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Despite the phenomenal success of generative artificial intelligence chip maker Nvidia Corporation (NASDAQ: NVDA), it’s been a mixed bag for ASX AI stocks so far in 2024.

Turning our eyes to today’s action, Bigtincan Holdings Ltd (ASX: BTH), which provides AI-powered sales enablement automation platforms, is taking a beating.

Bigtincan shares closed last Friday trading for 14 cents apiece. The stock then entered a trading halt pending today’s announcement on the outcome of the institutional component of the company’s capital raising.

Investors responded by sending the ASX AI stock crashing 21.4% to 11 cents a share in the first half hour of trade.

Trading in Bigtincan shares was then paused once more pending a further announcement.

That announcement was released just after noon AEST today.

Here’s what’s happening.

ASX AI stock smashed on dilutive capital raising

Yesterday, when Bigtincan shares were in a trading halt, the company announced it was conducting a $20.5 million equity raising to support its ongoing operations and growth plans.

The ASX AI stock came under heavy selling pressure when trading resumed this morning. That’s because Bigtincan is conducting the fully underwritten 1 for 3 accelerated pro rata non-renounceable entitlement offer at an offer price of 10 cents per share. Or almost 29% below Friday’s closing price.

Management said the new funds will be invested in “core AI technology, data infrastructure related to provisioning of its GeneiAI technology, market awareness and development, working capital and transaction costs”.

Today, Bigtincan reported the successful completion of the institutional component of the offer had raised around $10.0 million. This saw some 100.3 million new shares being issued.

The retail component of the ASX AI stock’s capital raise opened this morning and is expected to bring in another $10.5 million before costs. That offer is also at 10 cents per share, which is adding to the selling pressure.

What else is happening with Bigtincan shares?

On Tuesday, the ASX AI stock also reported that it had received a confidential, non-binding, incomplete and indicative offer from Vector Capital Management at an indicative offer price of 25 cents per share.

That would represent an almost 79% upside from Friday’s closing price and is more than 127% above this morning’s share price.

The Bigtincan board noted it would “continue to carefully consider any proposals that maximise shareholder value”. They added, “There is no certainty that any such proposals will lead to a transaction.”

Indeed.

In intraday trade today, Bigtincan released yet another price-sensitive announcement.

The company reported:

This morning, Bigtincan received a letter from Vector formally withdrawing its previous non-binding indicative proposal and has requested ongoing engagement with the company with a view to a new offer that could be submitted based on those engagements.

The ASX AI stock again resumed trading following the announcement. And it’s made up some lost ground.

At the time of writing, the Bigtincan share price is down 14.3% at 12 cents a share.

The post Why did this ASX AI stock just crash 21%? appeared first on The Motley Fool Australia.

More reading

• Why Arafura Rare Earths, Bigtincan, Evolution Mining, and Galileo Mining shares are dropping

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bigtincan and Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to the release of a number of broker notes this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

Aussie Broadband Ltd (ASX: ABB)

According to a note out of Ord Minnett, its analysts have upgraded this broadband provider’s shares to a buy rating with an unchanged price target of $4.20. The broker was pleased to see the company increase its earnings guidance for FY 2024 last month. It also highlights that Aussie Broadband has been winning market share from rivals. The good news is that Ord Minnett feels that this trend can continue after its largest rival, Telstra Group Ltd (ASX: TLS), announced price increases for its own broadband plans. The Aussie Broadband share price is trading at $3.52 on Wednesday afternoon.

QBE Insurance Group Ltd (ASX: QBE)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $20.90 price target on this insurance giant’s shares. The broker highlights that QBE’s management has recently held a number of investor meetings. It notes that management conveyed greater confidence on the delivery of its 95% combined operating ratio (COR) in North America by 2025. As a reminder, the lower the COR, the more profitable QBE’s operations are. In light of these investor meetings, Goldman believes that there is now upside risk to the FY 2025 consensus COR of 92.8%. In fact, it sees under 92.5% as possible, reflecting an improvement from North America, a North America non-core run off, and organic trends. The QBE share price is fetching $18.52 today.

