Tag: Fool

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• ASX 200 dips on RBA interest rate decision
• 10 ASX shares that have raised dividends for a decade
• 3 ASX retail shares that could benefit from potential interest rate cuts
• 5 things to watch on the ASX 200 on Tuesday
• Sigma share price: What’s next with the Chemist Warehouse ASX listing?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PolyNovo and Super Retail Group. The Motley Fool Australia has positions in and has recommended Steadfast Group and Super Retail Group. The Motley Fool Australia has recommended Jb Hi-Fi and PolyNovo. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

City Chic Collective Ltd (ASX: CCX) caught the wrath of investors on Tuesday, sliding around 9% in the red before its shares were put on halt. Before the halt, the ASX retail stock was swapping hands at 30 cents apiece.

The moves today come after an announcement from the company in early trade requesting the halt. Reports have also surfaced that a large investor billionaire raised their stake in the struggling plus-sized women’s clothing retailer, although this is unrelated to the halt.

This year to date, the ASX retail stock has slipped 44% into the red, having collapsed from former highs of 60 cents on 13 February. Let’s take a look.

ASX retail stock halted

City Chic has entered a trading halt ahead of an announcement regarding two updates. The first was to do with the potential divestment of its Avenue arm. The second is related to a new equity raise.

The company plans to complete a fully underwritten institutional placement and a pro-rata accelerated non-renounceable entitlement offer to raise capital.

Whilst not entirely clear, it requested the halt remain in place until next Monday. Before then it will likely reveal more on the planned disposal of its Avenue arm.

City Chic expects to make an announcement to ASX in connection with the proposed divestment of Avenue and an equity capital raising to be undertaken by way of a fully underwritten institutional placement and a fully underwritten pro-rata accelerated non-renounceable entitlement offer of new fully paid ordinary shares in City Chic

If the company makes such an announcement before Monday, trading of its shares will resume.

Reports have also surfaced that billionaire Brett Blundy has increased his stake in the company, according to reporting from The Australian. Blundy’s BBFIT Investments recently acquired 3.3 million shares, boosting his ownership to 11.3%.

The billionaire’s increased stake is sparking speculation. His latest purchases were confirmed in an announcement last week, bringing his stake up from 9.9% at the end of March 2023. Back then, speculation was that Blundy would drastically increase his stake after raising it to the 9.9% level.

Foolish takeaway

City Chic’s focus is in the plus-sized fashion business. The company differentiates itself in this segment across the Australian, South African, European and New Zealand markets.

It has brands such as Navabi, Evans, its namesake City Chic, and the potentially soon-to-be divested Avenue under its wings.

Analysts at Bell Potter remain optimistic about City Chic, maintaining a buy rating with a price target of $0.62.

As to billionaire Brett Blundy’s increased stake in the company â€“ some are speculating it could signal new confidence in the retailer’s potential.

This would be welcomed. In the last 12 months of trade, shares in the ASX retail stock are down 9% and have underperformed the benchmark by 16% in the last year.

The post Billionaire boosts stake in beaten-up ASX retail stock appeared first on The Motley Fool Australia.

More reading

• 6 ASX retail shares to buy this month

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.

The S&P/ASX 200 Index (ASX: XJO) edged lower following on the interest rate announcement just released by the Reserve Bank of Australia (RBA).

The benchmark Aussie index was up 1.0% at 2:30pm AEST before slipping 0.1% in the minutes that followed. At time of writing the benchmark index remains up 0.9%.

ASX 200 investors took the news in stride after the RBA reported that, as widely expected, it was holding the cash rate steady at 4.35%. The interest rate paid on Exchange Settlement balances also remains unchanged at 4.25%.

Very few analysts were expecting Australia’s central bank to cut interest rates today. But ASX 200 investors will be relieved the RBA didn’t opt to hike rates, as some economists had been forecasting, to bring down ongoing inflationary pressures.

But after raising interest rates 13 times since it began tightening in May 2022, the RBA appears content to take a wait and see posture. At least for now.

Here’s the latest.

What ASX 200 investors learned from today’s RBA interest rate call

Commenting on the decision that ASX 200 investors will be analysing this afternoon, the RBA board noted that inflation has come down “substantially” since peaking in 2022.

“Higher interest rates have been working to bring aggregate demand and supply closer towards balance,” the board said.

However, ASX 200 investors didn’t get that first rate cut today.

