The Suncorp Group Ltd (ASX: SUN) share price is pushing higher today despite being dealt a blow in the High Court.

At the time of writing, the banking and insurance giant’s shares are up 1.5% to $11.06.

What has happened?

This afternoon Suncorp provided the market with an update on its business interruption insurance.

According to the release, the High Court of Australia’s has stated that special leave to appeal will not be granted for the Insurance Council of Australia (ICA) first industry test case. This test case relates to the application of the Quarantine Act exclusion to Business Interruption (BI) policies.

This means that the High Court of Australia is upholding the NSW Court of Appeal’s November 2020 judgment. As a result, certain policy exclusions referencing the “Quarantine Act and subsequent amendments” cannot be read as references to the Biosecurity Act, and therefore cannot be relied on in relation to COVID-19 BI claims.

However, Suncorp notes that the decision does not mean that policies referencing the Quarantine Act will automatically respond to COVID-19 related claims. Furthermore, the company also advised that it continues to monitor legal developments in relation to business interruption. This includes the second ICA BI industry test case, which is due to be heard later in the 2021 calendar year.

How will this impact Suncorp?

Suncorp has already prepared for this eventuality so the damage from these claims has already been taken into account.

The release explains that a provision for potential business interruption claims related to COVID-19 of $214 million was reported with its interim results in February this year. This provision amount is not expected to be impacted as a result of today’s decision from the High Court.

Though, the company will complete a full review of its provisions as part of its normal processes to prepare its full year results. It has also recommended customers lodge any COVID-19 business interruption claims they may still have and will assess them as expeditiously as possible and in accordance with the policy terms and circumstances.

The post Suncorp (ASX:SUN) share price higher despite High Court ruling 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’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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Flight Centre Travel Group Ltd (ASX: FLT) will issue shares to employees who stick with the company for the next 18 months.

In an announcement to the ASX, the travel agency said any employee (excluding board and senior management) who stays until 31 December 2022 will receive 250 shares.

The company has been through a turbulent 15 months, and it does not seem to be easing up in the near term.

The COVID-19 pandemic sent the entire travel industry into a spiral. The Flight Centre share price was $39.52 at the start of 2020 and is now down more than 60%.

Many people at the company have lost their jobs. According to Flight Centre’s 2020 annual report, the total number of staff has decreased from almost 20,000 in 2019 to just above 10,000 in 2020.

Why give out free shares?

Calling it a “Global Recovery Rights (GRR) program”, Flight Centre expects 7,500 employees to be eligible. This means about 1.9 million shares worth about $30 million at today’s market price will be issued.

At the time of writing, the Flight Centre share price is trading at $15.12, making the offer worth $3,780 per person.

Managing director Graham Turner commented that the GRR program is a “specific, one-off response” to the pandemic. He said:

This is a material investment in the people who are integral to both our recovery and our future success.

The GRR program underlines our people’s importance and recognises their efforts and their loyalty since the pandemic began and heavy travel restrictions were imposed, adversely impacting their earning potential, while they continued to work incredibly hard to help customers secure refunds or rearrange their travel plans.

It is first and foremost a retention program that encourages our people to continue their careers with us during what we believe will be an important 18-month period as vaccination programs progress, trading conditions start to normalise, and the recovery starts to gain momentum.

Flight Centre share price snapshot

Over the past 12 months, the Flight Centre share price has increased by around 32%.

The company has a market capitalisation of about $3 billion.

The post Flight Centre (ASX:FLT) offers staff 250 shares to stay with the company appeared first on The Motley Fool Australia.

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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 Flight Centre Travel 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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Shares in CSL Limited (ASX: CSL) have plummeted this week, despite no news having been released by the company.

At the time of writing, the CSL share price is $282.68. That represents a fall of 7.48% since Monday’s open for the largest of all ASX-listed companies. That figure includes today’s 1.37% drop.

The ongoing fall seems to have been spurred by a broker note released by Citi on Wednesday. The broker downgraded the company’s shares to a neutral rating and retained its $310 price target.

Let’s look at the note that’s seemingly driven the the biotech company’s share price down this week.

Citi downgrades CSL

The CSL share price looks to have faltered after Citi suggested the plasma collection market recovery is fully priced in.

Citi moved its recommendation for CSL shares from buy to neutral as the company’s share price has outperformed since March and it expects the plasma collection market to normalise this year.

Citi said its rating change is “purely valuation based”.

However, the broker stated it’s still 15% ahead of the consensus for 2023 financial year estimations.

The broker also noted it sees some upside risk to do with the CSL112 phase III trial currently being undertaken by the company.

The clinical trial is working to confirm the efficacy and safety of CSL112 in reducing reoccurring cardiovascular events after an acute myocardial infarction (MI). Myocardial infarction is the medical name for a heart attack.

