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The Westpac Banking Corp (ASX: WBC) share price was out of form on Wednesday.

The banking giant’s shares ended the day over 1% lower at $21.75.

Where next for the Westpac share price?

The good news is that the team at Goldman Sachs believe the Westpac share price could be heading a lot higher from current levels.

According to a note from earlier this week, the broker has upgraded the bank’s shares to a conviction buy rating with a $26.12 price target.

Based on the current Westpac share price, this implies potential upside of 20% for investors over the next 12 months.

In addition, the broker is forecasting fully franked dividends per share of 123 cents in FY 2022 and 135 in FY 2023. This represents yields of 5.65% and 6.2% respectively, which brings the total potential 12-month return to over 25%.

What did the broker say?

Goldman’s bullish view on the Westpac share price is predicated on its belief that the bank is well-placed to benefit from rising rates. It explained:

WBC provides strong leverage to rising rates and will particularly benefit from the relative lack of domestic deposit repricing that we have seen to date post recent rates cash rate rises. Furthermore, its shorter-dated replicating portfolio (three-years for deposits versus five-years for peers), will also see the benefit of higher rates play through its NIM quicker than peers.

And while the broker isn’t convinced that Westpac can achieve its bold cost reduction targets, it still expects a decent reduction. It said:

While we now expect the inflationary environment will make WBC’s A$8 bn expense target by FY24E unachievable, our like-for-like FY24E expense forecast of c. A$8.9 bn still implies an 18% reduction in reported expenses versus 1H22A annualised, and a 7% reduction in expenses, excluding large/notable items and the impact of potential asset sales, with some ground already made since the strategy’s launch in May-21.

In light of the above, the broker believes “WBC now offers the most upside of the banks over the next 12 months.”

The post Broker says Westpac share price ‘offers the most upside of the banks’ appeared first on The Motley Fool Australia.

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More reading

• How are ASX 200 bank shares responding to the RBA rate increase?
• 5 things to watch on the ASX 200 on Tuesday
• Will the RBA increase rates today?
• Leading brokers name 3 ASX shares to buy today
• Why is the Westpac share price outperforming the other ASX 200 banks on Monday?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) bank shares initially charged higher after the Reserve Bank of Australia (RBA) announced its latest interest rate hike at 2:30pm AEST yesterday, with most of the big bank stocks outperforming the index.

As you’re likely aware, the central bank lifted the official cash rate by another 0.50% yesterday. That marked the fourth month in a row of rate increases, bringing Australia’s official cash rate to 1.85%.

Before the RBA moved to raise rates from the all-time lows of 0.1% in May, the bank had not tightened its monetary policies in more than 10 years. And according to RBA governor Philip Lowe, we can expect more tightening in the months ahead.

Here’s how the ASX 200 bank shares responded.

ASX 200 bank shares charge higher…at first

The RBA’s rate hike decision hit the markets at 2:30pm AEST.

In the hour after the RBA’s statement, the ASX 200 shot up 0.5%. The index finished the day up 0.4% from the time of the announcement. The benchmark index closed 0.32% lower on Wednesday.

As for the ASX 200 bank shares, the Commonwealth Bank of Australia (ASX: CBA) share price initially jumped 0.4% on the news and finished up a slender 0.04% in the 90 minutes following the RBA’s report. The CBA share price closed 1.47% lower today.

Westpac Banking Corp (ASX: WBC) shares leapt 0.6% on the news and managed to hold those gains, closing 0.6% from the level they were trading at when the RBA news hit the wires. Westpac shares finished down 1.6% today.

National Australia Bank Ltd (ASX: NAB) followed a similar trend, first jumping 0.7% and then giving back some of those gains to close up 0.4% from the time of the announcement. NAB shares ended Wednesday’s session down 0.58%.

As for Australia and New Zealand Banking Group Ltd (ASX: ANZ), the ASX 200 bank gained 0.6% on the news of the RBA rate hike and closed up 0.2% from the time of that news. ANZ finished the day down 0.44%.