The RBA cautioned that “the pace of decline has slowed in the most recent data, with inflation still some way above the midpoint of the 2–3% target range”.

Over the year to April, the monthly headline CPI indicator rose by 3.6%. Taking out volatile items and holiday travel, underlying inflation increased by a more worrisome 4.1%. That’s in line with the inflation figures in December.

On the wages and labour front, the RBA reported:

Conditions in the labour market eased further over the past month but remain tighter than is consistent with sustained full employment and inflation at target. Wages growth appears to have peaked but is still above the level that can be sustained given trend productivity growth.

Now what?

Unfortunately, ASX 200 investors will have to live with some uncertainty over the interest rate outlook over the medium-term.

“The economic outlook remains uncertain and recent data have demonstrated that the process of returning inflation to target is unlikely to be smooth,” the RBA said.

The board cited persistent services price inflation as a key uncertainty. They added that while wages growth is easing, it remains high. The answer, it seems, is that we all need to work more productively.

“Productivity growth needs to pick up in a sustained way if inflation is to continue to decline,” the board said.

“There also remains a high level of uncertainty about the overseas outlook,” the board added.

So, when can ASX 200 investors finally expect the RBA to begin cutting interest rates?

Well, that vague and unsatisfying answer is “some time yet”.

According to the RBA:

Inflation is easing but has been doing so more slowly than previously expected and it remains high. The board expects that it will be some time yet before inflation is sustainably in the target range.

While recent data have been mixed, they have reinforced the need to remain vigilant to upside risks to inflation.

The post ASX 200 dips on RBA interest rate decision appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• Here’s how the ASX 200 market sectors stacked up last week
• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)
• Here are the top 10 ASX 200 shares today

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.

As a working parent, I often find comfort in the phrase “rain or shine” when planning my kids’ after-school activities or holiday camps. It means I don’t have to worry about unpredictable weather conditions.

Now, imagine having that same level of reliability with your dividend shares. With that in mind, I’ve done the initial screening for you and compiled a list of ASX companies that have consistently increased their annual dividends for the past decade, come rain or shine.

Here are ten ASX shares that have demonstrated this remarkable level of dependability over the past ten years.

Which ASX shares made the cut?

In this screening process, I have used a number of selection criteria as follows:

• Companies that have raised their dividends per share (DPS) every year since FY15
• Market capitalisation of at least $300 million
• Dividend yield of at least 1% based on the current share price

All the data is based on S&P Capital IQ. The dollars refer to Australian dollars (AUD) except for Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) in New Zealand dollars and for CSL Ltd (ASX: CSL) in US dollars.

Let’s see which ASX dividend shares made it to the Hall of Fame. The table is sorted by the highest dividend yield.

Ticker	Company name	Share price (AUD)	Market cap ($ mn)	Dividend yield (%)	DPS FY15	DPS TTM*
ASX:APA	APA Group	8.4	10,819	6.6%	$0.38	$0.56
ASX:SHL	Sonic Healthcare Ltd	26.3	12,630	4.0%	$0.70	$1.05
ASX:CHC	Charter Hall Group	12.6	5,934	3.5%	$0.24	$0.44
ASX:SDF	Steadfast Group Ltd	5.5	6,090	2.9%	$0.05	$0.16
ASX:SOL	Washington H Soul Pattinson & Company Ltd	32.9	11,861	2.8%	$0.50	$0.91
ASX:BKW	Brickworks Limited	27.2	4,143	2.4%	$0.45	$0.66
ASX:NST	Northern Star Resources Ltd	13.4	15,403	2.3%	$0.05	$0.31
ASX:CAR	CAR Group Limited	35.4	13,359	1.9%	$0.34	$0.67
ASX:FPH	Fisher & Paykel Healthcare	28.9	17,969	1.3%	$0.14	$0.42
ASX:CSL	CSL Ltd	293.7	141,931	1.3%	$1.24	$2.48

APA Group (ASX: APA) tops the list in terms of the dividend yield, offering a 6.6% yield. The energy infrastructure operator could be a good addition for your retirement due to its defensive earnings and long track record of growth, as my colleague James pointed out.

My favourite is insurance broker Steadfast Group Ltd (ASX: SDF) whose share prices fell approximately 10% from its highs in May for its strong business fundamentals as the largest general insurance broker network in Australia.