CSL112 has so far shown an ability to remove cholesterol from arteries.

The trial is aiming to enrol more than 17,000 patients from approximately 1,000 medical centres globally. Its results are due at the end of this year.

CSL share price snapshot

This year has been tough on the CSL share price, which has fallen 0.81% year to date.

Shares in CSL are also 3.88% lower than they were this time last year.

The company has a market capitalisation of around $130 billion, with approximately 455 million shares outstanding.  

The post The CSL (ASX:CSL) share price has fallen 7% this week 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. owns shares of and has recommended CSL Ltd. 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 Cochlear Limited (ASX: COH) share price has been a positive performer on Friday.

In afternoon trade, the hearing solutions company’s shares are up 1.5% to $248.50.

This latest gain means the Cochlear share price is now up a sizeable 31% since the start of the year.

Why is the Cochlear share price pushing higher today?

Investors have been buying the company’s shares on Friday after it was the subject of a bullish broker note out of Macquarie Group Ltd (ASX: MQG) this morning.

According to the note, the broker has retained its outperform rating and lifted its price target on the company’s shares to $264.00.

Based on the current Cochlear share price, this implies potential upside of 6% over the next 12 months.

Why is Macquarie a fan of Cochlear?

The broker made the move following its latest survey of 12 US-based audiologists that specialise in cochlear implants. That survey revealed that Cochlear’s products were regarded as the best in their class for performance and features, outperforming rivals such as Med-El and Advanced Bionics.

In addition to this, the survey shows that cochlear implants patient numbers have been improving. So much so, new patient numbers are now higher than pre-COVID levels. This bodes well for Cochlear, particularly given how the survey indicates that it is winning market share and is expected to continue doing so in the next 12 months.

In light of the above, Macquarie is now forecasting earnings per share of ~$3.65 in FY 2021 and then $4.89 in FY 2022. Based on the current Cochlear share price, this means that its shares are currently changing hands at 51x estimated FY 2022 earnings.

While this is a premium to the market average, it is a price that Macquarie appears to believe is more than fair for such a quality company.

The post Cochlear (ASX:COH) share price rises on bullish broker note 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’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Cogstate Limited (ASX: CGS) share price has bolted more than 23% in today’s trading session.

At the time of writing, shares in Cogstate are trading at around $1.48, after hitting an intra-day high of $1.49.

Let’s take a look at what could be fuelling the Cogstate share price.

What is fueling the Cogstate share price?

Despite not releasing any price-sensitive news, the Cogstate share price is bolting more than 19% higher today. Due to the lack of market moving news, today’s euphoric price action can be attributed to many factors.

The last piece of news from Cogstate can be traced back to a market update released on 15 June. According to the update, Cogstate’s wholly-owned US subsidiary received confirmation that federal loan funds had been fully forgiven.

In May 2020, Cogstate Inc secured a US$2.44 million loan under the United States Government Small Business Administration Payroll Protection Program (PPP). Cogstate noted that the PPP allowed companies to maintain their workforce as the pandemic disrupted business operations.

Snapshot of the Cogstate share price.

Cogstate is a neuroscience technology company that specialises in brain health assessments, with the aim of advancing the development of new medicines and clinical insights. The company’s technologies allow for rapid and reliable computerised cognitive tests, which are designed to replace traditional costly and error-prone paper assessments.

Including today’s price action, the Cogstate share price is flying more than 35% higher for the year. Shares in Cogstate hit an all-time high of $1.60 earlier this month following a very positive business update.  

Cogstate announced that the U.S. Food and Drug Administration (FDA) had granted Eisai Co accelerated approval for aducanumab for the treatment of Alzheimer’s disease.

Late last year, Cogstate announced that it had entered into an agreement with Eisai Co to grant the company rights to exclusively develop and distribute Cogstate technologies.

As a result, Cogstate noted that following the approval of aducanumab by the FDA, Eisai no longer has the right to accelerated termination of the Cogstate-Eisai agreement. Eisai is contractually obligated to minimum contractual royalty payments over commercial years 1-5 of US$10 million.

The post Why the Cogstate (ASX:CGS) share price is surging 23% today appeared first on The Motley Fool Australia.

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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 Southern Cross Media Group Ltd (ASX: SXL) share price is up 5.53% today to $2.12 after the company announced an agreement with Network 10.

Southern Cross Media share price higher on broadcast agreement

Southern Cross Media announced a new regional television affiliation agreement to broadcast channels 10, 10 Bold, 10 Peach and 10 Shake into its regional Queensland, Southern NSW and regional Victoria markets.

The new agreement will begin 1 July 2021 for a term of two years.

The arrangement will broadcast Network 10’s highly successful television programs including MasterChef Australia, Australian Survivor, The Bachelor Australia, The Masked Singer, The Project, live ALeague, Westfield W-League, as well as Socceroos, Matildas and FFA Cup matches.

