sydney’s lockdown was initially for a 7-day period, but it has since been extended. It will now last for a fortnight and end on 9 July.

The company has committed to continuing to pay staff at its Sydney business for the 2-week period.

Today, Star announced it will be closing its remaining casinos at 6pm tonight. The Star Gold Coast and Brisbane’s Treasury Casino & Hotel are expected to reopen on Friday evening. However, there is no guarantee the lockdown will end then.

The company has also committed to keep paying its Queensland-based staff for the duration of the lockdown.

Star Entertainment share price snapshot

The Star Entertainment share price hasn’t been noticeably affected by news of lockdowns. However, its shares have slightly fallen each day since it acknowledged Sydney’s most recent lockdown after close on 25 June. Star shares are currently trading for 1.63% less than they were then.

The Star share price has dropped 2.9% since the start of 2021. However, it’s 33.8% higher than it was this time last year.

The company has a market capitalisation of around $3.4 billion, with approximately 946 million shares outstanding.  

The post Star (ASX:SGR) share price struggles following lockdown news appeared first on The Motley Fool Australia.

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

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The S&P/ASX 200 Index (ASX: XJO) is having a pretty ho-hum kind of day today. At the time of writing, the ASX 200 is down 0.14% to 7,297 points. Let’s check out the 3 ASX 200 shares that are topping the list of trading volumes today:

3 ASX 200 shares making moves today

Telstra Corporation Ltd (ASX: TLS)

ASX telco Telstra is the first ASX 200 share with a high trading volume to note today. So far, a hefty 9.19 million TLS shares have changed hands on the share market. This could be a result of the movements of the Telstra share price today. Telstra opened at $23.59 this morning but quickly fell all the way to $3.55 soon after, only to rebound back to $3.59 where it currently stands. This volatility might be behind such a large volume of Telstra shares trading today.  My Fool colleague James looked at the kind of dividend investors can expect from Telstra right now this afternoon.

Boral Limited (ASX: BLD)

Construction company Boral is another ASX 200 share that is making its way around the ASX boards today. At the time of writing, a substantial 9.65 million Boral shares have swapped owners on the markets today. Like other shares in its sector, Boral has been caught up in the market’s malaise today and is currently down 0.14% to $7.34 a share after briefly dipping as low as $7.30 just after open this morning.

This may be related to Boral’s rejection yesterday of a revised takeover bid from Seven Group Holdings Ltd (ASX: SVW). Seven upped its offer from $6.50 a share to $7.40 yesterday. Like its former offer, this latest bid was also swatted away by Boral’s board, who still think Seven is undervaluing the company.

Genworth Mortgage Insurance Australia Ltd (ASX: GMA)

Mortgage insurance provider Genworth takes the crown as the most traded ASX 200 share today, pipping the usual occupant Pilbara Minerals Ltd (ASX: PLS). A huge 14.63 million Genworth shares have been bought and sold today. This is almost certainly the result of what has happened to the Genworth share price itself. At the current time, Genworth shares a down a very nasty 13.58% to $2.20 a share.

What happened? Well, Commonwealth Bank of Australia (ASX: CBA) has come out today and said that it wants a new proposal from Genworth regarding the exclusive Lenders Mortage Insurance agreement that the two companies share before the current agreement expires on 31 December 2022. This has clearly spooked the markets and is probably the reason why Genworth shares are flying around the ASX today.

 

The post Here are 3 ASX 200 shares making market moves today appeared first on The Motley Fool Australia.

More reading

• Why Collins Foods, Genworth Mortgage Insurance, Kathmandu, & ResMed are sinking
• ASX construction shares like Brickworks (ASX:BKW) are falling today
• Should you buy Telstra (ASX:TLS) shares for its dividend yield?
• ASX 200 down 0.9%: Big four banks drop, Metcash charges higher
• Genworth (ASX:GMA) share price dives 17% after CBA contract update

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

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The A2 Milk Company Ltd (ASX: A2M) share price has been an exceptionally poor performer in 2021.

Since the start of the year, the fresh milk and infant formula company’s shares have crashed 47% lower.