Down the list, of course, I wouldn’t expect anything less from well-loved dividend duo Washington H Soul Pattinson & Company Ltd (ASX: SOL) and Brickworks Limited (ASX: BKW). Both companies were also part of our team’s picks for ASX dividend shares for June.

Can they keep on increasing dividends in the future?

While past performance is never a guarantee of future results, many companies on this list have demonstrated strong financial health, consistent earnings growth, and sound management practices.

These factors often contribute to their ability to sustain and potentially grow dividends. Additionally, many of these companies operate in resilient industries with steady demand, further supporting their capacity to reward shareholders.

While future dividends are not guaranteed, this list could be a good starting point for further research.

The post 10 ASX shares that have raised dividends for a decade appeared first on The Motley Fool Australia.

More reading

• 3 winning tips both Warren Buffett and Peter Lynch recommend
• Buy these ASX shares for a winning retirement portfolio
• How much could $10,000 invested in CSL shares be worth next year?
• 3 lower-risk ASX shares I think are perfect for beginners
• 3 of the best ASX 200 blue chip shares to buy now

Motley Fool contributor Kate Lee has positions in Brickworks. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, CSL, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group, Brickworks, Steadfast Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended CSL, Car Group, and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

An ASX 200 company director has just sold more than half a million dollars worth of shares.

A notice lodged with the ASX reveals Hamish McLennan, the deputy chair and non-executive director of ASX 200 financials firm Magellan Financial Group Ltd (ASX: MFG), has sold almost $545,000 worth of shares.

The sale of these indirect holdings took place on-market on 7 June. McLennan sold 63,948 Magellan shares at an average price of $8.515 per share. The consideration was $544,517.

The sale represents a more than 60% sell-down in McLennan’s indirect holdings of ordinary fully paid Magellan shares. He retains 41,300 ordinary fully paid shares in the ASX 200 funds manager.

Among his other holdings are 13,157 Magellan Financial Group Ltd options (ASX: MFGO).

He also has 41,116 units in the Magellan High Conviction Trust (ASX: MHHT) and 118,026 units in the Magellan Global Fund (Closed Class) (ASX: MGF).

When an ASX 200 director sells a large personal stake, companies sometimes issue official statements explaining why the sale took place. In this case, no such statement was lodged with the ASX.

McLennan sits on several other ASX company boards.

He is the chair of the board at ASX 200 communications behemoth REA Group Ltd (ASX: REA) and an independent director of United States gaming company Light & Wonder Inc. CDI (ASX: LNW).

He is also the chair of the board for ASX micro-cap ARN Media Ltd (ASX: A1N).

Meantime, another Magellan director, Cathy Kovacs, invested $100,000 in the ASX 200 funds manager late last month.

This was the first parcel of Magellan shares she has bought since joining the board in November last year.

What’s the latest news on this ASX 200 financials share?

The ASX 200 funds manager released its latest funds under management (FUM) statement on 6 June.

In May, Magellan experienced net outflows of $0.1 billion, which included net retail outflows of $0.2 billion and net institutional inflows of $0.1 billion.

FUM as of 31 May totalled $36.7 billion, up slightly from $36.3 billion on 30 April.

The Magellan share price is $8.23 at the time of writing, up 1.17%.

What are the brokers saying about Magellan shares?

To say the reviews are mixed would be an understatement.

Macquarie has an underperform rating on Magellan shares with a 12-month share price target of $8.40.

Morgans has a hold rating on the ASX 200 fund manager with a price target of $9.67.

UBS has a buy rating on Magellan shares with a share price target of $10.25.

The post Which ASX 200 company director just sold $545,000 in shares? appeared first on The Motley Fool Australia.

More reading

• 2 top ASX 200 passive income stocks I’d buy now to boost my retirement
• Here are the top 10 ASX 200 shares today
• An insider just bought $100,000 of Magellan shares: Should you invest too?

Motley Fool contributor Bronwyn Allen has positions in Macquarie Group and Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder, Macquarie Group, and REA Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Light & Wonder and REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Qantas Airways Ltd (ASX: QAN) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed yesterday trading for $6.00. In early afternoon trade on Tuesday, shares are changing hands for $6.06 apiece, up 0.9%.

That’s right about in line with the 1.0% gains posted by the ASX 200 at this same time.

And it sees Qantas shares up more than 13% so far in 2024.

That’s the latest price action for you.