Southern Cross Media says its sales team have a track record of converting ratings to revenue and look forward to generating strong commercial returns for both parties.

Television revenue update

Southern Cross Media advises that its television revenue booked to date for Q122 is in line with its internal forecasts and ahead of its prior year performance.

An improvement in year-on-year television revenue has been led by a recovery in the national advertising market and improving local investment across all regions.

Southern Cross Media said that this agreement will enable it to optimise the strategic and commercial position of its television business in the evolving free-to-air television market.

The company said it expects television earnings under the Network 10 affiliation to be neutral, compared to the current Nine affiliation, which is expected to expire on 30 June 2021.

Southern Cross Media share price in 2021

It’s been a choppy year for the Southern Media share price.

A key catalyst for its underperformance was on 12 March, when Nine Entertainment Co Holdings Ltd (ASX: NEC) said it would not extend its regional affiliation agreement. The company’s shares tanked ~10.4% on the day from $2.21 to $1.98.

The 6% rally today to $2.11 in intraday trade has helped push the Southern Cross Media share price to a 4-month high, but it is still down about 2.30% year-to-date.

The post Why the Southern Cross Media (ASX: SXL) share price is up 5% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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Shares in Brickworks Limited (ASX: BKW) have hit a new 52-week high today, despite no news having been released by the company. The Brickworks share price reached an intraday high of $24.50 this morning – the highest it’s been in 12 months.

At the time of writing, the building material supplier’s shares are trading for $24.48, 0.95% more than their previous close.

Brickworks’ shares are running ahead of the broader market today. Currently, the S&P/ASX 200 Index (ASX: XJO) is up 0.25%, while the All Ordinaries Index (ASX: XAO) is up 0.33%.

Brickworks’ gains come despite the company’s managing director telling media the International Monetary Fund’s (IMF) calls for a worldwide carbon tax would obliterate the company.   

The latest on Brickworks

Brickworks’ managing director Lindsay Partridge has today slammed the IMF for suggesting a global carbon tax that’s 25 times more than the average carbon tax is currently.

Last Friday, the IMF’s managing director Kristalina Georgieva said the organisation wants to instate a carbon tax that would gradually increase over the coming decade, eventually reaching US$75 a tonne. She said:

Gradually increasing price on carbon encourages innovation and transition to renewable energy, clean mobility, and low carbon technologies…

There has been progress [towards cutting carbon emissions by 23% to limit global warming to between 1.5°C and 2°C] … But four-fifths of global emissions still remain unpriced and the global average emissions price is only $3 per tonne.

According to The Australian, Partridge believes most action to limit the effects of scientifically-proven climate change is “a little bit over egged”. However, he also said that potential carbon taxes “keep (the company) awake at night”.

Additionally, Partridge said Australian governments are less supportive towards business than those in the US. The US is where a large portion of Brickworks’ business takes place.

The Australian quoted Partridge as saying:

(Australian governments) are into the rule book to try and find out how they can stop you doing what you want to do, or try and delay you, whereas in America, representatives of the governor will come and see you and ask you how they can help.

Brickworks share price snapshot

It has been a good year for the Brickworks share price on the ASX. So far, it’s gained 24% year to date. It is also 60% higher than it was this time last year.

The company has a market capitalisation of around $3.6 billion, with approximately 151 million shares outstanding.

The post The Brickworks (ASX:BKW) share price hits a new 52-week high 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 owns shares of and has recommended Brickworks. 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 Endeavour Group Limited (ASX: EDV) share price is soaring in late morning trade, up 8% to $6.50 per share.

This comes on the second day of trade for the liquor and hotels company and represents a welcome bounce back for shareholders following yesterday’s losses.

Shares opened yesterday at $6.50 per share and closed the day at $6.07 per share, a loss of 6.7%. With today’s 8% gains, the Endeavor share price is back where it started in listed life.

Remember, it takes a higher percentage gain to offset losses. A 50% share price loss, for example, requires shares to gain 100% to get back to even. A handy reminder on risk management.

Why did Endeavour list on the ASX?

The 332 hotels, 1,775 liquor licenced venues, 12,364 poker machines and 290 TABs and KENO outlets that Endeavour owns were, until a few days ago, mostly owned by Woolworths Group Ltd (ASX: WOW).

But Woolworth’s had been planning to demerge its 85.4% holdings in Endeavour since 2019. Then along came the global pandemic, and things were put on the backburner.

So, why did Woolworth’s decide to split away from its liquor and hotels business segment?

According to the company, it wanted to focus on its core grocery business, saying the split would maximise shareholder value over time. Woolworth’s shareholders received 1 Endeavour share for each share they owned in Woolies.

While the Endeavour share price is soaring today, Woolworth’s share price is sliding, down just over 2% to $36.94 per share.