Woodside Energy Group Ltd (ASX: WDS)

Analysts at Macquarie have upgraded this energy giant’s shares to an outperform rating with an unchanged price target of $32.00. According to the note, the broker made the move largely on valuation grounds. Its analysts believe that Woodside’s shares are trading meaningfully lower than their intrinsic value based on its estimate of a long-term oil price of US$65 a barrel. In fact, the broker feels that the market is valuing its shares on the equivalent of a US$56 a barrel long term oil price. And given that Macquarie’s own estimate is below consensus forecasts, it believes this is unwarranted. Even after factoring in project and climate risks. The Woodside share price is trading at $27.81 on Wednesday.

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

More reading

• Why Bapcor, Botanix, Judo Capital, and Woodside shares are rising today
• These 3 ASX 200 shares were just rerated by top brokers
• Why analysts love Woodside and these ASX blue chip shares
• Goldman Sachs says these 3 ASX dividend shares are buys
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband, Goldman Sachs Group, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 shares have hit turbulence midway through the year. The benchmark S&P/ASX 200 Index (ASX: XJO) has slipped nearly half a per cent into the red this past month.

Medibank Private Ltd (ASX: MPL) and NIB Holdings Ltd (ASX: NHF) are two companies on the coverage list for investment bank Goldman Sachs. The broker recently completed a head-to-head comparison of both ASX 200 shares.

With both shares in the spotlight recently, should you buy, hold, or sell? Here’s what Goldman Sachs thinks.

Broker neutral on this ASX 200 share

Medibank shares have climbed almost 5% in the past six months. Goldman Sachs, however, sees limited upside from here.

The broker reaffirmed its neutral rating and a price target of $3.70 in a recent note. It rated the insurer a hold due to its “relatively weaker policyholder growth” versus competitors, its valuation, and “some risk related to cyber security legal cases and investigations”.

It added:

Key downside risks include: 1) Lower approved premium rate increases impacting margins, 2) Slower than expected resident policyholder growth, 3) Impact of cyber security legal case and associated costs, 4) Return of claims inflation through normalizing utilisation and broader catchup on claims.

Despite this, the broker likes the ASX 200 insurance share’s defensive earnings and favourable operating conditions. It also is positive on the “manageable claims environment and strong recovery in non-resident volumes”, the note says.

Medibank shares are down 0.27%, trading at $3.71 at the time of publication.

NIB Holdings: The preferred pick

Goldman Sachs prefers NIB Holdings, its analysis says. It rates the ASX 200 share a buy with a price target of $8.10 per share, suggesting around 8.5% return potential over the next 12 months. Including projected dividends, this increases to around 13.5% total return.

The broker said it was bullish on NIB given five key tailwinds that could see the business grow in FY 2025. One of these includes the exposure to Australia’s private health insurance sector, currently experiencing “favourable operating trends”, it noted.

We currently have a preference for NHF in this space reflecting strong underlying top line growth through policyholder growth and premium rate increases, greater diversity of earnings outside of regulated resident health insurance and valuation appeal.

Analysts also mentioned that NIB has improved its reserve position compared to the pandemic era, and that rate increases of 4.1% this year can “fund claims inflation of perhaps 3.6%”. This, it says, can offset a slowdown in premium volumes and provide a buffer to operating margins.

It also mentioned that NIB’s policyholder growth “has been better than industry”.

When comparing the two companies head-to-head, Goldman stated it liked NIB, given “MPL’s relatively weaker policyholder growth.”

Foolish takeaway

Goldman Sachs has a split view on these ASX 200 shares. On one hand, Medibank’s current valuation suggests holding rather than buying. In contrast, Goldman says NIB Holdings, with its growth prospects and attractive valuation, stands out as a top buy.

The post Buy or hold? Top broker rates these 2 ASX 200 shares appeared first on The Motley Fool Australia.