Now here’s why Qantas shares could catch some sustainable updrafts from China.

Qantas shares eyeing panda diplomacy

In a boost for Qantas shares, 2024 has seen domestic air travel within Australia rebound to just about pre-COVID levels.

“After four years of instability, the domestic airline industry has returned to more typical seasonal levels that were last seen before the pandemic,” ACCC commissioner Anna Brakey noted last month.

International air travel has also surged since borders reopened post-pandemic. However, international numbers remain below 2019 figures.

That’s particularly true for China.

As The Australian reported, Chinese travellers counted as Australia’s biggest international tourist group, bringing in $3.3 billion that year. But in April this year short-term visitors from China still only represented 60% of pre-pandemic numbers.

However, thawing relations between the two nations could see those numbers tick back up, offering a potential boost for Qantas shares.

In a move likely to be welcomed by international travellers heading in both directions, China is adding Aussies to the list of citizens who can travel there without visas for trips of up to 15 days. That eliminates the $110 tourist visa Australians are required to pay currently to travel to the Middle Kingdom.

After meeting with Prime Minister Anthony Albanese, Chinese Premier Li Qiang said that in addition to the visa-free pass for Aussie travellers, Australia would offer “reciprocal access to five-year multiple entry visas for tourism, business and visiting family members.”

Commenting on the visa travel exemption that could provide tailwinds for Qantas shares, Sydney Airport CEO Scott Charlton said (quoted by The Australian):

In terms of inbound visitors from China, at the end of March this year we were just over 80% recovered, and today’s announcement represents a good first step in continuing to backfill that gap.

Last month Qantas announced it was suspending its Sydney-Shanghai flights commencing on 28 July “due to low demand”.

“Qantas will continue to monitor the Australia-China market closely and will look to return to Shanghai when demand has recovered,” the ASX 200 airline stated.

With the lifting of visa requirements for Aussie travellers and Australia’s reciprocal measures for Chinese travellers, demand may recover sooner than expected, potentially lifting the medium-term performance of Qantas shares.

According to Australian Airports Association CEO James Goodwin:

It’s hoped the renewed focus on trade and tourism between the two countries will see an increase in airline capacity. More airline seats available between Australia and China will mean more passengers through our terminals and out exploring our cities and regional areas as tourists.

The post Could Qantas shares be poised to catch some Chinese tailwinds? appeared first on The Motley Fool Australia.

More reading

• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)
• Where Aussies are spending their money, and the ASX shares that could benefit
• These ASX shares could rise 25% to ~50%
• Why are ASX investors so excited by the Qantas share price?
• Qantas share price lifts after nabbing remaining TripADeal stake

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 S&P/ASX 200 Index (ASX: XJO) is back on form on Tuesday and storming higher. In afternoon trade, the benchmark index is up 0.95% to 7,773.6 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are pushing higher:

Capitol Health Ltd (ASX: CAJ)

The Capitol Health share price is up 10% to 29.7 cents. On Monday, this diagnostic imaging company announced that it had accepted a merger offer from Integral Diagnostics Ltd (ASX: IDX). The latter made an offer with an implied exchange ratio of 0.12849 Integral Diagnostics shares for every Capitol Health share. This equated to 32.6 cents per share at the time, which was a 33% premium to Friday’s closing price. Ord Minnett notes that the proposed merger will establish a clear number three player in the Australian diagnostic imaging sector.

Infratil Ltd (ASX: IFT)

The Infratil share price is up almost 4% to $10.43. Investors have responded positively to the infrastructure investment company’s capital raising. It has raised NZ$1 billion at a 6.8% discount of NZ$10.15 per new share. Infratil CEO, Jason Boyes, said: “We are very pleased with the strong level of support for the Placement, particularly from our existing shareholders. We are also excited to welcome several high quality institutional investors onto our register. The capital raised will create significant capacity to fund growth investments at our Trans-Tasman data centre platform, CDC, and across the broader Infratil portfolio.”

Newmont Corporation (ASX: NEM)

The Newmont Corporation share price is up almost 2.5% to $62.51. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has upgraded the gold miner’s shares to a buy rating with a $75.00 price target. This implies potential upside of 20% for investors from current levels.