Headwinds and tailwinds from rising rates

As interest rates rise from historic lows, this presents opportunities and threats for the ASX 200 bank shares.

The biggest threat stems from a potential steep fall in the banks’ lucrative mortgage lending sector, as well as the chance that if rates rise steeply and quickly the banks could see a sizeable increase in bad debts.

The biggest opportunity lies in the banks’ abilities to increase their net interest margins (NIM) and boost profitability on their loans.

Out of the ASX 200 bank shares, JP Morgan reports that CBA is “most leveraged to a rising cash rate”, enabling it to squeeze the most out of increased NIM as rates go higher.

However, the broker also notes that CBA is trading at a significantly higher price to earnings (P/E) ratio than its peers.

The post How are ASX 200 bank shares responding to the RBA rate increase? appeared first on The Motley Fool Australia.

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More reading

• Up 10% in a month, is the CBA share price now fully valued?
• Here’s the CBA dividend forecast through to 2024
• 5 things to watch on the ASX 200 on Tuesday
• Will the RBA increase rates today?
• Leading brokers name 3 ASX shares to buy 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 recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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July was a top month for the S&P/ASX 200 Index (ASX: XJO) and many ASX 200 shares. Over the month just gone, the ASX 200 managed an increase of 5.7%. It was a similarly successful time for the Woolworths Group Ltd (ASX: WOW) share price as well.

Woolworths shares started July at a price of $35.60. But by the end of last week, the ASX 200 grocer had risen to $37.52 a share. That’s a gain worth 5.4%. Not quite as pleasing a gain as the ASX 200’s return, but certainly nothing one could arguably turn their nose up to.

After July, the Woolworths share price has now recorded a loss of close to 1% for the 2022 year to date. It’s also down by 2.77% over the past 12 months.

In contrast, the ASX 200 has performed even worse over these periods. The index is now down by 8.12% over 2022 so far, and down 6.7% over the past year. So that makes Woolies shares look pretty good.

But what of the future? What’s in store for the Woolworths share price over the next 12 months?

Is the Woolworths share price a buy today?

Well, analysts are rather united in their views of Woolies’ immediate future.

Earlier this week, my Fool colleague Brooke went through the current buy rating that ASX broker Citi has on Woolworths shares right now. The broker has a 12-month share price target of $42.50 on the company. This would represent an upside of 11.6% if it turns out to be accurate.

Citi reckons rising inflation will help Woolworths boost sales growth:

While the supermarkets have outperformed in recent months and are well held, we expect earnings upgrades could drive them further towards our revised target prices.

But Citi isn’t the only broker expecting big things from the Woolworths share price over the coming year.

As we also looked into last week, another ASX broker in Goldman Sachs is also bullish on Woolies today. Goldman also has a buy rating on the supermarket operator, with a share price target of $40.50. 

Goldman also likes how Woolworths is positioned today. It’s expecting both sales and earnings to grow significantly over the next two financial years “driven by effective cost-price pass through and additional mix improvement with relatively stable volume growth”.

This broker is also expecting this will enable Woolworths to lift its dividends to $1.18 per share by the end of FY2023.

So all in all, a very confident outlook for the Woolworths share price from these two ASX brokers. We’ll have to wait and see which one (or if either) proves correct with their expectations. But no doubt investors will be glad to hear these views.

At market close on Wednesday, this ASX 200 consumer staples share had a market capitalisation of $46.856 billion, with a dividend yield of 2.60%. 

The post The Woolworths share price leapt 5% in July, what’s in store now? appeared first on The Motley Fool Australia.

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More reading

• Does rising inflation put the Woolworths share price in the buy zone right now?
• Have Woolworths shares been a market-beating investment over the past 5 years?
• Broker names 2 ASX dividend shares to buy next week
• Own Woolworths shares? Here’s what a top broker is saying about its latest acquisition
• Why the Woolworths share price will be on watch today

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 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.