More reading

• Medibank shares dip as huge potential fines loom from 2022 data breach
• What is Goldman Sachs saying about Medibank shares in June?
• Overinvested in CBA shares? Here are two alternative ASX dividend stocks
• Here’s how I’d target a $2,000 second income by investing $35 a week
• Brokers say these ASX dividend shares are top buys now

Motley Fool contributor Zach Bristow 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 positions in and has recommended NIB Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is out of form again and sinking into the red. At the time of writing, the benchmark index is down 0.55% to 7,711.5 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura Rare Earths share price is down almost 3% to 17.5 cents. This may have been driven by news that Rare Earths Norway has just discovered Europe’s largest proven deposit of rare earth elements. Trond Watne, Chief Geologist of Rare Earths Norway, said: “We have now, through an independent third party, confirmed that we have a significant Mineral Resource at Fen. This is a milestone for us that could be extremely important for the local community in Nome, but also Norway and Europe for generations.”

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price is down 14% to 12 cents. This follows the completion of a $10 million institutional entitlement offer and news that Vector Capital has formally withdrawn its non-binding indicative proposal to acquire the company. Though, in respect to the latter, it has requested ongoing engagement with the company with a view of making a new offer to acquire the struggling tech company.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is down 1.5% to $3.70. This morning, this gold miner warned that its Cowal and Mt Rawdon operations have been impacted by continued high levels of rainfall. Restrictions to open-pit operations at Cowal and Mt Rawdon have necessitated the processing of lower grade stockpile ore at various stages during the past two months to maintain full processing feed rates. The good news is that the Cowal underground operation has not been impacted by weather and has continued its planned ramp up following successful commencement of commercial production in April. In addition, material handling systems at Red Lake have been disrupted by localised seismic events at the Balmer and Cochenour areas.

Galileo Mining Ltd (ASX: GAL)

The Galileo Mining share price is down 5.5% to 25 cents. This is despite the release of an update which reveals that its Mineral Resources Ltd (ASX: MIN) farm-in agreement is now complete. Managing director, Brad Underwood, commented: “With completion of the MinRes lithium joint venture agreement, lithium exploration will now begin at the Norseman project. MinRes have an incredible depth of experience in the lithium business and have secured the rights to work on our untested lithium potential at Norseman.”

The post Why Arafura Rare Earths, Bigtincan, Evolution Mining, and Galileo Mining shares are dropping appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Friday
• Top brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Wednesday

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 positions in and has recommended Bigtincan. 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 Scott Phillips.

Imagine waking up without the need to rush to work, having the freedom to spend your days as you wish, and pursuing passions that bring you joy.

This dream of early retirement has become increasingly popular, spurred by the Financial Independence, Retire Early (FIRE) movement. The FIRE movement is gaining traction as more people seek to take control of their financial future and achieve retirement well before the traditional age of 60 plus.

But how much money do you really need to make this dream a reality?

Average spending in retirement

One of the first questions that comes to mind when planning for retirement is how much money you need to cover daily living costs. The answer can vary depending on your lifestyle and neighbourhood, but the Association of Superannuation Funds of Australia (ASFA) provides a general guide.

According to ASFA’s latest report, published in March 2024, an individual will need around $51,630 per year to live comfortably in Australia, and this figure rises to $72,660 for a couple. This amount is based on maintaining a good standard of living and being able to afford occasional luxuries, including dining out, domestic travel, an international trip once every seven years, and leisure activities.

If you consider yourself a frugal person, you can benchmark modest lifestyle budgets. In the same report, ASFA advises that a single person with a modest lifestyle needs to spend $32,915 a year, while a couple would want to spend $47,387 a year.

The above figures are based on retired people aged 65 to 84. They assume no dependent child is in the household, that the retirees own their own home, and that the figures relate to household expenditures.

However, these figures are just a starting point. The actual amount you need can vary based on personal lifestyle choices, healthcare needs, and other individual factors. It’s essential to assess your own retirement goals and consider how much you’ll need to support your desired lifestyle in retirement.

The 4% rule

Once the spending requirement is assessed, it’s time to think about how to get there.

A common strategy for determining how much money you’ll need to retire is the 4% rule. This rule suggests that you can withdraw 4% of your nest egg each year without running out of money. But bear in mind that it is a theoretical exercise rather than a hard-and-fast rule.

The 4% rule is based on historical market performance and assumes a balanced portfolio of stocks and bonds. This approach assumes the investment portfolio can earn more than 4%, adjusting for inflation. That is based on the average annual return over a long period of time, so note there will be year-to-year fluctuations in the market.