Race Oncology Ltd (ASX: RAC)

The Race Oncology share price is up 18% to $2.08. Investors have been buying this clinical stage biopharmaceutical company’s shares after the United States Food and Drug Administration (FDA) extended Rare Paediatric Disease Designation (RPDD) to RC220 bisantrene for the treatment of childhood subtypes of acute myeloid leukemia (AML). This qualifies a sponsor eligible to receive a Priority Review Voucher (PRV) from the FDA at the time of marketing approval or authorisation for drug in the paediatric rare disease area. PRVs are transferable and very valuable. Management notes that two PRVs have been sold in recent times for US$110 million.

The post Why Capitol Health, Infratil, Newmont, and Race Oncology shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Buy ’em now! Brokers name 3 ASX All Ords shares to add to your portfolio
• ASX healthcare stock surges 11% on ‘incredibly valuable’ FDA news
• Why Bapcor, Chalice Mining, Integral Diagnostics, and Winsome Resources shares are dropping
• Why Capitol Health, Capricorn Metals, Credit Clear, and Telix shares are storming higher
• Guess which ASX All Ords share is raising $1.1 billion to back generative AI

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 Integral Diagnostics. 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 on course to record a solid gain. At the time of writing, the benchmark index is up 0.95% to 7,774.7 points.

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

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is down 2.5% to $1.53. This is despite oil prices rising overnight and the release of the energy producer’s strategic review this morning. In respect to the latter, Beach Energy has laid out a plan that it believes will result in operating cost and capital reductions totalling ~$135 million. This will come from a 23% headcount reduction, ~$35 million field operating cost savings, and a ~$100 million sustaining capital expenditure reduction. Management believes that this will help it deliver leading shareholder returns through the sustainable supply of energy.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is down 4.5% to $21.95. This has been driven by news that a major block trade has taken place at a decent discount to yesterday’s close price. It remains unclear who is selling, but there are reports that a large institutional investor offloaded $1.1 billion worth of the iron ore miner’s shares through a block trade this morning. These shares were sold at $21.60 per share, which is a 6% discount to where Fortescue’s shares ended yesterday’s session.

Kina Securities Ltd (ASX: KSL)

The Kina Securities share price is down 7.5% to 88 cents. This morning, this Papa New Guinea-based financial services provider revealed that it has identified a recent instance of fraud impacting several accounts belonging to a small number of customers. The amount involved is the subject of ongoing investigation. However, the aggregate loss is expected to be in the range of PGK12 million to PGK15 million (A$4.74 million to A$5.9 million) on a pre-tax basis. Through root cause analysis, certain system vulnerabilities were identified and promptly addressed. Kina Securities has downgraded its guidance to reflect this.

Melbana Energy Ltd (ASX: MAY)

The Melbana Energy share price is down 36% to 4.3 cents. This follows news that the appraisal of the Alameda-3 well in Cuba wasn’t successful. Two attempts were made at flowing the well, however in both cases the complete removal of drilling mud and downhole fluids from the test string was not achieved and oil did not flow to surface. Preparations for testing of the shallower Alameda formation now underway.

The post Why Beach Energy, Fortescue, Kina Securities, and Melbana Energy shares are dropping today appeared first on The Motley Fool Australia.

More reading

• Fortescue shares drop as $1.1 billion stake hits the market
• What’s happening with the big 3 ASX 200 iron ore stocks today?
• Why did this ASX All Ords stock just crash 45%?
• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)
• Why the best dividend days may be over for Fortescue shares

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 Scott Phillips.

A number of ASX stocks are making their shareholders smile today by rising to 52-week highs or better.

Among the names reaching these milestones are the stocks listed below. Here’s what you need know:

Aristocrat Leisure Limited (ASX: ALL)

The Aristocrat Leisure share price has hit a record high of $48.58 on Tuesday. This stretches its 12-month return to an impressive 24%. Investors have been buying the gaming technology company’s shares since the release of its half-year results.

Aristocrat posted a 6.1% increase in revenue to $3,269.6 million and a 16.8% jump in net profit after tax to $723.3 million. The latter was significantly better than the market was expecting. Other positives were the ASX stock boosting its dividend, announcing an additional $350 million share buyback, and suggesting that it could look to divest its digital gaming operations.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price has risen to a new record high of $127.75. Investors appear to be piling into the banking sector on the belief that trading conditions are favourable thanks to the prospect of falling interest rates in the near term. Combined with the recent Federal Budget, the banks look unlikely to suffer from a spike in bad debts in the near future, which could have happened if rates continued to rise. For the same reasons, Bendigo and Adelaide Bank Ltd (ASX: BEN) and National Australia Bank Ltd (ASX: NAB) have also hit 52-week highs today.