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The S&P/ASX 200 Index (ASX: XJO) broke a six-session-long winning streak on Wednesday, closing in the red for the first time since last Monday. The index was 0.32% lower at 6,975.90 points as of today’s close.

Consumer shares were today’s worst performers, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) and the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) falling 1.2% and 0.9% respectively.

ASX 200 banks also had a shocking day after the Reserve Bank of Australia upped interest rates for a fourth consecutive month yesterday.

It wasn’t all bad though. The S&P/ASX 200 Information Technology Index (ASX: XIJ) lifted 2.2% today despite a disappointing session on Wall Street overnight.

The Nasdaq Composite Index (NASDAQ: .IXIC) sunk 0.2% in Tuesday’s session while the Dow Jones Industrial Average Index (DJX: .DJI) fell 1.2% and the dropped S&P 500 Index (SP: .INX) 0.7%.

At the end of Wednesday’s session, two of the ASX 200’s 11 sectors were recording gains.

But which share took out the top spot among the market’s biggest names? Keep reading to find out.

Top 10 ASX 200 shares countdown

Today’s best-performing ASX 200 share was Pinnacle Investment Management Group Ltd (ASX: PNI).

The financials stock has been on a roll lately, gaining more than 50% over the last 30 days. Find out what the company’s been up to here.

Today’s biggest gains were made by these ASX shares:

ASX-listed company	Share price	Price change
Pinnacle Investment Management Group Ltd (ASX: PNI)	$11.30	12.21%
Lake Resources NL (ASX: LKE)	$0.89	10.56%
Zip Co Ltd (ASX: ZIP)	$1.325	8.61%
Novonix Ltd (ASX: NVX)	$2.71	8.4%
Lynas Rare Earths Ltd (ASX: LYC)	$9.55	7.55%
EML Payments Ltd (ASX: EML)	$1.075	6.97%
Brainchip Holdings Ltd (ASX: BRN)	$1.11	6.73%
Chalice Mining Ltd (ASX: CHN)	$4.93	6.25%
United Malt Group Ltd (ASX: UMG)	$3.02	5.96%
Megaport Ltd (ASX: MP1)	$8.70	5.84%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown

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

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More reading

• Why are ASX lithium shares having such a top run on Wednesday?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why BWP, Lynas, Pilbara Minerals, and Pinnacle shares are charging higher
• Why is the Sezzle share price surging 8% on Wednesday?
• Up 10%, what’s going on with the Zip share price today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments, MEGAPORT FPO, PINNACLE FPO, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended EML Payments and PINNACLE FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Aussie Broadband Ltd (ASX: ABB)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and $4.80 price target on this broadband provider’s shares. While the broker appears slightly disappointed with a slowdown in residential connections, it believes this has been driven partly by one-off impacts. However, it was pleased with the integration of the OTW business. It feels this business will be key to diversifying Aussie Broadband’s earnings in the coming years thanks to its exposure to the enterprise market. The Aussie Broadband share price is trading at $3.15 on Wednesday.

BHP Group Ltd (ASX: BHP)

A note out of Citi reveals that its analysts have retained their buy rating and $44.50 price target on this mining giant’s shares. Citi is expecting iron ore prices to strengthen later this year as steel production rates in China are supported by policy easing. It also sees constrained iron ore supply as a positive for prices. The broker is expecting this to underpin a fully franked dividend yield of approximately 10% in FY 2023. The BHP share price fetching $35.58 this afternoon.

Qualitas Ltd (ASX: QAL)

Analysts at Goldman Sachs have retained their buy rating and lifted their price target on this real estate investment company’s shares to $3.20. This follows news that the company has received a major mandate from the Abu Dhabi Investment Authority. Goldman believes the mandate is a validation of the company’s leading product breadth and track record in Australian CRE private credit strategies. Outside this, the broker sees Qualitas as a way to gain attractive exposure to an emerging asset class. The Qualitas share price is trading at $2.32 on Wednesday.