Using these two figures, we can estimate a single retired person in Australia needs roughly $1.29 million to continue living comfortably, spending $51,630 per year.

Do we really need that much money to retire?

This appears to be a jaw-dropping number to reach by saving during our working lives. However, remember that this is a hypothetical number, and you can live off the capital gains without needing to work.

There are also other ways to reach your retirement goal, as summarised below.

1. Save more through superannuation. As my colleague Tristan explained in this article, superannuation is a tax efficient vehicle for Australians saving for retirement. All workers receive superannuation payments from their employers at 11% of their earnings. Not just that, you can make an additional concessional contribution of up to $30,000 per year, including employer contribution, according to ATO.
2. Maximise the benefits of dividend investing using franking credits. The required capital size will reduce if we can increase investment returns. But this has to be achieved without increasing the risk profile of the investment portfolio. One way to consider is investing your money in stable dividend stocks with high franking credits as my colleague Sebastian explained. This will help you save tax, as the Federal Government acknowledges partial or full tax payment for this income is already paid by the company.
3. Spend less. If you wish to retire early, you may consider lowering your living costs and settling for a slightly less luxurious lifestyle. Maybe international travel could be replaced with domestic trips. Perhaps eat out less frequently. Using the same calculation, the required seed money will be reduced to $822,875 by changing to a modest lifestyle.

Foolish takeaway

Planning for retirement requires careful consideration and a clear understanding of your financial goals. Whether you’re inspired by the FIRE movement or simply aiming for a comfortable retirement at the traditional age, knowing how much money you need and understanding strategies like the 4% rule and the power of compounding can help you achieve your retirement dreams.

Start by assessing your lifestyle needs, setting realistic savings goals, and regularly reviewing your financial plan to stay on track. With the right preparation, you can look forward to a secure and fulfilling retirement.

The post How much money do you need to retire? appeared first on The Motley Fool Australia.

More reading

• Why Arafura Rare Earths, Bigtincan, Evolution Mining, and Galileo Mining shares are dropping
• Why Bapcor, Botanix, Judo Capital, and Woodside shares are rising today
• 1 ASX share on the cusp of profitability
• Guess which ASX All Ords stock just rocketed 9% after being added to the ASX 200
• BHP share price slips as union takes legal action

The S&P/ASX 200 Index (ASX: XJO) is having another disappointing session. In afternoon trade, the benchmark index is down 0.65% to 7,705.1 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising today:

Bapcor Ltd (ASX: BAP)

The Bapcor share price is up a further 3.5% to $5.14. Investors have been scrambling to buy the auto parts retailer’s shares this week after it received an unsolicited, indicative, conditional and non-binding takeover proposal from Bain Capital. This would see Bapcor shareholders receive $5.40 cash per share from the private equity giant. As things stand, the Bapcor board is currently considering the offer and has warned that “there is no guarantee that the Indicative Proposal put forward by Bain Capital will result in a binding offer or that any transaction will eventuate.” The offer price is well short of Bapcor’s 52-week high of $7.09, so some shareholders may feel short-changed if it is accepted.

Botanix Pharmaceuticals Ltd (ASX: BOT)

The Botanix Pharmaceuticals share price is up 2% to 28 cents. This morning, this clinical dermatology company announced that it has submitted the last label materials to the US Food & Drug Administration (FDA) for Sofdra. It is a pending prescription treatment for excessive underarm sweating. Management notes that label discussions are the final step for Botanix before the anticipated FDA approval of Sofdra. They have involved discussions with the FDA on product carton design and wording of information that is provided to patients and physicians about the product.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo Capital share price is up 7% to $1.39. Investors have been buying this business lender’s shares today amid news that it will be added to the ASX 200 index next week. After the market close on Tuesday, S&P Dow Jones Indices announced that it will replace building materials company CSR Ltd (ASX: CSR) when it is removed from the index week. Though, this remains subject to shareholder and final court approval of the scheme of arrangement which will see CSR acquired by Compagnie de Saint-Gobain.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is up 2.5% to $27.73. This appears to have been driven by a broker note out of Macquarie this morning. According to the note, the broker has upgraded the energy giant’s shares to an outperform rating with a $32.00 price target. Macquarie made the move on valuation grounds, believing that the market was valuing Woodside on a long term oil price significantly below even its own lower than consensus forecasts.