DroneShield Ltd (ASX: DRO)

The DroneShield share price has continued its rampant run and hit a record high of $1.57 on Tuesday. This latest gain means the counter drone technology company’s shares are now up over 300% since the start of the year. Investors have been scrambling to buy this ASX stock recently thanks to its staggering performance in FY 2024. During the first quarter of FY 2024, the company’s revenue increased 10x over the prior corresponding period to $16.4 million.

In addition, a number of big announcements have been made that could be supportive of further strong sales growth. One was that the NATO Support and Procurement Agency (NSPA) has approved the first counter-small UAS (CUAS) procurement framework agreement in NATO history. DroneShield’s CEO, Oleg Vornik, described it as one of the “most strategically noteworthy agreements since the company was founded.” The company also announced a major new contract win from a U.S. Government customer. Droneshield advised that it has received a repeat order of A$5.7 million for a number of its CUxS (Counter-UxS) systems.

The post CBA, DroneShield, and these ASX stocks just hit 52-week highs appeared first on The Motley Fool Australia.

More reading

• ‘Attacked from all angles’: Why this fundie is betting against the momentous rally in CBA shares
• Can owners of NAB shares bank on a good outlook for FY25?
• Why the ‘opportunity is immense’ for DroneShield shares: fundie
• What is the outlook for CBA shares in FY25?
• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)

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 DroneShield. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Macquarie Group Ltd (ASX: MQG) shares have gathered steam lately, with a 3% rise in the past month of trade.

Over the past year, however, Macquarie shares have underperformed the S&P/ASX 200 Banks Index (ASX: XBK) by more than 15.5%

The recent momentum hasn’t gone unnoticed. Analysts at leading broker Morgan Stanley have a promising outlook on the bank and see further upside potential for the ASX banking stock.

Here’s a look at the broker’s insights.

Macquarie shares could grow

Morgan Stanley analyst Andrei Stadnik laid out the case for owning Macquarie shares in a recent note to clients.

The analyst highlighted Macquarie has its fingers in many pies, ranging from mergers and acquisitions (M&A), alternative assets and private credit

It’s worth noting Macquarie also holds equity stakes in seven data centres worldwide. Point is – these are all high-growth domains.

“Macquarie is the overall standout beneficiary of private markets flywheel re-accelerating in our Australian coverage”, Stadnik said, according to The Australian.

Stadnik project’s 22% earnings growth for the bank in FY 2025, driven by a stronger market for capital raising, and its various sources of revenue.

At its full-year FY 2024 results in May, the company reported that earnings per share (EPS) were down 32% year over year to $9.17 apiece.

Even with a dip in operating profits this year, the bank achieved a 13% return on equity (ROE) in H2 FY 2024, surpassing the industry’s five-year average of 11%. It paid shareholders a dividend of $6.40 per share.

That means if the broker is right, Macquarie could produce $11.18 in EPS for FY 2025.

Morgan Stanley set a buy rating on Macquarie shares with a price target of $215 per share. At the current share price of $196.30, this represents a potential 10% upside.

According to CommSec, the consensus of broker ratings is a moderate buy on Macquarie shares. While 6 have it as a buy, 6 also have it as a hold, with 2 rating the stock as a sell at the time of writing.

Potential competitive advantage

Macquarie sets itself apart from other Australian banks through its diversified services. It operates in investment, asset management, commodities, and infrastructure.

In my view, this broad exposure gives Macquarie more recession-proof earnings compared to banks solely reliant on their net interest margins (NIMs).

The bank’s current price-to-earnings (P/E) ratio is 21 times, meaning investors are paying $21 for every $1 of its earnings. This does not include dividends.

Meanwhile, they are paying around $18 for every $1 of the iShares Core S&P/ASX 200 ETF (ASX: IOZ). Perhaps investors are paying more because they expect more. We shall find out.

The post Macquarie shares have 10% upside: Morgan Stanley appeared first on The Motley Fool Australia.

More reading

• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)
• 3 high-quality ASX 200 shares to buy forever
• Analysts say these 5 ASX 200 growth shares are top buys
• Top ASX shares to buy in June and hold for retirement
• Is Macquarie the best ASX bank stock for you?

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 positions in and has recommended 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.