This follows the further deterioration in the company’s performance, which led to management downgrading its earnings guidance for a fourth time during the financial year.

Is the worst over for the a2 Milk share price?

One leading broker that appears to believe the worst is behind the a2 Milk share price now is Bell Potter.

According to a recent note, the broker has put a buy rating and $8.50 price target on the company’s shares. Based on the a2 Milk share price of $6.11, this implies potential upside of 39% over the next 12 months.

What did the broker say?

Bell Potter appears to believe that investors should look beyond the company’s short term headwinds and focus on its long term potential. Particularly given its opportunity to expand its offline footprint in the lucrative China market.

The broker explained: “At its core we see A2M as a business that, once MVM [Mataura Valley Milk] is consolidated, has baseline revenue of ~NZ$1.4-1.5Bn and EBITDA of ~NZ$300m, with a pathway to being a ~NZ$1.7Bn revenue business generating ~NZ$445m in EBITDA on its existing China offline distribution footprint (with a materially higher portion of direct China sales than in the past).”

“Expansion in China offline distribution points towards ~30k, could see A2M lift to a ~NZ$2bn top line business generating ~NZ$560m in EBITDA. As such we do not see FY21e revenue or earnings as reflective of where the business will operate once supply chains have stabilised and retain our Buy rating,” it added.

In light of this, the abject performance of the a2 Milk share price in 2021 could potentially be a buying opportunity for brave investors.

The post Is the a2 Milk (ASX:A2M) share price a bargain buy? appeared first on The Motley Fool Australia.

More reading

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• A2 Milk and Zip were among the most traded ASX shares last week
• Selling some ASX shares before tax time? Here’s what you should know

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. 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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Australia’s leading investment platform provider CommSec has released data on the most traded ASX shares on its platform from last week.

Here’s the data:

Zip Co Ltd (ASX: Z1P)

For a third week in a row, this buy now pay later provider’s shares were the most traded on the CommSec platform. Zip’s shares accounted for 3.1% of trades on the platform, with the buying and selling evenly split. The buyers will have been the happier group, with the Zip share price adding 1.1% over the week.

Woolworths Group Ltd (ASX: WOW)

This conglomerate’s shares were popular with investors last week. They were attributable to 2.5% of trades on CommSec, with 90% of the volume coming from the buy side. Last week Woolworths completed the demerger of its Endeavour Group Ltd (ASX: EDV) business. And while this led to a 13.8% decline over the five days, this reflects the value of the demerged business which shareholders received shares in.

Commonwealth Bank of Australia (ASX: CBA)

Investors were buying this banking giant’s shares last week. This led to Commonwealth Bank’s shares being attributable for 2.3% of trades on CommSec. And while 74% of the volume came from buyers, it couldn’t stop the CBA share price falling 4.3% over the five days. The banking giant announced the sale of its general insurance last week.

Afterpay Ltd (ASX: APT)

This buy now pay later provider’s shares were heavily traded last week and attributable to 1.6% of trades on CommSec. This followed news that the company is expanding its pay anywhere offering in the US to cover major retailers such as Amazon. And although the Afterpay share price charged 12.8% higher, only 38% of the volume came from buyers.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This ETF was popular with investors yet again last week. The Betashares Nasdaq 100 ETF was involved in 1.5% of trades on CommSec, with 83% of the volume coming from buyers. The technology-focused ETF rose 0.5% over the five days and has hit a record high on Tuesday.

The post Afterpay and Zip were among the most traded ASX shares last week appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• ASX bank shares weigh up $34 billion dosh-dishing decision
• Genworth (ASX:GMA) share price dives 17% after CBA contract update
• Investors push Australia’s largest ASX shares to disclose climate risks
• Why Afterpay (ASX:APT) and this ASX share could be top growth options

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 AFTERPAY T FPO, BETANASDAQ ETF UNITS, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and BETANASDAQ ETF UNITS. 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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Shares in Camplify Holdings Limited (ASX: CHL) burst onto the ASX yesterday following a successful listing.

After being heavily oversubscribed, the caravan and campervan-sharing platform’s initial public offering (IPO) managed to raise $11.5 million.