The post The Endeavour (ASX:EDV) share price is shooting 8% higher today appeared first on The Motley Fool Australia.

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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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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on track to end the week on a positive note. The benchmark index is currently up 0.3% to 7,294.8 points.

Here’s what has been happening on the market today:

CSL shares downgraded

The CSL Limited (ASX: CSL) share price is trading lower today. This appears to have been driven by a broker note out of Credit Suisse this morning. According to the note, the broker has downgraded CSL’s shares to a neutral rating and trimmed the price target on them to $310.00. The broker is expecting CSL’s gross margins to come under pressure due to higher plasma donation costs in the United States.

Zip to be hit by new Afterpay product?

The Zip Co Ltd (ASX: Z1P) share price is trading lower today after analysts at Citi suggested that the new pay anywhere offering from Afterpay Ltd (ASX: APT) could be a threat to its US business. This new service will allow US consumers to generate a single-use card to enter at checkout for some of the largest retailers in the lucrative market such as Amazon. Citi notes that there is a high customer overlap between Afterpay and Zip’s QuadPay business in the US.

Charter Hall update impresses

The Charter Hall Group (ASX: CHC) share price is pushing higher today after the property company provided an update on property revaluations. According to the release, the company’s funds under management (FUM) Platform will generate gross valuation increases of $3.3 billion from these revaluations. That’s even after factoring in $0.6 billion of development capex. This will result in forecast FUM rising to approximately $52 billion, up $12 billion over the course of FY 2021.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Chalice Mining Ltd (ASX: CHN) share price with a 7% gain. Although there has been no news out of the gold explorer, its shares were given a boost by being added to the ASX 200 index on Monday. The worst performer has been the WiseTech Global Ltd (ASX: WTC) share price with a 3% decline. This is despite there being no news out of the logistics solutions company.

The post ASX 200 up 0.3%: CSL downgraded, Zip drops, Charter Hall impresses 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’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, CSL Ltd., WiseTech Global, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and WiseTech Global. 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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A2 Milk Company Ltd (ASX: A2M) shares have had an awful time of late.

The stock has lost more than 65% in the past 12 months, due to multiple forecast downgrades mainly from the impact of COVID-19 on its sales to China.

As of Friday morning, the A2 Milk share price stood at $6.38, compared to a 52-week high of $20.

However, Castle Point co-founder Stephen Bennie reminded everyone that it was an explosive growth story immediately before this.

The milk producer’s revenue shot up from NZ$154 million to NZ$1.73 billion in just 5 years from 2015 to 2020.

“Similarly impressive growth occurred at the bottom line, with profits increasing from $2.4 million to $388 million in the same corresponding periods — an increase of 16,000%!” he wrote on Good Returns.

“Scant wonder the share price rose from 70c to $20 over those 5 years of remarkable growth, as the company became a significant player in the global infant milk powder industry.”

So it is fair to say most of A2 Milk’s shareholders would be growth investors. 

But now the A2 Milk share price has plunged, has it actually become a value play?

How shares change hands from growth to value investors

Bennie used a simplified model from Dundas Global Investors to explain how a stock changes from value to growth and vice versa.

A value stock, once it appreciates, is sold off by value investors to realise their gains. The buyers are growth investors, who like the way the valuation is expanding.

A growth stock, when they deflate, is sold off by demoralised growth investors. The buyers are value investors, who are attracted by the low price and the potential to grow back again.

According to Bennie, despite the sharp sell-off, A2 Milk is not yet “ticking many of the boxes” for value investors.

“At current levels A2 is trading at a 380% premium to the book value of its assets, so it is not an asset play. It’s not cheap in terms of current earnings or next year’s expected rebound — the PE ratio for FY21 is 48x and for FY22 it’s 25x.”

The enterprise value of the milk maker is still more than 3 times annual revenue, which is still too high for value investors.

“The additional stumbling block for value investors with A2 is that its rise was so stratospheric and its subsequent fall so abrupt, that it is nigh on impossible to know what a bedrock steady state earnings might be — never mind trying to assess if it is cheap on that level of earnings.”

When will we know if A2 is ready for value investing?

There is a simple observation that would indicate when value investors are finally comfortable with A2 Milk.

“A strong indication that [growth] investors are largely gone and that it’s now mainly owned by cardigan-wearing value investors, is that the share price no longer goes down on bad news,” said Bennie.

“That is because value investors are realists and accept that some bad news is part of life.”

He added that growth investors “detest bad news” that confronts their optimism, so will sell at each negative development.

“Currently with the share price continuing to react badly to negative news, A2 clearly still has plenty of growth and GARP investors on the share registry,” Bennie said.

“And likely only a handful of very early and unusually optimistic value investors.”

The post Is A2 Milk (ASX:A2M) now an ASX value share? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns shares in A2 Milk. 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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