The post Why Bapcor, Botanix, Judo Capital, and Woodside shares are rising today appeared first on The Motley Fool Australia.

More reading

• Guess which ASX All Ords stock just rocketed 9% after being added to the ASX 200
• These 3 ASX 200 shares were just rerated by top brokers
• Why analysts love Woodside and these ASX blue chip shares
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX share Tuas Ltd (ASX: TUA) is expanding so quickly that it could soon be making a profit rather than a loss.

Tuas is a Singapore mobile business rapidly becoming a sizeable player in the Asian country. Despite being on the ASX for just four years, its market capitalisation has grown to more than $1.8 billion.

The company is led by executive chair David Teoh, who helped TPG Telecom Ltd (ASX: TPG) grow into a significant competitor in the Australian telco space by providing good value offerings. Tuas appears to be following the same playbook.

Rapidly approaching profit

The business reported a net loss after tax of $13.3 million in the second half of FY22, a net loss of $7.8 million in the second half of FY23 and a net loss of $3.5 million in the first half of FY24. With this rate of progress, I think Tuas will likely generate a profit in the first half of FY25.

The ASX growth share is achieving a significant increase in its active mobile services every reporting period. In the HY24 result, it reported 938,000 subscribers, up 35.7% from 691,000 in HY23. It had 487,000 subscribers in HY22, which has grown over 90% in two years.

In a sign of its low costs for customers, its average revenue per user (ARPU) per month was $9.56 in HY24 (up from $9.37 in FY23)

One of the most compelling aspects of the company’s growth is that it’s showing good signs of operating leverage, with profit margins rising. HY24 revenue rose 38% to $54.7 million, and EBITDA jumped 56% to $22.4 million.

If Tuas’ subscriber base can continue growing at a solid double-digit rate, the profit metrics could improve at a very satisfactory rate. The company explained that its expanded plan range catered to an array of customers’ needs.

Pleasingly, the business has already reached positive cash flow status – in HY24, it generated $27.5 million of operating cash flow while only using $23.9 million of that for its investing activities and $0.3 million for its financing activities.

Growth plans

Tuas is benefiting from the 5G rollout, which allows it to offer customers a better service. I think 5G could be key for the future.

The ASX growth share is also working on its fibre broadband offering, which could enable it to capture more value from existing and new mobile subscribers.

The company is expecting “continued subscriber growth” in the second half of FY24, which I think is very promising for the company’s shorter-term profit growth prospects.

It’s planning to spend between $45 million and $50 million on capital expenditure in its mobile and broadband divisions, which I think can help accelerate growth and improve its offering in the next few years.

Tuas share price snapshot

The Tuas share price is up 3.75% at the time of writing, trading at $4.15. The company’s shares have rocketed 30% since the start of 2024 and are up 120% over the past 12 months.

The post 1 ASX share on the cusp of profitability appeared first on The Motley Fool Australia.

More reading

• Why Arafura Rare Earths, Bigtincan, Evolution Mining, and Galileo Mining shares are dropping
• How much money do you need to retire?
• Why Bapcor, Botanix, Judo Capital, and Woodside shares are rising today
• Guess which ASX All Ords stock just rocketed 9% after being added to the ASX 200
• BHP share price slips as union takes legal action

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 Scott Phillips.

This ASX All Ords stock is enjoying a tremendous run today after investors learned it was graduating from the All Ordinaries Index (ASX: XAO) and will soon be joining the S&P/ASX 200 Index (ASX: XJO).

Shares in the bank stock, which specialises in business lending, closed yesterday trading for $1.30. As we head into the Wednesday lunch hour, shares are changing hands for $1.42 apiece, up 9.2%.

For some context, the All Ordinaries and the ASX 200 are both down 0.7% at this same time.

Any guesses?

If you said Judo Capital Holdings Ltd (ASX: JDO), go to the head of the virtual class.