The Camplify share price opened yesterday at $1.44, hitting a high of $1.50 and closing at $1.40. At the time of writing, Camplify shares are trading relatively flat on the company’s second day of listing, at around $1.40.

Let’s take a closer look at the newly listed company.

Camplify lists and upgrades forecasts

Camplify lodged its prospectus earlier this year, with an offer price of $1.42 per share, giving the company a $42.1 million valuation.

In addition to completing a successful IPO yesterday, Camplify also upgraded its prospectus forecast in an announcement to the ASX.

The company advised that its business was performing strongly and was expected to exceed prospectus forecasts. As a result, Camplify upgraded its gross transactional volume (GTV) and revenue forecasts for FY21.

Camplify expects FY21 GTV in the range of $30.0 to $31.5 million, compared to initial forecasts of $27.8 million. In addition, the company expects FY21 revenue in the range of $7.3 to $7.6 million, compared to its prospectus estimate of $6.7 million.

The company attributed the changes to a lower-than-expected impact of border restriction on operations. In addition, it noted a faster than expected return to travel and tourism in the United Kingdom market with strong customer interest.

In the announcement, Camplify also highlighted that the company plans to start caravan sales to premium members in the second half of FY21. However, the company does not anticipate revenue from sales due to supply chain uncertainty.

More on Camplify

Camplify runs a digital platform similar to Airbnb, that allows owner of campervans and motorhomes to rent out their vehicles to others.

Over the past 7 years, Camplify has become a leading RV rental platform operating in Australia, New Zealand, the UK and Spain. In addition, the company boasts one of the largest RV fleets in Australia with 5400 vehicles on its books.   

Similar to Airbnb, Camplify receives a platform fee for facilitating transactions and generates additional incomes through complementary products. In addition to charging commissions on bookings, Camplify handles the back end for lessors and holiday-makers, performing driver licence and ID checks, as well as providing insurance to vehicle owners.

In its prospectus, Camplify highlighted that the COVID-19 pandemic had fast-tracked its growth. With restrictions on international travel, the company estimates that 14 million caravan and camper trips were completed in Australia in 2020.

The post Camplify (ASX:CHL) share price flattens after IPO burst appeared first on The Motley Fool Australia.

More reading

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• Cathie Wood’s ARK Invest to launch Bitcoin ETF
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• Is the Westpac (ASX:WBC) share price a buy?
• Brainchip (ASX: BRN) share price weakens after co-founder sells shares

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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On Monday I looked at three ASX shares that 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:

Afterpay Ltd (ASX: APT)

According to a note out of UBS, its analysts have retained their sell rating but lifted their price target on this payments company’s shares to $42.00. UBS notes that Afterpay will soon allow US consumers to use its pay anywhere offering at non-integrated retailers including Amazon. UBS is positive on the move and has upgraded its underlying sales estimates meaningfully to reflect this. However, it still isn’t enough for a more positive rating, with the broker continuing to believe its shares are vastly overvalued. The Afterpay share price is fetching $121.00 today.

Air New Zealand Limited (ASX: AIZ)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut their price target on this airline operator’s shares to NZ$1.10 (A$1.02). This follows the recent release of a trading update which revealed that Air New Zealand expects significant losses in both FY 2021 and FY 2022. The Air New Zealand share price is trading at $1.44 this afternoon.

Evolution Mining Ltd (ASX: EVN)

Analysts at Morgan Stanley have downgraded this gold miner’s shares to an underweight rating with a $4.30 price target. According to the note, the broker made the move due to both its belief that the gold price will fall to US$1,660/oz in FY 2022 and on valuation grounds. In respect to the latter, Morgan Stanley notes that its expansion opportunities at Red Lake and Cowal are fully priced into forecasts, meaning there is limited upside risk to its earnings. In addition to this, it notes that there are execution risks to consider. Overall, it feels investors would be better off looking at other miners for exposure to gold. The Evolution share price is trading at $4.54 today.