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

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More reading

• Broker names 3 of the best ASX shares to buy in August
• Is the iron ore price entering a bear market?
• Why A2 Milk, Qualitas, Telix, and Ventia shares are pushing higher today
• Why did the BHP share price slump 6% in July when the ASX 200 leapt higher?
• Guess which ASX All Ordinaries share has rocketed 40% in 2 days?

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 Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Telstra Corporation Ltd (ASX: TLS) shares are trading sideways this afternoon after an update in relation to competition concerns.

The Australian Competition and Consumer Commission (ACCC) must have Telstra on speed dial at this point. Australia’s largest telecommunications network has been dealing with the corporate watchdog over a raft of matters. One such example is Telstra’s proposed acquisition of a majority stake in Fetch TV, which received the regulatory green light last month.

However, today’s news revolves around a ‘court-enforceable’ undertaking to level the playing field across the 5G network.

What are the consequences of not playing fair?

On Wednesday afternoon, the ACCC announced its acceptance of an undertaking to address actions taken by Telstra. These actions concern the all-important 5G network in Australia, a key growth pillar for telco operators.

According to the release, Telstra registered radiocommunications sites in the low band spectrum. Following an investigation, the corporate watchdog believes these registrations were made in a bid to impede Optus’ 5G rollout efforts.

The country’s corporate regulatory body came to this decision in part based on Telstra’s registration of 315 sites in the 900 MHz band after learning that Optus intended on applying for and utilising the 900 MHz band.

At the time of the undertaking, Telstra had deregistered 153 of the radiocommunications sites. However, Telstra will now need to deregister all remaining sites that would have constituted an obstacle to Optus’ rollout. Investors don’t appear to be pleased with the news, as Telstra shares dip lower today.

Commenting on the decision, ACCC commissioner Liza Carver stated:

Telstra’s undertaking will ensure Optus is not hindered from expanding its 5G rollout, giving more Australians access to a choice of 5G services in regional and metropolitan Australia. Telstra’s undertaking promptly addresses the ACCC’s competition concerns and stops the likely harm to competition and consumers quickly. It is an efficient and effective way to achieve a positive market outcome.

The outcome arrives while the verdict is still out on Telstra and TPG Telecom Ltd‘s (ASX: TPG) strategic tie-up.

Telstra shares in the spotlight

While the Telstra share price is in the red today, the company’s shares have faired reasonably well over the past year.

The S&P/ASX 200 Index (ASX: XJO) has slipped 6.7% over the past 12 months. Meanwhile, the telecom giant has served up an honourable 5.2% gain.

Oddly enough, this hasn’t coincided with an increase in earnings. Therefore, the increase in valuation has resulted in an expansion of the company’s price-to-earnings (P/E) ratio. At the present Telstra share price, the company trades on a 32.1 P/E.

The post ‘Competition is key’: Why Telstra shares are in the ACCC naughty corner today appeared first on The Motley Fool Australia.

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More reading

• Is the Telstra share price on the way back up?
• Top brokers name 3 ASX shares to buy next week
• Why this ASX 200 giant ‘looks attractive’ right now: expert
• Why is the Telstra share price lagging the ASX 200 on Thursday?
• Here are 2 ASX dividend shares to buy right now according to experts

Motley Fool contributor Mitchell Lawler 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 Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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One $17 million ASX share has leapt 20% on Wednesday on a new world-first. The AML3D Ltd (ASX: AL3) share price rocketed after the company announced it’s the world’s first wire additive manufacturing company to be endorsed by a certain leading accreditation society.

At the time of writing, the AML3D share price is leaping 19.23% higher on the ASX, trading for 9.3 cents. That’s after fetching up to 34% higher during intraday trading.

For comparison, the All Ordinaries Index (ASX: XAO) is currently down 0.19%.

Let’s take a closer look at the latest news from the metal additive manufacturer.

This tiny ASX share is leaping 20% on a world-first

Wednesday has proven a good one for this tiny ASX share. The AML3D share price is rocketing after leading marine and industrial classification society DNV gave the company its tick of approval.