Here’s what’s happening with the soon-to-be-relisted ASX All Ords stock.

ASX All Ords stock soars on index upgrade

In an announcement released after market close yesterday, S&P Dow Jones Indices said that it would remove building products company CSR Ltd (ASX: CSR) from the ASX 200 as the company is being acquired by Compagnie de Saint-Gobain.

That takeover unfolded in late February when Saint-Gobain offered $9.00 a share to acquire all of CSR’s stock. The takeover, and CSR’s removal from the ASX, remains subject to shareholder and final court approval of the scheme of arrangement.

This is proving to be good news for Judo shareholders, as the ASX All Ords stock will replace CSR in the ASX 200 effective prior to the open of trading on Thursday, June 20.

Stocks often benefit when they’re moved to the more prominent indexes, like the ASX 200. That’s because these companies tend to get more media and broker coverage. There are also a lot of fund managers who can only invest in larger companies listed on the ASX 200. And, as of next week, Judo will meet that requirement.

What’s been going right for Judo shares?

The ASX All Ords stock is joining the ASX 200 following a tremendous 41% share price surge in 2024. That gives Judo a market cap of almost $1.6 billion, which sees it move into the group of top 200 listed companies in Australia.

In its most recent market update on 9 May, the bank reported $93.1 million in profit before tax for the nine months ending 31 March amid ongoing lending growth.

Looking ahead, the ASX All Ords stock (soon to be ASX 200 stock) forecast FY 2024 profit before tax, excluding non-recurring items, of $107 million to $112 million. FY 2025 guidance is targeting 15% year on year profit before tax growth.

The post Guess which ASX All Ords stock just rocketed 9% after being added to the ASX 200 appeared first on The Motley Fool Australia.

More reading

• Why Bapcor, Botanix, Judo Capital, and Woodside shares are rising today
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Bernd Struben 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 Scott Phillips.

The BHP Group Ltd (ASX: BHP) share price jolted in early trading on Wednesday and is now drifting 0.85% lower at $43.37 apiece.

While the miner has no company-specific news out today, the Mining and Energy Union (MEU) reports it has filed a series of applications in the Fair Work Commission regarding three of BHP’s coal mines.

Here’s a closer look at what this means for investors and the BHP share price.

BHP share price drifts as union files suit

The MEU says it has launched a legal battle against BHP with the Fair Work Commission. It is aiming to increase the pay of 1700 labour-hire workers at three of BHP’s sites from $10,000 to $40,000 annually.

The union filed applications with the commission on Wednesday for “same job, same pay” orders covering such workers at BHP’s Peak Downs, Saraji, and Goonyella Riverside coal mines. These assets are a part of the BHP-Mitsubishi Alliance (BMA) but are operated solely by BHP.

BMA operates five coal mines in Queensland, including the three mentioned above. Its enterprise agreement, constructed in 2022, governs rates of pay for those workers directly employed at the site.

It does not cover labour-hire workers at the site, however. The “same job, same pay” orders argue against this. The total of 10 applications covers labour-hire workers employed by WorkPac, Chandler Macleod, and BHP subsidiary Operations Services.

The MEU alleges that BHP’s current labour hire practices drive down wages and job security, labelling it a “labour-hire rort”.

MEU Queensland president Mitch Hughes had this to say:

BHP has driven the casual labour hire model that has spread like a cancer throughout coal mining…

Today’s applications are a major step towards stamping out this model and closing the loopholes that have allowed BHP to avoid paying fair rates in site enterprise agreements. 

BHP must accept that using labour hire purely to cut pay is out of step with community standards and is now out of step with the law.

There is no talk on whether the union’s move could potentially disrupt BHP’s operations and increase labour costs. BHP has yet to respond to the applications at the time of publication.

Implications for BHP

The MEU says it plans to expand its “same job, same pay” campaign across the coal industry, targeting other BHP operations and potentially affecting thousands of workers. This could set a precedent impacting labour hire practices industry-wide.

Despite the legal challenges, I think the BHP share price will likely remain resilient, as nothing has changed fundamentally for the company at this stage.