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

More reading

• Why Afterpay (ASX:APT) and this ASX share could be top growth options
• What truly moves an ASX share price? Knowing the unknown
• 5 things to watch on the ASX 200 on Tuesday
• The Zip (ASX:Z1P) share price is down 6%…profit taking, competition or lockdown fears?
• Leading brokers name 3 ASX shares to buy today

James Mickleboro does not own any shares 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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Could there be a new exchange-traded fund (ETF) that invests in just the cryptocurrency Bitcoin (CRYPTO: BTC)? That’s certainly what it’s looking like. Until recently, regulatory authorities around the world have been reluctant to allow listed ETFs to invest in cryptocurrencies like Bitcoin. This can probably be put down to Bitcoin’s decentralisation. As well as its lack of regulatory structure and its famous (or infamous) volatility.

Our own ASX does not currently have any kind of ETF that is approved for cryptocurrency assets. And China has banned Bitcoin entirely. But according to a report in today’s Australian Financial Review (AFR), the waters could be changing.

According to the report, Cathie Wood’s ARK Invest funds management company has filed to list a bitcoin ETF product. This product has the tentative name of ARK 21Shares Bitcoin ETF and will aim to trade under the ticker code ‘ARKB’ on the US share markets. It would reportedly track the pure performance of Bitcoin as measured by the S&P Bitcoin Index and would hold Bitcoin assets itself.

An ARK Bitcoin ETF?

Eric Balchunas, ETF analyst for Bloomberg Intelligence, told the AFR the following on the proposal:

This makes a lot of sense because Cathie is on the board of 21Shares, which is a big progressive crypto issuer in Europe… This gives 21Shares penetration in the US and it’s on-brand for Ark given how vocal and bullish they’ve been on crypto.

For anyone who follows ARK Invest, this move would come as no surprise. ARK and its CIO Cathie Wood have long been vocal about their Bitcoin bullishness. Ms Wood has floated a long-term price target of US$500,000 for the cryptocurrency and has invested a significant proportion of ARK’s funds into Bitcoin linked assets in the past.

But ARK is most famous for its high-growth ETFs that are already available on the US share markets. ARK’s flagship ETF is the ARK Innovation Fund (NYSE: ARKK). This ETF invests in growth companies like Tesla Inc (NASDAQ: TSLA), Square Inc (NYSE: SQ) and Zoom Video Communications Inc (NASDAQ: ZM). The Fool recently looked at some of the other ARK ETFs available, and the types of companies they invest in.

So it will be interesting to see how this latest ARK Invest foray into Bitcoin turns out. Who knows, we might even see a Dogecoin (CRYPTO: DOGE) ETF one day.

The post Cathie Wood’s ARK Invest to launch Bitcoin ETF appeared first on The Motley Fool Australia.

More reading

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• $4.7 billion of Bitcoin still missing in alleged mass fraud
• Cryptocurrency values plunged this past week. Should you change your investing strategy?
• ASX 200 Weekly Wrap: Share market breaks 5 week winning streak

Motley Fool contributor Sebastian Bowen owns shares of Tesla, Zoom, Square and Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin, Square, Tesla, and Zoom Video Communications. The Motley Fool Australia has recommended Zoom Video Communications. 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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Shares in Noxopharm Ltd (ASX: NOX) are gaining today following the company’s announcement of a notice of allowance for an important European patent.

At the time of writing, the Noxopharm share price is 64 cents – 7.56% higher than its previous close.

Let’s take a closer look today’s release from the drug development company.

Possible European patent

Noxopharm announced it’s received a notice of allowance on a key patent for its first pipeline drug candidate Veyonda.

According to Noxopharm, it’s a positive sign the European Patient Office will likely grant the patent.

Currently, Veyonda is in phase 2 of clinical trialling. Noxopharm hopes Veyonda will prove to be a useful cancer treatment.

If granted, the patent will relate to the use of idronoxil, the active ingredient in Veyonda. The patent will cover a formulation designed to provide a steady-state blood level of the drug.

It will also see Noxopharm with enforceable rights to idronoxil for another 16 years.

Veyonda is expected to treat any type of cancer and be given to patients undergoing chemotherapy or radiotherapy.