The body has granted AML3D’s proprietary WAM advanced manufacturing technology an additive manufacturing facility accreditation.

The approval demonstrates the company’s WAM technology meets integrity and quality standards for critical components in the oil, gas, and marine industries.

The accreditation allows AML3D to produce parts for critical operations in such industries and issue ‘class certification’ for components.

That gives the company a significant competitive advantage. It makes it the only wire-feed manufacturer endorsed to supply such high-value parts to DNV’s global customer base. As such, it expands the company’s range of potential customers across various industries.

AML3D managing director Andrew Sales commented on the news driving the ASX share higher today:

DNV facility accreditation allows us further access into the marine markets for high value essential components.

DNV offers a broad range of customers including a heavy focus on oil and gas sector. [The sector is] a key growth target for AML3D.

This accreditation is a game changer for us.

The post ‘Game changer’: ASX share you’ve likely never heard of rockets 20% on world-first accreditation appeared first on The Motley Fool Australia.

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More reading

• ‘Competition is key’: Why Telstra shares are in the ACCC naughty corner today
• Why did the Paladin Energy share price rocket 28% in July?
• Why are ASX lithium shares having such a top run on Wednesday?
• Why Appen, ASX, Credit Corp, and Newcrest shares are dropping today
• How are ASX 200 gold shares reacting to the RBA rate hike?

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

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The Paladin Energy Ltd (ASX: PDN) share price continued to climb throughout July, outperforming the broader index.

For the month, the uranium producer’s shares soared by 28% after a couple of company announcements shifted investor sentiment.

In comparison, the S&P/ASX 200 Energy (ASX: XEJ) sector lagged in July but still ended in positive territory – up 6%.

Let’s take a look at what moved Paladin Energy shares last month.

What led Paladin Energy shares to power ahead?

After hitting a near year-to-date low of 56 cents on 13 June, the Paladin Energy share price turned its fortunes around.

This came on the back of a positive release by the company regarding the Langer Heinrich Mine located in Namibia.

Management made the decision to restart activities at the site due to the continuing strong uranium market fundamentals.

Paladin Energy is targeting production of uranium with first volumes for the March quarter of the 2024 calendar year.

When the news broke out, investors sent the company’s shares 2.36% lower because of a strong market sell-off.

However, the next day Paladin Energy shares roared 10.48% higher to 68.5 cents.

In addition, the company provided its June quarterly cash flow report on 26 July highlighting financial performance for the period.

Once again, the update excited investors and put the uranium producer’s shares on an upwards path until the end of July.

Over the last four days, its shares rose from a low of 62.3 cents to finish at 74 cents, up 18.7%.

According to ANZ Share Investing, a recent broker note by Bell Potter rated Paladin Energy at $1.05. Based on the current share price of 74 cents, this implies an upside of almost 42%.

Paladin Energy share price snapshot

With the uranium spot price rising to unprecedented levels, the Paladin Energy share price has accelerated by 45% in the past year.

Although its shares are down 16% in 2022. This is because of the extreme volatility that impacted the market earlier on.

Paladin Energy presides a market capitalisation of roughly $2.14 billion.

The post Why did the Paladin Energy share price rocket 28% in July? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Paladin Energy share price lights up on uranium project restart
• Here are the top 10 ASX shares today
• What is driving the Paladin Energy share price 7% higher today?
• Will ASX uranium shares be market-beaters in FY23?

Motley Fool contributor Aaron Teboneras has positions in Paladin Energy Ltd. 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.

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ASX lithium shares are steaming ahead on the market today.

Lithium companies in the green include Ioneer Ltd (ASX: INR), Global Lithium Resources Ltd (GL1) and Lake Resources NL (ASX: LKE). Piedmont Lithium Inc (ASX: PLL) and Pilbara Minerals Ltd (ASX: PLS) shares are also ahead. In comparison, the S&P/ASX 200 Materials Index (ASX: XMJ) is climbing just 0.39% today.

So what is going on with ASX lithium shares today?