Goldman Sachs recently reinstated coverage of BHP shares with a buy rating and a price target of $49.00. This suggests a potential upside of 13% over the next 12 months. Goldman highlights BHP’s robust position as Australia’s largest miner, underpinned by strong fundamentals and favourable market conditions.

BHP shares have traded within a tight range in the last 12 months and are down 2% in that time. This year to date, as the S&P/ASX 200 Index (ASX: XJO) has lifted around 1.5%, the BHP share price is 14% in the red.

The post BHP share price slips as union takes legal action appeared first on The Motley Fool Australia.

More reading

• Buy Rio Tinto and these 4 ASX mining stocks in June
• 4 top ASX 200 stocks to buy now for the AI revolution
• Here’s the iron ore price forecast through to 2027
• Guess which popular ASX 200 mining stock could crash over 30%
• 3 ASX stocks Warren Buffett could buy today

Motley Fool contributor Zach Bristow 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 Scott Phillips.

Three S&P/ASX 200 Index (ASX: XJO) just got rerated by leading brokers.

One had its outlook cut.

The other two received boosted forecasts.

Read on for the details.

(Broker data courtesy of The Australian.)

One ASX 200 share getting downgraded

First, we turn to the ASX 200 share getting its rating cut today, software designer Altium Ltd (ASX: ALU).

Altium shares are down 0.1% in early trade today, changing hands for $67.48 apiece. That sees the Altium share price up 45% in 2024. The stock also trades on a partly franked trailing dividend yield of 0.9%.

Much of this year’s strong performance stems from February’s $9.1 billion takeover offer lobbed by Japan’s Renesas Electronics Corporation. An offer the board supports and one that’s headed for a shareholder vote.

The takeover offer values Altium at $68.50 per share.

That also happens to be Citi’s price target for the stock. The broker doesn’t appear to see any further upside from there and has cut this ASX 200 share’s rating to neutral.

Two large caps getting upgrades

Moving onto the ASX 200 shares earning upgrades, we kick off with iron ore miner Champion Iron Ltd (ASX: CIA).

The Champion Iron share price is up 0.9% in morning trade today at $6.66. But following on this year’s slide in iron ore prices, Champion Iron share remain down 22% in 2024. The stock also trades on an unfranked trailing dividend yield of 2.3%.

Macquarie believes that the sell-off has been overdone.

The broker raised Champion Iron to an outperform rating with a $7.90 price target. That represents a potential upside of almost 19% from current levels.

The miner released some promising FY 2024 results on 31 May. Among the highlights, the company achieved all-time high earnings before interest, taxes, depreciation and amortisation (EBITDA) of C$553, an 11% increase from the prior year.

Which brings us to the second ASX 200 share getting a broker upgrade, Aussie oil and gas giant Woodside Energy Group Ltd (ASX: WDS).

The Woodside share price is up 1.4% today, at $27.46 a share. That still leaves the stock down 13% in 2024. And it sees Woodside shares trading at a fully franked trailing yield of 7.9%.

According to Macquarie equities analyst Mark Wiseman, Woodside shares are now trading at bargain levels. Macquarie raised Woodside shares to an outperform rating with a $32.00 price target (unchanged). That represents a potential upside of almost 17% from current levels.

According to Wiseman, Woodside shares have been oversold based on excessive concerns over the company’s project and climate risks.

On the project risk front, yesterday the ASX 200 share reported it had achieved its first oil from the offshore Sangomar project in Senegal. Sangomar is one of the company’s major growth projects that’s come under scrutiny following government elections in the African nation in March.

According to Wiseman (quoted by The Australian):

We see upside potential from the ramp-up of the Sangomar project, ability to book additional reserves. In 12 to 24 months Woodside can determine whether a phase 2 project is viable.

The post These 3 ASX 200 shares were just rerated by top brokers appeared first on The Motley Fool Australia.

More reading

• Why analysts love Woodside and these ASX blue chip shares
• 5 things to watch on the ASX 200 on Wednesday
• Why is the Woodside share price racing ahead of the benchmark today?
• Should you load up on Woodside shares?
• 3 ASX 200 shares with ex-dividend dates next week

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.