According to Noxopharm, if granted, the European patent will be a good sign the drug is likely to be patented in other important territories, like the United States.

Commentary from management

Noxopharm’s CEO Graham Kelly commented on the notice of allowance, saying:

This allowance is very pleasing validation of our strategy of building a strong IP position around Veyonda based on a series of inter-connected patents. The interconnection is between method of administration and clinical use and removes the reliance on the strength of any single patent.

A granted patent also will help underpin our commercial aim of Veyonda becoming a standard of care drug in combination with other major forms of cancer therapy.

Noxopharm share price snapshot

The Noxopharm share price has been performing well lately.

It’s currently 30% higher than it was at the start of 2021. It’s also gained 265% since this time last year.

The company has a market capitalisation of around $184 million, with approximately 288 million shares outstanding.

The post The Noxopharm (ASX:NOX) share price is soaring 7% appeared first on The Motley Fool Australia.

More reading

• Noxopharm (ASX:NOX) share price edges lower after clinical trial update
• Why the Noxopharm (ASX:NOX) share price is charging higher again
• Why the Noxopharm share price rocketed 22% 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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The Westpac Banking Corp (ASX: WBC) share price has risen by 30% in 2021 so far. Is the major ASX bank a buy today?

What has been happening recently?

Westpac shares peaked at almost $27 earlier in June, but it has been drifting lower over the last couple of weeks.

Business divestment announcements have been the main news out of the company in the last week.

It announced that it’s retaining all of its Westpac New Zealand business and it won’t demerge it. Westpac called it a strong business and it’s committed to continue delivering for customers. The bank believed that a demerger would not be in the interests of shareholders.

The bank also said that it’s selling its motor vehicle dealer finance and novated leasing businesses to Angle Finance.

Westpac will transfer its auto dealer and introducer agreements together with wholesale dealer loans of approximately $1 billion, it will transfer the strategic alliance agreements with vehicle manufacturers and novated lease origination capability and related agreements.

The major bank will retain its existing retail auto loans of around $10 billion originated by the businesses being transferred.

Those loans will run down in the normal course of business over the life of those loans. Westpac will also progressively cease new retail auto loan originations from these three channels with customers still able to see the group’s consumer and business lending products to help buy motor vehicles. 

Management said that the sale is subject to the final value of the portfolio transferred and will generate an accounting gain on sale. It is expected to add around 6 basis points to Westpac’s common equity tier 1 capital ratio.

The broker Ord Minnett said that the sale was decent, but it doesn’t make much of a difference compared to a large entity like Westpac.

Is the Westpac share price a buy?

Ord Minnett currently rates the bank as a hold with a price target of $27.50.

The latest insight into Westpac’s financial returns was the FY21 half-year result where it saw statutory net profit grow 189% to $3.4 billion and cash earnings go up 256% to $3.5 billion. Excluding notable items, cash earnings increased 60% to $3.8 billion.

Westpac said it’s making good progress on strategic priorities of fixing, simplifying and performing.

The bank’s plan to address financial and non-financial risk governance has been approved. The first assurance report has been released. It has also increased its resources in risk and financial crime teams.

It also has a three-year plan to reduce its cost base to $8 billion by FY24.

The bank said that it has a strong balance sheet, higher capital ratio, good margin management and improved credit quality metrics.

One broker that does rate Westpac as a buy is Morgan Stanley. This broker has a price target on Westpac of $29.20. According to Morgan Stanley, the current Westpac share price is valued at 16x FY21’s estimated earnings with a forecast FY21 grossed-up dividend yield of 6.5%.

The post Is the Westpac (ASX:WBC) share price a buy? appeared first on The Motley Fool Australia.

More reading

• ASX bank shares weigh up $34 billion dosh-dishing decision
• Investors push Australia’s largest ASX shares to disclose climate risks
• Bank of Queensland shares outperforming all ASX 200 banks this month
• Why analysts rate Westpac (ASX:WBC) and this dividend share as buys
• Westpac’s (ASX:WBC) double life insurance divestment looms

Motley Fool contributor Tristan Harrison 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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