Lithium price outlook promising

The Ioneer share price is rising 9.43% today, while Global Lithium shares are lifting 7.86%. Meanwhile, Lake Resources shares have leapt 8.08%, Piedmont Lithium shares are ascending 6.4% and the Pilbara share price is rising 2%.

News out of Livent Corp (NYSE: LTHM) in the United States could be providing investors with confidence. The company reported record financial results in the second quarter of 2022 and higher lithium prices. Revenue exploded 114% compared to the prior year, while earnings before interest, tax, depreciation, and amortisation (EBITDA) was six times higher.

CEO Paul Graves said:

Lithium demand was exceptionally strong through the first half of 2022. Published lithium prices in all forms moved higher in the second quarter amid tight market conditions. We continue to achieve higher realised prices across our entire product portfolio.

Further, the company signed a six-year supply agreement with General Motors Company (NYSE: GM) including a $198 million advanced payment. Livent shares lifted 6.84% in the US on Tuesday. Lithium is a critical component of electric vehicle batteries.

Closer to home, Pilbara Minerals has also reported today the price of lithium remains strong. Spodumene prices are reaching more than US$5,000 per tonne, as my Foolish colleague Zach reported today. Pilbara highlighted the lithium deficit could grow by 1.8 million tonnes.

Pilbara also released results of its latest auction on the Battery Material Exchange (BMX) today, as my Foolish colleague James reported. The company accepted the highest bid of US$6,350 per dry metric tonne (dmt), after receiving 67 bids online within 30 minutes.

Global Lithium also reported that “exponential take up of EVs” is causing lithium supply shortages in a presentation to the Diggers and Dealers Mining Forum.

The company reported that the “lithium market [is] surging [with] spodumene concentrate prices up +700% year on year”.

The post Why are ASX lithium shares having such a top run on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why BWP, Lynas, Pilbara Minerals, and Pinnacle shares are charging higher
• Pilbara Minerals share price dips despite upbeat lithium outlook
• Pilbara Minerals share price on watch following lithium auction price update
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

Motley Fool contributor Monica O’Shea 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.

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The S&P/ASX 200 Index (ASX: XJO) has dropped into the red on Wednesday. In late trade, the benchmark index is down 0.35% to 6,973.4 points.

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

Appen Ltd (ASX: APX)

The Appen share price has dropped a further 1.5% to $4.08. This artificial intelligence data services company’s shares have been sold off this week following a very disappointing trading update. Appen is expecting to report a 69% decline in half-year underlying EBITDA to $8.5 million due to softer digital advertising demand and a resultant slowdown in spending by some of its large customers. This morning Macquarie downgraded Appen’s shares to an underperform rating with a lowly $3.50 price target.

ASX Ltd (ASX: ASX)

The ASX share price is down 3.5% to $87.30. Investors have been selling this stock exchange operator’s shares after the release of a disappointing update on its CHESS replacement project. ASX is now expecting the system to go live in late 2024.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price is down 2% to $22.58. This could have been driven by a broker note out of Morgans this morning. While the broker has retained its add rating, it has slashed its price target by over 20% to $26.80. Morgans was disappointed with Credit Corp’s guidance for FY 2023 but sees enough value in its shares to retain its add rating.

Newcrest Mining Ltd (ASX: NCM)

The Newcrest share price is down 2.5% to $19.04. This gold miner’s shares have come under pressure after the price of the precious metal dropped overnight. But it isn’t just Newcrest that is falling. The S&P/ASX All Ords Gold index is down 0.75% in afternoon trade on Wednesday.

The post Why Appen, ASX, Credit Corp, and Newcrest shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• How are ASX 200 gold shares reacting to the RBA rate hike?
• When were insiders last buying up Appen shares?
• ASX share price sinks as CHESS replacement delayed
• Why Appen, Credit Corp, Fortescue, and Santos shares are dropping
• Appen share price sinks 25% as earnings tank amid uncertain outlook

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 Appen 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 Scott Phillips.

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